Nisource Inc · NYSE:NI
Nisource — Edison Electric Institute Financial Conference 2021
22 slides from Nisource's conference presentation, November 2021
Slide 1: Edison Electric Institute Financial Conference
Edison Electric Institute Financial Conference November 2021 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"). Investors and prospective i
Slide 3: Key 3Q21 Earnings Takeaways
KEY 3Q21 EARNINGS TAKEAWAYS ◦ Updating/Reaffirming financial guidance commitments ▪ Targeting the top end of 2021 guidance range of $1.32 to $1.36 NOEPS* ▪ Initiating 2022 guidance of $1.42 to $1.48, consistent with 5-7% near-term growth commitment ▪ Long-term 7-9% NOEPS guidance through 2024 now ba
Slide 4: NiSource at a glance: regulated gas and electric utility
NiSource is a 100% regulated gas and electric utility serving customers across six Mid-Western centric states with a focus on safety and reliability. NiSource’s well-established history in a strong regulatory environment is expected to provide consistent earnings and strong cash flows alongside sust
Slide 5: Investment Highlights
INVESTMENT HIGHLIGHTS Key Financial Commitments / Stats Diverse Portfolio of Sustainable 1 Assets with Significant Renewable 7%-9% 10%-12% Investment Opportunities Projected NOEPS1 Expected Utility Rate CAGR 2021-2024 Base Growth CAGR Proven History of Consistent 5%-7% 2021-2024 2 Earnings and Rate-
Slide 6: Financial Overview
FINANCIAL OVERVIEW Diversified Business Mix Capital Investment Driving Growth Balanced Business Mix Diversified Revenue Mix Projected YE Rate Base ($ in billions) ~25% ~15% 10%-12% CAGR ~40 Commercial Industrial Electric $19.8 $21.2 Retail $17.0 $15.2 Operating Margins by Earnings Customer Class ~60
Slide 7: Robust Renewable Investments in Indiana
Robust Renewable INVESTMENTS in Indiana 2018 IRP drives utility customer value NIPSCO Target In Project Structure Investment ($M) Service Status Projects in Execution: Dunns Bridge I Solar JV: 265 Rosewater Wind JV ~$100 ’20 Complete Dunns Bridge II Solar + Storage JV: 435 + 75 Jordan Creek Wind PPA
Slide 8: 2021 Integrated Resource Planning Process Will Inform Generation Transition Timeline
2021 Integrated Resource Planning Process Will Inform Generation Transition Timeline IRP Process Key Milestones Timing • Kicked off Public Stakeholder Advisory March meetings and engagement 2021 IRP Preferred Plan • Issued “all-source” Request for May Proposal solicitation • The IRP Preferred Plan i
Slide 9: NIPSCO 2021 IRP October Meeting: Preferred Plan Points To Need For Retirement Timing
NIPSCO 2021 IRP October Meeting: Preferred Plan Points To Need For Retirement Timing and Replacement Resource Flexibility Evolving MISO Market rules changes and federal policy on emissions regulations are key drivers Retirement Of Michigan City 12 and Schahfer Replacement Resources 16AB ▪ Refine ret
Slide 10: NIPSCO 2021 IRP October Meeting: Supply Resource Plan And Timing
NIPSCO 2021 IRP October Meeting: Supply Resource Plan And Timing Near Term Mid Term Long Term Timing 2022-2025 2026-2028 2028 & Beyond • Complete and place in-service 12 remaining • Full implementation of transmission projects renewables projects filed with the IURC • Retire Schahfer Units 16A/B and
Slide 11: NIPSCO 2021 IRP October Meeting: Tranche Summary – Asset Sale Options
NIPSCO 2021 IRP October Meeting: Tranche Summary – Asset Sale Options Heat Rate First Eligible Asset Sale Tranche ICAP (MW) (Btu/kWh) Start Year** ($/kW) Solar A1 1,250 2025 $1,282 Solar A2 1,150 2025 $1,603 Solar + Storage A1 901:305^ 2024 $1,346 Solar + Storage A2 549:275^ 2025 $1,167 Storage A1 4
Slide 12: 2021E – 2024E Capital Forecast
2021E – 2024E CAPITAL FORECAST Investment opportunities expected to enhance system safety and reliability while driving shareholder value $3.4 - $3.7B Expected Investment Recovery Period Expected Renewable Generation $2.4 - $2.7B Investments of ~$2.0B Renewables (Rate Case Effective 2H/2023) ~$2.0B
Slide 13: 2021 - 2024 Financing Plan
2021 - 2024 FINANCING PLAN* Financing strategy targets long-term Adj. FFO/total debt** of ~14%-15% ($ millions) 2021E 2022E 2023E 2024E Current Financing Plan Planned Annual Safety & Modernization Investments • All financing is included in our long- Equity term growth ATM (At-the-Market) $200 - $300
Slide 14: Procurement Practices Help Mitigate Short-Term Gas Price Volatility
PROCUREMENT PRACTICES HELP MITIGATE SHORT-TERM GAS PRICE VOLATILITY Generally…residential & commercial gas utility bills are ~1/3 – 1/2 natural gas costs NiSource Residential & Commercial (R&C) Gas Customers Choice Participants/SCO Supply = NiSource Gas Procured Supply = ~50% of R&C Gas Customers (3
Slide 15: Gas Distribution Operations
GAS DISTRIBUTION OPERATIONS • ALJ order recommending settlement in Pennsylvania; Settlement reached in Kentucky; ALJ order received in Maryland; New NIPSCO gas case filed in September • Continuing to invest in infrastructure to enhance system safety, reliability and environmental performance HIGHLIG
Slide 16: Electric Operations
ELECTRIC OPERATIONS • 2021 IRP Preferred Plan advances plans for retirement of all coal-fired generation by 2026-2028 while shifting towards lower-cost, clean and reliable forms of generation • Regulatory approval for all 2018 IRP renewable projects HIGHLIGHT KEY COMPONENTS STATUS 2021 Integrated Re
Slide 17: Third Quarter & YTD Consolidated Financial Results
THIRD QUARTER & YTD CONSOLIDATED FINANCIAL RESULTS GAAP THIRD QUARTER YTD Change Change 2021 2020 2021 2020 Fav/(Unfav) Fav/(Unfav) Net Income (Loss) Available to Common Shareholders $49.4 $(186.7) $236.1 $377.6 $(143.4) $521.0 ($ in Millions) Diluted Earnings (Loss) Per Share $0.12 $(0.49) $0.61 $0
Slide 18: Safety and Infrastructure Programs
SAFETY AND INFRASTRUCTURE PROGRAMS MODERNIZATION ESTIMATED ANNUAL YEAR-END 2020 AUTHORIZED RECOVERY COMPANY PROGRAM MODERNIZATION RATE BASE PROGRAM ROE MECHANISM INVESTMENTS PROGRAM INVESTMENTS Columbia Gas of OH $3.5B 10.39% ~$10.6B $540M - $560M Tracked Rate Case (Forward Columbia Gas of PA $2.1B
Slide 19: Environmental, Social & Governance (ESG)
ENVIRONMENTAL, SOCIAL & GOVERNANCE (ESG) Environmental Social Governance ◦ Driving toward 90% reduction* ◦ Transformation focused on ◦ Leadership enhancements in scope 1 greenhouse gas customer safety, reliability and support commitment to emissions by 2030, inclusive affordability customer service
Slide 20: Schedule 1 - Reconciliation of Consolidated Net Income
NiSource Inc. Schedule 1 - Reconciliation of Consolidated Net Income (Loss) Available to Common Shareholders to Net Operating Earnings Available to Common Shareholders (Non-GAAP) (unaudited) (1)Represents costs incurred for estimated third-party claims and related other expenses as a result of the G
Slide 21: Schedule 2 - Reconciliation by Segment of Operating Revenues, Expenses
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 1. NiSource | NYSE: NI | nisource.com | 21
Slide 22: Schedule 2 - Reconciliation by Segment of Operating Revenues, Expenses
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 1. NiSource | NYSE: NI | nisource.com | 22
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