Slide 1: Supplemental Slides Third Quarter 2020 Earnings
SUPPLEMENTAL SLIDES THIRD QUARTER 2020 EARNINGS November 2, 2020 NiSource | NYSE: NI | nisource.com |
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS This presentation contains “forward-looking statements” within the meaning of federal securities laws. Investors and prospective investors should understand that many factors govern whether any forward-looking statement contained herein will be or can be realized. Any one
Slide 3: Key Takeaways
KEY TAKEAWAYS • Non-GAAP Net Operating Earnings Per Share (NOEPS)* of $0.09 vs. $0.00 in 3Q 2019 ◦ Cost and regulatory mitigation efforts reduce financial impacts of COVID-19 ◦ NiSource Next well underway to enhance organizational capabilities and drive efficiencies and continued customer affordabil
Slide 4: Third Quarter and YTD Consolidated Financial Results
THIRD QUARTER and YTD CONSOLIDATED FINANCIAL RESULTS GAAP Third Quarter YTD 2020 2019 Change 2020 2019 Change Net Income (Loss) Available to Common Shareholders ($ $(186.7) $(7.2) $(179.5) $(143.4) $481.0 $(624.4) Millions) Basic Income (Loss) Per Share $(0.49) $(0.02) $(0.47) $(0.37) $1.29 $(1.66)
Slide 5: Third Quarter and YTD 2020 Segment Non-GAAP Results
THIRD QUARTER and YTD 2020 SEGMENT NON-GAAP* RESULTS Gas Distribution Operations Third Quarter YTD ($ Millions) 2020 2019 Change 2020 2019 Change Operating Revenues $472.5 $468.6 $3.9 $2,334.5 $2,507.9 $(173.4) Operating Expenses** $462.8 $495.0 $32.2 $1,859.8 $2,089.8 $230.0 Operating Earnings (Los
Slide 6: COVID-19 Financial Impacts
COVID-19 FINANCIAL IMPACTS Usage Impact by Customer Class ($ Millions)* 3Q '20 vs. '19 Gas Electric Total Residential $0.3 $5.8 $6.1 Commercial $(1.8) $(3.1) $(4.9) Industrial $(0.8) $(1.3) $(2.1) Total $(2.3) $1.4 $(0.9) YTD '20 vs. '19 Gas Electric Total Residential $0.9 $12.0 $12.9 Commercial $(1
Slide 7: NiSource Debt and Credit Profile
NISOURCE DEBT AND CREDIT PROFILE • Debt level: ~$10.6B as of September 30, 2020 – ~$9.1B of long-term debt ▪ Weighted average maturity ~15 years ▪ Weighted average interest rate of 3.68% • Solid liquidity position – ~$1.6B in net available liquidity as of September 30, 2020* – ~$2.1B of committed fa
Slide 8: 2020 Financing Plan
2020 FINANCING PLAN NiSource Current Financing Plan* $ Millions 2019 2020 Actual Estimated Equity Common Equity Block Issuance None None Planned ATM (At-The-Market) $229 $200 - $300 ESPP/401K/Other $34 $35 - $60 Long-Term Debt Incremental Long-Term Debt $714 ~$1,375 * Current financing plan may chan
Slide 9: Gas Distribution Operations
GAS DISTRIBUTION OPERATIONS ◦ Rate case settlement reached in Maryland, case pending in Pennsylvania ◦ Continuing to execute infrastructure modernization designed to enhance system safety, reliability and environmental performance Highlight Key Components Status Columbia Gas of Kentucky Safety Modif
Slide 10: Electric Operations
ELECTRIC OPERATIONS ◦ Three new solar JV projects announced for coal-fired generation replacement capacity ◦ $1.8 - $2.0B incremental capital investment opportunities expected in 2022 and 2023 ◦ Continued execution of seven-year ~$1.2B electric system modernization program Highlight Key Components S
Slide 11: Safety and Infrastructure Programs
SAFETY AND INFRASTRUCTURE PROGRAMS Modernization Estimated Annual Year-End 2019 Authorized Recovery Company Program Modernization Mechanism Rate Base Program ROE Investments Program Investments Columbia Gas of OH $3.2B 10.39% ~$10.6B $540M - $560M Tracked Rate Case (Forward Columbia Gas of PA $1.9B
Slide 12: Safety and Infrastructure Investment and Tracker Filing Details
SAFETY AND INFRASTRUCTURE INVESTMENT AND TRACKER FILING DETAILS Incremental Investments Recovery Company Mechanism Amount ($ Period Filing Date Effective Date Millions) Infrastructure Replacement FY 2018 $199.6 Feb 2019 May 2019 Columbia Gas of Ohio Program (IRP) FY 2019 Feb 2020 May 2020 $234.4 Cap
Slide 13: Renewable Investment Opportunity Through 2023
RENEWABLE INVESTMENT OPPORTUNITY THROUGH 2023 Tax equity partnerships allow for significant reduction in cost to customers and $1.8-$2B of NiSource capital investment Expected NiSource (NIPSCO) JV Ownership ~$2.8 -$3.0B ~50% NiSource ~$1.0B (NIPSCO) Tax Equity JV Investment ~$1.8 - $2.0B ~$0.6 - $0.
Slide 14: Renewable Investment Project Update
RENEWABLE INVESTMENT PROJECT UPDATE NIPSCO Investment Anticipated Project Structure Status ($ Millions) In Service Projects In Execution: Rosewater Wind JV ~$100 ’20 Under Construction Jordan Creek Wind PPA N/A ’20 Under Construction Indiana Crossroads Wind JV ~$300 ’21 Under Construction Brickyard
Slide 15: Appendix
APPENDIX THIRD QUARTER 2020 EARNINGS NiSource | NYSE: NI | nisource.com |
Slide 16: Liquidity and Capitalization as of Third Quarter 2020
LIQUIDITY AND CAPITALIZATION AS OF THIRD QUARTER 2020 ($M) Current Liquidity Actual 9/30/2020 Maturity Revolving Credit Facility $1,850 Feb. 20, 2024 Accounts Receivable Programs* 231 Less: Drawn on Credit Facility — Commercial Paper 307 Accounts Receivable Programs Utilized 231 L/C's Outstanding Un
Slide 17: Total Debt as of Third Quarter 2020
TOTAL DEBT AS OF THIRD QUARTER 2020 ($ Millions) Debt Detail Balance Wtd. Avg. Rate** Wtd. Avg. Maturity Long-Term Debt $9,135 3.7 % 15 years Revolving Credit Facility $0 Commercial Paper $307 0.23 % 39 days A/R Program Borrowings $231 0.66 % 1 month Term Loan $850 0.90 % 6 months Capital Leases, De
Slide 18: Bad Debt Recovery Mechanisms
BAD DEBT RECOVERY MECHANISMS Bad Debt Expense Included Tracked Incremental Company Filing Frequency in Base Rates* Expense GAS DISTRIBUTION OPERATIONS NIPSCO Gas Yes Gas cost only Quarterly Columbia Gas of Ohio Yes Gas cost and delivery charge Annual Columbia Gas of Pennsylvania Yes Partial gas cost
Slide 19: Revenue and Weather Normalization Mechanisms
REVENUE AND WEATHER NORMALIZATION MECHANISMS Company Revenue Decoupling / Normalization Weather Normalization GAS DISTRIBUTION OPERATIONS NIPSCO Gas None None Straight Fixed Variable Rates for Residential and Small Columbia Gas of Ohio None Commercial Columbia Gas of Pennsylvania None Yes - Resident
Slide 20: Appendix: Investor Day Highlights
APPENDIX INVESTOR DAY HIGHLIGHTS NiSource | NYSE: NI | nisource.com |
Slide 21: The U.S. Regulated Utility Investment of Choice
THE U.S. REGULATED UTILITY INVESTMENT OF CHOICE Safety and environmental leadership will continue to drive customer value and sustainable growth Strong Clear Path to Drive Benefiting Committed to Foundation Incremental Growth Customers and Shareholder Value Communities • Regulatory diversity • Enhan
Slide 22: Environmental, Social & Governance (ESG)
ENVIRONMENTAL, SOCIAL & GOVERNANCE (ESG) Environmental Social Governance • $1.8B-$2.0B of planned • Transformation focused on • Leadership enhancements renewable investments customer safety and reliability support commitment to through 2023 customer service and safety • Economically benefiting • Exp
Slide 23: Capital Plan Resulting in Expected Lasting Value Creation
CAPITAL PLAN RESULTING IN EXPECTED LASTING VALUE CREATION ~$9.9B – $10.5B of Identified Investment Opportunities ~20% Renewables Investment 10% to 12% Expected rate base CAGR 2021–2024 2021–2024 7% to 9% Expected NOEPS* CAGR 2021–2024 ~20% ~60% Electric Gas Infrastructure Infrastructure & & Asset As
Slide 24: Capital Forecast
CAPITAL FORECAST $2.4B - $2.7B $3.3B - $3,6B Expected Renewable Generation Investments of $1.8 - $2.0B $2.0B - $2.3B Expected Investment Recovery Period $1.7B - $1.8B $1.9B - $2.2B Maintenance/Other (Periodic Rate Cases) Tracker (Within 0-18 Months) Growth (Within 0-3 Months) Renewables (Rate Case E
Slide 25: Capital Investment Driving Robust Rate Base Growth
CAPITAL INVESTMENT DRIVING ROBUST RATE BASE GROWTH NiSource Projected YE Rate Base ($ in Billions) of 10% - 12% CAGR $21.2 $19.8 $17.0 $15.2 $13.9 2020E* 2021E 2022E 2023E 2024E 37 RATE BASE GROWTH BALANCED ACROSS JURISDICTIONS AND BETWEEN GAS AND ELECTRIC BUSINESSES *2020E rate base is post sale of
Slide 26: Robust Capital Investment Driving NOEPS Growth
ROBUST CAPITAL INVESTMENT DRIVING NOEPS* GROWTH 7% – 9% Annual NOEPS expected ($/share) CAGR 2021-2024 Dividend Dividend growth to $1.28 to % maintain targeted $1.36 Ra te 5%-7 60%–70% long- A n n u a l Growth rm 023) Near-Te (2021-2 term payout ratio** 38 LONG-TERM ~$40B INVESTMENT OPPORTUNITY EXPE
Slide 27: 2021E - 2024E Financing Strategy
2021E - 2024E FINANCING STRATEGY* Financing strategy targets long-term Adj. FFO**/total debt of ~14%-15% ($ millions) 2021E 2022E 2023E 2024E Current Financing Plan Planned Annual Safety & Modernization Investments • All financing is included Equity on our long-term growth commitments ATM (At-the-Ma
Slide 28: Announced Renewable Project Updates
ANNOUNCED RENEWABLE PROJECT UPDATES Rosewater Executed Regulatory Approval Under Construction In Service 2020E In Rate Base 2023E Capacity: 100MW Agreement Wind Projects Jordan Creek Executed Recovered through Regulatory Approval Under Construction In Service 2020E Capacity: 400MW Agreement Fuel Cos