- Reaffirming 2023 non-GAAP NOEPS guidance in upper half of the
range
- Introducing 2024 non-GAAP NOEPS guidance and extending annual
6-8% growth from 2023-28
- NIPSCO minority interest transaction with Blackstone
Infrastructure Partners on-track for closing by the end of 2023
with recent FERC approval, highlighting diverse funding sources and
balance sheet flexibility while preserving the scale of the
business
- Incorporating an incremental $1 billion in capital expenditures
across 5-year plan horizon
NiSource Inc. (NYSE: NI) today announced, on a GAAP basis, net
income available to common shareholders for the three months ended
September 30, 2023, of $77.0 million, or $0.17 diluted earnings per
share, compared to net income available to common shareholders of
$52.0 million, or $0.12 diluted earnings per share, for the same
period of 2022. For the nine months ended September 30, 2023, on a
GAAP basis NiSource's net income available to common shareholders
was $436.1 million, or $0.98 diluted earnings per share, compared
to net income available to common shareholders of $518.2 million,
or $1.18 diluted earnings per share, for the same period of
2022.
NiSource also reported non-GAAP net operating earnings available
to common shareholders of $83.7 million, or $0.19 diluted earnings
per share, for the three months ended September 30, 2023, compared
to non-GAAP net operating earnings available to common shareholders
of $44.6 million, or $0.10 diluted earnings per share, for the same
period of 2022. For the nine months ended September 30, 2023,
NiSource's non-GAAP net operating earnings available to common
shareholders was $477.0 million, or $1.07 diluted earnings per
share, compared to non-GAAP net operating earnings available to
common shareholders of $427.2 million, or $0.97 diluted earnings
per share, for the same period of 2022. Schedule 1 of this press
release contains a complete reconciliation of GAAP measures to
non-GAAP measures.**
2023 NOEPS guidance reaffirmed,
introducing 2024 NOEPS guidance and extension to growth
plan
NiSource is reiterating 2023 non-GAAP NOEPS to be in the upper
half of the $1.54-1.60 range. In 2024 non-GAAP NOEPS is expected to
be in the range of $1.68-1.72. NiSource is extending its plan to
2028 with non-GAAP NOEPS growth expected to be 6-8% annually,
driven by $16 billion 2024-28 base plan capital expenditures and
8-10% annual 2023-28 rate base growth*. This increases the capital
expenditures projected over the next 5-year window by $1
billion.**
"Today’s extended financial plan with 2024 guidance demonstrates
strong execution since the initiation of our plan one year ago as
well as the resilience and duration of NiSource’s fundamental
drivers. Balance sheet flexibility and a superior regulatory and
stakeholder foundation enable continued execution of our investment
programs while maintaining our commitments through economic and
market volatility," said NiSource President and CEO, Lloyd Yates.
"This is all made possible by the tireless commitment of our more
than 11,300 employees and contractors to customers and communities
every day."
* core business rate base growth; select years may exceed
range
**Regulation G Disclosure Statement
This press release includes financial results and guidance for
NiSource with respect to net operating earnings available to common
shareholders and diluted earnings per share (NOEPS), which are
non-GAAP financial measures as defined by the SEC’s Regulation G.
The company includes these measures because management believes
they permit investors to view the company’s performance using the
same tools that management uses and to better evaluate the
company’s ongoing business performance. With respect to guidance on
NOEPS, NiSource reminds investors that it does not provide a
GAAP equivalent of its guidance on net operating earnings due to
the impact of unpredictable factors such as fluctuations in
weather, impact of asset sales and impairments and other unusual or
infrequent items included in the comparable GAAP measures. The
company is not able to estimate the impact of such factors on the
comparable GAAP measures and, as such, is not providing guidance on
a GAAP basis. In addition, the company is not able to provide a
reconciliation of its non-GAAP NOEPS guidance to the comparable
GAAP equivalents without unreasonable efforts.
Additional Information
Additional information for the quarter ended September 30, 2023,
is available on the Investors section of www.nisource.com,
including segment and financial information and a presentation, as
well as NiSource’s social media channels. The company alerts
investors that it intends to use the Investors section of its
website www.nisource.com and as well as the company’s social media
channels to disseminate important information about the company to
its investors. Investors are advised to look at NiSource’s website
and its social media channels for future important information
about the company.
About NiSource
NiSource Inc. (NYSE: NI) is one of the largest fully-regulated
utility companies in the United States, serving approximately 3.3
million natural gas customers and 500,000 electric customers across
six states through its local Columbia Gas and NIPSCO brands. The
mission of our approximately 7,200 employees is to deliver safe,
reliable energy that drives value to our customers. NiSource is a
member of the Dow Jones Sustainability - North America Index and is
on Forbes lists of America’s Best Employers for Women and
Diversity. Learn more about NiSource’s record of leadership in
sustainability, investments in the communities it serves and how we
live our vision to be an innovative and trusted energy partner at
www.NiSource.com. NI-F
The content of our website is not incorporated by reference into
this document or any other report or document NiSource files with
the Securities and Exchange Commission (“SEC”).
Forward-Looking Statements
This press release 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 in this press release include, but are
not limited to, statements regarding the purchase and sale
agreement that NiSource’s wholly-owned subsidiary, NIPSCO Holdings
II LLC, entered into with BIP BLUE BUYER L.L.C., an affiliate of
Blackstone Infrastructure Partners (the “Investor”) on June 17,
2023 whereby Investor will acquire newly issued membership
interests of NIPSCO Holdings II LLC which will represent a 19.9%
ownership in NIPSCO Holdings II LLC at closing (the “NIPSCO
Minority Equity Interest Sale”); statements concerning the ability
to complete the NIPSCO Minority Equity Interest Sale on the
anticipated timeline or at all; statements concerning the
anticipated benefits of the NIPSCO Minority Equity Interest Sale if
completed; statements concerning the projected impact of the NIPSCO
Minority Equity Interest Sales on our performance or opportunities;
any statements regarding our expectations, beliefs, plans,
objectives or prospects or future performance or financial
condition as a result of or in connection with the NIPSCO Minority
Equity Interest Sale; statements concerning our plans, strategies,
objectives, expected performance, expenditures, recovery of
expenditures through rates, stated on either a consolidated or
segment basis, and any and all underlying assumptions and other
statements that are other than statements of historical fact.
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 those factors could
cause actual results to differ materially from those projected.
Expressions of future goals and expectations and similar
expressions, including "may," "will," "should," "could," "would,"
"aims," "seeks," "expects," "plans," "anticipates," "intends,"
"believes," "estimates," "predicts," "potential," "targets,"
"forecast," and "continue," reflecting something other than
historical fact are intended to identify forward-looking
statements. All forward-looking statements are based on assumptions
that management believes to be reasonable; however, there can be no
assurance that actual results will not differ materially.
Factors that could cause actual results to differ materially
from the projections, forecasts, estimates and expectations
discussed in this release include, but are not limited to, risks
and uncertainties relating to the timing and certainty of closing
the NIPSCO Minority Equity Interest Sale; the ability to satisfy
the conditions to closing the NIPSCO Minority Equity Interest Sale;
the ability to achieve the anticipated benefits of the NIPSCO
Minority Equity Interest Sale; the effect of this communication on
NiSource’s stock price; the effects of transaction costs; the
effects of the NIPSCO Minority Equity Interest Sale on industry,
market, economic, political or regulatory conditions outside of
NiSource’s control; any disruption to NiSource’s business from the
NIPSCO Minority Equity Interest Sale, including the diversion of
management time on NIPSCO Minority Equity Interest Sale-related
issues; our ability to execute our business plan or growth
strategy, including utility infrastructure investments; potential
incidents and other operating risks associated with our business;
our ability to adapt to, and manage costs related to, advances in,
or failures of, technology; impacts related to our aging
infrastructure; our ability to obtain sufficient insurance coverage
and whether such coverage will protect us against significant
losses; the success of our electric generation strategy;
construction risks and natural gas costs and supply risks;
fluctuations in demand from residential and commercial customers;
fluctuations in the price of energy commodities and related
transportation costs or an inability to obtain an adequate,
reliable and cost-effective fuel supply to meet customer demands;
the attraction and retention of a qualified, diverse workforce and
ability to maintain good labor relations; our ability to manage new
initiatives and organizational changes; the actions of activist
stockholders; the performance of third-party suppliers and service
providers; potential cybersecurity attacks; increased requirements
and costs related to cybersecurity; any damage to our reputation;
any remaining liabilities or impact related to the sale of the
Massachusetts Business; the impacts of natural disasters, potential
terrorist attacks or other catastrophic events; the physical
impacts of climate change and the transition to a lower carbon
future; our ability to manage the financial and operational risks
related to achieving our carbon emission reduction goals, including
our Net Zero Goal; our debt obligations; any changes to our credit
rating or the credit rating of certain of our subsidiaries; any
adverse effects related to our equity units; adverse economic and
capital market conditions or increases in interest rates;
inflation; recessions; economic regulation and the impact of
regulatory rate reviews; our ability to obtain expected financial
or regulatory outcomes; continuing and potential future impacts
from the COVID-19 pandemic; economic conditions in certain
industries; the reliability of customers and suppliers to fulfill
their payment and contractual obligations; the ability of our
subsidiaries to generate cash; pension funding obligations;
potential impairments of goodwill; the outcome of legal and
regulatory proceedings, investigations, incidents, claims and
litigation; potential remaining liabilities related to the Greater
Lawrence Incident; compliance with applicable laws, regulations and
tariffs; compliance with environmental laws and the costs of
associated liabilities; changes in taxation; and other matters set
forth in Item 1, "Business," Item 1A, "Risk Factors" and Part II,
Item 7, "Management’s Discussion and Analysis of Financial
Condition and Results of Operations," of our Annual Report on Form
10-K for the fiscal year ended December 31, 2022, and matters set
forth in our Quarterly Reports on Form 10-Q for the quarters ended
March 31, 2023 and June 30, 2023, some of which risks are beyond
our control. In addition, the relative contributions to
profitability by each business segment, and the assumptions
underlying the forward-looking statements relating thereto, may
change over time.
All forward-looking statements are expressly qualified in their
entirety by the foregoing cautionary statements. We undertake no
obligation to, and expressly disclaim any such obligation to,
update or revise any forward-looking statements to reflect changed
assumptions, the occurrence of anticipated or unanticipated events
or changes to the future results over time or otherwise, except as
required by law.
Schedule 1 - Reconciliation of
Consolidated Net Income Available to Common Shareholders to Net
Operating Earnings Available to Common Shareholders (Non-GAAP)
(unaudited)
Three Months Ended
September 30,
Nine Months Ended
September 30,
(in millions, except per share
amounts)
2023
2022
2023
2022
GAAP Net Income Available to Common
Shareholders
$
77.0
$
52.0
$
436.1
$
518.2
Adjustments to Operating Income
:
Operating Revenues:
Weather - compared to normal
9.0
(10.4
)
47.2
(21.7
)
FAC adjustment(1)
—
—
—
8.0
Operating Expenses:
NiSource Next initiative(2)
—
0.6
—
3.3
Massachusetts Business related
amounts(3)
—
—
—
$
(105.0
)
Total adjustments to operating income
9.0
(9.8
)
47.2
(115.4
)
Income Taxes:
Tax effect of above items(4)
(2.3
)
2.4
(12.5
)
24.4
Preferred Dividends:
Preferred dividends redemption
premium(5)
—
—
6.2
—
Total adjustments to net income (loss)
6.7
(7.4
)
40.9
(91.0
)
Net Operating Earnings Available to
Common Shareholders (Non-GAAP)
$
83.7
$
44.6
$
477.0
$
427.2
Diluted Average Common Shares
448.3
443.4
447.4
441.7
GAAP Diluted Earnings Per
Share(6)
$
0.17
$
0.12
$
0.98
$
1.18
Adjustments to diluted earnings (loss) per
share
0.02
(0.02
)
0.09
(0.21
)
Non-GAAP Diluted Net Operating Earnings
Per Share
$
0.19
$
0.10
$
1.07
$
0.97
(1)
Represents fuel costs deemed
over-collected from customers through the FAC mechanism and ordered
to be refunded to customers.
(2)
Represents incremental severance and
third-party consulting costs incurred in connection with the
NiSource Next initiative.
(3)
Represents proceeds from a property
insurance settlement related to the Greater Lawrence Incident.
(4)
Represents income tax expense calculated
using the statutory tax rates by legal entity.
(5)
Represents the premium from our Series A
Preferred Stock redemption calculated as the difference between the
carrying value of the Series A Preferred Stock and the total amount
of consideration paid to redeem.
(6)
The GAAP Diluted Earnings Per Share
numerator is equal to Net Operating Earnings Available to Common
Shareholders adjusted for income allocated to participating
securities and add-backs for interest expense incurred, net of tax,
related to Series A Equity Unit purchase contracts.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231101656751/en/
Lynne Evosevich Corporate Media Relations (724) 288-1611
levosevich@nisource.com Christopher Turnure Director, Investor
Relations (614) 404-9426 cturnure@nisource.com Michael Weisenburger
Lead Analyst, Investor Relations (614) 202-2595
mweisenburger@nisource.com
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