Slide 1: Supplemental Slides 1Q 2024 Results
SUPPLEMENTAL SLIDES 1Q 2024 RESULTS May 8, 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 Adj EPS (1) Growth Base Growth(4) 2023-2028 14%-16% 60%-70% Annual FFO/ Dividend Payout Ratio Debt(1) Target Target Through 2028 $18.8B $16.4B YE 2023 Regulated Base Plan Capex 10-12% Electric and Gas Rat
Slide 4: Key Priorities
KEY PRIORITIES • Resilient Financial Commitments – Achieved 1Q24 adjusted EPS(1) of $0.85 – Reaffirming 2024 adjusted EPS(1) guidance of $1.70-1.74 – Reaffirming 2023-2028 annual adjusted EPS(1) growth of 6-8% and rate base growth of 8-10%(2) – $16.4 billion 2024-2028 base plan capital expenditures
Slide 5: 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 6: Safety Journey Since 2017
SAFETY JOURNEY SINCE 2017 Status/ Program EOY 2017 EOY 2023 Improvement Remaining Priority Pipe(1) (Miles) 4,490 2,875 36% Regulator Station Isometric Drawings(2) 0% 100% Complete Advanced Mobile Leak Detection Distribution Miles Surveyed(3) 0% 51% 51% Low Pressure System Automatic Shutoff Valve In
Slide 7: Superior Regulatory and Stakeholder Foundation
SUPERIOR REGULATORY AND STAKEHOLDER FOUNDATION 2021 2022 2023 2024 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Settled Approved Step 2 Rate Case Filed +$292M Step 1 Rates Rates NIPSCO Electric TDSIC 8 TDSIC 9 TDSIC 1 TDSIC 2 TDSIC 3 Trackers Approved Approved Approved Approved Approved Settled Approved Step
Slide 8: Sustainable Investment Opportunities for Customers and Communities
SUSTAINABLE INVESTMENT OPPORTUNITIES FOR CUSTOMERS AND COMMUNITIES $3.5 - $ in Billions $3.3 - $3.9B $3.5B $2.9 - $2.9 - $2.9 - $3.2B $3.2B $3.2B $3.5 $3.0 $2.5 $2.0 $1.5 $1.0 $0.5 $- 2024E 2025E 2026E 2027E 2028E Growth (Within 0-3 Months) Tracker (Within 0-18 Months) Maintenance (Periodic Rate Cas
Slide 9: Robust Renewable Investments in Indiana
ROBUST RENEWABLE INVESTMENTS IN INDIANA NIPSCO Ownership Dunns Bridge II Solar + Storage: 435 MW+75 MW BTA Projects In-Service Investment Status (1) Structure ($M) Dunns Bridge I Solar: 265 MW Rosewater Wind 2020 Tax Equity JV Carpenter Wind: 200 MW Indiana Crossroads Wind 2021 Tax Equity JV Dunns B
Slide 10: Additional Investment Opportunities
ADDITIONAL INVESTMENT OPPORTUNITIES Near-Term (Through 2028) Longer-Term (2028+) ~$1.6B 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 of electric
Slide 11: First Quarter Consolidated & Segment Financial Results
FIRST QUARTER CONSOLIDATED & SEGMENT FINANCIAL RESULTS FIRST QUARTER GAAP Change 2024 2023 Fav/(Unfav) Net Income Available to Common Shareholders $344.3 $319.2 $25.1 Diluted Earnings Per Share $0.77 $0.71 $0.06 FIRST QUARTER NON-GAAP Change 2024 2023 Fav/(Unfav) Adjusted Net Income Available to Com
Slide 12: Long-Term Financial Commitments
LONG-TERM FINANCIAL COMMITMENTS Base 5-Year Plan • Annual adjusted EPS(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 Expenditur
Slide 13: Balance Sheet Provides Flexible Financing Plan to Invest in Growth
BALANCE SHEET PROVIDES FLEXIBLE FINANCING PLAN TO INVEST IN GROWTH $16.4B CAPITAL INVESTMENT FUNDING SOURCES (2024-2028) TARGETING ANNUAL 2024-2028 Net New FFO/Debt(5) 14-16% (2) Debt 30-35% • Base Capital Plan includes up to $600 million of equity via ATM in 2024 and $200-300 million of annual tota
Slide 14: 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 ADJUSTED $1.47 $1.60 Deliver 6-8% Annual Adjusted On track EPS (1) $1.37 $1.70-$1.74 Strong 1Q (GROWTH) (+7%) (+9%) EPS(1) Growth results 10-12% Total Shareholder DIVIDEND $0.94 $1.00 $1.06 $0.88 Re
Slide 15: Appendix
Appendix 1Q 2024 RESULTS NiSource | NYSE: NI | nisource.com |
Slide 16: NiSource Debt and Credit Profile
NISOURCE DEBT AND CREDIT PROFILE • Debt level: ~$13.0B as of March 31, 2024 – ~$11.7B of long-term debt Total Debt / Total Capitalization • Weighted average maturity ~12 years • Weighted average interest rate of 4.01% 62.5% – ~$1.2B of short-term debt 57.4% 58.9% 58.2% 57.0% • ~$1.2B of commercial p
Slide 17: Safety and Infrastructure Investment and Tracker Filings
SAFETY AND INFRASTRUCTURE INVESTMENT AND TRACKER FILINGS INCREMENTAL INVESTMENTS RECOVERY COMPANY MECHANISM PERIOD AMOUNT ($M) EFFECTIVE DATE Infrastructure Replacement Program (IRP) FY 2023 $231 May 2024 Columbia Gas of Ohio PHMSA(1) IRP FY 2023 $15 May 2024 Capital Expenditure Program (CEP) FY 202
Slide 18: 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 19: Base Plan Capital Expenditures
BASE PLAN CAPITAL EXPENDITURES Capital Plan by Segment $ in billions 2024 2025 2026 2027 2028 NIPSCO 2.0 - 2.1 2.3 – 2.5 1.4 - 1.6 1.4 - 1.6 1.4 - 1.6 COLUMBIA 1.4 1.2 - 1.4 1.4 – 1.6 1.5 – 1.7 1.5 – 1.7 TOTAL $3.3 - 3.5 $3.5 - 3.9 $2.9 - 3.2 $2.9 - 3.2 $2.9 - 3.2 Capital expenditures include 100% o
Slide 20: Schedule 1 - Reconciliation of Consolidated Net Income to Adjusted Net Income
NiSource Inc. Schedule 1 - Reconciliation of Consolidated Net Income Available to Common Shareholders to Adjusted Net Income Available to Common Shareholders (Non-GAAP) (unaudited) 20 NiSource | NYSE: NI | nisource.com |
Slide 21: Annual FFO/Debt Reconciliation
NiSource Inc. Schedule 2 - Reconciliation by of Net Cash Flows from Operating Activities to FFO to Debt (Adjusted) (Non-GAAP) (unaudited) Annual FFO/Debt Reconciliation ($ in millions) 2023 2022 2021 Net Cash Flows from Operating Activities 1,935 1,409 1,218 - Accounts receivable 184 (216) (40) - In