Slide 1: Supplemental Slides Year End 2022 Results
SUPPLEMENTAL SLIDES YEAR END 2022 RESULTS February 22, 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"). Investors and prospective in
Slide 3: Enhanced NiSource Value Proposition Driving Sustainable Growth
ENHANCED NISOURCE VALUE PROPOSITION DRIVING SUSTAINABLE GROWTH 6%-8% 8%-10% Expected Annual Expected Annual NOEPS1 Growth Utility Rate Base Through 2027 Growth 14%-16% 60%-70% Long-term FFO/ Targeted Annual Dividend Debt2 Target Payout Ratio $30B Planned Long-Term ~$16.6B Infrastructure Investments
Slide 4: 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 PROGRESS Increased On track; NOEPS* $1.47 (GROWTH) $1.37 (+7.3%) Guidance to Deliver 6-8% Annual NOEPS GROWTH Increasing $1.54-$1.60 for 2023 DIVIDEND $1.00 9-11% Total Shareholder Return $0.94 On track (ANNUAL G
Slide 5: 2022 Key Achievements
2022 KEY ACHIEVEMENTS 2022 guidance 2022 $1.47 non-GAAP 4Q22 $0.50 non- Reflects continued diluted NOEPS*, +7.3% GAAP diluted NOEPS investment in safety, range exceeded reliability, customer growth vs $1.37 in vs $0.39 in 4Q21 affordability and 2021 sustainability Increased 2023 2023 guidance range
Slide 6: 2023 Guidance & Long-Term 6-8% Annual NOEPS Growth Rate
2023 GUIDANCE & LONG-TERM 6-8% ANNUAL NOEPS GROWTH RATE 8% Annual 6-8% Growth Rate 6 8% 8% 6% 8% 6% 2023 Guidance 6% 1.60 6% 1.47 1.54 1.37 2021A 2022A 2023E 2024E 2025E 2026E 2027E Visible and Sustainable Investments Drive Annual 6-8% NOEPS Growth Through 2027 * NOEPS: Diluted Net Operating Earning
Slide 7: Investing $15B Over Five Years to Drive Safety, Reliability and Sustainability
INVESTING $15B OVER FIVE YEARS TO DRIVE SAFETY, RELIABILITY AND SUSTAINABILITY Regulatory Programs and New Customer Demand Support Timely Recovery $ in millions $3.3 - $3.1 - $3,500 $3.6B $3.4B $2.7 - $2.6 - $2.7 - $3.0B $3,000 $2.9B $3.0B $2.6B $2,500 $2,000 $1,500 $1,000 $500 $- 2022A 2023E 2024E
Slide 8: 2023 Key Priorities
2023 KEY PRIORITIES Continued enhanced safety focus and operational excellence Successful NIPSCO minority interest sale to Committed to strengthen the balance sheet Delivering 2023 NOEPS* Guidance Balanced NIPSCO Rate Case outcome of $1.54 to $1.60 Driving efficiencies to achieve flat O&M * Diluted
Slide 9: Additional Investment Opportunities for NiSource
Additional Investment Opportunities for NiSource Near-Term (Through 2027) Longer Term (2028+) Upsides (2028+) Near-Term investment opportunities that can Longer-Term investment themes beyond our Additional opportunities past 2027 enhance our current investment plan current guidance period • New gas
Slide 10: Gas Distribution Operations
GAS DISTRIBUTION OPERATIONS • Final orders received in Ohio, Pennsylvania, and Maryland gas rate cases • Continuing to invest in infrastructure to enhance safety, reliability, customer affordability and sustainability HIGHLIGHT KEY COMPONENTS STATUS • Filed Apr 29, 2022 Columbia Gas of Virginia Base
Slide 11: Electric Operations
ELECTRIC OPERATIONS • NIPSCO Electric rate case intervenor testimony received Jan 20, 2023 • Renewable generation projects remain on target with previously revised in-service dates • New request for proposals (RFP) for generation resources closed in September; bid evaluation underway HIGHLIGHT KEY C
Slide 12: Robust Renewable Investments in Indiana
ROBUST RENEWABLE INVESTMENTS IN INDIANA NIPSCO Estimated In JV Projects Status Investment ($M) Service Dunns Bridge I Solar JV: 265 Rosewater Wind ~$100 2020 Complete Dunns Bridge II Solar + Storage JV: 435 + 75 Indiana Crossroads Wind ~$300 2021 Complete Indiana Crossroads II Wind PPA: 200 Dunns Br
Slide 13: Fourth Quarter & YTD Consolidated Financial Results
FOURTH QUARTER & YTD CONSOLIDATED FINANCIAL RESULTS FOURTH QUARTER YTD GAAP Change Change 2022 2021 Fav/(Unfav) 2022 2021 Fav/(Unfav) Net Income Available to Common Shareholders $230.8 $152.2 $78.6 $749.0 $529.8 $219.2 ($ in Millions) Diluted Earnings Per Share $0.52 $0.36 $0.16 $1.70 $1.27 $0.43 FO
Slide 14: Fourth Quarter & YTD Segment Non-GAAP Results
FOURTH QUARTER & YTD SEGMENT NON-GAAP* RESULTS FOURTH QUARTER YTD GAS DISTRIBUTION OPERATIONS ($ Millions) Change Change 2022 2021 Fav/(Unfav) 2022 2021 Fav/(Unfav) Operating Revenues $ 1,256.8 $ 1,006.5 $ 250.3 $ 4,011.6 $ 3,206.4 $ 805.2 Cost of Energy $ 534.3 $ 365.7 $ (168.6) $ 1,534.8 $ 962.7 $
Slide 15: NiSource Debt and Credit Profile
NISOURCE DEBT AND CREDIT PROFILE • Debt level: ~$11.3B as of December 31, 2022 – ~$9.6B of long-term debt – Weighted average maturity ~14 years – Weighted average interest rate of 3.72% • Solid liquidity position – ~$1.6B in net available liquidity as of December 31, 2022* – ~$2.3B of committed faci
Slide 16: Strengthened Financing Plan Provides Flexibility to Invest in Growth
STRENGTHENED FINANCING PLAN PROVIDES FLEXIBILITY TO INVEST IN GROWTH Dividends and capital investments primarily funded through cash from operations Minority interest sale adds flexibility to financing plan Target FFO/Debt1 14-16% ATM Equity2 (2025+) to support current investment grade credit rating
Slide 17: Appendix
Appendix YEAR END 2022 RESULTS NiSource | NYSE: NI | nisource.com |
Slide 18: Environmental, Social & Governance (ESG)
ENVIRONMENTAL, SOCIAL & GOVERNANCE (ESG) ENVIRONMENTAL SOCIAL GOVERNANCE • Approximately $3B of generation transition • Transformation focused on customer safety, • Leadership enhancements support investments between 2021 - 2027 reliability and affordability commitment to customer service and safety
Slide 19: Safety and Infrastructure Programs
SAFETY AND INFRASTRUCTURE PROGRAMS ESTIMATED ANNUAL YEAR-END 2022 RATE AUTHORIZED PROGRAM MODERNIZATION PROGRAM COMPANY MODERNIZATION PROGRAM RECOVERY MECHANISM BASE ROE INVESTMENTS INVESTMENTS Columbia Gas of Ohio $4.4B 9.60% ~$10.6B $430M - $510M Tracked Columbia Gas of Rate Case (Forward Test $2.
Slide 20: Safety and Infrastructure Investment and Tracker Filing Details
SAFETY AND INFRASTRUCTURE INVESTMENT AND TRACKER FILING DETAILS INCREMENTAL INVESTMENTS RECOVERY COMPANY MECHANISM PERIOD AMOUNT ($M) EFFECTIVE DATE Infrastructure Replacement Program (IRP) FY 2021 $232.9 May 2022 Columbia Gas of Ohio Capital Expenditure Program (CEP) FY 2021 $253.5 Sep 2022 Columbi
Slide 21: Liquidity and Capitalization as of Year End 2022
LIQUIDITY AND CAPITALIZATION AS OF YEAR END 2022 ($M) CURRENT LIQUIDITY ACTUAL 12/31/22 MATURITY Revolving Credit Facility $1,850 Feb. 18, 2027 Accounts Receivable Programs* 447 Less: Drawn on Credit Facility — Commercial Paper 415 Accounts Receivable Programs Utilized 347 L/C's Outstanding Under Cr
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) 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 (Benefits), 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 (Benefits), and Income (Loss) (Non-GAAP) (unaudited) See footnote descriptions contained with Schedule 1. 24 NiSource | NYSE: NI | nisource.com |