Slide 1: Supplemental Slides 3Q 2023 Results
SUPPLEMENTAL SLIDES 3Q 2023 RESULTS November 1, 2023 NiSource | NYSE: NI | nisource.com |
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS This presentation contains "forward-looking statements," within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). Forward-looking statements
Slide 3: NiSource Value Proposition Driving Sustainable Growth
NISOURCE VALUE PROPOSITION DRIVING SUSTAINABLE GROWTH 6%-8% 8%-10% Annual Annual 2023-2028 Rate NOEPS1 Growth Base Growth4 2023-2028 14%-16% 60%-70% Annual FFO/ Dividend Payout Ratio Debt Target Through Target 20281 $16.6B $16B YE 2022 Regulated Base Plan Capex 10-12% Electric and Gas Rate 2024-2028
Slide 4: Key Priorities
KEY PRIORITIES • Resilient Financial Commitments – Reiterating upper half of 2023 non-GAAP NOEPS1 of $1.54-$1.60 and initiating 2024 guidance of $1.68-1.72 – Extending 6-8% annual non-GAAP NOEPS1 growth to 2023-28 – $16 billion 2024-2028 base plan capital expenditures support 8%-10% annual 2023-2028
Slide 5: Sustainable Investment Opportunities for Customers and Communities
SUSTAINABLE INVESTMENT OPPORTUNITIES FOR CUSTOMERS AND COMMUNITIES $ in millions $3.3 - $3.2 - $3.5B $3.5B $3,500 $2.9 - $2.9 - $2.9 - $3.2B $3.2B $3.2B $3,000 $2,500 $2,000 $1,500 $1,000 $500 $- 2024E 2025E 2026E 2027E 2028E Growth (Within 0-3 Months) Tracker (Within 0-18 Months) Maintenance (Perio
Slide 6: Superior Regulatory and Stakeholder Foundation
SUPERIOR REGULATORY AND STAKEHOLDER FOUNDATION 2021 2022 2023 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Settled Approved Rate Case Filed NIPSCO +$292M In Rates Electric Trackers TDSIC 7 TDSIC 8 TDSIC 9 TDSIC 1 TDSIC 2 TDSIC 3 Approved Approved Approved Approved +$6.6M +$21.2M Settled Approved Step 2 Filed
Slide 7: Operational Excellence
OPERATIONAL EXCELLENCE Prioritizes Safety, Assures Predictable, Reliable Operations and a Culture of Continuous Improvement SAFETY RELIABILITY Gas and Electric Probabilistic Risk Modeling being Work and Asset Management System standardizing work, used to maximize risk reduction in our work plans sys
Slide 8: Robust Renewable Investments in Indiana
ROBUST RENEWABLE INVESTMENTS IN INDIANA Estimated NIPSCO Investment Dunns Bridge II Solar + Storage: 435 MW+75 MW BTA Projects Status In-Service ($M) Dunns Bridge I Solar: 265 MW Rosewater Wind 2020 Carpenter Wind PPA: 200 MW Indiana Crossroads Wind 2021 Dunns Bridge I Solar 2023 ~$1,000 Complete In
Slide 9: Additional Investment Opportunities for NiSource
Additional Investment Opportunities for NiSource Near-Term (Through 2028) Longer-Term (2028+) ~$2B Upside Opportunity Not Included In Base Plan Investment opportunities that can enhance our Longer-Term investment themes beyond our current financial plan current financial plan • Increased ownership o
Slide 10: Third Quarter & YTD Consolidated Financial Results
THIRD QUARTER & YTD CONSOLIDATED FINANCIAL RESULTS THIRD QUARTER YTD GAAP Change Change 2023 2022 Fav/(Unfav) 2023 2022 Fav/(Unfav) Net Income Available to Common Shareholders $77.0 $52.0 $25.0 $436.1 $518.2 $(82.1) ($ in Millions) Diluted Earnings Per Share $0.17 $0.12 $0.05 $0.98 $1.18 $(0.20) THI
Slide 11: Third Quarter Segment Non-GAAP Results
THIRD QUARTER SEGMENT NON-GAAP* RESULTS NET OPERATING EARNINGS THIRD QUARTER YTD ($ Millions) CHANGE CHANGE 2023 2022 FAV/(UNFAV) 2023 2022 FAV/(UNFAV) Gas Distribution $ 53.0 $ 32.1 $ 20.9 $ 651.0 $ 517.6 $ 133.4 Electric Operations $ 184.0 $ 114.8 $ 69.2 $ 318.0 $ 286.9 $ 31.1 Corporate & Other $
Slide 12: NiSource Debt and Credit Profile
NISOURCE DEBT AND CREDIT PROFILE • Debt level: ~$13.3B as of September 30, 2023 Total Debt / Total Capitalization – ~$11.0B of long-term debt • Weighted average maturity ~12 years 62.5% 62.5% 63.1% • Weighted average interest rate of 3.93% 58.9% 59.1% 57.4% – ~$2.2B of short-term debt • $1.0B term l
Slide 13: Extend Financial Commitments
EXTEND FINANCIAL COMMITTMENTS Extended Base 5 Year Plan • Annual non-GAAP NOEPS1 growth of 6-8% 2023- 2028 • 8-10% annual 2023-28 rate base2 growth • Customer bill < 4% average annual 2023-2028 growth3 • Continued commitment to 14-16% FFO/Debt4 annually through 2028 Capital Expenditures November 202
Slide 14: Strengthened Balance Sheet Provides Flexible Financing Plan
STRENGTHENED BALANCE SHEET PROVIDES FLEXIBLE FINANCING PLAN TO INVEST IN GROWTH $16B CAPITAL INVESTMENT FUNDING SOURCES1 (2024-2028) Minority Interest Sale TARGETING ANNUAL (YE 2023) FFO/Debt2 14-16% ~15% • Base Capital Plan assumes $200-300 million of annual total equity raised via ATM from 2025-20
Slide 15: Building on Our Track Record of Execution and Growth
BUILDING ON OUR TRACK RECORD OF EXECUTION AND GROWTH 2021 2022 2023 2024 2025 2026 2027 2028 PROGRESS On track NOEPS 1 $1.47 Deliver 6-8% Annual NOEPS 2023 $1.37 $1.54-$1.60 $1.68-$1.72 (GROWTH) (+7.3%) Growth Guidance Raised 2X DIVIDEND $0.94 $1.00 10-12% Total Shareholder Return2 $0.88 On track (A
Slide 16: Appendix
Appendix 3Q 2023 RESULTS NiSource | NYSE: NI | nisource.com |
Slide 17: Base Plan Capital Expenditures
BASE PLAN CAPITAL EXPENDITURES Capital Plan by Segment $ in billions 2024 2025 2026 2027 2028 ELECTRIC 1.5 1.4 - 1.6 1.0 - 1.1 0.8 0.8 GAS 1.9 1.7 - 1.9 1.9 - 2.1 2.2 - 2.4 2.2 - 2.4 TOTAL $3.3 - 3.5 $3.2 - 3.5 $2.9 - 3.2 $2.9 - 3.2 $2.9 - 3.2 • Capital expenditures include 100% of NIPSCO • Figures
Slide 18: Northern Indiana Public Service Company (NIPSCO Electric)
NORTHERN INDIANA PUBLIC SERVICE COMPANY (NIPSCO ELECTRIC) Regulatory Landscape Business Profile • TDSIC recovers new or replacement projects for safety, reliability and system modernization; • Design of Rate 531 (former 831) insulates NIPSCO from potential year-to-year variability • 490K Customers •
Slide 19: Columbia Gas of Ohio (COH)
COLUMBIA GAS OF OHIO (COH) Regulatory Landscape Business Profile • Fully tracked annual Infrastructure Replacement Program (IRP) and Capital Expenditure Program (CEP) • 1.5M Customers • 0.7% Annual Customer • Public policy provides tools supporting investment for economic development and deferral of
Slide 20: Columbia Gas of Pennsylvania (CPA)
COLUMBIA GAS OF PENNSYLVANIA (CPA) Business Profile Regulatory Landscape • Fully projected Future Test year allows for capital and expense recovery with zero lag • Authorized Weather Normalized Adjustment of residential bills during winter period stabilizes • 445K Customers • 0.6% Annual Customer re
Slide 21: Northern Indiana Public Service Company (NIPSCO Gas)
NORTHERN INDIANA PUBLIC SERVICE COMPANY (NIPSCO GAS) Regulatory Landscape Business Profile • TDSIC recovers new or replacement projects for safety, reliability and system modernization; semi-annual infrastructure tracker under TDSIC statute • FMCA offers capital and O&M semi-annual recovery for fede
Slide 22: Columbia Gas of Virginia (CVA)
COLUMBIA GAS OF VIRGINIA (CVA) Regulatory Landscape • Forward-looking annual modernization/safety infrastructure investment tracker filings Business Profile • Tracker filings supplemented by rate case filings with forward test year • 288K Customers • ~500 Employees Constructive Legislation • DIMP Ac
Slide 23: Columbia Gas of Kentucky (CKY)
COLUMBIA GAS OF KENTUCKY (CKY) Regulatory Landscape • SMRP allows for full cost recovery of eligible pipeline replacement/safety related initiatives via Business Profile forward looking test year • Commission has authorized economic development extension tariff for high potential sites • 138K Custom
Slide 24: Columbia Gas of Maryland (CMD)
COLUMBIA GAS OF MARYLAND (CMD) Regulatory Landscape Business Profile • Forward-looking annual infrastructure replacement and improvement surcharge (IRIS) recovers age and condition investment • 35K Customers • Revenue normalization enables full recovery of residential distribution revenue • ~70 Empl
Slide 25: Environmental, Social & Governance (ESG)
ENVIRONMENTAL, SOCIAL & GOVERNANCE (ESG) ENVIRONMENTAL SOCIAL GOVERNANCE • Expected to retire 100% of coal assets • Transformation focused on customer • Leadership enhancements support by 2028 and replace primarily with safety, reliability and affordability commitment to customer service and renewab
Slide 26: Safety and Infrastructure Investment and Tracker Filing Details
SAFETY AND INFRASTRUCTURE INVESTMENT AND TRACKER FILING DETAILS INCREMENTAL INVESTMENTS RECOVERY COMPANY MECHANISM PERIOD AMOUNT ($M) EFFECTIVE DATE FY 2021 $232.9 May 2022 Infrastructure Replacement Program (IRP) FY 2022 $316.3 May 2023 Columbia Gas of Ohio FY 2021 $253.5 Sep 2022 Capital Expenditu
Slide 27: Schedule 1A - Reconciliation of Net Income to Net Operating Earnings
NiSource Inc. Schedule 1A - Reconciliation of Consolidated Net Income Available to Common Shareholders to Net Operating Earnings Available to Common Shareholders (Non-GAAP) (unaudited) 27 NiSource | NYSE: NI | nisource.com |
Slide 28: Schedule 1B - Reconciliation of Net Income to Net Operating Earnings
NiSource Inc. Schedule 1B - Reconciliation of Consolidated Net Income Available to Common Shareholders to Net Operating Earnings Available to Common Shareholders (Non-GAAP) (unaudited) 28 NiSource | NYSE: NI | nisource.com |
Slide 29: Schedule 2 - Reconciliation by Segment
NiSource Inc. Schedule 2 - Reconciliation by Segment of Operating Revenues, Expenses (Benefits), and Income (Loss) (GAAP) to Operating Revenues, Expenses (Benefits), and Income (Loss) (Non-GAAP) (unaudited) See footnote descriptions contained with Schedule 1A 29 NiSource | NYSE: NI | nisource.com |
Slide 30: Schedule 2 - Reconciliation by Segment
NiSource Inc. Schedule 2 - Reconciliation by Segment of Operating Revenues, Expenses (Benefits), and Income (Loss) (GAAP) to Operating Revenues, Expenses (Benefits), and Income (Loss) (Non-GAAP) (unaudited) See footnote descriptions contained with Schedule 1A 30 NiSource | NYSE: NI | nisource.com |
Slide 31: Annual FFO/Debt Reconciliation
NiSource Inc. Schedule 3 - Reconciliation by of Net Cash Flows from Operating Activities to FFO to Debt (Adjusted) (Non-GAAP) (unaudited) Annual FFO/Debt Reconciliation ($ in millions) 2022 2021 Net Cash Flows from Operating Activities 1,409.4 1,217.9 Changes to Working Capital - Accounts Receivable