Slide 1: Supplemental Slides Year End 2023 Results
SUPPLEMENTAL SLIDES YEAR END 2023 RESULTS February 21, 2024 NiSource | NYSE: NI | nisource.com |
Slide 2: Legal Disclaimer
Legal Disclaimer 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"). Investors
Slide 3: NiSource Value Proposition Driving Sustainable Growth
NISOURCE VALUE PROPOSITION DRIVING SUSTAINABLE GROWTH 6%-8% 8%-10% Annual Annual 2023-2028 Rate NOEPS(1) Growth Base Growth(4) 2023-2028 14%-16% 60%-70% Annual FFO/ Dividend Payout Ratio Debt(1) Target Target Through 2028 $18.8B $16B YE 2023 Regulated Base Plan Capex 10-12% Electric and Gas Rate 202
Slide 4: Key Priorities
KEY PRIORITIES • Resilient Financial Commitments – Achieved 2023 non-GAAP NOEPS(1) of $1.60 versus upper half of $1.54-$1.60 guidance – Raising 2024 non-GAAP NOEPS guidance to $1.70-1.74 from $1.68-1.72 – Reaffirming 6-8% annual 2023-2028 non-GAAP NOEPS growth – $16 billion 2024-2028 base plan capit
Slide 5: Sustainable Investment Opportunities for Customers and Communities
SUSTAINABLE INVESTMENT OPPORTUNITIES FOR CUSTOMERS AND COMMUNITIES $ in Billions $3.3 - $3.2 - $3.5B $3.5B $3.5 $2.9 - $2.9 - $2.9 - $3.2B $3.2B $3.2B $3.0 $2.5 $2.0 $1.5 $1.0 $0.5 $- 2024E 2025E 2026E 2027E 2028E Growth (Within 0-3 Months) Tracker (Within 0-18 Months) Maintenance (Periodic Rate Cas
Slide 6: Superior Regulatory and Stakeholder Foundation
SUPERIOR REGULATORY AND STAKEHOLDER FOUNDATION 2021 2022 2023 2024 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Settled Approved Rate Case Filed +$292M In Rates NIPSCO Electric TDSIC 8 TDSIC 9 TDSIC 1 Trackers TDSIC 2 +$7M Approved Approved Approved Settled Approved Step 2 Filed Rate Case Filed +$72 Step 1 R
Slide 7: Operational Excellence
OPERATIONAL EXCELLENCE Prioritizes Safety, Assures Predictable, Reliable Operations and a Culture of Continuous Improvement SAFETY RELIABILITY Gas and Electric Probabilistic Risk Modeling being Work and Asset Management System standardizing work, used to maximize risk reduction in our work plans sys
Slide 8: Robust Renewable Investments in Indiana
ROBUST RENEWABLE INVESTMENTS IN INDIANA NIPSCO Ownership Dunns Bridge II Solar + Storage: 435 MW+75 MW BTA Projects In-Service Investment Status (1) Structure ($M) Dunns Bridge I Solar: 265 MW Rosewater Wind 2020 Tax Equity JV Carpenter Wind PPA: 200 MW Indiana Crossroads Wind 2021 Tax Equity JV Dun
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: Fourth Quarter & YTD Consolidated Financial Results
FOURTH QUARTER & YTD CONSOLIDATED FINANCIAL RESULTS FOURTH QUARTER YTD GAAP Change Change 2023 2022 Fav/(Unfav) 2023 2022 Fav/(Unfav) Net Income Available to Common Shareholders $225.6 $230.8 $(5.2) $661.7 $749.0 $(87.3) ($ in Millions) Diluted Earnings Per Share $0.50 $0.52 $(0.02) $1.48 $1.70 $(0.
Slide 11: Fourth Quarter Segment Non-GAAP Results
FOURTH QUARTER SEGMENT NON-GAAP* RESULTS NET OPERATING EARNINGS(1) FOURTH QUARTER YTD ($ Millions) CHANGE CHANGE 2023 2022 FAV/(UNFAV) 2023 2022 FAV/(UNFAV) Gas Distribution $ 302.6 $ 287.6 $ 15.0 $ 953.6 $ 805.2 $ 148.4 Electric Operations $ 169.6 $ 167.5 $ 2.1 $ 387.6 $ 354.4 $ 33.2 Corporate & Ot
Slide 12: NiSource Debt and Credit Profile
NISOURCE DEBT AND CREDIT PROFILE • Debt level: ~$14.1B as of December 31, 2023 – ~$11.1B of long-term debt Total Debt / Total Capitalization • Weighted average maturity ~12 years • Weighted average interest rate of 3.93% 62.5% – ~$3.0B of short-term debt 57.4% 58.9% 58.2% • $1.7B term loans • ~$1.1B
Slide 13: Long-Term Financial Commitments
LONG-TERM FINANCIAL COMMITTMENTS Base 5-Year Plan • Annual non-GAAP NOEPS(1) growth rate of 6-8% 2023-2028 • Annual rate base(2) growth rate of 8-10% 2023-2028 • Annual average customer bill(3) < 4% growth 2023- 2028 • Continued commitment to 14-16% FFO/Debt(4) annually through 2028 Capital Expendit
Slide 14: Balance Sheet Provides Flexible Financing Plan to Invest in Growth
BALANCE SHEET PROVIDES FLEXIBLE FINANCING PLAN TO INVEST IN GROWTH $16B CAPITAL INVESTMENT FUNDING SOURCES (2024-2028) TARGETING ANNUAL 2024-2028 FFO/Debt(1) 14-16% Net New (5) Debt • Base Capital Plan includes up to $600 million of equity via 25-30% ATM in 2024 and $200-300 million of annual total
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 $1.60 Deliver 6-8% Annual NOEPS 2024 $1.37 $1.70-$1.74 (GROWTH) (+7%) (+9%) Growth Guidance Raised 10-12% Total Shareholder DIVIDEND $0.94 $1.00 $1.06 $0.88 Return(3) On tra
Slide 16: Consistent Execution Drives Sustainable NOEPS Growth
CONSISTENT EXECUTION DRIVES SUSTAINABLE NOEPS GROWTH Achieving High End of Earnings Guidance Rebases Future Growth Upwards An Established Track Record of Achieving Projected Future Guidance Rebases Upwards NOEPS(2) Results Top Decile Historical NOEPS Growth Off Actual Results 2021-2023 Non-GAAP Adju
Slide 17: Appendix
Appendix YEAR END 2023 RESULTS NiSource | NYSE: NI | nisource.com |
Slide 18: 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 $2.9 - 3.2 Capital expenditures include 100% of NIPSCO Figures excl
Slide 19: Delivering Top Quartile ESG Performance
DELIVERING TOP QUARTILE ESG PERFORMANCE Executing Amid Changing Industry and Economic Landscape Environmental Highlights Social Highlights • Industry Leading Carbon Reduction • Publicly and Transparently Reporting on Our Sustainability Efforts – Net zero goal for Scope 1 and 2 greenhouse gas (“GHG”)
Slide 20: Safety and Infrastructure Investment and Tracker Filings
SAFETY AND INFRASTRUCTURE INVESTMENT AND TRACKER FILINGS INCREMENTAL INVESTMENTS RECOVERY COMPANY MECHANISM PERIOD AMOUNT ($M) EFFECTIVE DATE Infrastructure Replacement Program (IRP) FY 2022 $316 May 2023 Columbia Gas of Ohio Capital Expenditure Program (CEP) FY 2022 $265 Sep 2023 Columbia Gas of FY
Slide 21: Investment by Operating Company
INVESTMENT BY OPERATING COMPANY YEAR-END 2023 RATE LAST AUTHORIZED COMPANY BASE ROE(1) Columbia Gas of Kentucky $524M 9.35% Columbia Gas of Maryland $246M N/A Columbia Gas of Ohio $4.7B 9.60% Columbia Gas of Pennsylvania $3.0B N/A Columbia Gas of Virginia $1.2B N/A NIPSCO – Gas $2.7B(2) 9.85% NIPSCO
Slide 22: Schedule 1 - Reconciliation of Consolidated Net Income to Net Operating Earnings
NiSource Inc. Schedule 1 - Reconciliation of Consolidated Net Income Available to Common Shareholders to Net Operating Earnings Available to Common Shareholders (Non-GAAP) (unaudited) GAAP 2023 over 2021 CAGR 7.9% Non-GAAP 2023 over 2021 CAGR 8.1% 22 NiSource | NYSE: NI | nisource.com |
Slide 23: Schedule 2 - Reconciliation by Segment
NiSource Inc. Schedule 2 - Reconciliation by Segment of Operating Revenues, Expenses (Benefits), and Income (Loss) (GAAP) to Operating Revenues, Expenses, and Income (Loss) (Non-GAAP) (unaudited) See footnote descriptions contained with Schedule 1 23 NiSource | NYSE: NI | nisource.com |
Slide 24: Schedule 2 - Reconciliation by Segment
NiSource Inc. Schedule 2 - Reconciliation by Segment of Operating Revenues, Expenses (Benefits), and Income (Loss) (GAAP) to Operating Revenues, Expenses, and Income (Loss) (Non-GAAP) (unaudited) See footnote descriptions contained with Schedule 1 24 NiSource | NYSE: NI | nisource.com |
Slide 25: Annual FFO/Debt Reconciliation
NiSource Inc. Schedule 3 - Reconciliation by of Net Cash Flows from Operating Activities to FFO to Debt (Adjusted) (Non-GAAP) (unaudited) Annual FFO/Debt Reconciliation ($ in millions) 2023 2022 2021 Net Cash Flows from Operating Activities 1,935 1,409 1,218 - Accounts receivable 184 (216) (40) - In