NiSource Inc. : NiSource Reports First Quarter 2012 Earnings
05/01/2012| 08:59am US/Eastern
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MERRILLVILLE, Ind., May 1,
2012/PRNewswire/ --
Results squarely in line with 2012 earnings guidance
Positive growth from regulatory, modernization and
growth initiatives
Record $1.4 billioncapital investment
program on track
NiSource Inc. (NYSE: NI) today announced net operating
earnings from continuing operations (non-GAAP) of
$214.5 million, or $0.76
centsper share for the three months ended
March 31, 2012, compared to $206.6
million, or $0.74 centsper share for
the first quarter of 2011. Operating earnings for the
quarter (non-GAAP) were $435.5
millioncompared to $402.1 millionfor
the same period in 2011.
On a GAAP basis, NiSource reported income from continuing
operations for the three months ended March 31,
2012, of $193.5 million, or
$0.68 centsper share, compared with
$209.1 million, or $0.75
centsper share in the same period a year ago.
Operating income was $399.4 millionfor the
first quarter of 2012, compared with $406.4
millionin the year-ago period. Schedules 1 and 2
of this news release contain a reconciliation of net
operating earnings and operating earnings to GAAP.
"Following a successful 2011, NiSource teams are
continuing to execute on a robust combination of
investment-driven growth, modernization and regulatory
initiatives," President and Chief Executive Officer
Robert C. Skaggs, Jr.said. "This
well-established and customer-focused business strategy
generated first quarter results squarely in line with our
expectations, as well as our 2012 earnings outlook."
Progress on midstream and pipeline investment
opportunities
NiSource Gas Transmission & Storage(NGT&S) continues to
develop and execute investment opportunities in emerging
and existing markets. The company is active in midstream,
mineral leasing and traditional pipeline projects,
particularly in areas within the company's strategic
footprint in the Uticaand Marcellus shale
production areas.
Work is progressing on NiSource Midstream Services'
(NMS) Big Pine Gathering System. Anchored by a
long-term agreement with XTO Energy Inc., the 70-mile,
$150 millionproject is located in the
hydrocarbon-rich area of western
Pennsylvania. It will offer an initial
capacity of approximately 425 million cubic feet per
day with interconnections to multiple interstate
pipeline markets. The project's targeted in-service
date is December 2012.
NMS also is pursuing opportunities in the liquids-rich
portion of the Uticaplay in eastern
Ohio, including proposals to provide
gathering services, as well as cryogenic natural gas
liquids processing. In addition, NMS is in advanced
discussions with a producer counterparty regarding a
potential joint venture that would optimize NMS'
minerals position in this area, which could include
significant downstream infrastructure investment
opportunities.
NGT&S also is successfully pursuing growth
opportunities through expansion of its existing
pipeline system. For example, NGT&S recently completed
open seasons on two supply- and market-driven
expansions of its Columbia Gas Transmission and
Columbia Gulf Transmissionsystems. Both projects have
projected in-service dates of late-2014.
The approximately $220 millionWest
Side Expansion will transport approximately 500,000
dekatherms per day of Marcellus production
originating in southwest
Pennsylvaniaand north-central
West Virginiato Gulf Coast markets.
Binding long-term precedent agreements have been
signed with two shippers.
The East Side Expansion Project would connect about
500,000 dekatherms per day of northern Pennsylvania
Marcellus production with growing mid-Atlantic
markets. Negotiations with customers for binding
transportation agreements are currently underway.
Another Columbia Gas Transmission project took a step
forward on March 20, when the company
received approval from the Federal Energy Regulatory
Commission to construct facilities to serve Virginia
Electric and Power Company's 1,329-megawatt,
gas-fired generation facility under construction in
Warren County, Va.The approximately
$35 millionproject will provide up to
nearly 250,000 dekatherms per day of long-term, firm
transportation starting in mid-2014.
Also during the first quarter, Columbia Gas
Transmission continued discussions with customers
regarding a long-term infrastructure modernization
program. Similar to the modernization programs in place
at NiSource's gas utilities, this effort will
enhance the reliability and flexibility of the
company's core pipeline system, ensuring continued
safe and reliable service while positioning the company
to meet anticipated regulatory requirements. The plan
is estimated to involve an investment of about $4
billionover a 10- to 15-year period.
"The NGT&S Team has hit the ground running in the
first quarter," Skaggs said. "With a diverse
mix of new and ongoing projects, we remain focused on
enhancing the long-term value of our assets by executing
on exciting growth opportunities taking shape in both
supply and demand markets. The team also is actively
pursuing a collaborative, long-term commitment to system
modernization that offers numerous customer benefits,
while at the same time supporting ongoing rate base and
earnings growth."
Customer service and reliability initiatives in
Indiana
Northern Indiana Public Service Company (NIPSCO)
continues to advance initiatives designed to improve
customer services and reliability, as well as enhance the
region's environmental and economic sustainability.
Significant environmental investments at NIPSCO's
coal-fired electric generation facilities remain on
track and on budget, including construction of flue gas
desulfurization equipment on two units at the
company's Schahfer generating station. An
investment of more than $500 millionat
Schahfer, the improvements are part of a nearly
$850 millionenvironmental investment
program over the next six to eight years.
NIPSCO also continued to strengthen its management
ranks by appointing Kathleen O'Leary to the new
role of president. Reporting to NIPSCO CEO Jimmy
Staton, O'Leary will lead regulatory and
governmental strategies, economic development and other
key stakeholder engagement efforts. O'Leary was
previously senior vice president of communications and
compliance at NIPSCO.
As part of an ongoing process to identify additional
ways to improve customer service, all of NiSource's
utilities, including NIPSCO, introduced new mobile
websites, which offer convenient, on-the-go
transaction, safety and customer service access through
mobile phones and other devices.
On April 5, NIPSCO introduced its
IN-Charge Electric Vehicle Program. The pilot program
provides a credit for residential electric customers to
offset the cost of installing a home-based electric
vehicle charging system. The program also offers
customers overnight charging for their vehicles at
home.
"Our NIPSCO team remains keenly focused on
continuously improving customer service and reliability,
while investing in long-term economic and environmental
sustainability across our Indianaservice
territory," said Skaggs. "The team made
significant strides in 2011, and I'm confident NIPSCO
is positioned to deliver even greater customer, community
and shareholder value this year."
Modernizing natural gas distribution infrastructure and
services
NiSource Gas Distribution(NGD)companies continue to
deliver strong results from their strategy of aligning
long-term infrastructure replacement and enhancement
programs with a variety of complementary customer
programs and rate-design initiatives.
On the leadership front, Joe Hamrockwas
named executive vice president and group CEO of the NGD
business unit, effective this month. Hamrock brings
strong senior leadership experience to the unit's
already solid management team, having most recently
served as president and chief operating officer of
American Electric Power Ohio.
Infrastructure projects across much of the NGD
territory, combined with complementary customer
programs and regulatory treatment, continue to generate
sustainable earnings growth. These initiatives, part of
a more than $4 billionlong-term investment
program, along with the new rates in effect during
2011, contributed more than $11 millionin
additional operating earnings during the first quarter
compared to the same period last year.
On the regulatory front, Columbia Gas of
Massachusetts(CMA) filed a base rate case
on April 13, 2012, with the Massachusetts
Department of Public Utilities. The case, which seeks
increased revenues of approximately $29
million, is designed to support the
company's expanded infrastructure modernization and
replacement plans with timely investment recovery. A
decision is expected in late October 2012.
At Columbia Gas of Pennsylvania(CPA), the
state's General Assembly approved HB1294 on
February 7. The law supports the
company's infrastructure modernization initiatives
by authorizing the Pennsylvania Public Utility
Commission to approve a distribution system improvement
charge. In addition, it allows
Pennsylvaniautilities to base their rates
on a forecasted test year, which will allow recovery of
infrastructure investments as they are made.
"Our portfolio of gas distribution companies
continues to deliver innovative programs to customers and
solid financial performance for shareholders,"
Skaggs said. "Through a combination of regulatory
and infrastructure strategies, we have positioned this
business to deliver long-term earnings growth, while
providing our customers with safe, reliable and
high-quality service."
Affirming earnings guidance, capital investment and
dividend growth consideration
Skaggs noted that NiSource remains on track to deliver
net operating earnings in line with its full-year
outlook, which for 2012 is $1.40 to $1.50per
share (non-GAAP*). The company also is proceeding with a
robust 2012 capital investment program of approximately
$1.4 billion.
NiSource also continues to maintain its core financial
commitments, including stable, investment grade credit
ratings and a secure, attractive dividend.
During the first quarter, Standard & Poor's
reaffirmed NiSource's BBB- /stable credit rating.
Comparable ratings for the company were reaffirmed by
Moody's Investors Services and Fitch Ratings in the
fourth quarter of 2011.
First Quarter 2012 Operating Earnings - Segment Results
(non-GAAP)
NiSource's consolidated operating earnings (non-GAAP)
for the quarter ended March 31, 2012, were
$435.5 million, compared to $402.1
millionin the first quarter of 2011. Refer to
Schedule 2 for the items included in 2012 and 2011
GAAP operating income but excluded from operating
earnings.
Operating earnings for NiSource's business segments
for the quarter ended March 31, 2012, are discussed
below.
NiSource Gas Distribution reported operating earnings for
the current quarter of $246.5
millioncompared to $237.0 millionin
the first quarter of 2011. Net revenues, excluding the
impact of trackers, increased by
$11.4 million primarily attributable to
increases in regulatory and service programs, including
the impact of the CPA rate case and the implementation of
new rates under Columbia Gas of Ohio's
approved infrastructure replacement program.
Operating expenses, excluding trackers, were
$1.9 million higher than the comparable
2011 period as a result of an increase in depreciation
costs due to an increase in capital expenditures. This
increase was partially offset by a decrease in employee
and administrative expenses, primarily pension costs.
As reflected in the Segment Volumes and Statistical Data
Schedule, deliveries to residential and commercial
customers during the quarter were reduced due to the
unseasonably mild weather, which was 23 percent warmer
than normal. By contrast, industrial deliveries increased
by approximately 10 percent compared to the first quarter
of 2011, reflecting the impact of low natural gas prices
on industrial usage in our markets.
NiSource Gas Transmission and Storage reported operating
earnings for the current quarter of
$138.6 million compared to
$118.4 million in the first quarter of
2011. Net revenues, excluding the impact of trackers,
increased by $16.5 million, primarily
attributable to an increase in demand margin revenue as a
result of growth projects and the impact of the rate case
at Columbia Gulf, partially offset by a decrease in
commodity margin revenue due to decreased throughput as a
result of warmer weather.
Operating expenses, excluding the impact of trackers,
increased $1.0 millionfrom the comparable
2011 period primarily due to increased other taxes,
partially offset by lower outside service costs and
decreased employee and administrative expenses, largely
pension costs.
Equity earnings increased $4.7
millionprimarily from increased earnings at
Millennium.
NiSource Electricreported operating earnings for the
current quarter of $48.5 million
compared to $49.3 million in the first
quarter of 2011. Net revenues, excluding the impact of
trackers, increased by $29.1 million
primarily due to increased industrial, commercial and
residential margins mainly as a result of the
implementation of the electric rate case. Additionally,
there were lower revenue credits in the current period as
a result of the electric rate case. These increases were
partially offset by a decrease in environmental cost
recovery due to the plant investment eligible for
recovery being reset to zero as a result of the electric
rate case.
Operating expenses increased by
$29.9 million, excluding trackers,
primarily attributable to an increase in employee and
administrative expenses, higher electric generation
costs, and an increase in Midwest Independent
Transmission System Operator (MISO) fees. Additionally,
there was an increase in depreciation costs primarily
related to the Sugar Creekfacility that is
no longer being deferred as a result of the electric rate
case.
Corporate and Other reported operating earnings of
$1.9 million for the current quarter
compared to a loss of $2.6 million in
the first quarter of 2011.
Other Items
Interest expense increased by
$13.5 million due to the issuance of
long-term debt in November 2011and
June 2011, the expiration of deferred
interest costs related to Sugar Creekas a
result of the electric rate case, and higher short-term
borrowings and rates. These increases were partially
offset by the repurchase of long-term debt in
December 2011.
Other-net income of $1.0 millionwas recorded
in 2012 compared to $3.3 million in
2011.
The effective tax rate of net operating earnings was
35.6 percent compared to 34.5 percent for the
same period last year.
Income from Continuing Operations (GAAP)
On a GAAP basis, NiSource reported income from continuing
operations for the three months ended March 31,
2012, of $193.5 million, or
$0.68per share, compared with
$209.1 million, or
$0.75per share for the comparable period in
2011.
The NiSource GAAP results reflect certain non-material
corrections to its consolidated financial statements for
the three months ended March 31, 2011. The
effect of these non-material corrections was an increase
in income from continuing operations of $4.3
millionor $0.02per share for the
three months ended March 31, 2011.
Operating earnings and net operating earnings from
continuing operations are non-GAAP measures. NiSource
management believes that these performance measures
provide a more meaningful representation of the
company's earnings from ongoing operations than GAAP
measures alone. NiSource uses these measures internally
to manage the business and to track financial performance
against budget. Refer to Schedule 1 for a complete list
of the items included in 2012 and 2011 GAAP income from
Continuing Operations but excluded from net operating
earnings.
*There will likely be differences between net operating
earnings and GAAP earnings, but, due to the
unpredictability of weather and other factors, NiSource
does not provide GAAP earnings guidance.
About NiSource
NiSource Inc. (NYSE: NI), based in Merrillville,
Ind., 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 includes forward-looking statements
within the meaning of Section 27A of the Securities Act
of 1933, as amended, and Section 21E of the Securities
Exchange Act of 1934, as amended. Those statements
include statements regarding the intent, belief or
current expectations of NiSource and its management.
Although NiSource believes that its expectations are
based on reasonable assumptions, it can give no assurance
that its goals will be achieved. Readers are cautioned
that the forward-looking statements in this presentation
are not guarantees of future performance and involve a
number of risks and uncertainties, and that actual
results could differ materially from those indicated by
such forward-looking statements. Important factors that
could cause actual results to differ materially from
those indicated by such forward-looking statements
include, but are not limited to, the following: 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; the effectiveness of NiSource's restructured
outsourcing agreement; actual operating experience of
NiSource's assets; the regulatory process; regulatory
and legislative changes; the impact of potential new
environmental laws or regulations; the results of
material litigation; changes in pension funding
requirements; changes in general economic, capital and
commodity market conditions; and counterparty credit risk
and the matters set forth in the "Risk Factors"
Section in NiSource's 2011 Form 10-K and 2011 Forms
10-Q, many of which are risks beyond the control of
NiSource. In addition, the relative contributions to
profitability by each segment, and the assumptions
underlying the forward-looking statements relating
thereto, may change over time. NiSource expressly
disclaims a duty to update any of the forward-looking
statements contained in this release.
NiSource Inc.
Consolidated Net Operating Earnings
(Non-GAAP)
(unaudited)
Three Months
Ended March 31,
(in millions, except per share
amounts)
2012
2011
Net Revenues
Gas Distribution
$
908.2
$
1,367.6
Gas Transportation and Storage
409.2
402.9
Electric
358.0
345.2
Other
24.8
23.9
Gross Revenues
1,700.2
2,139.6
Cost of Sales (excluding depreciation and
amortization)
633.0
1,085.8
Total Net Revenues
1,067.2
1,053.8
Operating Expenses
Operation and maintenance
355.0
342.5
Operation and maintenance - trackers
51.7
85.4
Depreciation and amortization
143.2
130.9
Depreciation and amortization -
trackers
2.9
3.4
Other taxes
60.8
57.0
Other taxes - trackers
25.8
35.5
Total Operating Expenses
639.4
654.7
Equity Earnings in Unconsolidated
Affiliates
7.7
3.0
Operating Earnings
435.5
402.1
Other Income (Deductions)
Interest expense, net
(103.3)
(89.8)
Other, net
1.0
3.3
Total Other Deductions
(102.3)
(86.5)
Operating Earnings From Continuing
Operations
Before Income Taxes
333.2
315.6
Income Taxes
118.7
109.0
Net Operating Earnings from
Continuing Operations
214.5
206.6
GAAP Adjustment
(21.0)
2.5
GAAP Income from Continuing
Operations
$
193.5
$
209.1
Basic Net Operating Earnings Per Share from
Continuing Operations
$
0.76
$
0.74
GAAP Basic Earnings Per Share from
Continuing Operations
$
0.68
$
0.75
Basic Average Common Shares
Outstanding
282.9
279.3
NiSource Inc.
Segment Operating Earnings (Non-GAAP)
Three Months
Gas Distribution Operations
Ended March 31,
(in millions)
2012
2011
Net Revenues
Sales Revenues
$
1,103.8
$
1,581.1
Less: Cost of gas sold
555.6
997.9
Net Revenues
548.2
583.2
Operating Expenses
Operation and maintenance
172.1
173.5
Operation and maintenance - trackers
32.1
68.8
Depreciation and amortization
46.7
43.0
Other taxes
25.0
25.4
Other taxes - trackers
25.8
35.5
Total Operating Expenses
301.7
346.2
Operating Earnings
$
246.5
$
237.0
GAAP Adjustment
(34.5)
4.5
GAAP Operating Income
$
212.0
$
241.5
Three Months
Gas Transmission and Storage
Operations
Ended March 31,
(in millions)
2012
2011
Net Revenues
Transportation revenues
$
218.1
$
199.7
Storage revenues
49.3
50.5
Other revenues
8.0
5.2
Total Operating Revenues
275.4
255.4
Less: Cost of Sales
0.9
-
Net Operating Revenues
274.5
255.4
Operating Expenses
Operation and maintenance
78.0
80.5
Operation and maintenance - trackers
16.7
14.1
Depreciation and amortization
33.0
32.7
Other taxes
15.9
12.7
Total Operating Expenses
143.6
140.0
Equity Earnings in Unconsolidated
Affiliates
7.7
3.0
Operating Earnings
$
138.6
$
118.4
GAAP Adjustment
-
-
GAAP Operating Income
$
138.6
$
118.4
NiSource Inc.
Segment Operating Earnings (Non-GAAP)
Three Months
Electric Operations
Ended March 31,
(in millions)
2012
2011
Net Revenues
Sales revenues
$
360.0
$
347.0
Less: Cost of sales
117.2
133.2
Net Revenues
242.8
213.8
Operating Expenses
Operation and maintenance
114.3
91.3
Operation and maintenance - trackers
2.9
2.5
Depreciation and amortization
58.0
51.0
Depreciation and amortization -
trackers
2.9
3.4
Other taxes
16.2
16.3
Total Operating Expenses
194.3
164.5
Operating Earnings
$
48.5
$
49.3
GAAP Adjustment
(2.3)
1.3
GAAP Operating Income
$
46.2
$
50.6
Three Months
Corporate and Other Operations
Ended March 31,
(in millions)
2012
2011
Operating Income (Loss)
$
1.9
$
(2.6)
GAAP Adjustment
0.7
(1.5)
GAAP Operating Income (Loss)
$
2.6
$
(4.1)
NiSource Inc.
Segment Volumes and Statistical Data
Three Months
Gas Distribution Operations
Ended March 31,
2012
2011
Sales and Transportation (MMDth)
Residential
102.9
134.5
Commercial
61.2
77.6
Industrial
131.3
118.9
Off System
13.5
17.5
Other
0.1
0.3
Total
309.0
348.8
Weather Adjustment
45.4
(7.3)
Sales and Transportation Volumes -
Excluding Weather
354.4
341.5
Heating Degree Days
2,262
3,014
Normal Heating Degree Days
2,931
2,900
% (Warmer) Colder than Normal
(23%)
4%
Customers
Residential
3,050,576
3,047,157
Commercial
281,539
282,044
Industrial
7,859
7,705
Other
18
65
Total
3,339,992
3,336,971
Three Months
Gas Transmission and Storage
Operations
Ended March 31,
2012
2011
Throughput (MMDth)
Columbia Transmission
379.4
426.6
Columbia Gulf
227.5
244.0
Crossroads Gas Pipeline
4.3
5.1
Intrasegment eliminations
(105.7)
(152.6)
Total
505.5
523.1
NiSource Inc.
Segment Volumes and Statistical Data
Three Months
Electric Operations
Ended March 31,
2012
2011
Sales (Gigawatt Hours)
Residential
781.2
855.8
Commercial
907.8
924.9
Industrial
2,385.0
2,442.4
Wholesale
19.1
67.1
Other
32.5
44.5
Total
4,125.6
4,334.7
Weather Adjustment
81.8
(17.5)
Sales Volumes - Excluding Weather
impacts
4,207.4
4,317.2
Electric Customers
Residential
400,348
400,169
Commercial
53,928
53,826
Industrial
2,457
2,424
Wholesale
16
15
Other
717
739
Total
457,466
457,173
NiSource Inc.
Schedule 1 - Reconciliation of Net Operating
Earnings to GAAP
Three Months
Ended March 31,
(in millions, except per share
amounts)
2012
2011
Net Operating Earnings from Continuing
Operations (Non-GAAP)
$
214.5
$
206.6
Items excluded from operating
earnings:
Net Revenues:
Weather - compared to normal
(39.9)
5.8
Unregulated natural gas marketing
business
1.0
1.1
Operating Expenses:
Legal reserve adjustment
3.1
-
Unregulated natural gas marketing
business
(1.9)
(2.0)
Gain/Loss on sale of assets and asset
impairments
1.6
(0.6)
Total items excluded from operating
earnings
(36.1)
4.3
Other Income (Deductions):
Investment impairment
(0.7)
-
Tax effect of above items
15.8
(1.8)
Total items excluded from net operating
earnings
(21.0)
2.5
Reported Income from Continuing Operations
- GAAP
$
193.5
$
209.1
Basic Average Common Shares
Outstanding
282.9
279.3
Basic Net Operating Earnings Per Share from
Continuing Operations
$
0.76
$
0.74
Items excluded from net operating earnings
(after-tax)
(0.08)
0.01
GAAP Basic Earnings Per Share from
Continuing Operations
$
0.68
$
0.75
NiSource Inc.
Schedule 2 - Adjustments by Segment from
Operating Earnings to GAAP
For Quarter ended March 31,
2012 (in millions)
Gas Distribution
Gas
Transmission
and Storage
Electric
Corporate & Other
Total
Operating Earnings
$
246.5
$
138.6
$
48.5
$
1.9
$
435.5
Net Revenues:
Weather (compared to normal)
(34.5)
-
(5.4)
-
(39.9)
Unregulated natural gas marketing
business
-
-
-
1.0
1.0
Total Impact - Net Revenues
(34.5)
-
(5.4)
1.0
(38.9)
Operating Expenses
Legal reserve adjustment
-
-
3.1
-
3.1
Unregulated natural gas marketing
business
-
-
-
(1.9)
(1.9)
Gain (Loss) on sale of assets and asset
impairments
-
-
-
1.6
1.6
Total Impact - Operating Expenses
-
-
3.1
(0.3)
2.8
Total Impact - Operating (Loss)
Income
$
(34.5)
$
-
$
(2.3)
$
0.7
$
(36.1)
Operating Income - GAAP
$
212.0
$
138.6
$
46.2
$
2.6
$
399.4
2011 (in millions)
Gas Distribution
Gas
Transmission
and Storage
Electric
Corporate
Total
Operating Earnings (Loss)
$
237.0
$
118.4
$
49.3
$
(2.6)
$
402.1
Net Revenues:
Weather (compared to normal)
4.5
-
1.3
-
5.8
Unregulated natural gas marketing
business
-
-
-
1.1
1.1
Total Impact - Net Revenues
4.5
-
1.3
1.1
6.9
Operating Expenses
Unregulated natural gas marketing
business
-
-
-
(2.0)
(2.0)
Loss on sale of assets and asset
impairments
-
-
-
(0.6)
(0.6)
Total Impact - Operating Expenses
-
-
-
(2.6)
(2.6)
Total Impact - Operating Income
(Loss)
$
4.5
$
-
$
1.3
$
(1.5)
$
4.3
Operating Income (Loss) - GAAP
$
241.5
$
118.4
$
50.6
$
(4.1)
$
406.4
NiSource Inc.
Consolidated Income Statement (GAAP)
(unaudited)
Three Months Ended
March 31,
(in millions, except per share
amounts)
2012
2011
Net Revenues
Gas Distribution
$
873.7
$
1,372.0
Gas Transportation and Storage
409.2
403.0
Electric
352.6
346.5
Other
23.2
110.1
Gross Revenues
1,658.7
2,231.6
Cost of Sales (excluding depreciation and
amortization)
630.3
1,170.9
Total Net Revenues
1,028.4
1,060.7
Operating Expenses
Operation and maintenance
405.4
429.3
Depreciation and amortization
146.1
134.3
Impairment and (gain)/loss on sale of
assets, net
(1.6)
0.7
Other taxes
86.8
93.0
Total Operating Expenses
636.7
657.3
Equity Earnings in Unconsolidated
Affiliates
7.7
3.0
Operating Income
399.4
406.4
Other Income (Deductions)
Interest expense, net
(103.3)
(89.8)
Other, net
0.3
3.3
Total Other Deductions
(103.0)
(86.5)
Income from Continuing Operations before
Income Taxes
296.4
319.9
Income Taxes
102.9
110.8
Income from Continuing Operations
193.5
209.1
(Loss)/Income from Discontinued Operations
- net of taxes
(0.1)
0.4
Net Income
$
193.4
$
209.5
Basic Earnings Per Share
Continuing operations
$
0.68
$
0.75
Discontinued operations
-
-
Basic Earnings Per Share
$
0.68
$
0.75
Diluted Earnings Per Share
Continuing operations
$
0.66
$
0.73
Discontinued operations
-
-
Diluted Earnings Per Share
$
0.66
$
0.73
Dividends Declared Per Common Share
$
0.46
$
0.46
Basic Average Common Shares
Outstanding
282.9
279.3
Diluted Average Common Shares
293.1
285.0
NiSource Inc.
Consolidated Balance Sheets (GAAP)
(unaudited)
March 31,
December 31,
(in millions)
2012
2011
ASSETS
Property, Plant and Equipment
Utility Plant
$
20,571.1
$
20,337.8
Accumulated depreciation and
amortization
(8,805.9)
(8,670.2)
Net utility plant
11,765.2
11,667.6
Other property, at cost, less accumulated
depreciation
136.8
132.5
Net Property, Plant and Equipment
11,902.0
11,800.1
Investments and Other Assets
Assets of discontinued operations and
assets held for sale
0.2
0.2
Unconsolidated affiliates
204.8
204.7
Total Investments and Other Assets
156.5
150.9
Total Investments and Other Assets
361.5
355.8
Current Assets
Cash and cash equivalents
38.5
11.5
Restricted cash
149.7
160.6
Accounts receivable (less reserve of $45.6
and $30.5, respectively)
730.3
854.8
Income tax receivable
0.7
0.9
Gas inventory
181.1
427.6
Underrecovered gas and fuel costs
15.0
20.7
Materials and supplies, at average
cost
89.8
87.6
Electric production fuel, at average
cost
83.3
50.9
Price risk management assets
141.9
137.2
Exchange gas receivable
76.4
64.9
Regulatory assets
186.2
169.7
Prepayments and other
277.4
261.8
Total Current Assets
1,970.3
2,248.2
Other Assets
Price risk management assets
114.7
188.7
Regulatory assets
1,940.1
1,978.2
Goodwill
3,677.3
3,677.3
Intangible assets
294.9
297.6
Postretirement and postemployment benefits
assets
34.9
31.5
Deferred charges and other
150.2
130.9
Total Other Assets
6,212.1
6,304.2
Total Assets
$
20,445.9
$
20,708.3
NiSource Inc.
Consolidated Balance Sheets (continued)
(GAAP)
(unaudited)
March 31,
December 31,
(in millions, except share amounts)
2012
2011
CAPITALIZATION AND LIABILITIES
Capitalization
Common Stockholders' Equity
Common stock - $0.01 par value, 400,000,000
shares authorized; 283,890,607
and 281,853,571 shares issued and outstanding,
respectively
$
2.9
$
2.8
Additional paid-in capital
4,198.9
4,167.7
Retained earnings
980.0
917.0
Accumulated other comprehensive loss
(60.9)
(59.7)
Treasury stock
(40.4)
(30.5)
Total Common Stockholders'
Equity
5,080.5
4,997.3
Long-term debt, excluding amounts due
within one year
5,834.4
6,267.1
Total Capitalization
10,914.9
11,264.4
Current Liabilities
Current portion of long-term debt
750.8
327.3
Short-term borrowings
1,264.2
1,359.4
Accounts payable
380.7
434.8
Dividends payable
65.3
-
Customer deposits and credits
215.1
313.6
Taxes accrued
237.3
220.9
Interest accrued
70.2
111.9
Overrecovered gas and fuel costs
74.3
48.9
Price risk management liabilities
180.4
167.8
Exchange gas payable
66.3
168.2
Deferred revenue
10.6
10.1
Regulatory liabilities
99.9
112.0
Accrued liability for postretirement and
postemployment benefits
26.6
26.6
Legal and environmental reserves
37.0
43.9
Other accruals
239.7
301.0
Total Current Liabilities
3,718.4
3,646.4
Other Liabilities and Deferred
Credits
Price risk management liabilities
94.9
138.9
Deferred income taxes
2,650.7
2,541.9
Deferred investment tax credits
27.9
29.0
Deferred credits
80.7
78.9
Accrued liability for postretirement and
postemployment benefits
946.0
953.8
Regulatory liabilities and other removal
costs
1,616.2
1,663.9
Asset retirement obligations
148.4
146.4
Other noncurrent liabilities
247.8
244.7
Total Other Liabilities and Deferred
Credits
5,812.6
5,797.5
Total Capitalization and Liabilities
$
20,445.9
$
20,708.3
NiSource Inc.
Statements of Consolidated Cash Flows (GAAP)
(unaudited)
Three Months Ended March 31, (in
millions)
2012
2011
Operating Activities
Net Income
$
193.4
$
209.5
Adjustments to Reconcile Net Income to Net
Cash from Continuing Operations:
Depreciation and amortization
146.1
134.3
Net changes in price risk management assets
and liabilities
24.9
14.3
Deferred income taxes and investment tax
credits
92.2
102.3
Deferred revenue
0.5
0.7
Stock compensation expense and 401(k)
profit sharing contribution
8.9
7.8
Gain on sale of assets
(1.6)
-
Loss on impairment of assets
-
0.7
Income from unconsolidated
affiliates
(6.6)
(3.1)
Loss (Gain) from discontinued operations -
net of taxes
0.1
(0.4)
Amortization of debt related costs
2.3
2.1
AFUDC equity
(1.0)
(1.4)
Distributions of earnings received from
equity investees
12.9
1.8
Changes in Assets and Liabilities:
Accounts receivable
127.9
16.0
Income tax receivable
0.2
78.6
Inventories
211.2
208.5
Accounts payable
(41.3)
(119.9)
Customer deposits and credits
(98.5)
(136.5)
Taxes accrued
16.6
24.1
Interest accrued
(41.7)
(53.0)
Overrecovered gas and fuel costs
31.1
191.0
Exchange gas receivable/payable
(113.4)
(129.6)
Other accruals
(54.3)
(34.0)
Prepayments and other current assets
(4.7)
1.3
Regulatory assets/liabilities
(1.2)
15.2
Postretirement and postemployment
benefits
(6.9)
(94.4)
Deferred credits
2.6
3.5
Deferred charges and other noncurrent
assets
(23.3)
(3.6)
Other noncurrent liabilities
4.0
1.0
Net Operating Activities from Continuing
Operations
480.4
436.8
Net Operating Activities used for
Discontinued Operations
(0.4)
(14.7)
Net Cash Flows from Operating
Activities
480.0
422.1
Investing Activities
Capital expenditures
(292.6)
(209.4)
Proceeds from disposition of assets
2.1
5.5
Restricted cash withdrawals
11.5
38.0
Contributions to equity investees
(5.3)
-
Other investing activities
(10.4)
(9.2)
Net Cash Flow used for Investing
Activities
(294.7)
(175.1)
Financing Activities
Retirement of long-term debt
(5.9)
(2.8)
Premiums and other debt related
costs
-
(8.2)
Change in short-term borrowings, net
(94.8)
(119.5)
Issuance of common stock
17.4
3.7
Acquisition of treasury stock
(9.9)
(2.7)
Dividends paid - common stock
(65.1)
(64.2)
Net Cash Flow used for Financing
Activities
(158.3)
(193.7)
Change in cash and cash equivalents from
continuing operations
Recommend:
