Slide 1: Supplemental Slides Fourth Quarter 2018 Earnings
Supplemental Slides Fourth Quarter 2018 Earnings February 20, 2019
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 of
Slide 3: Key Takeaways – Year-End 2018
Key Takeaways – Year-End 2018 • Continued focus on gas service restoration in Greater Lawrence, Mass. ▪ Service restored to substantially all customers by mid-December ▪ Phase 2 of restoration well underway • Extensive efforts to enhance gas system safety, across seven-state footprint • Delivered on
Slide 4: Year-End 2018 Financial Highlights
Year-End 2018 Financial Highlights Non-GAAP* 2018 2017 Change Net Operating Earnings Available to Common $463.3 $397.5 $65.8 Shareholders ($M) Net Operating Earnings Per Share $1.30 $1.21 $0.09 GAAP 2018 2017 Change Net Income (Loss) Available to Common ($65.6) $128.5 ($194.1) Shareholders($M) Earni
Slide 5: Fourth Quarter 2018 Financial Highlights - Consolidated (Non-GAAP)
Fourth Quarter 2018 Financial Highlights - Consolidated (Non-GAAP)* Three Months Ended Dec 31 Twelve Months Ended Dec 31 (In millions, except per share amounts) 2018 2017 Change 2018 2017 Change Operating Revenues $ 1,453.1 $ 1,361.4 $ 5,084.0 $ 4,904.8 Cost of Sales (excluding depreciation and amor
Slide 6: Fourth Quarter 2018 Financial Highlights - Gas Distribution (Non-GAAP)
Fourth Quarter 2018 Financial Highlights - Gas Distribution (Non-GAAP)* Three Months Ended Dec 31 Twelve Months Ended Dec 31 (In millions) 2018 2017 Change 2018 2017 Change Operating Revenues $ 1,056.0 $ 946.4 $ 3,409.3 $ 3,127.4 Cost of Sales (excluding depreciation and amortization) 382.3 343.0 1,
Slide 7: Fourth Quarter 2018 Financial Highlights - Electric (Non-GAAP)
Fourth Quarter 2018 Financial Highlights - Electric (Non-GAAP)* Three Months Ended Dec 31 Twelve Months Ended Dec 31 (In millions) 2018 2017 Change 2018 2017 Change Operating Revenues $ 400.5 $ 418.7 $ 1,687.9 $ 1,791.4 Cost of Sales (excluding depreciation and amortization) 117.5 113.0 502.1 513.9
Slide 8: NiSource Debt and Credit Profile
NiSource Debt and Credit Profile • Current debt level: ~$9.1B as of December 31, 2018 ▪ ~$7.0B of long-term debt ◦ Weighted average maturity ~19 years ◦ Weighted average interest rate of 4.6% • Solid liquidity position ▪ ~$1.0B in net available liquidity as of December 31, 2018* ▪ ~$2.2B of committe
Slide 9: Financing Plan Update
Financing Plan Update NiSource Financing Plan 2018 2019/2020* ($ in Millions) Actual Estimated Equity Common Equity Block $606 None Planned Issuance $200 - $300 ATM (At-The-Market) $239 (Annually) $35 - $60 ESPP/401K/Other $41 (Annually) Long-Term Debt $0 - $500 Incremental Long-Term Debt ($410) (An
Slide 10: Gas Distribution Operations
Gas Distribution Operations • Significant progress on regulatory initiatives inclusive of the impacts of federal tax reform across states • Continuing to execute infrastructure modernization that enhances system safety, reliability and environmental performance Key Milestones: Highlight Key Componen
Slide 11: Electric Operations
Electric Operations • Continued execution of seven-year ~$1.2B electric system modernization program • Construction continues on environmental upgrades for Michigan City, R.M. Schahfer generating stations Key Milestones: Highlight Key Components Status • Seeks approval for 20-year PPAs to purchase 1
Slide 12: Greater Lawrence Event - Update
Greater Lawrence Event - Update Event Related Costs and Expenses • Pipeline Replacement and Restoration (Total Current Estimate = $220M - $230M) – replacement of the gas distribution system with modern state-of-the-art plastic mains and service lines, and modern safety features such as pressure regu
Slide 13: Appendix: Fourth Quarter 2018 Earnings
Appendix: Fourth Quarter 2018 Earnings
Slide 14: Capital Expenditures
Capital Expenditures Investments Deliver Customer Value, Enhance System Safety and Reliability Estimated ~ $1.8B $1.6B - $1.7B $1.6B - $2.0B Recovery Period Annually Within 0-3 Months 15% 18% 19% (Growth) Within 0-12 Months 54% (Tracker) 58% 57% Periodic Rate Cases (Maintenance/Other) 31% 24% 24% 20
Slide 15: Liquidity and Debt Detail as of Fourth Quarter 2018 ($M)
Liquidity and Debt Detail as of Fourth Quarter 2018 ($M) Actual Current Liquidity Maturity 12/31/2018 Revolving Credit Facility $1,850 Nov. 28, 2021 Accounts Receivable Programs* 399 Less: Drawn on Credit Facility — Commercial Paper 978 Accounts Receivable Programs Utilized 399 L/C's Outstanding Und
Slide 16: Gas Distribution Operations Infrastructure Programs
Gas Distribution Operations Infrastructure Programs Estimated Base Case Year-End Total Modernization Recovery Annual Company Authorized 2018 Rate Identified Program Mechanism ROE Base Investments Modernization Investments Program Columbia Not Specified $2.8B ~$5.6B ~$3.0B $230M - $270M Tracked Gas o
Slide 17: Electric Operations Investment Programs
Electric Operations Investment Programs Infrastructure Investment Programs/Projects Estimated Identified Recovery Program/Project Program/Project Annual Investments Mechanism Length Investment Infrastructure ~$4.9B ~$185M - $215M Tracked 20+ Years Modernization FERC Transmission Project I In Service
Slide 18: Regulatory Update
Regulatory Update 2018 Rate Case and Program/Project Activity Company/Filing Summary Timeline Pending Approval Recovery of Federally Mandated Pipeline Filed: 12/31/2018 NIPSCO Gas - PHMSA Compliance Plan 2 Safety Compliance Plan Order Expected: 2H2019 Includes ~$230M of capital through 2023 Filed: 1
Slide 19: Infrastructure Investment Details
Infrastructure Investment Details Incremental Infrastructure Investments Recovery Recovery Company Filing Mechanism Investment Investment Effective Date Period Amount ($M) Date FY 2017 $207.0 Feb 2018 May 2018 Columbia Gas of Infrastructure Replacement Ohio Program (IRP) FY 2018 TBD Expected - Feb 2