Slide 1: Supplemental Slides 2Q 2023 Results
SUPPLEMENTAL SLIDES 2Q 2023 RESULTS August 2, 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"). Forward-looking statements
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 Debt Target1 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 On track $1.47 2023 Guidance NOEPS* (GROWTH) $1.37 (+7.3%) $1.54-$1.60 Deliver 6-8% Annual NOEPS GROWTH Raised to Upper Half of Range DIVIDEND $0.94 $1.00 9-11% Total Shareholder Return $0.88 On track (A
Slide 5: 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 5 8% 8% 6% 2023 Guidance: 8% 6% Expect Upper Half of Range 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:
Slide 6: Key Priorities
KEY PRIORITIES • 2023 EPS guidance raised to upper half of range, long-term growth commitments reaffirmed – 2023 Non-GAAP NOEPS* guidance range raised to upper half of $1.54 to $1.60 – Annual NOEPS* growth of 6-8% through 2027 and long-term 14-16% FFO/Debt* target reaffirmed – Annual rate base growt
Slide 7: Investing $15B Over Five Years to Drive Safety, Reliability and Sustainability
INVESTING $15B OVER FIVE YEARS TO DRIVE SAFETY, RELIABILITY AND SUSTAINABILITY $ 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 $- 2022A 2023E 2024E 2025E 2026E 2027E Growth (Within 0-3 Months) Tracker (Within 0-18 Mo
Slide 8: Leading Regulatory Execution Continues in Both Electric and Gas Businesses
LEADING REGULATORY EXECUTION CONTINUES IN BOTH ELECTRIC AND GAS BUSINESSES 2021 2022 2023 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Step 1 Rate Case Filed Settled NIPSCO Rates1 Electric Trackers TDSIC 7 TDSIC 8 TDSIC 9 TDSIC 1 TDSIC 2 TDSIC 3 Approved Approved Approved Approved Approved Approved Approved
Slide 9: Robust Renewable Investments in Indiana
ROBUST RENEWABLE INVESTMENTS IN INDIANA NIPSCO Estimated In BTA Projects Status Dunns Bridge I Solar BTA: 265 Investment ($M) Service Dunns Bridge II Solar + Storage BTA: 435 + 75 Rosewater Wind ~$100 2020 Complete Carpenter Wind PPA: 200 Indiana Crossroads Wind ~$300 2021 Complete Indiana Crossroad
Slide 10: 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 11: Second Quarter & YTD Consolidated Financial Results
SECOND QUARTER & YTD CONSOLIDATED FINANCIAL RESULTS SECOND QUARTER YTD GAAP Change Change 2023 2022 Fav/(Unfav) 2023 2022 Fav/(Unfav) Net Income Available to Common Shareholders $39.9 $53.2 $(13.3) $359.1 $466.2 $(107.1) ($ in Millions) Diluted Earnings Per Share $0.09 $0.12 $(0.03) $0.80 $1.06 $(0.
Slide 12: Second Quarter Segment Non-GAAP Results
SECOND QUARTER SEGMENT NON-GAAP* RESULTS SECOND QUARTER YTD OPERATING EARNINGS CHANGE CHANGE ($ Millions) 2023 2022 2023 2022 FAV/(UNFAV) FAV/(UNFAV) Gas Distribution $ 119.9 $ 80.7 $ 39.2 $ 598.0 $ 485.5 $ 112.5 Electric Operations $ 51.0 $ 73.4 $ (22.4) $ 134.0 $ 172.1 $ (38.1) Corporate & Other $
Slide 13: NiSource Debt and Credit Profile
NISOURCE DEBT AND CREDIT PROFILE • Debt level: ~$12.6B as of June 30, 2023 Total Debt / Total Capitalization – ~$11.0B of long-term debt – Weighted average maturity ~12 years 62.5% 62.5% 58.9% 59.1% – Weighted average interest rate of 3.93% 57.4% • Solid liquidity position – ~$1.8B in net available
Slide 14: 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 NIPSCO Minority Equity Interest Sale adds flexibility to financing plan Target FFO/Debt 14-16%1 ATM Equity2 (2025+) to support current investment grade
Slide 15: Appendix
Appendix 2Q 2023 RESULTS NiSource | NYSE: NI | nisource.com |
Slide 16: Gas Distribution Operations
GAS DISTRIBUTION OPERATIONS • Final order received in Virginia gas rate case in May 2023, interim rates in effect since October 2023 • Gas rate case filed in Maryland in May 2023 • Ohio gas IRP rider rates effective May 2023 • Continuing to invest in infrastructure to enhance safety, reliability, cu
Slide 17: Electric Operations
ELECTRIC OPERATIONS • Dunn’s Bridge I and Crossroads solar projects complete; construction underway on Cavalry, Dunn’s Bridge II and Fairbanks Solar projects • Three New PPAs submitted to IURC for approval in 2Q • Gibson Solar PPA converted to BTA to replace Elliott Solar BTA HIGHLIGHT KEY COMPONEN
Slide 18: Environmental, Social & Governance (ESG)
ENVIRONMENTAL, SOCIAL & GOVERNANCE (ESG) ENVIRONMENTAL SOCIAL GOVERNANCE • Approximately $3B of generation • Transformation focused on customer • Leadership enhancements support transition investments 2022 - 2027 safety, reliability and affordability commitment to customer service and safety • Expec
Slide 19: Safety and Infrastructure Investment and Tracker Filing Details
SAFETY AND INFRASTRUCTURE INVESTMENT AND TRACKER FILING DETAILS INCREMENTAL INVESTMENTS RECOVERY COMPANY MECHANISM PERIOD AMOUNT ($M) EFFECTIVE DATE FY 2021 $232.9 May 2022 Infrastructure Replacement Program (IRP) FY 2022 $316.3 May 2023 Columbia Gas of Ohio FY 2021 $253.5 Sep 2022 Capital Expenditu
Slide 20: Schedule 1A - Reconciliation of Net Income to Net Operating Earnings
NiSource Inc. Schedule 1A - Reconciliation of Consolidated Net Income Available to Common Shareholders to Net Operating Earnings Available to Common Shareholders (Non-GAAP) (unaudited) 20 NiSource | NYSE: NI | nisource.com |
Slide 21: Schedule 1B - Reconciliation of Net Income to Net Operating Earnings
NiSource Inc. Schedule 1B - Reconciliation of Consolidated Net Income Available to Common Shareholders to Net Operating Earnings Available to Common Shareholders (Non-GAAP) (unaudited) 21 NiSource | NYSE: NI | nisource.com |
Slide 22: Schedule 2 - Reconciliation by Segment
NiSource Inc. Schedule 2 - Reconciliation by Segment of Operating Revenues, Expenses (Benefits), and Income (Loss) (GAAP) to Operating Revenues, Expenses (Benefits), and Income (Loss) (Non-GAAP) (unaudited) See footnote descriptions contained with Schedule 1A 22 NiSource | NYSE: NI | nisource.com |
Slide 23: Schedule 2 - Reconciliation by Segment
NiSource Inc. Schedule 2 - Reconciliation by Segment of Operating Revenues, Expenses (Benefits), and Income (Loss) (GAAP) to Operating Revenues, Expenses (Benefits), and Income (Loss) (Non-GAAP) (unaudited) See footnote descriptions contained with Schedule 1A 23 NiSource | NYSE: NI | nisource.com |
Slide 24: Annual FFO/Debt Reconciliation
NiSource Inc. Schedule 3 - Reconciliation by of Net Cash Flows from Operating Activities to FFO to Debt (Adjusted) (Non-GAAP) (unaudited) Annual FFO/Debt Reconciliation ($ in millions) 2022 2021 Net Cash Flows from Operating Activities 1,409.4 1,217.9 Changes to Working Capital - Accounts Receivable