Slide 1: Supplemental Slides First Quarter 2018 Earnings
Supplemental Slides First Quarter 2018 Earnings May 2, 2018
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains forward-looking statements within the meaning of federal securities laws. Investors and prospective investors should understand that many factors govern whether any forward-looking statement contained herein will be or can be realized. Any one of
Slide 3: Key Takeaways – First Quarter 2018
Key Takeaways – First Quarter 2018 • Results on track with guidance range ▪ Net operating earnings per share (NOEPS)* of $0.77 versus $0.71 in 2017 ▪ On track to complete $1.7 to $1.8 billion of utility infrastructure investments this year • Disciplined execution of infrastructure programs, regulato
Slide 4: First Quarter 2018 Financial Highlights
First Quarter 2018 Financial Highlights Non-GAAP* 2018 2017 Change Net Operating Earnings ($M) $259.7 $230.6 $29.1 Net Operating Earnings Per Share $0.77 $0.71 $0.06 GAAP 2018 2017 Change Net Income ($M) $276.1 $211.3 $64.8 Earnings Per Share $0.82 $0.65 $0.17 Strong Results In-line with Guidance Ra
Slide 5: Financial Highlights - Consolidated (Non-GAAP)
First Quarter 2018 Financial Highlights - Consolidated (Non-GAAP)* Three Months Ended March 31 (In millions, except per share amounts) 2018 2017 Change Operating Revenues $ 1,752.2 $ 1,627.6 Cost of Sales (excluding depreciation and amortization) 724.4 552.3 Net Revenue (Non-GAAP) $ 1,027.8 $ 1,075.
Slide 6: Financial Highlights - Gas Distribution (Non-GAAP)
First Quarter 2018 Financial Highlights - Gas Distribution (Non-GAAP)* Three Months Ended March 31 (In millions) 2018 2017 Change Operating Revenues $ 1,329.1 $ 1,202.9 Cost of Sales (excluding depreciation and amortization) 591.8 436.2 Net Revenue (Non-GAAP) $ 737.3 $ 766.7 Operation and Maintenanc
Slide 7: Financial Highlights - Electric (Non-GAAP)
First Quarter 2018 Financial Highlights - Electric (Non-GAAP)* Three Months Ended March 31 (In millions) 2018 2017 Chang Operating Revenues $ 426.4 $ 427.8 Cost of Sales (excluding depreciation and amortization) 132.7 116.2 Net Revenue (Non-GAAP) $ 293.7 $ 311.6 Operation and Maintenance 126.2 137.3
Slide 8: NiSource Debt and Credit Profile
NiSource Debt and Credit Profile • Current debt level: ~$9.1B as of March 31, 2018 ▪ ~$7.4B of long-term debt ◦ Weighted average maturity ~18 years ◦ Weighted average interest rate of 4.8% • Solid liquidity position ▪ ~$2.4B of committed facilities in place as of March 31, 2018 ◦ ~$1.9B revolving cr
Slide 9: Financing Plan Update
Financing Plan Update NiSource Financing Plan 2017 2018 2019/2020 ($ in Millions) Actual Estimated Estimated Equity Common Equity Block None ~$600 None Planned Issuance $200 - $300 $200 - $300 ATM (At-The-Market) $315 (YTD $170) (Annually) $35 - $60 ESPP/401K/Other $61 $35 - $60 (Annually) Long-Term
Slide 10: Financing Plan Update
Financing Plan Update NiSource Adjusted FFO to Debt ($ in Millions) 2017 2018 2019/2020 Estimated Estimated Funds from Operations 2017 Adjusted FFO* $1,118 2018 Primary Cash Flow Impacts Tax Reform - Regulatory Trackers/Growth +++ Other Regulatory Filings/Outcomes ++ Business Initiatives/Cash Mgmt.
Slide 11: Gas Distribution Operations - First Quarter 2018
Gas Distribution Operations - First Quarter 2018 • Operating Earnings* $320.2M in 2018 vs. $361.9M in 2017 • Significant progress on regulatory initiatives across all states, inclusive of the impacts of federal tax reform • Ongoing infrastructure modernization on track and delivering further custome
Slide 12: Electric Operations - First Quarter 2018
Electric Operations - First Quarter 2018 • Operating Earnings* $86.0M in 2018 vs. $85.0M in 2017 • Continued execution of seven-year ~$1.25B electric system modernization program • Electric transmission projects on schedule, with expected in-service dates in mid-2018 • Construction underway on envir
Slide 13: Appendix
Appendix: First Quarter 2018 Earnings
Slide 14: Capital Expenditures
Capital Expenditures Investments Deliver Customer Value, Enhance System Safety and Reliability Estimated $1.7B - $1.8B $1.6B - $1.8B Recovery Period Annually Within 0-3 Months 16% 16% (Customer Growth/ Transmission) Within 0-12 Months (Modernization/ Environmental) 60% 59% Periodic Rate Cases (Maint
Slide 15: Liquidity and Debt Detail as of First Quarter 2018 ($M)
Liquidity and Debt Detail as of First Quarter 2018 ($M) Actual Current Liquidity Maturity 3/31/2018 Revolving Credit Facility $1,850 Nov. 28, 2021 Accounts Receivable Programs* 513 Less: Drawn on Credit Facility — Commercial Paper 1,054 Accounts Receivable Programs Utilized 513 L/C's Outstanding Und
Slide 16: Gas Distribution Operations Infrastructure Programs
Gas Distribution Operations Infrastructure Programs Estimated Base Case Year-End Total Modernization Recovery Annual Company Authorized 2017 Rate Identified Program Mechanism ROE Base Investments Modernization Investments Program Columbia Not Specified $2.5B ~$4.1B ~$3.4B $220M - $270M Tracked Gas o
Slide 17: Electric Operations Investment Programs
Electric Operations Investment Programs Infrastructure Investment Programs/Projects Estimated Identified Recovery Program/Project Program/Project Annual Investments Mechanism Length Investment Infrastructure ~$4.2B ~$135M - $235M Tracked 20+ Years Modernization Environmental ~$0.4B ~$10M - $90M Trac
Slide 18: Regulatory Update
Regulatory Update 2018 Rate Case and Program/Project Activity Company/Filing Summary Timeline Pending Approval Filed: 4/13/2018 Columbia Gas of Maryland - Base Rate Case Requested Increase: $6M Order Expected: 4Q2018 Filed: 4/13/2018 Columbia Gas of Massachusetts - Base Rate Case Requested Increase:
Slide 19: Infrastructure Investment Details
Infrastructure Investment Details Incremental Infrastructure Investments Recovery Recovery Company Filing Mechanism Investment Investment Effective Date Period Amount Date FY 2016 ~$236M Feb 2017 May 2017 Columbia Gas of Infrastructure Replacement Ohio Program (IRP) FY 2017 ~$207M Feb 2018 May 2018
Slide 20: 2017 Adjusted Funds From Operations (FFO) Reconciliation
2017 Adjusted Funds From Operations (FFO) Reconciliation Twelve Months Ended December 31 2017 (In millions) GAAP Net Income $ 129 Adjustments to Net Income Depreciation and Amortization 570 Loss on Extinguishment of Debt 112 Deferred Taxes 307 Adjusted Funds From Operations $ 1,118 20