NISOURCE, INC. MERRILLVILLE, Ind., Nov. 3, 2015 /PRNewswire/ -- NiSource Inc. (NYSE: NI) today announced net operating earnings (non-GAAP) of $18.5 million, or $0.06 per share, for the three months ended Sept. 30, 2015, compared with a loss of $8.7 million, or $0.03 per share, for the same period in 2014. Operating earnings (non-GAAP) for the third quarter were $115.8 million, compared to $84.7 million in the same prior year period.
On a GAAP basis, NiSource reported income from continuing operations of $14.8 million, or $0.05 per share, for the three months ended Sept. 30, 2015, compared with a loss of $17.2 million, or $0.05 per share, for the same period in 2014. Operating income for the third quarter was $109.7 million, compared to $71.1 million in the same prior year period. Schedules 1 and 2 of this news release contain a reconciliation of net operating earnings and operating earnings to GAAP net income and operating income, respectively.
On July 1, 2015, NiSource successfully completed the separation of Columbia Pipeline Group (CPG) through a distribution of all of the common stock of CPG held by NiSource to NiSource shareholders. As a result, CPG financial results for all periods are classified as discontinued operations.
"Our solid results during our first quarter as a pure-play utility company demonstrate that we're well-positioned for sustainable long-term growth powered by steady and consistent earnings drivers," said NiSource President and CEO Joseph Hamrock. "Our ongoing infrastructure and environmental investments deliver value for our customers and the communities we serve by enhancing safety and reliability and benefitting our environment."
Third Quarter 2015 Highlights
During the third quarter, NiSource remained on track to invest approximately $1.3 billion in 2015 as part of its $30 billion of long-term regulated utility infrastructure investment opportunities. It also made significant progress in advancing regulatory and customer programs in several key states.
Gas Distribution Operations
-- On Oct. 7, 2015, Columbia Gas of Massachusetts (CMA) received approval
of its base rate case settlement by the Massachusetts Department of
Public Utilities. The settlement with the Massachusetts Attorney General
supports CMA's continued effort to modernize its pipeline infrastructure
and transform its operations to continue to serve customers safely and
reliably. The approved settlement provides for increased annual revenues
of $32.8 million beginning Nov. 1, 2015, with an additional $3.6 million
annual increase starting Nov. 1, 2016.
-- Columbia Gas of Pennsylvania (CPA) has reached a settlement with parties
to its base rate case pending before the Pennsylvania Public Utility
Commission. Under terms of the settlement, CPA's annual revenues would
increase by approximately $28 million, an outcome which supports
continued infrastructure replacement, pipeline safety upgrades and
enhanced employee training. The settlement also includes a tariff
supporting the expansion of natural gas service into unserved areas. A
decision on the settlement from the Pennsylvania commission, with new
rates in effect, is expected by the end of the year.
-- On Aug. 21, 2015, Columbia Gas of Virginia (CVA) received final
commission approval of its 2014 base rate case. The commission
reaffirmed the $25.2 million annual revenue increase. The approved case
supports continued capital investments by CVA to improve its system and
accommodate customer growth, as well as initiatives to enhance safety
and reliability.
-- On Oct. 23, 2015, CVA received regulatory approval of its application
for a five-year extension of its infrastructure replacement program
under the SAVE Act (Steps to Advance Virginia's Energy Plan). The
company plans to invest $150 million on its infrastructure modernization
programs from 2016-2020. The approval provides for timely recovery of
such investments through an annual tracker mechanism.
-- Northern Indiana Public Service Co. (NIPSCO) continued executing on its
seven-year, $817 million natural gas system modernization program.
NIPSCO filed its semi-annual tracker update on Aug. 31, 2015 and expects
to make its next filing in spring 2016.
Electric Operations
-- Consistent with a May 26, 2015 settlement NIPSCO reached with the
Indiana Office of Utility Consumer Counselor and NIPSCO's largest
industrial customers, the company filed a rate case and is expected to
file a new seven-year electric infrastructure modernization plan with
the Indiana Utility Regulatory Commission (IURC). The May 26 settlement
remains pending before the IURC.
-- NIPSCO's first electric rate case in five years was filed with the IURC
on Oct. 1, 2015. The case seeks to update rates to reflect the current
costs of generating and distributing power, plus ongoing investments
which are delivering substantial benefits to customers including
programs that have reduced the duration of power outages by 40 percent.
The request also seeks to create a bill payment assistance program for
low-income electric customers during the summer cooling season. A
decision by the IURC is expected in the third quarter of 2016.
-- NIPSCO's Michigan City flue gas desulfurization unit is set to be placed
in service by the end of the year - on schedule and on budget. The
approximately $255 million project, supported with cost recovery,
improves air quality and helps ensure NIPSCO's generation fleet remains
in compliance with current environmental regulations. It also helps
ensure that NIPSCO can continue offering low-cost, reliable and
efficient generating capacity for its customers.
-- Progress also continued on two major electric transmission projects
designed to enhance region-wide system flexibility and reliability.
Right-of-way acquisition and permitting are under way for both projects
and substation construction has begun on both projects. These projects
involve an investment of approximately $500 million for NIPSCO and are
anticipated to be in service by the end of 2018.
2016 Guidance, Growth Commitments Reaffirmed
NiSource CEO Joseph Hamrock reaffirmed that NiSource expects to deliver non-GAAP net operating earnings per share of $1.00 to $1.10 in 2016.
As previously disclosed, NiSource expects to make approximately $1.4 billion in planned infrastructure enhancement investments in 2016 as part of its $30 billion in infrastructure investment opportunities, which should support the company's projected long-term earnings and dividend growth projections of 4-6% annually.
NiSource remains committed to maintaining solid, investment grade credit ratings. Standard & Poor's rates NiSource at BBB+, Fitch Ratings' outlook on NiSource is BBB- (positive) and Moody's rates NiSource at Baa2. As of Sept. 30, 2015, NiSource maintained $1.6 billion in net available liquidity.
Third Quarter 2015 Operating Earnings - Segment Results (non-GAAP)
NiSource's consolidated operating earnings (non-GAAP) for the three months ended Sept. 30, 2015, were $115.8 million, compared to $84.7 million for the same period in 2014. Operating earnings (non-GAAP) for NiSource's business segments for the three months ended Sept. 30, 2015, are discussed below. Refer to Schedule 2 for a reconciliation of operating earnings (non-GAAP) to GAAP operating income.
Gas Distribution Operations reported operating earnings of $21.6 million for the three months ended Sept. 30, 2015, compared with operating earnings of $1.0 million for the same prior year period. Net revenues, excluding the impact of trackers, increased by $18.5 million primarily attributable to the implementation of rates under Columbia Gas of Ohio's (COH) approved infrastructure replacement program, as well as the impact of new rates at CVA and CPA.
Operating expenses, excluding the impact of trackers, decreased by $2.1 million from the comparable 2014 period.
Electric Operations reported operating earnings of $101.6 million for the three months ended Sept. 30, 2015, compared with operating earnings of $90.2 million for the same prior year period. Net revenues, excluding the impact of trackers, decreased by $0.8 million from the comparable 2014 period.
Operating expenses, excluding the impact of trackers, decreased by $12.2 million from the comparable 2014 period primarily as a result of lower employee and administrative costs.
Corporate and Other Operations reported an operating earnings loss of $7.4 million for the three months ended Sept. 30, 2015, compared with an operating earnings loss of $6.5 million for the three months ended Sept. 30, 2014.
Other Items
Interest expense, net was $94.9 million for the three months ended Sept. 30, 2015 compared to interest expense, net of $94.7 million for the same prior year period.
Other, net reflected income of $5.8 million compared to income of $5.7 million in the comparable 2014 period.
Income taxes were $8.2 million for the three months ended Sept. 30, 2015 compared to $4.4 million for the same prior year period.
Nine Month Period 2015 Operating Earnings - Segment Results (non-GAAP)
NiSource's consolidated operating earnings (non-GAAP) for the nine months ended Sept. 30, 2015, were $583.2 million, compared to $550.7 million for the same period in 2014. Operating earnings (non-GAAP) for NiSource's business segments for the nine months ended Sept. 30, 2015, are discussed below. Refer to Schedule 2 for a reconciliation of operating earnings (non-GAAP) to GAAP operating income.
Gas Distribution Operations reported operating earnings of $383.0 million for the nine months ended Sept. 30, 2015, compared with operating earnings of $343.6 million for the same prior year period. Net revenues, excluding the impact of trackers, increased by $78.6 million primarily attributable to increases in regulatory and service programs, including the impact of new rates at CPA and CVA and the implementation of rates under COH's approved infrastructure replacement program.
Operating expenses, excluding the impact of trackers, increased by $39.2 million due primarily to increased employee and administrative costs, higher depreciation and increased property taxes.
Electric Operations reported operating earnings of $225.4 million for the nine months ended Sept. 30, 2015, compared with operating earnings of $224.2 million for the same prior year period. Net revenues, excluding the impact of trackers, decreased by $2.8 million from the comparable 2014 period.
Operating expenses, excluding the impact of trackers, decreased by $4.0 million from the comparable 2014 period.
Corporate and Other Operations reported an operating earnings loss of $25.2 million for the nine months ended Sept. 30, 2015, compared with an operating earnings loss of $17.1 million for the nine months ended Sept. 30, 2014. The increase in operating earnings loss is primarily due to higher employee and administrative costs.
Other Items
Interest expense, net was $285.9 million for the nine months ended Sept. 30, 2015 compared to interest expense, net of $287.4 million for the same prior year period.
Other, net reflected income of $11.6 million compared to income of $13.4 million in 2014.
The effective tax rate of net operating earnings was 35.5 percent compared to 36.1 percent for the same period last year.
About NiSource
NiSource Inc. (NYSE: NI) is one of the largest fully-regulated utility companies in the United States, serving approximately 3.5 million natural gas customers and 500,000 electric customers across seven states through its local Columbia Gas and NIPSCO brands. Based in Merrillville, Indiana, NiSource's more than 7,000 employees are focused on safely delivering reliable and affordable energy to our customers and communities we serve. NiSource has been designated a World's Most Ethical Company by the Ethisphere Institute since 2012 and is a member of the Dow Jones Sustainability - North America Index. Additional information about NiSource, its investments in modern infrastructure and systems, its commitments and its local brands can be found at www.nisource.com. NI-F
Regulation G Disclosure Statement
This press release includes NiSource's financial results with respect to net operating earnings from continuing operations and operating earnings, which are non-GAAP financial measures as defined by the SEC's Regulation G. The Company includes such measures because management believes they permit investors to view the Company's performance using the same tools that management uses and to better evaluate the Company's ongoing business performance. It should be noted that there will likely be differences between these non-GAAP financial measures and GAAP equivalents due to various factors, including, but not limited to, weather, restructuring, environmental, the impact of asset sales and asset impairments, and separation related costs and expenses and accounting changes. NiSource is not able to estimate the impact of such factors on GAAP earnings and, as such, is not providing earnings guidance on a GAAP basis.
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 NiSource's business, performance and growth. Factors that could cause actual results to differ materially from the projections, forecasts, estimates and expectations discussed in this release include, but are not limited to, NiSource's debt obligations and ability to comply with related covenants, changes in NiSource's credit rating, growth opportunities for NiSource's businesses, changes in general economic and market conditions, regulatory rate reviews and proceedings, increased competition in deregulated energy markets, compliance with environmental laws, fluctuations in weather, climate change, natural disasters, acts of terrorism and other catastrophic events, economic conditions in certain industries, fluctuations in the price of energy commodities, counterparty credit risk, any impairment of goodwill and definite-lived intangible assets, changes in taxation or accounting principles, accidents and other operating risks, aging infrastructure, disruptions in information technology and cyber-attacks, NiSource's ability to achieve the intended benefits of the separation and other matters set forth in the "Risk Factors" section in NiSource's 2014 Form 10-K and other filings with the Securities and Exchange Commission, many of which are 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 any duty to update, supplement or amend any of its forward-looking statements contained in this release, whether as a result of new information, subsequent events or otherwise, except as required by applicable law.
NiSource Inc.
Consolidated Net Operating Earnings (Non-GAAP)
(unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
------------- -------------
(in millions, except per share amounts) 2015 2014 2015 2014
-------------------------------------- ---- ---- ---- ----
Net Revenues
Gas Distribution $209.7 $240.4 $1,582.8 $1,860.1
Gas Transportation 172.1 170.5 739.9 710.4
Electric 431.5 437.9 1,199.9 1,285.0
Other 7.8 2.8 19.9 10.4
--- --- ---- ----
Gross Revenues 821.1 851.6 3,542.5 3,865.9
Cost of Sales (excluding depreciation and amortization) 209.1 262.3 1,307.3 1,769.4
------------------------------------------------------ ----- ----- ------- -------
Total Net Revenues 612.0 589.3 2,235.2 2,096.5
------------------ ----- ----- ------- -------
Operating Expenses
Operation and maintenance 292.1 306.9 914.0 893.9
Operation and maintenance - trackers 17.9 20.5 149.8 96.6
Depreciation and amortization 126.9 122.6 380.1 361.2
Depreciation and amortization - trackers 5.6 1.2 10.9 1.9
Other taxes 45.1 45.4 143.7 139.0
Other taxes - trackers 8.6 8.0 53.5 53.2
---------------------- --- --- ---- ----
Total Operating Expenses 496.2 504.6 1,652.0 1,545.8
------------------------ ----- ----- ------- -------
Operating Earnings 115.8 84.7 583.2 550.7
------------------ ----- ---- ----- -----
Other Income (Deductions)
Interest expense, net (94.9) (94.7) (285.9) (287.4)
Other, net 5.8 5.7 11.6 13.4
---------- --- --- ---- ----
Total Other Deductions (89.1) (89.0) (274.3) (274.0)
---------------------- ----- ----- ------ ------
Operating Earnings (Loss) From Continuing Operations
Before Income Taxes 26.7 (4.3) 308.9 276.7
Income Taxes 8.2 4.4 109.7 99.9
------------ --- --- ----- ----
Net Operating Earnings (Loss) from Continuing Operations 18.5 (8.7) 199.2 176.8
-------------------------------------------------------- ---- ---- ----- -----
GAAP Adjustment (3.7) (8.5) (65.0) (0.1)
--------------- ---- ---- ----- ----
GAAP Income (Loss) from Continuing Operations $14.8 $(17.2) $134.2 $176.7
============================================= ===== ====== ====== ======
Basic Net Operating Earnings (Loss) Per Share from Continuing $0.06 $(0.03) $0.63 $0.56
Operations
----------
GAAP Basic Earnings (Loss) Per Share from Continuing Operations $0.05 $(0.05) $0.42 $0.56
--------------------------------------------------------------- ----- ------ ----- -----
Basic Average Common Shares Outstanding 318.1 315.4 317.4 314.9
======================================= ===== ===== ===== =====
NiSource Inc.
Segment Operating Earnings (Non-GAAP)
(unaudited)
Three Months Ended Nine Months Ended
Gas Distribution Operations September 30, September 30,
------------- -------------
(in millions) 2015 2014 2015 2014
------------ ---- ---- ---- ----
Net Revenues
Sales revenues $385.5 $412.1 $2,337.0 $2,575.5
Less: Cost of gas sold 73.9 114.6 929.9 1,294.8
Net Revenues 311.6 297.5 1,407.1 1,280.7
------------ ----- ----- ------- -------
Operating Expenses
Operation and maintenance 187.4 194.8 588.2 565.9
Operation and maintenance - trackers 9.0 14.0 126.0 78.5
Depreciation and amortization 58.5 55.4 172.8 161.7
Other taxes 26.5 24.3 83.6 77.8
Other taxes - trackers 8.6 8.0 53.5 53.2
---------------------- --- --- ---- ----
Total Operating Expenses 290.0 296.5 1,024.1 937.1
------------------------ ----- ----- ------- -----
Operating Earnings $21.6 $1.0 $383.0 $343.6
================== ===== ==== ====== ======
GAAP Adjustment (1.6) (0.2) 11.9 18.8
--------------- ---- ---- ---- ----
GAAP Operating Income $20.0 $0.8 $394.9 $362.4
===================== ===== ==== ====== ======
Three Months Ended Nine Months Ended
Electric Operations September 30, September 30,
------------- -------------
(in millions) 2015 2014 2015 2014
------------ ---- ---- ---- ----
Net Revenues
Sales revenues $431.7 $438.0 $1,201.3 $1,286.1
Less: Cost of sales 135.2 147.5 377.5 474.2
Net Revenues 296.5 290.5 823.8 811.9
------------ ----- ----- ----- -----
Operating Expenses
Operation and maintenance 101.3 114.0 325.9 337.1
Operation and maintenance - trackers 8.9 6.5 23.8 18.1
Depreciation and amortization 63.0 61.2 188.4 181.0
Depreciation and amortization - trackers 5.6 1.2 10.9 1.9
Other taxes 16.1 17.4 49.4 49.6
Total Operating Expenses 194.9 200.3 598.4 587.7
------------------------ ----- ----- ----- -----
Operating Earnings $101.6 $90.2 $225.4 $224.2
================== ====== ===== ====== ======
GAAP Adjustment (3.1) (13.3) (11.2) (5.5)
---------------
GAAP Operating Income $98.5 $76.9 $214.2 $218.7
===================== ===== ===== ====== ======
Three Months Ended Nine Months Ended
Corporate and Other Operations September 30, September 30,
------------- -------------
(in millions) 2015 2014 2015 2014
------------ ---- ---- ---- ----
Operating Earnings Loss $(7.4) $(6.5) $(25.2) $(17.1)
======================= ===== ===== ====== ======
GAAP Adjustment (1.4) (0.1) (3.5) (1.8)
---------------
GAAP Operating Loss $(8.8) $(6.6) $(28.7) $(18.9)
=================== ===== ===== ====== ======
NiSource Inc.
Segment Volumes and Statistical Data
Three Months Ended Nine Months Ended
September 30, September 30,
------------- -------------
Gas Distribution Operations 2015 2014 2015 2014
--------------------------- ---- ---- ---- ----
Sales and Transportation (MMDth)
Residential 14.5 15.4 198.0 206.9
Commercial 16.4 17.5 130.2 135.0
Industrial 127.4 126.2 397.8 384.7
Off System 5.2 7.1 24.7 35.6
Other 0.1 - (0.2) (0.1)
----- --- --- ---- ----
Total 163.6 166.2 750.5 762.1
----- ----- ----- ----- -----
Weather Adjustment 0.9 - (28.3) (33.8)
------------------ --- --- ----- -----
Sales and Transportation Volumes - Excluding Weather 164.5 166.2 722.2 728.3
==================================================== ===== ===== ===== =====
Heating Degree Days 43 100 3,936 4,092
Normal Heating Degree Days 85 85 3,576 3,576
% (Warmer) Colder than Normal (49)% 18% 10% 14%
Customers
Residential 3,058,415 3,035,401
Commercial 277,525 276,923
Industrial 7,233 7,512
Other 14 15
----- --- ---
Total 3,343,187 3,319,851
----- --------- ---------
Three Months Ended Nine Months Ended
September 30, September 30,
------------- -------------
Electric Operations 2015 2014 2015 2014
------------------- ---- ---- ---- ----
Sales (Gigawatt Hours)
Residential 1,001.9 915.2 2,584.6 2,604.6
Commercial 1,066.7 1,031.6 2,935.8 2,932.0
Industrial 2,270.3 2,504.7 6,990.7 7,567.6
Wholesale 76.9 161.4 194.8 485.3
Other 36.1 36.4 105.2 104.7
----- ---- ---- ----- -----
Total 4,451.9 4,649.3 12,811.1 13,694.2
----- ------- ------- -------- --------
Weather Adjustment 48.3 193.7 19.4 79.3
------------------ ---- ----- ---- ----
Sales Volumes - Excluding Weather 4,500.2 4,843.0 12,830.5 13,773.5
================================= ======= ======= ======== ========
Cooling Degree Days 529 381 758 657
Normal Cooling Degree Days 570 570 799 799
% Colder than Normal (7)% (33)% (5)% (18)%
Electric Customers
Residential 403,468 401,683
Commercial 54,841 54,383
Industrial 2,351 2,364
Wholesale 746 751
Other 3 4
----- --- ---
Total 461,409 459,185
----- ------- -------
NiSource Inc.
Schedule 1 - Reconciliation of Net Operating Earnings to GAAP
Three Months Ended Nine Months Ended
September 30, September 30,
------------- -------------
(in millions, except per share amounts) 2015 2014 2015 2014
-------------------------------------- ---- ---- ---- ----
Net Operating Earnings (Loss) from Continuing Operations $18.5 $(8.7) $199.2 $176.8
-------------------------------------------------------- ----- ----- ------ ------
Items excluded from operating earnings
Net Revenues:
Weather - compared to normal (3.9) (13.5) 11.5 13.0
Operating Expenses:
Transaction costs (1.1) - (3.1) -
Environmental costs - - (10.0) -
Loss on sale of assets (1.1) (0.1) (1.2) (1.5)
---------------------- ---- ---- ---- ----
Total items excluded from operating earnings (6.1) (13.6) (2.8) 11.5
-------------------------------------------- ---- ----- ---- ----
Other Deductions:
Loss on early extinguishment of long-term debt - - (97.2) -
Income taxes - discrete items - - (3.3) (7.0)
Tax effect of above items 2.4 5.1 38.3 (4.6)
Total items excluded from net operating earnings (3.7) (8.5) (65.0) (0.1)
------------------------------------------------ ---- ---- ----- ----
GAAP Income (Loss) from Continuing Operations $14.8 $(17.2) $134.2 $176.7
============================================= ===== ====== ====== ======
Basic Average Common Shares Outstanding 318.1 315.4 317.4 314.9
======================================= ===== ===== ===== =====
Basic Net Operating Earnings (Loss) Per Share from Continuing Operations $0.06 $(0.03) $0.63 $0.56
------------------------------------------------------------------------ ----- ------ ----- -----
Items excluded from net operating earnings (after-tax) (0.01) (0.02) (0.21) -
----------------------------------------------------- ---
GAAP Basic Earnings (Loss) Per Share from Continuing Operations $0.05 $(0.05) $0.42 $0.56
--------------------------------------------------------------- ----- ------ ----- -----
NiSource Inc.
Schedule 2 - Adjustments by Segment from Operating Earnings to GAAP
For the Quarter ended September 30,
Electric
--------
Gas Corporate &
Distribution Other
------------ -----
2015 (in millions) Total
----------------- -----
Operating Earnings (Loss) $21.6 $101.6 $(7.4) $115.8
Net Revenues:
Weather - compared to normal (0.8) (3.1) - (3.9)
---------------------------- ---- ---- --- ----
Total Impact - Net Revenues (0.8) (3.1) - (3.9)
Operating Expenses:
Transaction costs - - (1.1) (1.1)
Loss on sale of assets (0.8) - (0.3) (1.1)
Total Impact - Operating Expenses (0.8) - (1.4) (2.2)
--------------------------------- ---- --- ---- ----
Total Impact - Operating Loss $(1.6) $(3.1) $(1.4) $(6.1)
----------------------------- ----- ----- ----- -----
Operating Income (Loss) - GAAP $20.0 $98.5 $(8.8) $109.7
------------------------------ ----- ----- ----- ------
Electric
--------
Gas Corporate &
Distribution Other
------------ -----
2014 (in millions) Total
----------------- -----
Operating Earnings (Loss) $1.0 $90.2 $(6.5) $84.7
Net Revenues:
Weather - compared to normal (0.2) (13.3) - (13.5)
---------------------------- ---- ----- --- -----
Total Impact - Net Revenues (0.2) (13.3) - (13.5)
Operating Expenses:
Loss on sale of assets - - (0.1) (0.1)
---------------------- --- --- ---- ----
Total Impact - Operating Expenses - - (0.1) (0.1)
--------------------------------- --- --- ---- ----
Total Impact - Operating Loss $(0.2) $(13.3) $(0.1) $(13.6)
----------------------------- ----- ------ ----- ------
Operating Income (Loss) - GAAP $0.8 $76.9 $(6.6) $71.1
------------------------------ ---- ----- ----- -----
NiSource Inc.
Schedule 2 - Adjustments by Segment from Operating Earnings to GAAP
For the Nine Months Ended September 30,
Electric
--------
Gas Corporate &
Distribution Other
------------ -----
2015 (in millions) Total
----------------- -----
Operating Earnings (Loss) $383.0 $225.4 $(25.2) $583.2
Net Revenues:
Weather - compared to normal 12.7 (1.2) - 11.5
---------------------------- ---- ---- --- ----
Total Impact - Net Revenues 12.7 (1.2) - 11.5
Operating Expenses:
Environmental costs - (10.0) - (10.0)
Transaction costs - - (3.1) (3.1)
Loss on sale of assets (0.8) - (0.4) (1.2)
Total Impact - Operating Expenses (0.8) (10.0) (3.5) (14.3)
--------------------------------- ---- ----- ---- -----
Total Impact - Operating Income (Loss) $11.9 $(11.2) $(3.5) $(2.8)
------------------------------------- ----- ------ ----- -----
Operating Income (Loss) - GAAP $394.9 $214.2 $(28.7) $580.4
------------------------------ ------ ------ ------ ------
Electric
--------
Gas Corporate &
Distribution Other
------------ -----
2014 (in millions) Total
----------------- -----
Operating Earnings (Loss) $343.6 $224.2 $(17.1) $550.7
Net Revenues:
Weather - compared to normal 18.6 (5.6) - 13.0
Total Impact - Net Revenues 18.6 (5.6) - 13.0
Operating Expenses:
Gain (Loss) on sale of assets 0.2 0.1 (1.8) (1.5)
----------------------------- --- --- ---- ----
Total Impact - Operating Expenses 0.2 0.1 (1.8) (1.5)
--------------------------------- --- --- ---- ----
Total Impact - Operating Income (Loss) $18.8 $(5.5) $(1.8) $11.5
------------------------------------- ----- ----- ----- -----
Operating Income (Loss) - GAAP $362.4 $218.7 $(18.9) $562.2
------------------------------ ------ ------ ------ ------
NiSource Inc.
Consolidated Income Statements (GAAP)
(unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
------------- -------------
(in millions, except per share amounts) 2015 2014 2015 2014
-------------------------------------- ---- ---- ---- ----
Net Revenues
Gas Distribution $208.9 $240.3 $1,595.5 $1,878.8
Gas Transportation 172.1 170.5 739.9 710.5
Electric 428.4 424.6 1,198.7 1,279.4
Other 7.8 2.8 19.9 10.4
----- --- --- ---- ----
Gross Revenues 817.2 838.2 3,554.0 3,879.1
Cost of Sales (excluding depreciation and amortization) 209.1 262.4 1,307.3 1,769.6
------------------------------------------------------ ----- ----- ------- -------
Total Net Revenues 608.1 575.8 2,246.7 2,109.5
------------------ ----- ----- ------- -------
Operating Expenses
Operation and maintenance 311.1 327.4 1,076.9 990.5
Depreciation and amortization 132.5 123.8 391.0 363.1
Loss on sale of assets 1.1 0.1 1.2 1.5
Other taxes 53.7 53.4 197.2 192.2
Total Operating Expenses 498.4 504.7 1,666.3 1,547.3
------------------------ ----- ----- ------- -------
Operating Income 109.7 71.1 580.4 562.2
---------------- ----- ---- ----- -----
Other Income (Deductions)
Interest expense, net (94.9) (94.7) (285.9) (287.4)
Other, net 5.8 5.7 11.6 13.4
Loss on early extinguishment of long-term debt - - (97.2) -
---------------------------------------------- --- -----
Total Other Deductions (89.1) (89.0) (371.5) (274.0)
---------------------- ----- ----- ------ ------
Income (Loss) from Continuing Operations before Income Taxes 20.6 (17.9) 208.9 288.2
Income Taxes 5.8 (0.7) 74.7 111.5
------------ --- ---- ---- -----
Income (Loss) from Continuing Operations 14.8 (17.2) 134.2 176.7
---------------------------------------- ---- ----- ----- -----
(Loss) Income from Discontinued Operations - net of taxes (19.7) 48.6 108.5 199.1
Net (Loss) Income (4.9) 31.4 242.7 375.8
Less: Net income attributable to noncontrolling interest - - 15.6 -
-------------------------------------------------------- --- --- ---- ---
Net (Loss) Income attributable to NiSource $(4.9) $31.4 $227.1 $375.8
========================================== ===== ===== ====== ======
Amounts attributable to NiSource:
Income (Loss) from continuing operations $14.8 $(17.2) $134.2 $176.7
(Loss) Income from discontinued operations (19.7) 48.6 92.9 199.1
Net (Loss) Income attributable to NiSource $(4.9) $31.4 $227.1 $375.8
------------------------------------------ ----- ----- ------ ------
Basic (Loss) Earnings Per Share
Continuing operations $0.05 $(0.05) $0.42 $0.56
Discontinued operations (0.07) 0.15 0.30 0.63
-----------------------
Basic (Loss) Earnings Per Share $(0.02) $0.10 $0.72 $1.19
------------------------------- ------ ----- ----- -----
Diluted (Loss) Earnings Per Share
Continuing operations $0.05 $(0.05) $0.42 $0.56
Discontinued operations (0.07) 0.15 0.29 0.63
-----------------------
Diluted (Loss) Earnings Per Share $(0.02) $0.10 $0.71 $1.19
--------------------------------- ------ ----- ----- -----
Dividends Declared Per Common Share $0.31 $0.26 $0.83 $1.02
----------------------------------- ----- ----- ----- -----
Basic Average Common Shares Outstanding 318.1 315.4 317.4 314.9
Diluted Average Common Shares 321.5 315.4 320.7 316.0
----------------------------- ----- ----- ----- -----
NiSource Inc.
Consolidated Balance Sheets (GAAP)
(unaudited)
September 30, December 31,
(in millions) 2015 2014
------------ ---- ----
ASSETS
Property, Plant and Equipment
Utility plant $18,484.8 $17,668.4
Accumulated depreciation and amortization (6,811.5) (6,629.5)
----------------------------------------- -------- --------
Net utility plant 11,673.3 11,038.9
----------------- -------- --------
Other property, at cost, less accumulated depreciation 17.4 18.5
Net Property, Plant and Equipment 11,690.7 11,057.4
--------------------------------- -------- --------
Investments and Other Assets
Unconsolidated affiliates 6.7 8.3
Other investments 195.8 204.8
----------------- ----- -----
Total Investments and Other Assets 202.5 213.1
---------------------------------- ----- -----
Current Assets
Cash and cash equivalents 31.7 24.9
Restricted cash 27.9 24.9
Accounts receivable (less reserve of $20.7 and $24.9, respectively) 500.5 920.8
Gas inventory 398.9 440.3
Underrecovered gas costs 7.1 32.0
Material and supplies, at average cost 84.2 81.1
Electric production fuel, at average cost 81.1 64.8
Exchange gas receivable 19.7 28.3
Assets of discontinued operations - 341.3
Regulatory assets 183.7 187.4
Deferred income taxes 227.1 214.2
Prepayments and other 75.9 106.5
Total Current Assets 1,637.8 2,466.5
-------------------- ------- -------
Other Assets
Regulatory assets 1,507.5 1,544.5
Goodwill 1,690.7 1,690.7
Intangible assets 256.4 264.7
Assets of discontinued operations - 7,546.0
Deferred charges and other 70.3 83.4
-------------------------- ---- ----
Total Other Assets 3,524.9 11,129.3
------------------ ------- --------
Total Assets $17,055.9 $24,866.3
============ ========= =========
NiSource Inc.
Consolidated Balance Sheets (GAAP) (continued)
(unaudited)
September 30, December 31,
(in millions, except share amounts) 2015 2014
---------------------------------- ---- ----
CAPITALIZATION AND LIABILITIES
Capitalization
Common Stockholders' Equity
Common stock - $0.01 par value, 400,000,000 shares authorized; 318,474,781 and $3.2 $3.2
316,037,421 shares outstanding, respectively
Additional paid-in capital 5,078.6 4,787.6
Retained (deficit) earnings (1,182.7) 1,494.0
Accumulated other comprehensive loss (19.6) (50.6)
Treasury stock (79.2) (58.9)
-------------- ----- -----
Total Common Stockholders' Equity 3,800.3 6,175.3
Long-term debt, excluding amounts due within one year 6,133.5 8,155.9
Total Capitalization 9,933.8 14,331.2
-------------------- ------- --------
Current Liabilities
Current portion of long-term debt 442.6 266.6
Short-term borrowings 107.2 1,576.9
Accounts payable 349.2 610.1
Dividends payable 49.3 -
Customer deposits and credits 255.4 280.9
Taxes accrued 137.0 169.2
Interest accrued 77.5 140.7
Overrecovered gas and fuel costs 169.2 45.6
Exchange gas payable 66.8 101.5
Deferred revenue 9.3 3.4
Regulatory liabilities 120.2 61.1
Accrued liability for postretirement and postemployment benefits 5.2 5.3
Liabilities of discontinued operations - 369.0
Legal and environmental 36.8 22.7
Accrued compensation and employee benefits 125.9 166.8
Other accruals 121.7 144.5
Total Current Liabilities 2,073.3 3,964.3
------------------------- ------- -------
Other Liabilities and Deferred Credits
Deferred income taxes 2,513.9 2,380.0
Deferred investment tax credits 15.4 17.1
Deferred credits 99.4 100.9
Accrued liability for postretirement and postemployment benefits 665.2 733.9
Liabilities of discontinued operations - 1,616.3
Regulatory liabilities 1,387.1 1,379.6
Asset retirement obligations 181.2 136.2
Other noncurrent liabilities 186.6 206.8
---------------------------- -----
Total Other Liabilities and Deferred Credits 5,048.8 6,570.8
-------------------------------------------- ------- -------
Commitments and Contingencies - -
----------------------------- --- ---
Total Capitalization and Liabilities $17,055.9 $24,866.3
==================================== ========= =========
NiSource Inc.
Statements of Consolidated Cash Flows (GAAP)
(unaudited)
Nine Months Ended September 30, (in millions) 2015 2014
-------------------------------------------- ---- ----
Operating Activities
Net Income $242.7 $375.8
Adjustments to Reconcile Net Income to Net Cash from Continuing Operations:
Loss on early extinguishment of debt 97.2 -
Depreciation and amortization 391.0 363.1
Net changes in price risk management assets and liabilities 2.0 1.9
Deferred income taxes and investment tax credits 60.1 110.1
Deferred revenue 7.3 (0.4)
Stock compensation expense and 401(k) profit sharing contribution 38.6 50.2
Loss on sale of assets 1.2 1.5
Income from unconsolidated affiliates 0.8 0.6
Income from discontinued operations - net of taxes (108.5) (199.1)
Amortization of debt related costs 6.8 7.5
AFUDC equity (7.7) (7.4)
Changes in Assets and Liabilities
Accounts receivable 420.3 360.3
Inventories 19.8 (170.5)
Accounts payable (287.5) (228.7)
Customer deposits and credits (25.5) (5.0)
Taxes accrued (30.6) (31.1)
Interest accrued (63.1) (54.7)
Over (Under) recovered gas and fuel costs 148.5 (19.2)
Exchange gas receivable/payable (26.1) (57.2)
Other accruals (57.1) (29.5)
Prepayments and other current assets 30.1 33.9
Regulatory assets/liabilities 111.1 (18.1)
Postretirement and postemployment benefits (61.0) (86.7)
Deferred credits (1.3) 10.7
Deferred charges and other noncurrent assets 10.8 5.5
Other noncurrent liabilities (13.6) 5.3
---------------------------- ----- ---
Net Operating Activities from Continuing Operations 906.3 418.8
Net Operating Activities from Discontinued Operations 287.6 467.7
-----------------------------------------------------
Net Cash Flows from Operating Activities 1,193.9 886.5
---------------------------------------- ------- -----
Investing Activities
Capital expenditures (923.4) (914.3)
Proceeds from disposition of assets 4.3 1.6
Restricted cash deposits (3.0) (8.1)
Cash contributions from CPG 3,798.2 -
Other investing activities (39.9) (7.4)
-------------------------- ----- ----
Net Investing Activities from (used for) Continuing Operations 2,836.2 (928.2)
Net Investing Activities used for Discontinued Operations (430.0) (584.0)
--------------------------------------------------------- ------ ------
Net Cash Flows from (used for) Investing Activities 2,406.2 (1,512.2)
--------------------------------------------------- ------- --------
Financing Activities
Cash of CPG at Separation (136.8) -
Issuance of long-term debt - 748.4
Repayments of long-term debt and capital lease obligations (1,859.1) (517.1)
Premiums and other debt related costs (93.5) -
Change in short-term borrowings, net (1,396.6) 612.3
Issuance of common stock 17.9 22.4
Acquisition of treasury stock (20.3) (10.2)
Dividends paid - common stock (214.0) (239.2)
----------------------------- ------ ------
Net Financing Activities (used for) from Continuing Operations (3,702.4) 616.6
Net Financing Activities from Discontinued Operations 108.6 -
----------------------------------------------------- ----- ---
Net Cash Flow (used for) from Financing Activities (3,593.8) 616.6
-------------------------------------------------- -------- -----
Change in cash and cash equivalents from continuing operations 40.1 107.2
Change in cash and cash equivalents used for discontinued operations (33.8) (116.3)
Change in cash included in discontinued operations 0.5 (0.1)
Cash and cash equivalents at beginning of period 24.9 26.5
------------------------------------------------ ---- ----
Cash and Cash Equivalents at End of Period $31.7 $17.3
========================================== ===== =====
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SOURCE NiSource Inc.
