- 2023 guidance and long-term growth commitments reaffirmed
- Regulatory progress continues with a NIPSCO electric rate case
settlement that provides a balanced outcome for stakeholders
- NIPSCO minority interest sale launched and on track for
2023
MERRILLVILLE, Ind., May 3, 2023
/PRNewswire/ -- NiSource Inc. (NYSE: NI) today announced, on a GAAP
basis, net income available to common shareholders for the three
months ended March 31, 2023, of $319.2
million, or $0.71 diluted
earnings per share, compared to net income available to common
shareholders of $413.0 million, or
$0.94 diluted earnings per share, for
the same period of 2022.
NiSource also reported first quarter 2023 non-GAAP net operating
earnings available to common shareholders of $343.0 million, or $0.77 diluted earnings per share compared to
non-GAAP net operating earnings available to common shareholders of
$328.7 million, or $0.75 diluted earnings per share, for the first
quarter of 2022. Schedule 1 of this press release contains a
complete reconciliation of GAAP measures to non-GAAP
measures.
The Company reaffirms its non-GAAP NOEPS guidance of
$1.54 to $1.60 in 2023 and growth of 6- 8% through 2027.
Annual rate base growth of 8-10% is driven by $15 billion of capital expenditures during the
2023-27 period.
"NiSource remains committed to delivering on our top-tier EPS
growth plan," said NiSource President and CEO Lloyd Yates. "The settlement filed in NIPSCO's
electric rate case is another example of the team's continued
regulatory execution with balanced outcomes for stakeholders, and
the sale of the NIPSCO minority interest remains on track for 2023.
I'd also like to recognize our dedicated employees and contractors
who worked tirelessly to ensure our communities received safe and
reliable energy during the recent storms across our
territories."
First Quarter 2023 and Recent
Business Highlights
A settlement agreement has been filed in Northern Indiana
Public Service Company's (NIPSCO) electric rate case. The
settlement incorporates $1.8 billion
of incremental capital investments made on behalf of customers
since 2019 for renewable generation projects, grid modernization
and other customer-centric improvements. The settlement represents
a $292 million revenue increase. A
final order is anticipated in August with rates effective in 2023
and 2024.
The Company's major energy transition investments in
Indiana are proceeding according
to plan. Construction of the Indiana Crossroads Solar and
Dunns Bridge Solar I projects is nearing completion and work has
begun on Dunns Bridge II and Cavalry Solar projects.
Gas distribution regulatory execution has also advanced
with the Columbia Gas of Ohio rate
case settlement approval and implementation during the first
quarter. The Company's tracked infrastructure replacement programs
are executing on plan for 2023, as highlighted by Ohio's recently approved Infrastructure
Replacement Program (IRP) authorizing recovery of $316 million of capital investment.
NiSource reminds investors that it does not provide a GAAP
equivalent of its earnings guidance due to the impact of
unpredictable factors such as fluctuations in weather and other
unusual and infrequent items included in GAAP results.
Additional information for the quarter ended March 31,
2023, is available on the Investors section of www.nisource.com,
including segment and financial information and a
presentation.
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.
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"). 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. These
forward-looking statements include, but are not limited to,
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. 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, among other things, 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, 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.
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, 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 such guidance, it
should be noted that there will likely be a difference between
these measures and their GAAP equivalents due to various factors,
including, but not limited to, fluctuations in weather, the impact
of asset sales and impairments, and other unusual or infrequent
items included in GAAP results. The company is not able to estimate
the impact of such factors on GAAP earnings and, as such, is not
providing earnings guidance on a GAAP basis. In addition, the
company is not able to provide a reconciliation of its non-GAAP net
operating earnings guidance to its GAAP equivalent without
unreasonable efforts.
|
Three Months
Ended
March
31,
|
|
(in millions, except
per share amounts)
|
2023
|
|
2022
|
GAAP Net Income
Available to Common Shareholders
|
$
319.2
|
|
$
413.0
|
Adjustments to
Operating Income:
|
|
|
|
Operating
Revenues:
|
|
|
|
Weather - compared to
normal
|
32.3
|
|
(3.0)
|
Operating
Expenses:
|
|
|
|
NiSource Next
initiative(1)
|
—
|
|
1.5
|
Massachusetts Business
related amounts(2)
|
—
|
|
(105.0)
|
Total adjustments to
operating income
|
32.3
|
|
(106.5)
|
Income
Taxes:
|
|
|
|
Tax effect of above
items(3)
|
(8.5)
|
|
22.2
|
Total adjustments to
net income
|
23.8
|
|
(84.3)
|
Net Operating
Earnings Available to Common Shareholders (Non-GAAP)
|
$
343.0
|
|
$
328.7
|
Diluted Average
Common Shares
|
447.1
|
|
441.4
|
GAAP Diluted
Earnings Per Share
|
$
0.71
|
|
$
0.94
|
Adjustments to diluted
earnings per share
|
0.06
|
|
(0.19)
|
Non-GAAP Diluted Net
Operating Earnings Per Share(4)
|
$
0.77
|
|
$
0.75
|
(1)Represents incremental severance and
third-party consulting costs incurred in connection with the
NiSource Next initiative.
|
(2)2022
represents proceeds from a property insurance settlement related to
the Greater Lawrence Incident.
|
(3)Represents income tax expense
calculated using the statutory tax rates by legal
entity.
|
(4)The
Non-GAAP diluted NOEPS 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. The add-backs for the three months ended March 31,
2023 and 2022 were $0.4M and $0.5M, respectively. The
adjustment for the income allocated to participating securities for
the three months ended March 31, 2023 and 2022 were $(0.2)M
and zero, respectively.
|
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SOURCE NiSource Inc.