Slide 1: NiSource Investor Day
NiSource Investor Day Millennium Broadway Hotel New York, New York September 12, 2012
Slide 2: NiSource portfolio overview and financial highlights
From the Gulf Coast through the Midwest to the Northeast, our portfolio of companies serves some of the nation’s highest-value energy markets, with services ranging from natural gas transmission, storage and local distribution, to electricity generation, transmission and distribution. NYSE: NI Gas D
Slide 3: Forward Looking Statements
Forward Looking Statements Today’s presentations contain forward-looking statements within the meaning of federal securities laws. These forward-looking statements are subject to various risks and uncertainties. Examples of forward-looking statements in these presentations include statements and exp
Slide 4: Today's Agenda
Today’s Agenda Building Investment-Driven Growth Strategic Framework Bob Skaggs and Key Takeaways Business Unit NiSource Gas Distribution, Joe Hamrock NIPSCO Electric, Jimmy Staton Discussions NiSource Gas Transmission & Storage, Jimmy Staton Financial Profile Steve Smith Closing Remarks Bob Skaggs
Slide 5: Speaker Bios
Speaker Bios Bob Skaggs President & Chief Executive Officer Robert (Bob) Skaggs, Jr., is president and chief executive officer of NiSource Inc. He is responsible for the strategic direction of the company as well as for overseeing its day-to-day operations. Bob was named president in Oct. 2004 and a
Slide 6: Strategic Framework and Key Takeaways
Strategic Framework and Key Takeaways Bob Skaggs President & CEO September 12, 2012
Slide 7: NiSource Strategic Framework
NiSource Strategic Framework Position, Build & Grow NiSource Aspiration Value Proposition Strategic Approach North America’s Premier Regulated Energy Company Regulated/Fee-Based Infrastructure Investment-Driven Growth + Attractive & Growing Dividend Balanced Four-Part Plan • Gas Transmission, Storag
Slide 8: Building Industry-Leading Regulated Platform
Building Industry-Leading Investment Regulated -Driven Platform Growth Industry-Leading Regulated Platform Electric $10B Investment Tracked Infrastructure 7-9% /Yr. Inventory Investment + Operating Earnings Customer Programs Growth $6-8B Investment Tracked Infrastructure 7-9% /Yr. Inventory Investme
Slide 9: Key Takeaways
Key Takeaways EPS Growth Dividend Growth Investment- Grade Credit Capital Funding 5-7% Long-Term Earnings Growth Attractive, Growing Dividend 3-5% Investment-Grade Credit Profile with Strong Liquidity Balanced Approach; Equity: 2015 Timeframe Robust Growth With Solid Financial Profile
Slide 10: Key Takeaways
Key Takeaways Investment Inventory Investment Profile Revenue Profile $25-30B/Over 15-20+ Years Modernization Environmental $1.4-1.6B/Year Core Growth Maintenance Midstream Up to $300M/Year 90%+ Fee-Based Identifiable, Deep and Low-Risk Inventory
Slide 11: NiSource: A Compelling Investment
NiSource: A Compelling Investment 5-7% EPS Growth + 3-5% Dividend Growth Balanced, Diverse and Highly Stable Portfolio of Regulated/Fee-Based Businesses Substantial ($25-30B) Inventory of Accretive Investment Opportunities to Drive Long-Term Earnings Growth of 5-7% Strong Financial Profile; Balanced
Slide 12: Gas Distribution
Gas Distribution Joe Hamrock EVP & Group CEO September 12, 2012
Slide 13: NiSource Gas Distribution (NGD)
NiSource Gas Distribution (NGD) NIPSCO Gas • Largest LDC in Indiana • ~800,000 Customers • ~17,000 Miles of Pipe • Fair Value Rate Base ~$800M Columbia Gas of Ohio • Largest LDC in Ohio • 1.4 Million Customers • ~20,000 Miles of Pipe • Rate Base ~$1.3B Columbia Gas of Kentucky • Second Largest Gas-O
Slide 14: NGD Market Profile
NGD Market Profile Stable Markets ~774 BCF Power Generation 11% Industrial 40% Residential/ Commercial 49% Throughput $1.3 Billion/Year* Industrial/ Power Generation 9% Margin Residential/ Commercial 91% Minimal Revenue Variability *2012 Non-GAAP estimate. Illustrative only.
Slide 15: NGD Performance
NGD Performance Delivering for Our Customers, Communities and Other Key Stakeholders Safety/ Reliability Customer Experience Stakeholder Relations Customer Rates Financial Performance Top Decile/Quartile Performance Robust Programs and Satisfaction Scores Collaborative, Constructive Approach Competi
Slide 16: NGD Business Strategy
NGD Business Strategy Executing a Strategy for Sustainable Long-Term Growth Long-Term Growth Through Investment in Infrastructure Modernization and Innovative Rate Structures • Expanded Infrastructure Programs Under Similar Policy Frameworks • Total Asset Base Modernization • Reliable, Safe and Econ
Slide 17: NGD Business Strategy
NGD Business Strategy A Long-Term Investment-Driven Growth Strategy $600-650M Annual Capital Investment Expand Customer Programs Grow Customer Base Modernize Infrastructure 7-9% Operating Earnings Growth Growing Rate Base, Earning Allowed Returns
Slide 18: Long-Term Infrastructure Modernization Investments
Long-Term Infrastructure Modernization Investments ~75% Revenue-Enhancing Investments OH IN PA MA VA KY MD Totals Modernization (Tracker) $180-189M $30-45M $150-155M $50M $35M $15M $9M $469-498M /Growth Maintenance $30-31M $30-45M $20-25M $30M $15M $5M $1M $131-152M Total $210-220M $60-90M $170-180M
Slide 19: NGD Investment Run-Rate ($M)
NGD Investment Run-Rate ($M) Growing Capability and “Flex” Ability $600-$650M $625 $550 $350 $400 73% 76% 475 79% 75% 300 275 21% 25% 24% 100 27% 150 150 75 2009 2010 2011 2012 Maintenance Tracker / Growth A Strong Foundation of Long-Term Growth
Slide 20: NGD Operating Earnings ($M)
NGD Operating Earnings* ($M) Attractive, Low-Risk, Investment-Driven NGD 2009-2012 CAGR 11.3% 2012-2017 7-9% CAGR * Non-GAAP. For a reconciliation to GAAP, see page 15 of the 2011 NiSource Statistical Summary. ** Represents Midpoint of Guidance Range Operating Earnings Growth of 7-9% Going Forward
Slide 21: NGD Business Strategy
NGD Business Strategy NiSource’s Foundation Expand Customer Programs Grow Customer Base Modernize Infrastructure Ongoing Disciplined Execution Sustain Growth Through Long-Term Investment in Infrastructure Modernization Maintain Innovative Rate Structures Deliver Exceptional Customer Satisfaction and
Slide 22: Appendix
Appendix 7
Slide 23: Modernizing our Business Model
Modernizing our Business Model Aligning Revenues, Costs and Investments OH IN PA MA VA KY MD Levelized Rates; Decoupling Uncollectible Expense Tracker; Uncollectible Commodity Adj. Pension/OPEB Tracker; Pension/OPEB Deferral Environmental Tracker/Deferral Low Income Programs Energy Efficiency Progra
Slide 24: NIPSCO Electric
NIPSCO Electric Jimmy Staton EVP & Group CEO September 12, 2012
Slide 25: Indiana's Largest Combination Utility
Indiana’s Largest Combination Utility 450,000 Electric Customers Rate Base of ~$2.3B Strong Customer Service Stable, Balanced Regulatory Environment 78 % Coal 22% Natural Gas Strong Operations and Customer Service
Slide 26: NIPSCO Electric Market Profile
NIPSCO Electric Market Profile Stable Markets 15,500 GWh $0.9B/Yr.* Industrial 43% Residential/ Commercial 57% Throughput Industrial 22% 76% Demand Residential/ Commercial 78% Margin Moderate Revenue Variability *Illustrative. Based on Rate Case Approved December 2011.
Slide 27: NIPSCO Performance
NIPSCO Performance Delivering for Our Customers, Communities and Other Key Stakeholders Safety/ Reliability Customer Experience Stakeholder Relations Customer Rates Financial Performance Top Quartile/Decile Performance Robust Programs, Significant JD Power Gains Collaborative, Constructive Approach
Slide 28: NIPSCO Electric Business Strategy
NIPSCO Electric Business Strategy Executing a Strategy for Sustainable Long-Term Growth Long-Term Growth Based on: • ‘Tracked’ Environmental Investments Ensuring Compliance • ‘Tracked’ Transmission System Enhancements • Modernizing Transmission and Distribution Infrastructure • New Gas-Fired Generat
Slide 29: NIPSCO Electric Business Strategy
NIPSCO Electric Business Strategy Investment-Driven Growth $400-450M Annual Capital Investment Upgrade Generation Fleet Enhance Transmission System Modernize Infrastructure 7-9% Operating Earnings Growth Growing Rate Base, Earning Allowed Returns
Slide 30: NIPSCO Electric: Upgrade Generation Fleet
NIPSCO Electric Business Strategy Upgrade Generation Fleet Plants Investment Compliance Recovery Technology Schahfer $525-775M FGDs Tracker FGD Michigan City (SO2) All Plants $80M—$ 200M Enhanced Mercury and Tracker MATS Particulate Controls All Plants $25M—$ 100M Enhanced Wastewater In S.B. 251 Tre
Slide 31: NIPSCO Electric: Enhance Transmission System
NIPSCO Electric Business Strategy Enhance Transmission System Strategically Located at MISO/PJM SEAM Two MISO Multi-Value Projects Ongoing Work with MISO to Reduce Congestion FERC Allowed Returns Capital Investment Reynolds to Hiple $250-300M Reynolds to Greentown $150-200M (Pioneer Partnership) $50
Slide 32: NIPSCO Electric: Modernize Infrastructure
NIPSCO Electric Business Strategy Modernize Infrastructure Systematic Replacement of Aging Infrastructure Spurs Redevelopment Opportunities, Economic Growth & Jobs Improved Reliability and System Integrity; Meets Increasing Customer Expectations Developing DSIC-Type Legislation $3-4B Investment Oppo
Slide 33: NIPSCO Electric Investment Run-Rate ($M)
NIPSCO Electric Investment Run-Rate ($M) Investment-Driven Growth $400 69% $275 $200 55% $150 50 150 25% 31% 17% 25 45% 83% 125 75% 150 125 125 2009 2010 2011 2012 $400-$450M Maintenance Tracker / Growth Growing Rate Base, Earning Allowed Returns
Slide 34: NIPSCO Electric Operating Earnings ($M)
NIPSCO Electric Operating Earnings* ($M) Attractive, Low-Risk, Investment-Driven 2009-2012 CAGR 14.3% 2012-2017 7-9% CAGR NIPSCO Electric * Non-GAAP. For a reconciliation to GAAP, see page 17 of the 2011 NiSource Statistical Summary. ** Represents Midpoint of Guidance Range Operating Earnings Growth
Slide 35: NIPSCO Electric: Positioned for Growth
NIPSCO Electric Business Strategy Positioned for Growth Upgrade Generation Fleet Enhance Transmission System Modernize Infrastructure Deep Inventory of Investment Opportunities Synched with Rate Recovery Stable, Balanced Regulatory Environment Strong Operations and Customer Service Strategic Transmi
Slide 36: Gas Transmission & Storage
Gas Transmission & Storage Jimmy Staton EVP & Group CEO September 12, 2012
Slide 37: NiSource Gas Transmission & Storage (NGT&S)
NiSource Gas Transmission Storage (NGT&S) Strategically Located Assets Columbia Gas Transmission (TCO) Columbia Gulf Transmission (Gulf) Millennium Pipeline Crossroads Pipeline Shale Areas 15,000+ Pipeline Miles 1.3 Tcf Throughput Nearly 300 Bcf of Storage Capacity; 7.3 Bcf of Deliverability Rate Ba
Slide 38: NGT&S Footprint
NGT&S Footprint Strategically Located Assets Serving Market Across 16 State 2010 US Census Population Density by County
Slide 39: NGT&S Positioned for Growth
NGT&S Positioned for Growth Safety/ Reliability Customer Experience Stakeholder Relations Customer Rates Financial Performance Solid Safety Results; Proactive Reliability Efforts Ongoing Engagement Focus, Satisfaction Gains Collaborative, Constructive Approach Highly Competitive, Fee-Based Positione
Slide 40: NGT&S Growth Strategy
NGT&S Growth Strategy ‘4M’ Integrated Investment Strategy Modernize Our Infrastructure Reconfigure Our System for an Evolving Market Capture Emerging Midstream Opportunities Leverage Our Minerals Positions Modernization Marketing Midstream Minerals Comprehensive, Balanced Portfolio
Slide 41: NGT&S Growth Strategy
NGT&S Growth Strategy Regulated Pipeline & Storage Rebuilding Our System in Partnership with our Customers Linking New Supplies to Markets $7-9B Investment Over 10-15 Years Modernization Marketing Midstream & Minerals Leveraging Strategic Assets and Footprint Developing Fee-Based Gathering and Proce
Slide 42: NGT&S Growth Strategy
NGT&S Growth Strategy Strengthening Our System Foundation Linking New Supplies to Growing Markets Providing Market Access for Shale Supplies Leveraging Our Minerals Assets $1-1.5B Self-Funded Investment $3-4B $4-5B $ 10B Investment Inventory
Slide 43: NGT&S Growth Strategy
NGT&S Growth Strategy ‘4M’ Integrated Investment Strategy $500-700M Annual Capital Investment Modernization Marketing Midstream Minerals 10-12% Operating Earnings Growth Building Long-Term Sustainable Growth
Slide 44: Strengthening Our System Foundation
NGT&S Growth Strategy Strengthening Our System Foundation Modernization Building Long-Term Sustainable Growth
Slide 45: Strengthening Our System Foundation
Strengthening Our System Foundation System Modernization Modernization Systematically Rebuild Our Infrastructure Improve Public Safety Increase Customer Flexibility and Reliability Earn Consistent Returns on Investments $ 5B Investment Opportunity 1,000+ Miles of Pipeline Replaced 100,000+ Horsepowe
Slide 46: Strengthening Our System Foundation: Settlement
Strengthening Our System Foundation Unprecedented Settlement Collaboration: Near-Unanimous Settlement Annual Investment: $300M Minimal Regulatory Lag: Annual ‘Tracker’ Recovery of Return, Taxes & Depreciation Initial Term: 5 Years, With Extension Provisions Cost to Achieve: Within Expectations Timel
Slide 47: Linking New Supplies to Growing Markets
NGT&S Growth Strategy Linking New Supplies to Growing Markets Marketing Opportunistic, Disciplined Approach
Slide 48: Linking New Supplies to Growing Markets
Linking New Supplies to Growing Markets Marketing Strategy Enhance Market Liquidity Increase Supply Optionality Provide Market Access for Emerging Appalachian Supplies Access East Coast and Gulf LNG Export Markets 4B Investment Opportuni Underpinned by Fee-Based Contracts
Slide 49: West Side Expansion
Linking New Supplies to Growing Markets West Side Expansion GOAL Move Marcellus Supply to Growing Southeast Markets INVESTMENT CapEx: $200-250M 440 Mdt/d TCO Expansion 540 Mdt/d Gulf Expansion Line Looping at TCO Re-Piping for Bi-Directional Flow on Gulf CUSTOMERS Antero Rice Petro Edge Other Marcel
Slide 50: East Side Expansion
Linking New Supplies to Growing Markets East Side Expansion GOAL Provide Northern Marcellus Supplies to Northeast and Mid-Atlantic Markets INVESTMENT CapEx: $200-300M 220-300 Mdt/d TCO Expansion Pipeline Looping; Interconnects CUSTOMERS East Coast LDCs Gas-fired Generation Producers Negotiating Prec
Slide 51: Quick Link Expansion
Linking New Supplies to Growing Markets Quick Link Expansion GOAL INVESTMENT CUSTOMERS STATUS Deliver Utica Shale Supplies to Multiple Markets CapEx: ~$300M 500 Mdt/d TCO Expansion Pipeline Looping, Extension Various Utica Producers In Development In-Service Date: Q4 2015 Majorsville Moving Utica Ga
Slide 52: LNG Export Opportunities
Linking New Supplies to Growing Markets LNG Export Opportunities GOAL Deliver Shale Gas to LNG Export Hubs INVESTMENT CapEx: $0.5-1.3B 1-2 MMdt/d TCO/Gulf Expansion TCO Pipeline Looping/Expansion; Additional Compression and Reconfiguration of Gulf System CUSTOMERS LNG Exporters STATUS Negotiating Ag
Slide 53: Gas-Fired Generation Strategy
Cove Point Linking New Supplies to Growing Markets Gas-Fired Generation Strategy GOAL Fueling Coal-Fired Generation Conversions and New Builds INVESTMENT CapEx: ~$0.5-1B Pipeline Looping and Expansion; Compression CUSTOMERS AEP First Energy Dominion STATUS Customer Negotiations Under Way In-Service:
Slide 54: Warren County Expansion
Linking New Supplies to Growing Markets Warren County Expansion GOAL Additional Capacity to Serve New 1,300MW Generating Facility INVESTMENT CapEx: ~$35M ~250 Mdt/d TCO Expansion 2.5 Mile Pipeline Extension; Interconnect Facilities CUSTOMERS Dominion STATUS FERC Certificate: February 2012 In-Service
Slide 55: Millennium Pipeline
Linking New Supplies to Growing Markets Millennium Pipeline GOAL Deliver Marcellus Shale Supplies to Multiple Markets INVESTMENT ~$40M (NiSource’s Share) Minisink Compressor: Expand Capacity by 120 MDt/d Hancock Compressor: Expand Capacity by 150 MDt/d CUSTOMERS Northeast PA Producers STATUS Minisin
Slide 56: Providing Market Access for Shale Supplies
NGT&S Growth Strategy Providing Market Access for Shale Supplies Midstream Attractive Investment; Fee-Based Structures
Slide 57: Midstream Strategy
Providing Market Access for Shale Supplies Midstream Strategy Midstream Leverage Location and Asset Base Develop Gathering and Processing Opportunities and Targeted Partnerships Create Franchise in Underserved Marcellus and Emerging Utica Areas Pennant Majorsville Big Pine $1B Investment Opportunity
Slide 58: Evolving Midstream Opportunities: Utica Wells Drilled
Providing Market Access for Shale Supplies Evolving Midstream Opportunities Utica Wells Drilled to Date Anadarko Antero Chesapeake Enervest Gulfport Hess Range Rex Shell Shale Areas NGT&S System Mineral Leases Developing Shale Play
Slide 59: Evolving Midstream Opportunities: Active Lease Holders
Providing Market Access for Shale Supplies Evolving Midstream Opportunities Current Active Lease Holders Anadarko BP Chesapeake Chevron CNX/Hess Devon EnerVest Exxon – XTO Gulfport Halcon Hilcorp Range Seneca Shell Million+ Acres Leased Shale Areas NGT&S System Mineral Leases
Slide 60: Evolving Midstream Opportunities: Building the Franchise
Providing Market Access for Shale Supplies Evolving Midstream Opportunities First Mover in Underserved Areas Gathering, Processing and Partnership Opportunities Significant Expansion Opportunities Pennant Big Pine Majorsville Building the Midstream Franchise Shale Areas NGT&S System Mineral Leases
Slide 61: Majorsville Processing Complex
Providing Market Access for Shale Supplies Majorsville Processing Complex Inlet/Outlet Pipelines GOAL Gather Wet Marcellus Gas to Processing Facility and Provide Downstream Pipeline Market Access INVESTMENT Repurposing Existing Pipeline; Adding New Interconnect $85M Gathering Extension CUSTOMERS Ran
Slide 62: Big Pine Gathering System
Providing Market Access for Shale Supplies Big Pine Gathering System GOAL Move Marcellus Gas to Market Position NGT&S as ‘First Mover’ in Region INVESTMENT CapEx: ~$150M ~400 Mdt/d Capacity 55 Miles of New Pipeline in Western PA in Existing ROW Demand/Commodity Rate Structure Significant Acreage Ded
Slide 63: Pennant Midstream
Providing Market Access for Shale Supplies Pennant Midstream GOAL Establish Utica Franchise JV to Provide Gathering and Processing Services INVESTMENT $150M (NI Share -Phase 1) Expected Throughput ~400,000 Mdt/d 200 Mdt/d Initial Processing Capability Demand/Capacity Rate Structure 100,000 Acre Dedi
Slide 64: Leveraging Our Mineral Assets
NGT&S Growth Strategy Leveraging Our Mineral Assets Minerals Supports, Complements Midstream Strategy
Slide 65: Leveraging Our Minerals Positions
Leveraging Our Minerals Positions Integrated Strategy Optimize Our Minerals Position in Marcellus and Utica Shale Region Partner with Credible Producers Fund Investment With Working Interest Cash Flows Shale Areas NGT&S System Mineral Leases Measured Approach, Creating Long Term Value
Slide 66: Hilcorp Upstream Agreement
Leveraging Our Minerals Positions Hilcorp Upstream Agreement GOAL Jointly Develop and Extract Value of ~100k Acres of Mineral Rights INVESTMENT Market-Based Cash Payment • Consistent with market values (e.g. Recent Halcon/NCL transaction) • 50% ‘cash’; 50% ‘carry’ Working Interest of 5% Across AMI O
Slide 67: Significant Potential Minerals Opportunities
Leveraging Our Minerals Positions Significant Potential Minerals Opportunities Expect Utica to Develop East to West Small Number of Wells Drilled to Date Area Continues to Evolve Continue to Monitor Devon and Anadarko Increased Drilling Expected Over Next Several Years Majorsville Shale Areas NGT&S
Slide 68: NGT&S Growth Strategy
NGT&S Growth Strategy Strengthening Our System Foundation Linking New Supplies to Growing Markets Providing Market Access for Shale Supplies Leveraging Our Minerals Assets $1-1.5B Self-Funded Investment $4-5B $3-4B $ 10B Investment Inventory
Slide 69: NGT&S Investment Run-Rate ($M)
NGT&S Investment Run-Rate ($M) Investment Driven Growth $500-$700M $475 58% $300 $300 $300 275 25% 75 58% 50% 175 150 75% 50% 225 200 42% 150 42% 2009 2010 2011 2012 Maintenance Tracker/Growth 10-12% Operating Earnings Growth
Slide 70: NGT&S Operating Earnings
NGT&S Operating Earnings* Attractive Return on Investment 2012-2017 10-12% CAGR NGT&S Consistent Earnings Growth * Non-GAAP. For a reconciliation to GAAP, see page 16 of the 2011 NiSource Statistical Summary. ** Represents Midpoint of Guidance Range
Slide 71: NGT&S Business Strategy
NGT&S Business Strategy Positioned for Success Modernization Marketing Midstream Minerals $8-10B Inventory of Investments Demonstrated Execution Disciplined Approach to the Evolving Marketplace Positioned for 10-12% Operating Earnings Growth Building Long-Term Sustainable Growth
Slide 72: Appendix
Appendix 67
Slide 73: NGT&S Growth Investment Update
NGT&S Growth Investment Update $3-4B Opportunity line WB $14M 2Q ‘12 Smithfield $14M 2Q ‘12 Rimersburg $6M 2Q ‘12 millennium ~$85M (NI: $40M) 1Q & 4Q ‘13 Warren County $35M Apr ‘14 West Side $200—$250M Nov ‘14 East Side $200—$300M Sep ‘15 quick Link ~$300M 4Q ‘15 9 as-Fired Gen ~$0.5B—$1.0B 2015+ 10
Slide 74: Financial Profile
Financial Profile Steve Smith Executive Vice President & CFO September 12, 2012
Slide 75: Ongoing Financial Commitments
Ongoing Financial Commitments EPS Dividend Credit Investment Inventory 5-7% Long-Term Earnings Growth Attractive, Growing Dividend 3-5% Investment Grade Credit Profile with Strong Liquidity Disciplined Capital Allocation Applied to Large Inventory of Long-Term Growth Investments
Slide 76: Long-Term Financial Baselines
Long-Term Financial Baselines Earnings Growth and Attractive, Increasing Dividend Highly Disciplined Capital Allocation Framework Stable Credit Profile and Strong Liquidity Sustainable EPS Growth of 5-7% 2012 Outlook Range Solidly In Line With Guidance ($1.40- $1.50 NOEPS*) Attractive, Growing Divid
Slide 77: Investment Inventory by Segment
Investment Inventory by Segment Gas Distribution Infrastructure Investment Trackers & Recovery Mechanisms Across Service Territory Complimentary Customer Programs – Energy Conservation and Payment Programs Investment Inventory $10B 20+ Yrs. Electric Environmental Tracker Investment FERC Regulated Tr
Slide 78: Capital Expenditures
Capital Expenditures $1.8B $1.5B $1.5B $1.1B $.9B 67% $1.0B $.8B 55% $.6B 56% $.5B 63% $.5B 45% $.5B 33% $.5B 44% $.4B 37% $.3B 2009 2010 2011 2012 Maintenance—40% Tracker/Growth—60% Sustainable Investment Run Rate of $1.5B to $1.8B Drives EPS Growth
Slide 79: Accretive Investment Opportunities
Accretive Investment Opportunities Gas Distribution Electric NGT&S Total $600M $650M ~11% Trackers, Rate Cases & Investment Recovery Mechanisms $400M $450M ~11% Trackers & Rate Cases FERC Regulated Transmission Investment $500M $700M 12%-15% Fee-Based Long-Term Contracts FERC Approved Recovery Mecha
Slide 80: NI Operating Earnings ($M)
NI Operating Earnings* ($M) 2012-2017 8-10% CAGR 2009-2012 CAGR 7.0% * Non-GAAP ** Represents mid-point of guidance range Attractive, Low-Risk Investments Drive Operating Earnings Growth of 8% to 10% Going Forward
Slide 81: NOEPS Growth
NOEPS Growth* 2009-2012 CAGR 10.7% 2012-2017 5-7% CAGR * Net Operating Earnings per Share (non-GAAP) ** Represents mid-point of guidance range Investment Drives EPS Growth of 5% to 7% Going Forward
Slide 82: Primary Sources & Uses of Cash
Primary Sources & Uses of Cash Position, Build & Grow NiSource Growth CapEx ($1,000M-$1,300M) Maintenance CapEx (~$500M) Dividend ($250M-$300M) Primary Uses Primary Sources Annual Funding Requirement * ($500M-$750M) DRIP (~$50M) Funds From Operations ($1,100M-$1,300M) Equity Issuance Anticipated in
Slide 83: Recent Financing Activity 2009-2012 ($M)
Recent Financing Activity 2009-2012 ($M) 43 339 41 1,460 890 1,000 35 245 (287) (315) (978) (1,170) Financing 2009 2010 2011 2012 Debt Issuances $ 1,460 $ 245 $ 890 $ 1,000 Debt Maturities (1,170) (978) (287) (315) DRIP 24 35 41 43 Equity Issuances ——— 339 Net Financing Requirements $ 314 $ (698) $
Slide 84: Stable Investment Grade Credit
Stable Investment Grade Credit Credit Metrics Summary (Projected Year-End 2012) Debt Balance $7.9B Debt / Total Capitalization 58.7% FFO + Interest / Interest 4.2x FFO / Total Debt 16.8% Stable Credit Ratings Baa3 / BBB- / BBB- * * Moody’s / S&P / Fitch senior unsecured ratings
Slide 85: Strong Liquidity Position ($M)
Strong Liquidity Position ($M) Current Liquidity $ 1,500 May 2017 - (134) (19) $ 1,399 Credit Facility in Place Through May 2017
Slide 86: Summary
Summary EPS Dividend Credit Investment Inventory 5-7% Long-Term Earnings Growth Attractive, Growing Dividend 3-5% Investment Grade Credit Profile with Strong Liquidity Disciplined Capital Allocation Applied to Large Inventory of Long-Term Growth Investments
Slide 87: Appendix
Appendix
Slide 88: Maturity Profile ($M)
Maturity Profile ($M) As of July 31, 2012 $900 $750 $600 $450 $300 $150 $0 Weighted Average Maturity 10.22 yrs. Weighted Average Coupon 5.77% 2012 2013 2015 2016 2018 2019 2021 2022 2024 2025 2027 2028 2030 2031 2033 2034 2036 2037 2039 2040 2042 2043 NIPSCO Columbia Gas of Mass. NiSource Capital Ma