MERRILLVILLE, Ind., Feb. 18, 2015 /PRNewswire/ -- NiSource Inc. (NYSE: NI) today announced net operating earnings from continuing operations (non-GAAP) of $542.5 million, or $1.72 per share, for the twelve months ended December 31, 2014, compared to net operating earnings from continuing operations (non-GAAP) of $493.9 million, or $1.58 per share in 2013 - representing an 8.9 percent year-over-year increase. Consolidated operating earnings (non-GAAP) for the twelve months ended December 31, 2014, were $1,270.3 million compared to $1,146.3 million in 2013.

On a GAAP basis, NiSource reported income from continuing operations for the twelve months ended December 31, 2014, of $530.7 million, or $1.68 per share, compared with $490.9 million, or $1.57 per share in 2013. Operating income was $1,262.4 million for the twelve months ended December 31, 2014, compared with $1,143.4 million in 2013. Refer to Schedule 2 for the items included in 2014 and 2013 GAAP operating income but excluded from operating earnings.

For the three months ended December 31, 2014, NiSource's net operating earnings (non-GAAP) were $160.7 million, or $0.51 per share, compared with $148.7 million, or $0.47 per share for the same period in 2013. On a GAAP basis, income from continuing operations for the three months ended December 31, 2014, was $154.3 million, or $0.49 per share, compared with $153.0 million, or $0.49 per share, for the same period in 2013.

"2014 was truly a watershed year for NiSource, anchored by focused execution of our well-established infrastructure investments and the initiation of strategic and transformational growth plans," NiSource President & Chief Executive Officer Robert C. Skaggs, Jr. said. "Supported by a record $2.2 billion capital investment program, NiSource again delivered on our earnings commitments and, for the sixth consecutive year, produced total returns for shareholders that exceeded the performance of the major utility indices."

In addition to the notable achievements in 2014, NiSource successfully completed the initial public offering (IPO) of common units in Columbia Pipeline Partners LP (NYSE: CPPL) on February 11, 2015. Columbia Pipeline Partners issued a press release outlining its pre-IPO financial results for 2014 this morning.

Columbia Pipeline Group separation plans on track

On September 28, 2014, NiSource announced that its Board of Directors approved, in principle, plans to separate its natural gas pipeline and related businesses into a stand-alone, publicly traded company, Columbia Pipeline Group (CPG).

The separation remains on schedule, with a preliminary Form 10 for CPG filed with the U.S. Securities & Exchange Commission on February 6, 2015. Key expected board members and executive team members for both companies were announced in late 2014 and early 2015. NiSource also entered into two $1.5 billion revolving credit facilities in December to support the liquidity needs of both NiSource and CPG following the separation. Both facilities will become effective at the time of the separation. In addition, Columbia Pipeline Partners entered into a $500 million facility effective with the completion of its initial public offering. The post-separation NiSource facility will amend and replace the company's existing $2.0 billion revolving credit agreement.

"We remain on track to complete the transition in mid-2015," Skaggs said. "Following the separation, both companies are expected to move forward as independent, investment-grade, pure-play entities with experienced teams focused on executing - and elevating - multi-billion-dollar infrastructure investment plans."

The recapitalization process associated with the separation is expected to take place in the second quarter of 2015. As outlined at NiSource's September Investor Day, the recapitalization process will include CPG issuing its own long-term debt prior to the separation to fund a one-time cash distribution to NiSource, which will ultimately reduce NiSource's net debt. NiSource shareholders would retain their current shares of NiSource stock and receive a pro-rata dividend of shares of CPG stock in a transaction that is expected to be tax-free to NiSource and its shareholders. The actual number of CPG shares that would be distributed to NiSource shareholders will be determined prior to closing.

Robust long-term investment and growth outlooks for both companies

NiSource's natural gas and electric utilities have identified approximately $30 billion in infrastructure investment opportunities over the next 20-plus years. These investments, paired with complementary regulatory and customer programs, are expected to deliver long-term earnings and dividend growth averaging 4-6 percent per year. NiSource's infrastructure investment inventory is focused on core utility modernization and expansion projects that provide tangible value to customers and communities. NiSource's utility capital investments are expected to reach approximately $1.3 billion in 2015.

CPG has developed a significant portfolio of organic growth investment opportunities that complement its seminal customer-supported system modernization program. Those opportunities are expected to result in approximately $12-$15 billion in growth capital investment over the next 10 years. These infrastructure projects, many of which are already under way, are expected to drive significant increased net investment, resulting in anticipated annual adjusted EBITDA growth in the mid-to-upper-teens over the next several years. CPG's annual dividend growth is expected to be commensurate with this adjusted EBITDA growth. In 2015, CPG's capital investments are expected to reach approximately $1.1 billion, up from approximately $850 million in 2014.

Beyond the projected long-term annual growth and 2015 capital investment rates provided above, NiSource is not providing full-year guidance due to the pending separation of NiSource and CPG. As the separation date moves closer, both companies plan to provide additional details on their respective performance expectations.

There will likely be differences between the projected non-GAAP long-term average annual growth rates presented above and their GAAP comparisons. Due to the unpredictability of weather and other factors, NiSource will not be providing projected long-term average annual GAAP growth rates.

Columbia Pipeline Group continues with core modernization program, transformational growth projects

During 2014, CPG further enhanced its strategic asset position in the Marcellus and Utica Shale production regions by placing in service several new market-driven facility expansions, originating several major growth projects and continuing to deliver on its system modernization program. Key execution highlights for CPG include:




    --  CPG placed more than $300 million in regulated system expansion projects
        in service in 2014, adding approximately 1.1 billion cubic feet of
        system capacity. A key project placed in service was the approximately
        $200 million West Side Expansion project. Fully subscribed with
        long-term contracts, the project involved making a portion of Columbia
        Gulf Transmission system bi-directional and capable of transporting 540
        million cubic feet per day of Marcellus Shale production to Gulf Coast
        and southeast markets.


    --  In December, CPG filed to recover costs related to the second year of
        investments under the Columbia Gas Transmission long-term system
        modernization program. The filing with the Federal Energy Regulatory
        Commission (FERC) reflects approximately $320 million in facilities
        placed in service as of October 31, 2014. Recovery of these investments
        began on February 1, 2015. A settlement with the company's customers -
        approved in early 2013 - addresses the initial five years of an expected
        10-15 year program that exceeds $4 billion in investment.


    --  Also in December, the FERC approved construction of CPG's East Side
        Expansion project. The project will provide approximately 315 million
        cubic feet per day of additional capacity for Marcellus Shale supplies
        to reach growing - and capacity constrained - northeastern and
        mid-Atlantic markets. The approximately $275 million project is expected
        to be placed in service in the third quarter of 2015.


    --  Progress continues on several other major growth projects, including
        CPG's approximately $1.8 billion combined investment in the Leach and
        Rayne XPress projects, which will provide additional market access for
        Marcellus and Utica Shale production. Other projects in various stages
        of execution include the $870 million WB XPress project, the $310
        million Cameron Access project, the $50 million Utica Access project,
        the $30 million Chesapeake LNG Plant Upgrade project, and the $25
        million Kentucky Power Plant Conversion project. Together these projects
        will add approximately 4 billion cubic feet of new capacity commitments
        across the CPG system, including access to LNG export facilities in
        Louisiana and Maryland.


    --  CPG also is in advanced commercial discussions with customers regarding
        the proposed Mountaineer XPress and Gulf XPress projects, which would
        provide further transportation capacity out of the Marcellus and Utica
        Shale production basins. The company expects to provide additional
        information about the scope and timeline of the projects in the first
        half of 2015.


    --  Columbia Midstream Group (CMG), formerly NiSource Midstream Services,
        placed its $60 million natural gas liquids line project in service
        during the fourth quarter of 2014. The line is part of the Pennant
        Midstream, LLC 50/50 partnership with Harvest Pipeline, an affiliate of
        Hilcorp Energy, and connects the Hickory Bend Cryogenic Processing Plant
        to the UEO Kensington facility in northeast Ohio. Initial capacity is
        approximately 45,000 barrels of liquids per day with expansion potential
        up to 90,000 barrels per day. The partnership's Hickory Bend Processing
        Plant and gathering facilities went in service in the first half of
        2014.
    --  CMG also is on schedule to place the first phase of its $120 million
        Washington County Gathering project and its approximately $65 million
        Big Pine Gathering System Expansion project in service before the end of
        2015.

"CPG continues to execute on a wide variety of high-value projects, many of which are aimed at delivering efficient capacity for customers transporting natural gas supplies out of the Marcellus and Utica formations to liquid markets," Skaggs said. "Our strategic footprint also provides us with significant opportunities to competitively optimize and expand our system to meet the growing needs of our customers, including competitively priced supply for local utilities, gas-fired power generation and LNG exporters; and access to growing, high-value markets for producers."

NIPSCO places second scrubber in service, remains on plan with modernization, environmental and growth investments

During the fourth quarter of 2014, NiSource's Indiana natural gas and electric business, Northern Indiana Public Service Co. (NIPSCO), remained on track with a broad agenda of reliability, modernization, customer service and environmental improvements. Key execution highlights for NIPSCO include:




    --  In December, NIPSCO placed its final flue gas desulfurization (FGD) unit
        in service at its R.M. Schahfer Electric Generating Station. This unit,
        like the one placed in service during the fourth quarter of 2013, was
        delivered on time and on budget. A third FGD unit, this one at NIPSCO's
        Michigan City Generating Station, is on schedule to be placed in service
        by the end of 2015. These investments are part of more than $850 million
        in environmental projects completed or in progress that allow NIPSCO to
        continue generating electricity using low-cost, reliable and efficient
        facilities, while improving air quality.


    --  NIPSCO filed its 2015 investment plans with the Indiana Utility
        Regulatory Commission (IURC) under the company's seven-year, nearly $2
        billion electric and natural gas modernization programs. The company
        completed nearly $120 million of modernization projects in 2014 and
        plans to invest approximately $185 million in 2015.


    --  Progress also continued on two major NIPSCO electric transmission
        projects designed to enhance region-wide system flexibility and
        reliability. Right-of-way acquisition and permitting are under way for
        both projects. The Greentown-Reynolds project is an approximately
        70-mile, 765-kilovolt line being constructed in a joint development
        agreement with Pioneer Transmission, and the Reynolds-Topeka project is
        a 100-mile, 345-kilovolt line. These projects involve an investment of
        approximately $500 million for NIPSCO and are anticipated to be in
        service by the end of 2018.
    --  Also during the quarter, NIPSCO received approval from the IURC to
        extend its Green Power Rate Program. The company also reached a
        settlement agreement to continue its Feed-in Tariff Program. The Green
        Power Rate program, introduced in early 2013, allows customers to
        designate a portion or all of their monthly electric usage to be
        attributable to power generated by renewable energy sources. The Feed-in
        Tariff program, originally introduced in 2012, allows customers to
        generate their own electricity via small-scale renewable resources and
        sell it back to the company.

Gas Distribution unit maintains execution focus with continued progress on modernization investments and regulatory initiatives

The NiSource Gas Distribution (NGD) companies continue to execute against their expanded infrastructure replacement and enhancement programs, complemented by a variety of customer programs and regulatory initiatives. Three recent regulatory execution highlights for NGD include:




    --  On November 12, 2014, the Pennsylvania Public Utility Commission
        approved a settlement in Columbia Gas of Pennsylvania's (CPA) base rate
        case. The case provides for recovery of CPA's investments in its
        well-established infrastructure modernization program and will increase
        annual revenues by approximately $33 million. New rates went into effect
        on December 20, 2014.


    --  Columbia Gas of Virginia (CGV) reached a settlement on its base rate
        case in December 2014. The Hearing Examiner issued a recommendation to
        approve the settlement, and CGV expects a decision by the Virginia State
        Corporation Commission by the end of the first quarter of 2015. The case
        seeks to recover costs related to significant capital investments CGV
        has made to improve its system and accommodate growth, as well as costs
        incurred related to a number of initiatives designed to improve the
        safety and reliability of its system. If the settlement is approved as
        filed, the case would provide a base rate increase of approximately $25
        million, including recovery of pipeline safety program costs.
    --  Columbia Gas of Massachusetts (CMA) filed its 2015 Gas System
        Enhancement Plan on October 31, 2014, under new legislation authorizing
        accelerated recovery of gas infrastructure modernization investments. If
        approved by the Massachusetts Department of Public Utilities, cost
        recovery associated with the enhancement plan - which would increase
        annual revenues by approximately $2.6 million - would begin on May 1,
        2015.

"NiSource's utilities remain focused on executing their robust infrastructure plans," Skaggs said. "This industry-leading platform for growth provides significant reliability, safety and environmental benefits to our existing and new customers, while also delivering shareholder returns through transparent recovery mechanisms."

Full-Year 2014 Operating Earnings - Segment Results (non-GAAP)

NiSource's consolidated operating earnings (non-GAAP) for the year ended December 31, 2014, were $1,270.3 million, compared to $1,146.3 million for the same period in 2013. Refer to Schedule 2 for the items included in 2014 and 2013 GAAP operating income but excluded from operating earnings.

Operating earnings for NiSource's business segments for the year ended December 31, 2014, are discussed below.

Columbia Pipeline Group Operations reported operating earnings of $490.7 million for the year ended December 31, 2014, compared with operating earnings of $441.2 million for the prior year period. Net revenues, excluding the impact of trackers, increased by $79.1 million primarily due to higher demand margin revenue as a result of growth projects placed into service and new firm contracts. Additionally, there was an increase in net revenues as a result of higher mineral rights royalty revenue.

Operating expenses, excluding the impact of trackers, increased by $40.3 million primarily due to higher employee and administrative costs, increased outside service costs, higher depreciation, a prior year gain on the sale of storage assets and increased property taxes. These increases were partially offset by gains on the conveyance of mineral interests and a decrease in software data conversion costs. Equity earnings increased by $10.7 million primarily from increased earnings at Millennium Pipeline.

Electric Operations reported operating earnings of $287.7 million for the year ended December 31, 2014, compared with operating earnings of $265.3 million for the prior year period. Net revenues, excluding the impact of trackers, increased by $46.9 million primarily due to increased industrial margins and higher environmental investment cost recovery. Additionally, net revenues increased as a result of two electric transmission projects authorized by the Midcontinent Independent System Operator (MISO) and higher off-system sales. These increases were partially offset by a decrease in transmission upgrade revenue included in net revenues in the prior year.

Operating expenses, excluding the impact of trackers, increased by $24.5 million due primarily to increased electric generation costs largely due to maintenance-related outages and higher employee and administrative costs.

Gas Distribution Operations reported operating earnings of $517.4 million for the year ended December 31, 2014, compared with operating earnings of $448.8 million for the prior year period. Net revenues, excluding the impact of trackers, increased by $126.3 million primarily attributable to an increase in regulatory and service programs, including the impact of the 2013 rate settlement at Columbia Gas of Pennsylvania, the new rates at Columbia Gas of Massachusetts, as well as, the implementation of new rates under Columbia Gas of Ohio's approved infrastructure replacement program. Additionally, there was increased residential, commercial and industrial usage, higher revenue due to an increase in residential and commercial customers and increased off-system sales.

Operating expenses, excluding the impact of trackers, increased by $57.7 million due primarily to higher employee and administrative costs, increased depreciation due to higher capital expenditures, higher outside service costs, increased other taxes, and higher uncollectibles. These increases were partially offset by lower environmental costs.

Corporate and Other Operations reported an operating earnings loss of $25.5 million for the year ended December 31, 2014, compared to an operating earnings loss of $9.0 million for the comparable prior period. The increased loss is primarily due to employee and administrative costs and consulting fees.

Other Items
Interest expense increased by $28.8 million due the issuance of long-term debt in April and October 2013 and the expiration of interest rate swaps in July 2014, partially offset by the maturity of long-term debt in March 2013 and July 2014.

Other, net reflected income of $22.3 million compared to income of $24.2 million in 2013.

The effective tax rate of net operating earnings was 36.1 percent compared to 34.6 percent for the same period last year due to higher state income taxes, primarily an Indiana state income tax change.

Fourth Quarter 2014 Operating Earnings - Segment Results (non-GAAP)

NiSource's consolidated operating earnings (non-GAAP) for the three months ended December 31, 2014, were $361.8 million, compared to $340.0 million for the same period in 2013. Refer to Schedule 2 for the items included in 2014 and 2013 GAAP operating income but excluded from operating earnings.

Operating earnings for NiSource's business segments for the three months ended December 31, 2014, are discussed below.

Columbia Pipeline Group Operations reported operating earnings of $133.7 million for the three months ended December 31, 2014, compared with operating earnings of $120.4 million for the prior year period. Net revenues, excluding the impact of trackers, increased by $17.9 million primarily due to higher demand margin revenue as a result of growth projects placed into service and new firm contracts.

Operating expenses, excluding the impact of trackers, increased by $8.0 million primarily due to an increase in outside service costs, higher employee and administrative costs and increased depreciation. These increases were partially offset by gains on the conveyance of mineral interests. Equity earnings increased by $3.4 million primarily from increased earnings at Millennium Pipeline.

Electric Operations reported operating earnings of $63.5 million for the three months ended December 31, 2014, compared with operating earnings of $51.3 million for the prior year period. Net revenues, excluding the impact of trackers, increased by $5.1 million primarily due to increased environmental investment cost recovery and two electric transmission projects authorized by the MISO.

Operating expenses, excluding the impact of trackers, decreased by $7.1 million due primarily to lower employee and administrative costs and decreased other taxes.

Gas Distribution Operations reported operating earnings of $173.8 million for the three months ended December 31, 2014, compared with operating earnings of $164.2 million for the prior year period. Net revenues, excluding the impact of trackers, increased by $29.3 million primarily attributable to increases in regulatory and service programs, including the impact of new rates at Columbia Gas of Virginia and Columbia Gas of Massachusetts and the implementation of new rates under Columbia Gas of Ohio's approved infrastructure replacement program.

Operating expenses, excluding the impact of trackers, increased by $19.7 million due primarily to increased outside service costs, higher depreciation, and increased employee and administrative costs.

Corporate and Other Operations reported an operating earnings loss of $9.2 million for the three months ended December 31, 2014, compared to operating earnings of $4.1 million for the comparable prior period. The change is primarily due to increased employee and administrative costs.

Other Items
Interest expense increased by $5.3 million due to the expiration of interest rate swaps in July 2014, decreased AFUDC (Allowance for Funds Used During Construction) balances and the issuance of long-term debt in August 2014, partially offset by the maturity of long-term debt in July 2014.

Other, net reflected income of $1.1 million compared to income of $2.1 million in 2013.

The effective tax rate of net operating earnings was 35.0 percent compared to 35.8 percent for the same period last year.

About NiSource
NiSource Inc. (NYSE: NI), based in Merrillville, Indiana, is a Fortune 500 company engaged in natural gas transmission, storage and distribution, as well as electric generation, transmission and distribution. NiSource operating companies deliver energy to 3.8 million customers located within the high-demand energy corridor stretching from the Gulf Coast through the Midwest to New England. Information about NiSource and its subsidiaries is available via the Internet at www.nisource.com. NI-F

Forward-Looking Statements
This news release contains 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 this release include statements and expectations regarding the timing of the separation, as well as NiSource's business following the separation and the leadership of NiSource and Columbia Pipeline Group, Inc. following the separation. Factors that could cause actual results to differ materially from the projections, forecasts, estimates and expectations discussed in this release include, among other things, the timing to consummate the transactions described herein; the risk that a condition to consummation is not satisfied; disruption to operations as a result of the proposed transactions; the inability of one or more of the businesses to operate independently following the completion of the proposed transactions; weather; fluctuations in supply and demand for energy commodities; growth opportunities for NiSource's businesses; increased competition in deregulated energy markets; the success of regulatory and commercial initiatives; dealings with third parties over whom NiSource has no control; actual operating experience of NiSource's assets; the regulatory process; regulatory and legislative changes; changes in general economic, capital and commodity market conditions; and counter-party credit risk, and the matters set forth in the "Risk Factors" section in NiSource's 2013 Form 10-K and subsequent NiSource filings of Form 10-Q, many of which are beyond the control of NiSource. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this news release. Future earnings and other financial projections are illustrative only and do not constitute guidance by the Company. NiSource expressly disclaims a duty to update any of the forward-looking statements contained in this release.

The potential distribution of CPG shares is subject to the satisfaction of a number of conditions, including the final approval of NiSource's Board of Directors. There is no assurance that such distribution will in fact occur.



                                                     NiSource Inc.

                                     Consolidated Net Operating Earnings (Non-GAAP)

                                                      (unaudited)




                                                       Three Months Ended                 Twelve Months Ended

                                                        December 31,                     December 31,
                                                        ------------                     ------------

    (in millions, except per
     share amounts)                                         2014                    2013                   2014       2013
    ------------------------                                ----                    ----                   ----       ----

    Net Revenues

    Gas Distribution                                      $718.3                  $683.5               $2,578.4   $2,225.3

    Gas Transportation and
     Storage                                               522.4                   461.3                1,872.7    1,646.4

    Electric                                               392.1                   386.2                1,677.1    1,563.2

    Other                                                   57.1                    61.6                  328.1      224.4
                                                            ----                    ----                  -----      -----

    Gross Revenues                                       1,689.9                 1,592.6                6,456.3    5,659.3

    Cost of Sales (excluding
     depreciation and
     amortization)                                         560.8                   547.1                2,224.2    1,815.5
    ------------------------                               -----                   -----                -------    -------

    Total Net Revenues                                   1,129.1                 1,045.5                4,232.1    3,843.8
    ------------------                                   -------                 -------                -------    -------

    Operating Expenses

    Operation and maintenance                              438.6                   403.5                1,633.7    1,519.2

    Operation and maintenance -
     trackers                                              123.6                    94.8                  483.4      354.7

    Depreciation and
     amortization                                          153.5                   145.9                  602.4      573.6

    Depreciation and
     amortization -trackers                                  1.2                       -                   3.1        3.7

    Gain on sale of assets                                (13.7)                  (7.3)                (34.5)    (18.4)

    Other taxes                                             57.1                    60.5                  246.4      235.9

    Other taxes - trackers                                  20.7                    18.4                   73.9       64.7
    ----------------------                                  ----                    ----                   ----       ----

    Total Operating Expenses                               781.0                   715.8                3,008.4    2,733.4
    ------------------------                               -----                   -----                -------    -------

    Equity Earnings in
     Unconsolidated Affiliates                              13.7                    10.3                   46.6       35.9
    --------------------------                              ----                    ----                   ----       ----

    Operating Earnings                                     361.8                   340.0                1,270.3    1,146.3
    ------------------                                     -----                   -----                -------    -------

    Other Income (Deductions)

    Interest expense, net                                (115.8)                (110.5)               (443.6)   (414.8)

    Other, net                                               1.1                     2.1                   22.3       24.2
    ----------                                               ---                     ---                   ----       ----

    Total Other Deductions                               (114.7)                (108.4)               (421.3)   (390.6)
    ----------------------                                ------                  ------                 ------     ------

    Operating Earnings From Continuing Operations

    Before Income Taxes                                    247.1                   231.6                  849.0      755.7

    Income Taxes                                            86.4                    82.9                  306.5      261.8
    ------------                                            ----                    ----                  -----      -----

    Net Operating Earnings from
     Continuing Operations                                 160.7                   148.7                  542.5      493.9
    ---------------------------                            -----                   -----                  -----      -----

    GAAP Adjustment                                        (6.4)                    4.3                 (11.8)     (3.0)
    ---------------                                         ----                     ---                  -----       ----

    GAAP Income from Continuing
     Operations                                           $154.3                  $153.0                 $530.7     $490.9
    ===========================                           ======                  ======                 ======     ======

    Basic Net Operating Earnings
     Per Share from Continuing
     Operations                                            $0.51                   $0.47                  $1.72      $1.58
    ----------------------------                           -----                   -----                  -----      -----

    GAAP Basic Earnings Per
     Share from Continuing
     Operations                                            $0.49                   $0.49                  $1.68      $1.57
    -----------------------                                -----                   -----                  -----      -----

    Basic Average Common Shares
     Outstanding                                           315.8                   313.4                  315.1      312.4
    ===========================                            =====                   =====                  =====      =====


                                                             NiSource Inc.

                                                 Segment Operating Earnings (Non-GAAP)

                                                              (unaudited)





                                                                              Three Months Ended        Twelve Months Ended

    Gas Distribution Operations                                                  December 31,              December 31,
                                                                                 ------------              ------------

    (in millions)                                                                      2014        2013                    2014      2013
    ------------                                                                       ----        ----                    ----      ----

    Net Revenues

    Sales revenues                                                                   $999.0      $924.6                $3,574.5  $3,056.0

    Less: Cost of gas sold                                                            467.9       455.0                 1,762.7   1,419.7

    Net Revenues                                                                      531.1       469.6                 1,811.8   1,636.3
    ------------                                                                      -----       -----                 -------   -------

    Operating Expenses

    Operation and maintenance                                                         197.7       181.9                   763.6     728.1

    Operation and maintenance - trackers                                               58.2        28.3                   136.7      96.7

    Depreciation and amortization                                                      55.9        51.7                   217.6     201.4

    Other taxes                                                                        24.8        25.1                   102.6      96.6

    Other taxes - trackers                                                             20.7        18.4                    73.9      64.7
    ----------------------                                                             ----        ----                    ----      ----

    Total Operating Expenses                                                          357.3       305.4                 1,294.4   1,187.5
    ------------------------                                                          -----       -----                 -------   -------

    Operating Earnings                                                               $173.8      $164.2                  $517.4    $448.8
    ==================                                                               ======      ======                  ======    ======

    GAAP Adjustment                                                                     0.8         2.1                    19.6     (3.4)
    ---------------                                                                     ---         ---                    ----      ----

    GAAP Operating Income                                                            $174.6      $166.3                  $537.0    $445.4
    =====================                                                            ======      ======                  ======    ======




                                                                              Three Months Ended        Twelve Months Ended

    Columbia Pipeline Group Operations                                           December 31,              December 31,
                                                                                 ------------              ------------

    (in millions)                                                                      2014        2013                    2014      2013
    ------------                                                                       ----        ----                    ----      ----

    Net Revenues

    Transportation revenues                                                          $239.3      $215.8                  $837.1    $774.7

    Storage revenues                                                                   48.9        48.6                   197.2     196.4

    Other revenues                                                                     52.3        57.5                   312.9     208.7
    --------------                                                                     ----        ----                   -----     -----

    Total Operating Revenues                                                          340.5       321.9                 1,347.2   1,179.8

    Less: Cost of sales                                                                 0.1         0.1                     0.3       0.4

    Net Revenues                                                                      340.4       321.8                 1,346.9   1,179.4
    ------------                                                                      -----       -----                 -------   -------

    Operating Expenses

    Operation and maintenance                                                         127.3       117.0                   429.2     389.4

    Operation and maintenance - trackers                                               59.1        58.4                   322.4     234.0

    Depreciation and amortization                                                      30.9        28.0                   118.6     106.9

    Gain on sale of assets                                                           (13.7)      (7.3)                 (34.5)   (18.4)

    Other taxes                                                                        16.8        15.6                    67.1      62.2

    Total Operating Expenses                                                          220.4       211.7                   902.8     774.1
    ------------------------                                                          -----       -----                   -----     -----

    Equity Earnings in Unconsolidated Affiliates                                       13.7        10.3                    46.6      35.9
    --------------------------------------------                                       ----        ----                    ----      ----

    Operating Earnings                                                               $133.7      $120.4                  $490.7    $441.2
    ==================                                                               ======      ======                  ======    ======

    GAAP Adjustment                                                                       -          -                      -      0.2
    ---------------

    GAAP Operating Income                                                            $133.7      $120.4                  $490.7    $441.4
    =====================                                                            ======      ======                  ======    ======


                                                         NiSource Inc.

                                             Segment Operating Earnings (Non-GAAP)

                                                          (unaudited)





                                                                     Three Months Ended        Twelve Months Ended

    Electric Operations                                                 December 31,              December 31,
                                                                        ------------              ------------

    (in millions)                                                             2014        2013                    2014     2013
    ------------                                                              ----        ----                    ----     ----

    Net Revenues

    Sales revenues                                                          $392.4      $386.6                $1,678.5 $1,564.8

    Less: Cost of sales                                                      135.5       134.2                   609.7    542.6

    Net Revenues                                                             256.9       252.4                 1,068.8  1,022.2
    ------------                                                             -----       -----                 -------  -------

    Operating Expenses

    Operation and maintenance                                                113.4       116.8                   450.6    424.6

    Operation and maintenance - trackers                                       6.3         8.1                    24.3     24.0

    Depreciation and amortization                                             60.3        60.2                   241.3    240.7

    Depreciation and amortization - trackers                                   1.2           -                    3.1      3.7

    Other taxes                                                               12.2        16.0                    61.8     63.9

    Total Operating Expenses                                                 193.4       201.1                   781.1    756.9
    ------------------------                                                 -----       -----                   -----    -----

    Operating Earnings                                                       $63.5       $51.3                  $287.7   $265.3
    ==================                                                       =====       =====                  ======   ======

    GAAP Adjustment                                                            0.5         2.0                   (5.0)     0.2
    ---------------                                                            ---         ---                    ----      ---

    GAAP Operating Income                                                    $64.0       $53.3                  $282.7   $265.5
    =====================                                                    =====       =====                  ======   ======




                                                                     Three Months Ended        Twelve Months Ended

    Corporate and Other Operations                                      December 31,              December 31,
                                                                        ------------              ------------

    (in millions)                                                             2014        2013                    2014     2013
    ------------                                                              ----        ----                    ----     ----

    Operating (Loss) Earnings                                               $(9.2)       $4.1                 $(25.5)  $(9.0)
    =========================                                                =====        ====                  ======    =====

    GAAP Adjustment                                                         (11.8)          -                 (22.5)     0.1
    ---------------

    GAAP Operating (Loss) Income                                           $(21.0)       $4.1                 $(48.0)  $(8.9)
    ============================                                            ======        ====                  ======    =====


                                                              NiSource Inc.

                                                   Segment Volumes and Statistical Data





                              Three Months Ended        Twelve Months Ended

                                 December 31,               December 31,
                                 ------------               ------------

    Gas Distribution
     Operations                               2014                       2013                  2014        2013
    ----------------                          ----                       ----                  ----        ----

    Sales and Transportation
     (MMDth)

    Residential                               88.3                       90.3                 295.2       272.3

    Commercial                                54.6                       54.4                 189.6       172.9

    Industrial                               128.2                      127.1                 512.9       494.5

    Off System                                 9.3                       14.7                  44.9        70.4

    Other                                        -                         -                (0.1)        0.4
    -----                                      ---                       ---                 ----         ---

    Total                                    280.4                      286.5               1,042.5     1,010.5
    -----                                    -----                      -----               -------     -------

    Weather Adjustment                       (2.6)                     (3.9)               (36.4)      (3.4)
    ------------------                        ----                       ----                 -----        ----

    Sales and Transportation
     Volumes -Excluding
     Weather                                 277.8                      282.6               1,006.1     1,007.1
    ========================                 =====                      =====               =======     =======


    Heating Degree Days                      2,084                      2,122                 6,176       5,698

    Normal Heating Degree
     Days                                    2,034                      2,034                 5,610       5,610

    % Colder than Normal                        2%                        4%                  10%         2%

    Customers

    Residential                                                                         3,098,052   3,079,575

    Commercial                                                                            282,749     281,535

    Industrial                                                                              7,637       7,663

    Other                                                                                      15          22
    -----                                                                                     ---         ---

    Total                                                                               3,388,453   3,368,795
    -----                                                                               ---------   ---------




                              Three Months Ended        Twelve Months Ended

                                 December 31,               December 31,
                                 ------------               ------------

    Columbia Pipeline Group
     Operations                               2014                       2013                  2014        2013
    -----------------------                   ----                       ----                  ----        ----

    Throughput (MMDth)

    Columbia Transmission                    355.5                      356.2               1,379.4     1,354.3

    Columbia Gulf                            153.4                      149.0                 626.7       643.0

    Crossroads Pipeline                        4.3                        4.5                  16.7        16.9

    Intrasegment eliminations               (23.4)                    (27.6)              (128.7)    (239.4)
    -------------------------                -----                      -----                ------      ------

    Total                                    489.8                      482.1               1,894.1     1,774.8
    -----                                    -----                      -----               -------     -------



                                                             NiSource Inc.

                                                  Segment Volumes and Statistical Data





                           Three Months Ended             Twelve Months Ended

                              December 31,                    December 31,
                              ------------                    ------------

    Electric Operations                      2014                            2013           2014      2013
    -------------------                      ----                            ----           ----      ----

    Sales (Gigawatt Hours)

    Residential                             779.6                           811.0        3,384.2   3,444.7

    Commercial                              932.2                           952.0        3,864.2   3,881.9

    Industrial                            2,546.6                         2,426.6       10,114.2   9,339.7

    Wholesale                               190.2                             5.1          675.5     669.7

    Other                                    43.5                            40.5          148.2     132.0
    -----                                    ----                            ----          -----     -----

    Total                                 4,492.1                         4,235.2       18,186.3  17,468.0
    -----                                 -------                         -------       --------  --------

    Weather Adjustment                      (7.0)                         (28.9)          72.3     (2.4)
    ------------------                       ----                           -----           ----      ----

    Sales Volumes -
     Excluding Weather                    4,485.1                         4,206.3       18,258.6  17,465.6
    ==================                    =======                         =======       ========  ========


    Cooling Degree Days                                                                    663       798

    Normal Cooling Degree
     Days                                                                                  806       806

    % Colder than Normal                                                                 (18)%     (1)%

    Electric Customers

    Residential                                                                        403,272   402,638

    Commercial                                                                          54,635    54,452

    Industrial                                                                           2,352     2,374

    Wholesale                                                                              751       725

    Other                                                                                    5         5
    -----                                                                                  ---       ---

    Total                                                                              461,015   460,194
    -----                                                                              -------   -------



                                                                    NiSource Inc.

                                            Schedule 1 - Reconciliation of Net Operating Earnings to GAAP





                            Three Months Ended                    Twelve Months Ended

                               December 31,                           December 31,
                               ------------                           ------------

    (in millions, except
     per share amounts)                       2014                                   2013                     2014     2013
    --------------------                      ----                                   ----                     ----     ----

    Net Operating Earnings
     from Continuing
     Operations (Non-GAAP)                  $160.7                                 $148.7                   $542.5   $493.9
    ----------------------                  ------                                 ------                   ------   ------

    Items excluded from
     operating earnings

    Net Revenues:

    Weather -compared to
     normal                                    1.3                                    4.1                     14.3      1.2

    Settlement Agreement                         -                                     -                       -   (3.2)

    Operating Expenses:

    Transaction costs                       (10.3)                                     -                  (19.2)       -

    Loss on sale of assets
     and asset impairments                   (1.5)                                     -                   (3.0)   (0.9)
    ----------------------                    ----                                    ---                    ----     ----

    Total items excluded
     from operating
     earnings                               (10.5)                                   4.1                    (7.9)   (2.9)
    --------------------                     -----                                    ---                     ----     ----

    Other Deductions:

    Tax effect of above
     items                                     4.1                                  (1.7)                     3.1      1.1

    Income taxes -discrete
     items                                       -                                   1.9                    (7.0)   (1.2)
                                                                                     ---                             ----

    Total items excluded
     from net operating
     earnings                                (6.4)                                   4.3                   (11.8)   (3.0)
    --------------------                      ----                                    ---                    -----     ----

    Reported Income from
     Continuing Operations
     -GAAP                                  $154.3                                 $153.0                   $530.7   $490.9
    ======================                  ======                                 ======                   ======   ======

    Basic Average Common
     Shares Outstanding                      315.8                                  313.4                    315.1    312.4
    ====================                     =====                                  =====                    =====    =====

    Basic Net Operating
     Earnings Per Share
     from Continuing
     Operations                              $0.51                                  $0.47                    $1.72    $1.58
    -------------------                      -----                                  -----                    -----    -----

    Items excluded from net
     operating earnings
     (after-tax)                            (0.02)                                  0.02                   (0.04)  (0.01)
    -----------------------                  -----                                   ----                    -----    -----

    GAAP Basic Earnings Per
     Share from Continuing
     Operations                              $0.49                                  $0.49                    $1.68    $1.57
    -----------------------                  -----                                  -----                    -----    -----



                                                                                                NiSource Inc.

                                                                     Schedule 2 - Adjustments by Segment from Operating Earnings to GAAP

                                                                                      For the Quarter ended December 31,






                                                     Gas                                   Columbia                                                      Corporate                 Total
                                                 Distribution                              Pipeline                                                       & Other
    2014 (in millions)                                                                                                                  Electric
                                                                                           Group
    ---                                                                                                                                                                                     ---

    Operating Earnings (Loss)                                 $173.8                                      $133.7                                   $63.5                  $(9.2)            $361.8

    Net Revenues:

    Weather - compared to normal                                 0.8                                           -                                    0.5                       -               1.3
    ----------------------------                                 ---                                         ---                                    ---                     ---               ---

    Total Impact - Net Revenues                                  0.8                                           -                                    0.5                       -               1.3

    Operating Expenses:

    Transaction costs                                              -                                          -                                      -                 (10.3)            (10.3)

    Loss on sale of assets and asset impairments                   -                                          -                                      -                  (1.5)             (1.5)

    Total Impact - Operating Expenses                              -                                          -                                      -                 (11.8)            (11.8)
    ---------------------------------                            ---                                        ---                                    ---                  -----              -----

    Total Impact - Operating Income (Loss)                      $0.8                              $            -                                   $0.5                 $(11.8)           $(10.5)
    -------------------------------------                       ----                              --------------                                   ----                  ------             ------

    Operating Income (Loss) - GAAP                            $174.6                                      $133.7                                   $64.0                 $(21.0)            $351.3
    ------------------------------                            ------                                      ------                                   -----                  ------             ------





    2013 (in millions)                               Gas                                   Columbia                                       Electric       Corporate
                                                 Distribution                              Pipeline                                                       & Other
                                                                                           Group                                                                                 Total


    Operating Earnings                                        $164.2                                      $120.4                                   $51.3                    $4.1             $340.0

    Net Revenues:

    Weather - compared to normal                                 2.1                                           -                                    2.0                       -               4.1
    ----------------------------                                 ---                                         ---                                    ---                     ---               ---

    Total Impact - Net Revenues                                  2.1                                           -                                    2.0                       -               4.1

    Total Impact - Operating Expenses                              -                                          -                                      -                      -                 -
    ---------------------------------                            ---                                        ---                                    ---                    ---               ---

    Total Impact - Operating Income                             $2.1                              $            -                                   $2.0          $            -              $4.1
    -------------------------------                             ----                              --------------                                   ----          --------------              ----

    Operating Income - GAAP                                   $166.3                                      $120.4                                   $53.3                    $4.1             $344.1
    -----------------------                                   ------                                      ------                                   -----                    ----             ------



                                                                                                       NiSource Inc.

                                                                            Schedule 2 - Adjustments by Segment from Operating Earnings to GAAP

                                                                                          For the Twelve Months ended December 31,





                                                                                                Columbia                                       Electric
                                                                                                Pipeline
                                                            Gas                                     Group                                                       Corporate
                                                        Distribution                                                                                             & Other
    2014 (in millions)                                                                                                                                                              Total
    -----------------                                                                                                                                                                 -----

    Operating Earnings (Loss)                                        $517.4                                      $490.7                                  $287.7             $(25.5)          $1,270.3

    Net Revenues:

    Weather - compared to normal                                       19.4                                           -                                  (5.1)                  -              14.3
    ----------------------------

    Total Impact - Net Revenues                                        19.4                                           -                                  (5.1)                  -              14.3

    Operating Expenses:

    Transaction costs                                                     -                                          -                                      -             (19.2)            (19.2)

    Gain (Loss) on sale of assets and asset impairments                 0.2                                           -                                    0.1               (3.3)             (3.0)


    Total Impact - Operating Expenses                                   0.2                                           -                                    0.1              (22.5)            (22.2)
    ---------------------------------                                   ---                                         ---                                    ---               -----              -----

    Total Impact - Operating Income (Loss)                            $19.6                              $            -                                 $(5.0)            $(22.5)            $(7.9)
    -------------------------------------                             -----                              --------------                                  -----              ------              -----

    Operating Income (Loss) - GAAP                                   $537.0                                      $490.7                                  $282.7             $(48.0)          $1,262.4
    ------------------------------                                   ------                                      ------                                  ------              ------           --------




                                                                                                Columbia
                                                                                                Pipeline
                                                            Gas                                     Group                                                       Corporate
                                                        Distribution                                                                                             & Other
                                                                                                                                               Electric                             Total

    2013 (in millions)
    -----------------                                                                                                                                                                          ---

    Operating Earnings (Loss)                                        $448.8                                      $441.2                                  $265.3              $(9.0)          $1,146.3

    Net Revenues:

    Weather - compared to normal                                        1.0                                           -                                    0.2                   -               1.2

    Settlement Agreement                                              (3.2)                                          -                                      -                  -             (3.2)
    --------------------                                               ----                                         ---                                    ---                ---              ----

    Total Impact - Net Revenues                                       (2.2)                                          -                                    0.2                   -             (2.0)

    Operating Expenses:

    (Loss) Gain on sale of assets and asset impairments               (1.2)                                        0.2                                       -                0.1              (0.9)

    Total Impact - Operating Expenses                                 (1.2)                                        0.2                                       -                0.1              (0.9)
    ---------------------------------                                  ----                                         ---                                     ---                ---               ----

    Total Impact - Operating (Loss) Income                           $(3.4)                                       $0.2                                    $0.2                $0.1             $(2.9)
    --------------------------------------                            -----                                        ----                                    ----                ----              -----

    Operating Income (Loss) - GAAP                                   $445.4                                      $441.4                                  $265.5              $(8.9)          $1,143.4
    ------------------------------                                   ------                                      ------                                  ------               -----           --------



                                            NiSource Inc.

                                Consolidated Income Statements (GAAP)

                                             (unaudited)




                                            Three Months Ended                 Twelve Months Ended

                                             December 31,                     December 31,
                                             ------------                     ------------

    (in millions, except per
     share amounts)                              2014                    2013                   2014       2013
    ------------------------                     ----                    ----                   ----       ----

    Net Revenues

    Gas Distribution                           $719.0                  $685.7               $2,597.8   $2,226.3

    Gas Transportation and
     Storage                                    522.4                   461.3                1,872.7    1,643.2

    Electric                                    392.6                   388.2                1,672.0    1,563.4

    Other                                        57.1                    61.6                  328.1      224.4
    -----                                        ----                    ----                  -----      -----

    Gross Revenues                            1,691.1                 1,596.8                6,470.6    5,657.3

    Cost of Sales (excluding
     depreciation and
     amortization)                              560.7                   547.2                2,224.2    1,815.5
    ------------------------                    -----                   -----                -------    -------

    Total Net Revenues                        1,130.4                 1,049.6                4,264.4    3,841.8
    ------------------                        -------                 -------                -------    -------

    Operating Expenses

    Operation and maintenance                   572.5                   498.3                2,136.3    1,873.9

    Depreciation and
     amortization                               154.7                   145.9                  605.5      577.3

    Gain on sale of assets and
     impairment, net                           (12.2)                  (7.3)                (31.5)    (17.5)

    Other taxes                                  77.8                    78.9                  320.3      300.6

    Total Operating Expenses                    792.8                   715.8                3,030.6    2,734.3
    ------------------------                    -----                   -----                -------    -------

    Equity Earnings in
     Unconsolidated Affiliates                   13.7                    10.3                   46.6       35.9
    --------------------------                   ----                    ----                   ----       ----

    Operating Income                            351.3                   344.1                1,262.4    1,143.4
    ----------------                            -----                   -----                -------    -------

    Other Income (Deductions)

    Interest expense, net                     (115.8)                (110.5)               (443.6)   (414.8)

    Other, net                                    1.1                     2.1                   22.3       24.2
    ----------                                    ---                     ---                   ----       ----

    Total Other Deductions                    (114.7)                (108.4)               (421.3)   (390.6)
    ----------------------                     ------                  ------                 ------     ------

    Income from Continuing
     Operations before Income
     Taxes                                      236.6                   235.7                  841.1      752.8

    Income Taxes                                 82.3                    82.7                  310.4      261.9
    ------------                                 ----                    ----                  -----      -----

    Income from Continuing
     Operations                                 154.3                   153.0                  530.7      490.9
    ----------------------                      -----                   -----                  -----      -----

    (Loss) Income from
     Discontinued Operations -
     net of taxes                               (0.1)                  (1.2)                 (0.7)       6.3

    Gain on Disposition of
     Discontinued Operations -
     net of taxes                                   -                      -                     -      34.9
    --------------------------

    Net Income                                 $154.2                  $151.8                 $530.0     $532.1
    ==========                                 ======                  ======                 ======     ======

    Basic Earnings Per Share

    Continuing operations                       $0.49                   $0.49                  $1.68      $1.57

    Discontinued operations                         -                 (0.01)                     -      0.13
    -----------------------

    Basic Earnings Per Share                    $0.49                   $0.48                  $1.68      $1.70
    ------------------------                    -----                   -----                  -----      -----

    Diluted Earnings Per Share

    Continuing operations                       $0.49                   $0.49                  $1.67      $1.57

    Discontinued operations                         -                 (0.01)                     -      0.13
    -----------------------

    Diluted Earnings Per Share                  $0.49                   $0.48                  $1.67      $1.70
    --------------------------                  -----                   -----                  -----      -----

    Basic Average Common Shares
     Outstanding                                315.8                   313.4                  315.1      312.4

    Diluted Average Common
     Shares                                     317.5                   314.8                  316.6      313.6
    ----------------------                      -----                   -----                  -----      -----



                                             NiSource Inc.

                                  Consolidated Balance Sheets (GAAP)

                                              (unaudited)




                                             December 31,                December 31,

    (in millions)                                                   2014                    2013
    ------------                                                    ----                    ----

    ASSETS

    Property, Plant and Equipment

    Utility plant                                              $25,234.8               $23,303.7

    Accumulated depreciation and
     amortization                                              (9,578.6)              (9,256.5)
    ----------------------------                                --------                --------

    Net utility plant                                           15,656.2                14,047.2
    -----------------                                           --------                --------

    Other property, at cost, less
     accumulated depreciation                                      360.9                   317.9

    Net Property, Plant and
     Equipment                                                  16,017.1                14,365.1
    -----------------------                                     --------                --------

    Investments and Other Assets

    Unconsolidated affiliates                                      452.6                   373.7

    Other investments                                              210.4                   204.0
    -----------------                                              -----                   -----

    Total Investments and Other
     Assets                                                        663.0                   577.7
    ---------------------------                                    -----                   -----

    Current Assets

    Cash and cash equivalents                                       25.4                    26.8

    Restricted cash                                                 24.9                     8.0

    Accounts receivable (less
     reserve of $25.2 and $23.5,
     respectively)                                               1,070.1                 1,005.8

    Gas inventory                                                  445.1                   354.6

    Underrecovered gas and fuel
     costs                                                          32.0                    46.4

    Material and supplies, at
     average cost                                                  106.0                   101.2

    Electric production fuel, at
     average cost                                                   64.8                    44.6

    Exchange gas receivable                                         63.1                    70.6

    Regulatory assets                                              193.5                   142.8

    Deferred income taxes                                          272.1                   175.3

    Prepayments and other                                          169.5                   183.1

    Total Current Assets                                         2,466.5                 2,159.2
    --------------------                                         -------                 -------

    Other Assets

    Regulatory assets                                            1,696.4                 1,522.2

    Goodwill                                                     3,666.2                 3,666.2

    Intangible assets                                              264.7                   275.7

    Deferred charges and other                                      92.4                    87.8
    --------------------------                                      ----                    ----

    Total Other Assets                                           5,719.7                 5,551.9
    ------------------                                           -------                 -------

    Total Assets                                               $24,866.3               $22,653.9
    ============                                               =========               =========



                                                            NiSource Inc.

                                           Consolidated Balance Sheets (GAAP) (continued)

                                                             (unaudited)




                                                            December 31,                  December 31,

    (in millions, except share
     amounts)                                                                      2014                     2013
    --------------------------                                                     ----                     ----

    CAPITALIZATION AND LIABILITIES

    Capitalization

    Common Stockholders' Equity

    Common stock -$0.01 par value,
     400,000,000 shares authorized;
     316,037,421 and 313,675,911
     shares outstanding,
     respectively                                                                  $3.2                     $3.2

    Additional paid-in capital                                                  4,787.6                  4,690.1

    Retained earnings                                                           1,494.0                  1,285.5

    Accumulated other comprehensive
     loss                                                                        (50.6)                  (43.6)

    Treasury stock                                                               (58.9)                  (48.6)
    --------------                                                                -----                    -----

    Total Common Stockholders'
     Equity                                                                     6,175.3                  5,886.6

    Long-term debt, excluding
     amounts due within one year                                                8,155.9                  7,593.2

    Total Capitalization                                                       14,331.2                 13,479.8
    --------------------                                                       --------                 --------

    Current Liabilities

    Current portion of long-term
     debt                                                                         266.6                    542.1

    Short-term borrowings                                                       1,576.9                    698.7

    Accounts payable                                                              670.6                    619.0

    Customer deposits and credits                                                 294.3                    262.6

    Taxes accrued                                                                 266.7                    254.8

    Interest accrued                                                              140.7                    136.4

    Overrecovered gas and fuel costs                                               45.6                     32.2

    Exchange gas payable                                                          136.2                    186.4

    Deferred revenue                                                               25.6                     18.5

    Regulatory liabilities                                                         62.4                     60.2

    Accrued capital expenditures                                                   61.1                     26.7

    Accrued liability for
     postretirement and
     postemployment benefits                                                        5.9                      6.2

    Legal and environmental                                                        24.2                     32.3

    Other accruals                                                                378.1                    302.3

    Total Current Liabilities                                                   3,954.9                  3,178.4
    -------------------------                                                   -------                  -------

    Other Liabilities and Deferred Credits

    Deferred income taxes                                                       3,661.6                  3,277.8

    Deferred investment tax credits                                                17.3                     20.9

    Deferred credits                                                              101.1                     91.9

    Deferred revenue                                                                  -                    17.1

    Accrued liability for
     postretirement and
     postemployment benefits                                                      675.9                    527.5

    Regulatory liabilities                                                      1,673.8                  1,669.8

    Asset retirement obligations                                                  159.4                    174.4

    Other noncurrent liabilities                                                  291.1                    216.3
    ----------------------------                                                  -----

    Total Other Liabilities and
     Deferred Credits                                                           6,580.2                  5,995.7
    ---------------------------                                                 -------                  -------

    Commitments and Contingencies                                                     -                       -
    -----------------------------                                                   ---                     ---

    Total Capitalization and
     Liabilities                                                              $24,866.3                $22,653.9
    ========================                                                  =========                =========



                                          NiSource Inc.

                           Statements of Consolidated Cash Flows (GAAP)

                                           (unaudited)





    Year Ended December 31,
     (in millions)                                                           2014       2013
    -----------------------                                                  ----       ----

    Operating Activities

    Net Income                                                             $530.0     $532.1

    Adjustments to Reconcile Net Income to Net Cash from Continuing
     Operations:

    Depreciation and
     amortization                                                           605.5      577.3

    Net changes in price risk
     management assets and
     liabilities                                                              2.6        2.6

    Deferred income taxes and
     investment tax credits                                                 299.1      287.4

    Deferred revenue                                                          1.5      (7.2)

    Stock compensation
     expense and 401(k)
     profit sharing
     contribution                                                            72.3       50.7

    Gain on sale of assets
     and impairments, net                                                  (31.5)    (17.5)

    Income from
     unconsolidated
     affiliates                                                            (45.8)    (35.7)

    Gain on disposition of
     discontinued operations
     -net of taxes                                                              -    (34.9)

    Loss (Income) from
     discontinued operations
     -net of taxes                                                            0.7      (6.3)

    Amortization of discount/
     premium on debt                                                         10.0        9.4

    AFUDC equity                                                           (21.7)    (18.5)

    Distributions of earnings
     received from equity
     investees                                                               37.8       32.1

    Changes in Assets and Liabilities

    Accounts receivable                                                    (63.1)    (94.8)

    Income tax receivable                                                     3.3      125.9

    Inventories                                                           (119.9)     (9.2)

    Accounts payable                                                         37.6       67.8

    Customer deposits and
     credits                                                                107.3      (6.9)

    Taxes accrued                                                             9.8        2.6

    Interest accrued                                                          4.3        3.8

    Overrecovered gas and
     fuel costs                                                              27.9        8.6

    Exchange gas receivable/
     payable                                                               (42.8)      21.0

    Other accruals                                                            5.1        2.2

    Prepayments and other
     current assets                                                        (10.1)    (17.0)

    Regulatory assets/
     liabilities                                                          (246.6)     479.1

    Postretirement and
     postemployment benefits                                                138.2    (549.1)

    Deferred credits                                                         13.0       10.5

    Deferred charges and
     other noncurrent assets                                                (0.4)      20.3

    Other noncurrent
     liabilities                                                            (3.1)     (9.5)
    ----------------                                                         ----       ----

    Net Operating Activities
     from Continuing
     Operations                                                           1,321.0    1,426.8

    Net Operating Activities
     (used for) from
     Discontinued Operations                                                (1.4)      10.0
    ------------------------                                                 ----       ----

    Net Cash Flows from
     Operating Activities                                                 1,319.6    1,436.8
    ---------------------                                                 -------    -------

    Investing Activities

    Capital expenditures                                                (2,028.5) (1,879.9)

    Insurance recoveries                                                     11.3        6.4

    Proceeds from disposition
     of assets                                                               12.8       18.0

    Restricted cash
     (deposits) withdrawals                                                (17.1)      38.7

    Contributions to equity
     investees                                                             (69.2)   (125.4)

    Other investing
     activities                                                            (25.9)    (67.9)
    ---------------                                                         -----      -----

    Net Investing Activities
     used for Continuing
     Operations                                                         (2,116.6) (2,010.1)

    Net Investing Activities
     from Discontinued
     Operations                                                                 -     118.7
    ------------------------

    Net Cash Flows used for
     Investing Activities                                               (2,116.6) (1,891.4)
    -----------------------                                              --------   --------

    Financing Activities

    Issuance of long-term
     debt                                                                   748.4    1,307.6

    Repayments of long-term
     debt and capital lease
     obligations                                                          (521.0)   (510.9)

    Premiums and other debt
     related costs                                                          (8.7)     (3.2)

    Change in short-term
     debt, net                                                              878.1     (78.1)

    Issuance of common stock                                                 30.3       43.7

    Acquisition of treasury
     stock                                                                 (10.2)     (8.1)

    Dividends paid -common
     stock                                                                (321.3)   (305.9)
    ----------------------                                                 ------     ------

    Net Cash Flow from
     Financing Activities                                                   795.6      445.1
    ---------------------                                                   -----      -----

    Change in cash and cash
     equivalents used for
     continuing operations                                                      -   (138.2)

    Change in cash and cash
     equivalents (used for)
     from discontinued
     operations                                                             (1.4)     128.7

    Cash and cash equivalents
     at beginning of period                                                  26.8       36.3
    -------------------------                                                ----       ----

    Cash and Cash Equivalents
     at End of Period                                                       $25.4      $26.8
    =========================                                               =====      =====

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/nisource-reports-2014-earnings-300037355.html

SOURCE NiSource Inc.