MERRILLVILLE, Ind., Feb. 1 /PRNewswire-FirstCall/ --
- Earnings results in line with guidance
- Liquidity position strengthened
- Financing needs addressed through 2011
- Core business initiatives advance
- 2010 earnings guidance of $1.10-$1.20 per share
NiSource Inc. (NYSE: NI) today announced net operating earnings (non-GAAP) of $295.3 million, or $1.07 per share, for the twelve months ended Dec. 31, 2009, compared to net operating earnings of $349.4 million, or $1.28 per share for 2008. NiSource's consolidated operating earnings (non-GAAP) for the twelve months ended Dec. 31, 2009 were $881.0 million, compared to $918.6 million in 2008.
On a GAAP basis, NiSource reported income from continuing operations for the twelve months ended Dec. 31, 2009, of $231.2 million, or $0.84 per share, compared with $370.6 million, or $1.35 per share in 2008. Operating income was $801.9 million for 2009 versus $918.7 million in the year-ago period. Schedules 1 and 2 of this news release contain a reconciliation of net operating earnings and operating earnings to GAAP.
For the three months ended Dec. 31, 2009, net operating earnings were $98.9 million (non-GAAP), or $0.35 per share, compared with $126.2 million, or $0.46 per share, for the same period in 2008. On a GAAP basis, income from continuing operations for the three months ended Dec. 31, 2009 was $88.5 million, or $0.32 per share, compared with $127.5 million, or $0.46 per share for the fourth quarter of 2008.
Notably, as reflected in the attached financial statements, year-over-year cash flows from operating activities increased by more than $1 billion. In addition, short-term borrowings at year end 2009 were more than $1 billion lower than at year end 2008.
“Our team’s exceptional execution enabled NiSource to not only weather the storm during 2009, but to emerge as a stronger, more robust company,” NiSource President and Chief Executive Officer Robert C. Skaggs, Jr. said. “Despite unprecedented dislocations in the financial markets and a very challenging economic environment – particularly in our Northern Indiana markets – our company’s underlying business performance remained strong, our liquidity position improved significantly, and we produced tangible results from our core strategy to build shareholder value and deliver long-term, sustainable earnings growth.
The company noted that its net operating earnings for 2009 (non-GAAP) were solidly in line with the company’s guidance range of $1.00 to $1.10 per share announced early last year. The results reflect increased net revenues in NiSource’s Gas Distribution and Gas Transmission & Storage businesses, as well as the effects of open market debt repurchases and lower short-term interest rates. As anticipated, these improvements were more than offset by previously disclosed increased pension expense, reduced electric demand resulting from the economic downturn, and incremental interest expense related to the issuance of long-term debt under the company’s liquidity plan.
Revenue improvements help offset economic impacts
Compared with 2008, NiSource’s 2009 results reflected approximately $69.9 million in additional net revenues (excluding regulatory trackers) at NiSource’s Gas Distribution unit, primarily attributable to regulatory initiatives. NiSource’s Gas Transmission & Storage unit also delivered $56.2 million in increased net revenues (excluding regulatory trackers) resulting from growth projects, short-term transportation and storage services, and mineral rights leasing. These improvements helped to lessen impacts from the economic recession, which resulted in reduced industrial electric demand of approximately 17 percent compared to 2008 levels.
“Through our revenue growth initiatives, as well as aggressive cost management efforts across all our businesses, we mitigated a significant portion of the impacts of the economic recession,” Skaggs said. “Our ability to deliver on our financial commitments in the face of a tough economy underscores the resilience of our core regulated businesses and is a testament to the team’s disciplined execution of their business plans.”
Financing needs addressed through 2011, investment-grade ratings affirmed
NiSource’s financing and liquidity position continued to improve during the fourth quarter of 2009, as the company’s finance subsidiary, NiSource Finance Corp., issued $500 million of senior unsecured notes on Dec. 4, 2009. Proceeds from the issuance will be used by NiSource to complete the refinancing of outstanding long-term debt scheduled to mature in 2010 and 2011. The company continues to maintain its $1.5 billion revolving credit facility that extends to July 2011.
NiSource’s December debt issuance followed a decision by Moody's Investors Service to affirm the company’s investment grade credit rating of Baa3 and raise its outlook to stable. Moody's cited the successful resolution of a variety of rate proceedings by NiSource's gas utilities and the management of the company's liquidity position as major influencing factors for raising NiSource's outlook to stable.
"We are pleased Moody's recognized the progress we have made in strengthening our liquidity position and advancing an aggressive business agenda," Skaggs said.
"As we entered 2009, we emphasized that maintaining adequate liquidity and managing our upcoming debt maturities were key near-term priorities for NiSource, and we outlined an aggressive and comprehensive plan to effectively address those challenges. Throughout the year, our business units and our finance team did an outstanding job of executing the plan – capital expenditure levels were recalibrated, operating expenses and working capital were managed aggressively, and debt refinancings of approximately $2 billion were completed. As a result of those and other efforts, NiSource entered 2010 with a significantly stronger liquidity profile, and with its long-term financing needs addressed through 2011.”
Core business initiatives advance
During the fourth quarter, NiSource continued to advance core elements of its long-term business strategy, centering on expansion and commercial growth in its Gas Transmission and Storage business, regulatory and commercial initiatives at its utilities, and strong financial process and expense management across the corporation.
As noted above, NiSource’s Gas Distribution Operations continued to deliver strong results during 2009 from a strategy of aligning infrastructure replacement and enhancement programs with a variety of regulatory and rate design initiatives. Highlights include:
- Bay State Gas Co. received a favorable base rate case order from the Massachusetts Department of Public Utilities (DPU) on Oct. 30, 2009, authorizing an increase in annual base revenues of approximately $19 million, or 3.7 percent. The DPU also approved Bay State’s revenue decoupling mechanism – the first of its kind in Massachusetts – as well as its proposed tracking mechanism to recover costs associated with the company’s infrastructure replacement program.
- Columbia Gas of Kentucky received Public Service Commission approval of a unanimous rate case settlement. The settlement provided for an overall annual increase in revenues of approximately $6 million, or 3.7 percent, while authorizing an increase to the monthly customer charge, the implementation of an accelerated main replacement program tracker, and the introduction of a residential energy efficiency program.
- Columbia Gas of Virginia received Virginia State Corporation Commission approval of its Conservation and Ratemaking Efficiency (CARE) Plan for a three-year period (2010-2012). In addition to providing incentives for residential and small general services customers to actively pursue energy conservation measures, the CARE Plan establishes a decoupled rate mechanism. The plan became effective in January of this year.
- Looking into 2010, Columbia Gas of Pennsylvania filed a base rate increase request on Jan. 28, with the Pennsylvania Public Utility Commission. In addition to proposing a new set of residential home energy efficiency programs and the implementation of a more progressive rate design, the company is seeking an increase in its base rates of approximately $32 million annually. New rates are expected to be placed into effect in the fourth quarter of 2010.
- Northern Indiana Public Service Company (NIPSCO) also plans to file a natural gas rate case – the company’s first since 1987 – as early as March of this year, with new rates anticipated to be effective in late 2010.
“Our gas distribution teams continue to build on their excellent track record of execution,” Skaggs noted. “This ongoing progress is a testament to our commitment to building creative and collaborative regulatory and infrastructure investment solutions that benefit customers and ensure a safe and reliable distribution system.”
NiSource’s Gas Transmission & Storage (NGT&S) Operations continue to capture growth opportunities leveraging NiSource’s strategically positioned pipeline and storage assets. A number of NGT&S’ new growth projects are designed to support increasing Marcellus Shale production, while the company also has continued to grow and adapt its system to provide critical transportation and storage services to markets across its high-demand service territory. Some examples include:
- In April, storage gas injections began for the Ohio Storage Expansion Project, which increases NGT&S market-area storage capacity by 6.7 billion cubic feet and enhances delivery from two Ohio storage fields. In March, the Federal Energy Regulatory Commission (FERC) issued a certificate authorizing market-based rates for the project - the first time Columbia Gas Transmission has received such authority in connection with the expansion of an existing, traditionally cost-based, storage facility.
- In August, NGT&S placed in service its Appalachian Expansion Project, which leverages the company’s existing infrastructure to provide approximately 100,000 dekatherms per day of new transportation to three key Appalachian producers.
- Including the Appalachian Expansion Project, NGT&S advanced growth projects representing more than $155 million in investment in the Marcellus Shale region during 2009, with potential to provide market access for approximately 700,000 dekatherms per day of new natural gas supplies.
“With our strategic NGT&S footprint, our system capabilities and our disciplined expansion investment strategy, NiSource is capitalizing on the unprecedented producer investment in the Marcellus region, as well as additional new storage and transportation business opportunities across our system,” Skaggs said.
NiSource’s Electric Operations also continued to make progress on an aggressive regulatory and business agenda, despite pressures caused by the economic downturn.
- NIPSCO took steps during 2009 to advance a number of key initiatives designed to improve operating reliability and customer service, and to establish a platform for long-term earnings growth.
- During 2009, NIPSCO teams continued to advance the company’s 2008 electric rate case. Parties to the case completed the briefing process last month, and the Indiana Utility Regulatory Commission (IURC) is expected to issue an order in the case during the first half of this year.
- As previously announced, NIPSCO intends to file a subsequent electric base rate case during 2010. The filing will include the effect of increased pension expense, as well as demand levels based on more recent operating experience, among other items. New rates from this case are expected to be effective in 2011.
“Without question, 2009 was a challenging year for NIPSCO,” Skaggs noted. “The company’s earnings were impacted by a significant increase in pension expense, as well as materially lower industrial demand as a result of the economic recession. Looking forward, we have a solid regulatory and business plan for 2010 to restore NIPSCO’s earnings base and position it to grow in the future. Executing that plan is a key priority for NiSource this year.”
Strategic focus continues in 2010
Looking forward to 2010, Skaggs said NiSource will continue to aggressively focus on its core business strategy of synchronizing infrastructure investment with appropriate regulatory and commercial activities.
“Our key business priorities for this year are to advance the next wave of Marcellus Shale growth projects in our NGT&S business, continue to execute our infrastructure replacement programs and related regulatory initiatives in the Gas Distribution segment, and complete the NIPSCO repositioning process,” Skaggs said.
In terms of financial performance, Skaggs said NiSource expects its earnings to grow by 3 to 5 percent on a long-term basis. For 2010, net operating earnings (non-GAAP) are projected to fall within a range of $1.10 to $1.20 per share. There will likely be differences between net operating earnings and GAAP earnings for matters including, but not limited to, weather, restructuring costs and accounting changes. NiSource is not able to estimate the impact of such items on GAAP earnings and, as such, is not providing earnings guidance on a GAAP basis.
Skaggs said that the company’s outlook assumes a gradual and modest pace of economic recovery across the markets served by its utilities, continuing the trend experienced during the latter half of 2009. He also indicated that, in light of NiSource’s improved liquidity position and its deep inventory of investment opportunities, the company is projecting a capital expenditure level of approximately $900 million for 2010, an increase of approximately $100 million, or 12.5 percent, over its 2009 program.
“Although the landscape we face today is much more stable, and less treacherous, than the one we encountered a year ago, 2010 will present its share of challenges,” Skaggs said. “As we face those challenges and continue the basic work of building and growing NiSource, I am convinced we do so as a stronger company - one with a business plan that is compelling, balanced and tested.”
Full Year 2009 Operating Earnings – Segment Results (non-GAAP)
NiSource’s consolidated operating earnings (non-GAAP) for the year ended Dec. 31, 2009, were $881.0 million, compared to $918.6 million in 2008. Refer to Schedule 2 for the items included in 2009 and 2008 GAAP operating income but excluded from operating earnings.
Operating earnings for NiSource’s business segments for the full year ended Dec. 31, 2009 are discussed below.
Gas Distribution Operations reported operating earnings of $329.3 million, slightly above $328.2 million of operating earnings in 2008. As noted above, net revenues, excluding the impact of regulatory and tax trackers, increased $69.9 million, primarily attributable to regulatory and service programs including impacts from rate cases at various utilities, partially offset by decreased customer usage and lower off-system sales revenues.
Operating expenses, excluding trackers, were $68.8 million higher than the comparable period, reflecting higher employee and administrative costs, depreciation costs and uncollectible accounts. The higher employee and administrative costs were primarily due to increases in pension expense of $31.8 million, net of the deferral of pension costs for Columbia Gas of Ohio.
Gas Transmission and Storage Operations reported operating earnings of $408.8 million versus operating earnings of $376.7 million in 2008. The increase resulted primarily from increased net revenues of $56.2 million, excluding regulatory trackers, primarily attributable to increases in firm capacity reservation fees from growth projects such as the Eastern Market Expansion and the Ohio Storage Expansion, as well as for new Appalachian supply contracts, increases in shorter term transportation and storage services, and mineral rights leasing revenues.
Equity earnings increased by $3.7 million primarily resulting from increased earnings from Millennium Pipeline in its first full year of service, despite an $8.1 million reduction in equity earnings resulting from interest rate hedges related to Millennium’s decision to delay permanent financing until 2010.
Operating expenses increased by $27.8 million, excluding trackers, due to higher capacity lease costs, employee and administrative costs, outside services, maintenance costs, and environmental expenses. In addition, 2008 operating expenses were favorably impacted by the reduction of legal reserves.
Electric Operations reported operating earnings of $162.4 million for 2009, compared with $220.2 million in 2008. Lower net revenues and higher operating expenses both contributed to the lower operating earnings. Excluding regulatory trackers, net revenue decreased by $17.1 million primarily from lower industrial usage, off-system sales, emission allowance sales and Sugar Creek revenues from capacity sales into the PJM Interconnection, partially offset by lower non-recoverable purchased power costs.
Operating expenses increased by $40.7 million, excluding trackers, due primarily to higher pension expense of $42.6 million, other employee and administrative costs, and higher electric generation and maintenance expenses, partially offset by lower property taxes, environmental expenses and depreciation. The decrease in depreciation expense is due primarily to the impact of an $8.3 million adjustment recorded by NIPSCO during the second quarter of 2008.
Other Operations reported an operating earnings loss of $4.6 million for 2009 compared to operating earnings of $1.6 million for 2008. Last year’s operating earnings results include earnings from the unregulated natural gas marketing business. Operating earnings this year no longer include results from that business. See discussion below under Discontinued Operations (GAAP). Other Operation’s operating earnings for 2009 include results from the NiSource Development companies such as low income housing properties and Lake Erie Land, NiSource Energy Technology, Primary Energy, and Columbia Network Services.
Other Items
Interest expense increased by $24.1 million due to incremental interest expense associated with the issuance of $700 million of long-term debt in May of 2008, $600 million of long-term debt in March of 2009 and the $385 million two-year term loan issued in April of 2009, partially offset by the open market debt repurchase of $100 million in January 2009, the $250.6 million tender offer debt repurchase in April 2009 and lower short-term interest rates. Other-net was a loss of $1.4 million in 2009 compared to income of $0.9 million for 2008 as a result of lower interest income. The effective tax rate of net operating earnings was 38.6 percent compared to 35.8 percent for the same period last year. The tax rate is higher in 2009 versus last year due to deferred income tax adjustments related primarily to state income tax apportionment changes and an increase in tax expense related to AFUDC equity.
Fourth Quarter 2009 Operating Earnings – Segment Results (non-GAAP)
NiSource’s consolidated fourth-quarter 2009 operating earnings (non-GAAP) were $258.5 million, compared to $297.9 million for the same period in 2008. Refer to Schedule 2 for the items included in 2009 and 2008 GAAP operating income but excluded from operating earnings.
Operating earnings for NiSource’s business segments for the fourth quarter ended Dec. 31, 2009, are discussed below.
Gas Distribution Operations reported operating earnings of $114.5 million versus operating earnings of $134.6 million in the fourth quarter of 2008. Net revenues, excluding the impact of regulatory and tax trackers, increased $3.9 million, primarily attributable to regulatory and service programs including impacts from rate cases at various utilities, partially offset by lower customer usage.
Operating expenses, excluding trackers, were $24.0 million higher than the comparable period, reflecting an increase in employee and administrative costs, which includes higher pension expense, along with higher uncollectible receivables and higher depreciation costs. After deferring pension costs for Columbia Gas of Ohio, pension expense increased $7.9 million for Gas Distribution Operations for the quarter.
Gas Transmission and Storage Operations reported operating earnings of $116.6 million, essentially flat with operating earnings of $116.5 million in the fourth quarter of 2008. Net revenues, excluding the impact of regulatory and tax trackers, increased $19.2 million, primarily attributable to increases in firm capacity reservation fees for growth projects including the Eastern Market Expansion and the Ohio Storage Expansion, as well as for new Appalachian supply contracts, and increased shorter term transportation and storage services.
Equity earnings increased by $1.1 million due to increased earnings from Millennium.
Operating expenses increased $20.2 million, excluding trackers, due primarily to higher maintenance costs, including expenditures for the Integrity Management Program. In addition, 2008 operating expenses were favorably impacted by the reduction of legal reserves.
Electric Operations reported operating earnings of $35.6 million versus operating earnings of $47.9 million from the same quarter last year. Net revenues, excluding regulatory trackers, were $0.3 million lower than last year. Increased commercial and industrial usage was more than offset by lower Sugar Creek revenues from capacity sales into the PJM Interconnection and lower sales of emission allowances.
Operating expenses increased by $12.0 million, excluding trackers, due primarily to higher pension expense of $10.8 million and other employee and administrative expenses.
Other Operations reported an operating earnings loss of $1.7 million in the fourth quarter of 2009, compared with operating earnings of $0.8 million in the prior year. Last year’s operating results include earnings from the unregulated natural gas marketing business. Operating earnings this year no longer include results from that business. See discussion below under Discontinued Operations (GAAP). Other Operation’s operating earnings for 2009 include results from the NiSource Development companies such as low income housing properties and Lake Erie Land, NiSource Energy Technology, Primary Energy, and Columbia Network Services.
Other Items
Interest expense decreased by $2.7 million in the fourth quarter of 2009 compared to the same period last year due to lower short-term borrowings and short-term interest rates coupled with the debt repurchases during 2009, partially offset by the new debt issuances during 2009. Other-net was $0.8 million compared to a loss of $2.9 million last year due to increased AFUDC equity earnings, partially offset by lower interest income. The effective tax rate of net operating earnings for the fourth quarter of 2009 was 38.5 percent compared to 34.8 percent for the same period last year. The tax rate is higher in 2009 versus last year due to deferred income tax adjustments related primarily to state income tax apportionment changes.
Income from Continuing Operations (GAAP)
On a GAAP basis, NiSource reported income from continuing operations for the twelve months ended Dec. 31, 2009, of $231.2 million, or $0.84 per share, compared with $370.6 million, or $1.35 per share in 2008.
On a GAAP basis, income from continuing operations for the three months ended Dec. 31, 2009 was $88.5 million, or $0.32 per share, compared with $127.5 million, or $0.46 per share for the fourth quarter of 2008.
Discontinued Operations
During the second and third quarters of 2009, NiSource was pursuing the sale of its unregulated natural gas marketing business. In both periods, net assets for the business were accounted for as assets and liabilities held for sale and discontinued operations, and as such, the results of operations and cash flows were classified as discontinued operations for all periods presented. In the fourth quarter, it was determined the sale of NiSource’s unregulated natural gas marketing business was no longer probable. As such, the assets and liabilities were reclassified to assets held and used at Dec. 31, 2009, and the results of the business are now included within continuing operations (GAAP).
In the first quarter of 2008, NiSource began accounting for the operations of Northern Utilities, Granite State Gas and Whiting Clean Energy as discontinued operations. All three businesses were disposed of during 2008. For the twelve months ended Dec. 31, 2008, NiSource recorded an after-tax loss of $108.1 million ($0.39 per share) for the disposition of these operations. All results of operations for these businesses are classified as net income from discontinued operations. In addition, NiSource recorded an accrual related to the Tawney lawsuit in West Virginia which was settled during the fourth quarter of 2008.
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 3.7 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, 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 Twelve Months
Ended December 31, Ended December 31,
------------------ ------------------
(in millions, except per
share amounts) 2009 2008 2009 2008
-------------------------------------------------------------------------
Net Revenues
Gas Distribution $841.1 $1,460.6 $3,296.2 $5,163.2
Gas Transportation and Storage 340.8 322.3 1,239.5 1,132.4
Electric 309.9 305.1 1,244.6 1,362.3
Other 9.7 285.0 54.4 1,218.3
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Gross Revenues 1,501.5 2,373.0 5,834.7 8,876.2
Cost of Sales (excluding
depreciation and
amortization) 585.1 1,469.9 2,495.1 5,633.3
-------------------------------------------------------------------------
Total Net Revenues 916.4 903.1 3,339.6 3,242.9
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Operating Expenses
Operation and maintenance 371.5 319.1 1,358.2 1,245.2
Operation and
maintenance - trackers 72.2 66.1 247.2 216.9
Depreciation and amortization 146.3 141.4 580.3 560.9
Depreciation and
amortization -trackers 2.4 1.4 8.6 6.1
Other taxes 49.6 50.3 199.1 209.8
Other taxes - trackers 22.3 32.2 81.2 97.7
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Total Operating Expenses 664.3 610.5 2,474.6 2,336.6
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Equity Earnings in Unconsolidated
Affiliates 6.4 5.3 16.0 12.3
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Operating Earnings 258.5 297.9 881.0 918.6
-------------------------------------------------------------------------
Other Income (Deductions)
Interest expense, net (98.6) (101.3) (399.0) (374.9)
Other, net 0.8 (2.9) (1.4) 0.9
-------------------------------------------------------------------------
Total Other Income (Deductions) (97.8) (104.2) (400.4) (374.0)
-------------------------------------------------------------------------
Operating Earnings
From Continuing Operations
Before Income Taxes 160.7 193.7 480.6 544.6
Income Taxes 61.8 67.5 185.3 195.2
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Net Operating Earnings
from Continuing Operations 98.9 126.2 295.3 349.4
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GAAP Adjustment (10.4) 1.3 (64.1) 21.2
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GAAP Income from
Continuing Operations $88.5 $127.5 $231.2 $370.6
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Basic Net Operating
Earnings Per Share from
Continuing Operations 0.35 0.46 1.07 1.28
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GAAP Basic Earnings Per
Share from Continuing Operations 0.32 0.46 0.84 1.35
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Basic Average Common
Shares Outstanding 276.0 274.0 275.1 274.0
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NiSource Inc.
Segment Operating Earnings (Non-GAAP)
------------------------------------------------------------------------
Three Months Twelve Months
Ended Ended
December 31, December 31,
Gas Distribution Operations -------------- --------------
(in millions) 2009 2008 2009 2008
------------------------------------------------------------------------
Net Revenues
Sales Revenues $1,006.4 $1,627.7 $3,902.4 $5,732.5
Less: Cost of gas sold 548.1 1,167.4 2,293.0 4,197.9
------------------------------------------------------------------------
Net Revenues 458.3 460.3 1,609.4 1,534.6
------------------------------------------------------------------------
Operating Expenses
Operation and maintenance 182.9 162.2 680.7 629.9
Operation and maintenance -
trackers 56.3 52.3 187.3 165.9
Depreciation and amortization 61.9 57.6 248.1 228.8
Other taxes 20.4 21.4 82.8 84.1
Other taxes - trackers 22.3 32.2 81.2 97.7
-----------------
Total Operating
Expenses 343.8 325.7 1,280.1 1,206.4
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Operating Earnings $114.5 $134.6 $329.3 $328.2
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GAAP Adjustment 0.1 12.6 (1.5) 7.9
------------------------------------------------------------------------
GAAP Operating Income $114.6 $147.2 $327.8 $336.1
========================================================================
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Three Months Twelve Months
Gas Transmission and Ended Ended
Storage Operations December 31, December 31,
--------------- ---------------
(in millions) 2009 2008 2009 2008
------------------------------------------------------------------------
Net Revenues
Transportation revenues $207.3 $191.1 $724.6 $682.5
Storage revenues 48.4 44.2 190.8 178.9
Other revenues 1.9 1.4 15.3 3.9
------------------------------------------------------------------------
Net Operating Revenues 257.6 236.7 930.7 865.3
------------------------------------------------------------------------
Operating Expenses
Operation and maintenance 88.2 69.5 306.2 281.7
Operation and maintenance -
trackers 14.2 12.5 54.3 45.1
Depreciation and amortization 31.4 29.8 121.5 117.6
Other taxes 13.6 13.7 55.9 56.5
------------------------------------------------------------------------
Total Operating Expenses 147.4 125.5 537.9 500.9
Equity Earnings in Unconsolidated
Affiliates 6.4 5.3 16.0 12.3
Operating Earnings $116.6 $116.5 $408.8 $376.7
========================================================================
GAAP Adjustment (0.5) (11.8) (20.3) (7.0)
------------------------------------------------------------------------
GAAP Operating Income $116.1 $104.7 $388.5 $369.7
========================================================================
NiSource Inc.
Segment Operating Earnings (Non-GAAP)
------------------------------------------------------------------------
Three Months Twelve Months
Electric Operations Ended December 31, Ended December 31,
------------------ ------------------
(in millions) 2009 2008 2009 2008
------------------------------------------------------------------------
Net Revenues
Sales revenues $313.2 $306.7 $1,252.8 $1,368.0
Less: Cost of sales 112.7 107.3 456.5 556.8
Net Revenues 200.5 199.4 796.3 811.2
Operating Expenses
Operation and maintenance 98.4 85.8 371.9 318.8
Operation and maintenance -
trackers 1.7 1.3 5.6 5.9
Depreciation and amortization 49.6 50.7 197.0 203.5
Depreciation and amortization -
trackers 2.4 1.4 8.6 6.1
Other taxes 12.8 12.3 50.8 56.7
Total Operating Expenses 164.9 151.5 633.9 591.0
------------------------------------------------------------------------
Operating Earnings $35.6 $47.9 $162.4 $220.2
========================================================================
GAAP Adjustment (2.7) 0.8 (45.7) (1.0)
------------------------------------------------------------------------
GAAP Operating Income $32.9 $48.7 $116.7 $219.2
========================================================================
------------------------------------------------------------------------
Three Months Twelve Months
Other Operations Ended December 31, Ended December 31,
------------------ -------------------
(in millions) 2009 2008 2009 2008
------------------------------------------------------------------------
Net Revenues
Products and services revenue $2.0 $271.1 $8.2 $1,171.7
Less:
Cost of products purchased - 265.2 - 1,144.2
Net Revenues 2.0 5.9 8.2 27.5
Operating Expenses
Operation and maintenance 3.0 3.3 10.0 18.2
Depreciation and amortization 0.5 0.6 2.0 2.4
Other taxes 0.2 1.2 0.8 5.3
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Total Operating Expenses 3.7 5.1 12.8 25.9
------------------------------------------------------------------------
Operating Earnings (Loss) $(1.7) $0.8 $(4.6) $1.6
========================================================================
GAAP Adjustment (6.9) (0.1) (9.9) 0.4
------------------------------------------------------------------------
GAAP Operating Income (Loss) $(8.6) $0.7 $(14.5) $2.0
========================================================================
------------------------------------------------------------------------
Three Months Twelve Months
Corporate Ended December 31, Ended December 31,
------------------ ------------------
(in millions) 2009 2008 2009 2008
------------------------------------------------------------------------
Operating Earnings (Loss) $(6.5) $(1.9) $(14.9) $(8.1)
========================================================================
GAAP Adjustment (1.0) (0.1) (1.7) (0.2)
------------------------------------------------------------------------
GAAP Operating Income (Loss) $(7.5) $(2.0) $(16.6) $(8.3)
========================================================================
NiSource Inc.
Segment Volumes and Statistical Data
Three Months Twelve Months
Ended December 31, Ended December 31,
Gas Distribution ------------------ ------------------
Operations 2009 2008 2009 2008
----------------------------------------------------------------
Sales and
Transportation (MMDth)
Residential 83.5 91.6 265.2 278.0
Commercial 51.1 53.0 169.4 174.2
Industrial 89.7 88.4 335.9 373.2
Off System 15.0 19.8 59.7 96.8
Other 0.2 0.2 0.8 1.0
---------------------------------------------------------------
Total 239.5 253.0 831.0 923.2
---------------------------------------------------------------
Weather Adjustment 1.1 (9.8) 1.4 (7.6)
---------------------------------------------------------------
Sales and
Transportation
Volumes - Excluding
Weather 240.6 243.2 832.4 915.6
===============================================================
Heating Degree Days 2,031 2,184 5,624 5,771
Normal Heating Degree
Days 2,037 2,037 5,633 5,664
% Colder (Warmer)
than Normal 0% 7% 0% 2%
Customers
Residential 3,032,597 3,037,504
Commercial 279,144 280,195
Industrial 7,895 8,003
Other 79 76
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Total 3,319,715 3,325,778
----------------------------------------------------------------
Gas Transmission and Three Months Twelve Months
Storage Operations Ended December 31, Ended December 31,
------------------ -------------------
2009 2008 2009 2008
----------------------------------------------------------------
Throughput (MMDth)
Columbia Transmission 292.9 292.6 1,029.8 1,000.0
Columbia Gulf 185.7 230.9 894.1 989.3
Columbia Pipeline
Deep Water - - - 0.9
Crossroads Gas Pipeline 7.9 8.8 33.9 36.3
Intrasegment
eliminations (122.8) (140.0) (566.4) (538.0)
----------------------------------------------------------------
Total 363.7 392.3 1,391.4 1,488.5
----------------------------------------------------------------
NiSource Inc.
Segment Volumes and Statistical Data (continued)
------------------------------------------------------------------------
Three Months Twelve Months
Electric Operations Ended December 31, Ended December 31,
------------------ -------------------
2009 2008 2009 2008
------------------------------------------------------------------------
Sales (Gigawatt Hours)
Residential 795.9 813.2 3,241.4 3,345.9
Commercial 926.3 936.1 3,833.9 3,915.8
Industrial 1,967.5 2,011.4 7,690.9 9,305.4
Wholesale 215.4 186.4 600.6 737.2
Other 46.5 36.1 158.9 138.2
------------------------------------------------------------------------
Total 3,951.6 3,983.2 15,525.7 17,442.5
------------------------------------------------------------------------
Weather Adjustment (3.1) (16.1) 343.4 81.8
------------------------------------------------------------------------
Sales Volumes Excluding
Weather impacts 3,948.5 3,967.1 15,869.1 17,524.3
========================================================================
Cooling Degree Days 515 716
Normal Cooling Degree Days 814 814
% Warmer (Colder) than
Normal (37%) (12%)
Electric Customers
Residential 400,016 400,640
Commercial 53,617 53,438
Industrial 2,441 2,484
Wholesale 15 9
Other 746 754
------------------------------------------------------------------------
Total 456,835 457,325
------------------------------------------------------------------------
NiSource Inc.
Schedule 1 - Reconciliation of Net Operating Earnings to GAAP
---------------------------------------------------------------------
Three Months Twelve Months
Ended December 31, Ended December 31,
(in millions, except per ------------------ -----------------
share amounts) 2009 2008 2009 2008
---------------------------------------------------------------------
Net Operating Earnings from
Continuing Operations (Non-GAAP) $98.9 $126.2 $295.3 $349.4
---------------------------------------------------------------------
Items excluded from
operating earnings:
Net Revenues:
Weather - compared to normal (0.7) 13.9 (23.2) 2.8
Revenue adjustment 0.8 - (8.2) -
Unregulated natural gas
marketing business 10.5 - 23.2 -
Operating Expenses:
Restructuring (0.6) - (25.2) -
Transition charges
(IBM Agreement) (0.1) (2.2) (3.5) (7.8)
Legal reserve (3.0) - (10.0) -
Unregulated natural gas
marketing business (4.6) - (13.0) -
Medical expense adjustment out
of period - - - 12.7
Gain/Loss on sale of assets and
asset impairments (13.3) (10.3) (19.2) (7.6)
---------------------------------------------------------------------
Total items excluded from
operating earnings (11.0) 1.4 (79.1) 0.1
---------------------------------------------------------------------
Loss on early extinguishment of
debt (6.9) - (4.5) -
---------------------------------------------------------------------
Other Income -Gain on sale of JOF - - - 16.7
Interest Expense -Reserve for
Interest Rate Swaps - 0.7 - (4.8)
Income Taxes -Massachusetts Tax
Law change - 1.4 - 14.9
Income Taxes - Tax Method change 1.7 - (6.1) -
---------------------------------------------------------------------
Tax effect of above items and
other income tax adjustments 5.8 (2.2) 25.6 (5.7)
---------------------------------------------------------------------
---------------------------------------------------------------------
Total items excluded from net
operating earnings (10.4) 1.3 (64.1) 21.2
---------------------------------------------------------------------
---------------------------------------------------------------------
Reported Income from Continuing
Operations - GAAP $88.5 $127.5 $231.2 $370.6
=====================================================================
---------------------------------------------------------------------
Basic Average Common Shares
Outstanding 276.0 274.0 275.1 274.0
---------------------------------------------------------------------
Basic Net Operating Earnings
Per Share from
Continuing Operations ($) 0.35 0.46 1.07 1.28
---------------------------------------------------------------------
Items excluded from net
operating earnings
(after-tax) (0.03) - (0.23) 0.07
---------------------------------------------------------------------
GAAP Basic Earnings Per Share
from Continuing
Operations 0.32 0.46 0.84 1.35
---------------------------------------------------------------------
NiSource Inc.
Schedule 2 – Adjustments by Segment from Operating Earnings to GAAP
For Quarter ended December 31,
2009 (in millions)
---------------------------------------------------------------------
Gas
Transmission
Gas and
Distribution Storage Electric Other Corporate Total
-------------------------------------------------- -----
Operating Earnings
(Loss) $114.5 $116.6 $35.6 $(1.7) $(6.5) $258.5
Net Revenues:
Weather (compared to
normal) (1.0) - 0.3 - - (0.7)
Unregulated natural
gas marketing
business - - - 11.5 (1.0) 10.5
Revenue adjustment - - 0.8 - - 0.8
--------------------------------------------------
Total Impact - Net
Revenues (1.0) - 1.1 11.5 (1.0) 10.6
Operating Expenses
Restructuring (0.2) 0.1 (0.5) - - (0.6)
Transition charges (0.1) - - - - (0.1)
Legal reserve - - (3.0) - - (3.0)
Unregulated natural
gas marketing
business - - - (4.6) - (4.6)
Gain/Loss on sale
of assets and asset
impairments 1.4 (0.6) (0.3) (13.8) - (13.3)
---------------------------------------------------
Total Impact -
Operating Expenses 1.1 (0.5) (3.8) (18.4) - (21.6)
---------------------------------------------------
Total Impact -
Operating Income
(Loss) $0.1 $(0.5) $(2.7) $(6.9) $(1.0) $(11.0)
---------------------------------------------------
Operating Income
(Loss) -GAAP $114.6 $116.1 $32.9 $(8.6) $(7.5) $247.5
---------------------------------------------------
2008 (in millions)
---------------------------------------------------------------------
Gas
Transmission
Gas and
Distribution Storage Electric Other Corporate Total
-------------------------------------------------- -----
Operating Earnings
(Loss) $134.6 $116.5 $47.9 $0.8 $(1.9) $297.9
Net Revenues:
Weather (compared
to normal) 12.8 - 1.1 - - 13.9
---------------------------------------------------
Total Impact -Net
Revenues 12.8 - 1.1 - - 13.9
Operating Expenses
Transition charges
(IBM Agreement) (1.4) (0.4) (0.4) - - (2.2)
Gain/(Loss) on
sale of assets
and asset
impairments 1.2 (11.4) 0.1 (0.1) (0.1) (10.3)
---------------------------------------------------
Total Impact -O &
M Expenses (0.2) (11.8) (0.3) (0.1) (0.1) (12.5)
---------------------------------------------------
Total Impact -
Operating Income
(Loss) $12.6 $(11.8) $0.8 $(0.1) $(0.1) $1.4
---------------------------------------------------
Operating Income
(Loss) -GAAP $147.2 $104.7 $48.7 $0.7 $(2.0) $299.3
---------------------------------------------------
NiSource Inc.
Schedule 2 – Adjustments by Segment from Operating Earnings to GAAP
For Twelve Months ended December 31,
2009 (in millions)
----------------------------------------------------------------------
Gas
Transmission
Gas and
Distribution Storage Electric Other Corporate Total
-------------------------------------------------- -----
Operating
Earnings
(Loss) $329.3 $408.8 $162.4 $(4.6) $(14.9) $881.0
Net Revenues:
Weather (compared
to normal) - - (23.2) - - (23.2)
Revenue sales
adjustment - - (8.2) - - (8.2)
Unregulated natural
gas marketing
business - - - 24.8 (1.6) 23.2
---------------------------------------------------
Total Impact -Net
Revenues - - (31.4) 24.8 (1.6) (8.2)
Operating Expenses
Restructuring (1.6) (19.9) (3.7) - - (25.2)
Transition charges
(IBM Agreement) (1.3) (1.8) (0.3) - (0.1) (3.5)
Legal reserve - - (10.0) - - (10.0)
Unregulated natural
gas marketing
business - - - (13.0) - (13.0)
Gain/Loss on sale
of assets and
asset impairments 1.4 1.4 (0.3) (21.7) - (19.2)
---------------------------------------------------
Total Impact -
Operating
Expenses (1.5) (20.3) (14.3) (34.7) (0.1) (70.9)
---------------------------------------------------
Total Impact -
Operating Income
(Loss) $(1.5) $(20.3) $(45.7) $(9.9) $(1.7) $(79.1)
---------------------------------------------------
Operating Income
(Loss) - GAAP $327.8 $388.5 $116.7 $(14.5) $(16.6) $801.9
---------------------------------------------------
2008 (in millions)
----------------------------------------------------------------------
Gas
Transmission
Gas and
Distribution Storage Electric Other Corporate Total
-------------------------------------------------- -----
Operating
Earnings
(Loss) $328.2 $376.7 $220.2 $1.6 $(8.1) $918.6
Net Revenues:
Weather (compared
to normal) 8.1 - (5.3) - - 2.8
--------------------------------------------------------
Total Impact -Net
Revenues 8.1 - (5.3) - - 2.8
Operating Expenses
Transition charges
(IBM Agreement) (4.8) (1.5) (1.2) (0.1) (0.2) (7.8)
Medical expense
adjustment out of
period 4.4 2.5 5.5 0.1 0.2 12.7
Gain/(Loss) on
sale of assets and
asset impairments 0.2 (8.0) - 0.4 (0.2) (7.6)
--------------------------------------------------------
Total Impact -
O & M Expenses (0.2) (7.0) 4.3 0.4 (0.2) (2.7)
--------------------------------------------------------
Total Impact -
Operating Income
(Loss) $7.9 $(7.0) $(1.0) $0.4 $(0.2) $0.1
--------------------------------------------------------
Operating Income
(Loss) -GAAP $336.1 $369.7 $219.2 $2.0 $(8.3) $918.7
--------------------------------------------------------
NiSource Inc.
Consolidated Income Statements (GAAP)
(unaudited)
Three Months Twelve Months
Ended December 31, Ended December 31,
(in millions, except -----------------------------------------------
per share amounts) 2009 2008 2009 2008
-----------------------------------------------------------------------
Net Revenues
Gas Distribution $840.1 $1,473.4 $3,296.2 $5,171.3
Gas Transportation
and Storage 340.8 322.3 1,239.5 1,132.4
Electric 311.0 306.2 1,213.2 1,357.0
Other 192.8 285.0 900.5 1,218.3
-----------------------------------------------------------------------
Gross Revenues 1,684.7 2,386.9 6,649.4 8,879.0
Cost of Sales
(excluding
depreciation and
amortization) 757.7 1,469.9 3,318.0 5,633.3
-----------------------------------------------------------------------
Total Net Revenues 927.0 917.0 3,331.4 3,245.7
-----------------------------------------------------------------------
Operating Expenses
Operation and
maintenance 451.1 387.3 1,653.4 1,457.2
Depreciation and
amortization 148.6 142.8 589.0 567.0
Impairment and
(gain)/loss on sale of
assets, net 13.3 10.4 19.2 7.6
Other taxes 72.9 82.5 283.9 307.5
-----------------------------------------------------------------------
Total Operating
Expenses 685.9 623.0 2,545.5 2,339.3
-----------------------------------------------------------------------
Equity Earnings in
Unconsolidated
Affiliates 6.4 5.3 16.0 12.3
-----------------------------------------------------------------------
Operating Income 247.5 299.3 801.9 918.7
-----------------------------------------------------------------------
Other Income
(Deductions)
Interest expense,
net (98.6) (100.6) (399.0) (379.7)
Loss on early
extinguishment of
long-term debt (6.9) - (4.5) -
Other, net 0.8 (2.9) (1.4) 17.6
-----------------------------------------------------------------------
Total Other Income
(Deductions) (104.7) (103.5) (404.9) (362.1)
-----------------------------------------------------------------------
Income From
Continuing
Operations Before
Income Taxes 142.8 195.8 397.0 556.6
Income Taxes 54.3 68.3 165.8 186.0
-----------------------------------------------------------------------
Income from Continuing
Operations 88.5 127.5 231.2 370.6
-----------------------------------------------------------------------
Income (Loss) from
Discontinued Operations
-net of taxes 1.0 38.4 (10.7) (183.4)
Loss on Disposition of
Discontinued Operations
-net of taxes - (3.9) (2.8) (108.2)
-----------------------------------------------------------------------
Net Income $89.5 $162.0 $217.7 $79.0
=======================================================================
Basic Earnings
Per Share
Continuing
operations $0.32 $0.46 $0.84 $1.35
Discontinued
operations - 0.13 (0.05) (1.06)
-----------------------------------------------------------------------
Basic Earnings Per
Share $0.32 $0.59 $0.79 $0.29
-----------------------------------------------------------------------
Diluted Earnings Per
Share
Continuing
operations $0.32 $0.46 $0.84 $1.35
Discontinued
operations - 0.13 (0.05) (1.06)
Diluted Earnings Per
Share $0.32 $0.59 $0.79 $0.29
-----------------------------------------------------------------------
Dividends Declared Per
Common Share $0.23 $0.23 $0.92 $0.92
-----------------------------------------------------------------------
Basic Average Common
Shares Outstanding 276.0 274.0 275.1 274.0
Diluted Average Common
Shares 276.8 275.5 275.8 275.4
-----------------------------------------------------------------------
NiSource Inc.
Consolidated Balance Sheets
(unaudited)
December 31, December 31,
(in millions) 2009 2008
------------- ---- ----
ASSETS
Property, Plant and Equipment
Utility Plant $18,946.1 $18,356.8
Accumulated depreciation and amortization (8,353.7) (8,080.8)
----------------------------------- -------- --------
Net utility plant 10,592.4 10,276.0
----------------------------------- -------- --------
Other property, at cost, less
accumulated depreciation 91.5 112.7
----------------------------------- -------- --------
Net Property, Plant and Equipment 10,683.9 10,388.7
----------------------------------- -------- --------
Investments and Other Assets
Assets of discontinued operations
and assets held for sale 18.7 45.5
Unconsolidated affiliates 165.8 86.8
Other investments 129.2 117.9
----------------------------------- -------- --------
Total Investments and Other Assets 313.7 250.2
---------------------------------- ----- -----
Current Assets
Cash and cash equivalents 16.4 20.6
Restricted cash 174.7 286.6
Accounts receivable (less reserve of
$39.6 and $43.9, respectively) 808.6 1,143.2
Income tax receivable 24.9 -
Gas inventory 384.8 511.8
Underrecovered gas and fuel costs 40.2 180.2
Materials and supplies, at average
cost 102.3 95.1
Electric production fuel, at average
cost 59.9 63.8
Price risk management assets 173.3 150.4
Exchange gas receivable 72.5 393.8
Regulatory assets 238.3 314.9
Assets of discontinued operations
and assets held for sale 2.2 1.0
Prepayments and other 125.5 249.1
----------------------------------- -------- --------
Total Current Assets 2,223.6 3,410.5
----------------------------------- -------- --------
Other Assets
Price risk management assets 237.6 200.7
Regulatory assets 1,644.1 1,640.4
Goodwill 3,677.3 3,677.3
Intangible assets 319.6 330.6
Postretirement and postemployment
benefits assets 19.8 10.3
Deferred charges and other 152.1 123.5
----------------------------------- -------- --------
Total Other Assets 6,050.5 5,982.8
----------------------------------- -------- --------
Total Assets $19,271.7 $20,032.2
=================================== ========= =========
NiSource Inc.
Consolidated Balance Sheets (continued)
(unaudited)
December 31, December 31,
(in millions, except share amounts) 2009 2008
---------------------------------- ---- ----
CAPITALIZATION AND LIABILITIES
Capitalization
Common Stockholders' Equity
Common stock - $0.01 par value,
400,000,000 shares authorized;
276,638,021 and 274,261,799
shares issued and outstanding,
respectively $2.8 $2.7
Additional paid-in capital 4,057.6 4,020.3
Retained earnings 865.5 901.1
Accumulated other comprehensive Loss (45.9) (172.0)
Treasury stock (25.9) (23.3)
----------------------------------- -------- --------
Total Common Stockholders' Equity 4,854.1 4,728.8
Long-term debt, excluding amounts
due within one year 5,987.5 5,943.9
----------------------------------- -------- --------
Total Capitalization 10,841.6 10,672.7
----------------------------------- -------- --------
Current Liabilities
Current portion of long-term debt 696.9 469.3
Short-term borrowings 103.0 1,163.5
Accounts payable 502.1 693.9
Dividends declared 0.2 -
Customer deposits and accounts
receivable credit balances 301.2 275.9
Taxes accrued 212.9 206.5
Interest accrued 125.4 120.1
Overrecovered gas and fuel costs 220.4 35.9
Price risk management liabilities 190.1 286.5
Exchange gas payable 222.2 555.5
Deferred revenue 27.3 14.7
Regulatory liabilities 43.8 40.4
Accrued liability for postretirement
and postemployment benefits 7.6 6.4
Liabilities of discontinued operations
and liabilities held for sale 1.7 0.9
Legal and environmental reserves 146.1 375.1
Other accruals 310.3 338.8
----------------------------------- -------- --------
Total Current Liabilities 3,111.2 4,583.4
----------------------------------- -------- --------
Other Liabilities and Deferred
Credits
Price risk management liabilities 170.2 188.5
Deferred income taxes 2,018.2 1,549.8
Deferred investment tax credits 39.6 46.1
Deferred credits 72.4 76.7
Deferred revenue 8.5 6.2
Accrued liability for postretirement
and postemployment benefits 1,150.2 1,238.5
Liabilities of discontinued
operations and liabilities held for sale 10.2 4.4
Regulatory liabilities and
other removal costs 1,558.8 1,386.1
Asset retirement obligations 138.2 126.0
Other noncurrent liabilities 152.6 153.8
----------------------------------- -------- --------
Total Other Liabilities and
Deferred Credits 5,318.9 4,776.1
------------------------------------ -------- --------
Commitments and Contingencies - -
------------------------------------ -------- --------
Total Capitalization and Liabilities $19,271.7 $20,032.2
==================================== ========= =========
NiSource Inc.
Statements of Consolidated Cash Flows
(unaudited)
Twelve Months Ended December 31, (in millions) 2009 2008
------------------------------------------------------------------------
Operating Activities
Net Income 217.7 79.0
Adjustments to Reconcile Net Income to Net Cash
from Continuing Operations:
Loss on Early Extinguishment of Debt 4.5 -
Depreciation and Amortization 589.0 567.0
Net Changes in Price Risk Management
Assets and Liabilities (9.1) 25.7
Deferred Income Taxes and Investment
Tax Credits 378.2 137.8
Deferred Revenue 4.3 (24.0)
Stock Compensation Expense 9.6 9.5
Gain (Loss) on Sale of Assets (3.6) 4.3
Loss on Impairment of Assets 22.8 3.3
Income from Unconsolidated Affiliates (15.1) (25.3)
Loss on Disposition of Discontinued
Operations -Net of Taxes 2.8 108.2
Loss from Discontinued Operations -
Net of Taxes 10.7 183.4
Amortization of Discount/Premium on Debt 13.0 7.7
AFUDC Equity (5.4) (5.4)
Changes in Assets and Liabilities:
Accounts Receivable 258.9 (202.4)
Income tax receivable (24.9) -
Inventories 128.7 (82.4)
Accounts Payable (191.5) (30.0)
Customer Deposits and Accounts
Receivable Credit Balances 25.3 42.3
Taxes Accrued 116.2 (89.7)
Interest Accrued 5.3 20.8
Overrecovered Gas and Fuel Costs 324.4 3.6
Exchange Gas Receivable/Payable (10.0) (71.9)
Other Accruals (3.6) 16.3
Prepayments and Other Current Assets 24.2 (27.5)
Regulatory Assets/Liabilities 105.2 (91.8)
Postretirement and Postemployment Benefits (49.1) (9.2)
Deferred Credits 6.2 36.3
Deferred Charges and Other NonCurrent Assets (21.9) 38.7
Other Non Current Liabilities (7.6) (36.5)
----------------------------------------------------------------------
Net Operating Activities from
Continuing Operations 1,905.2 587.8
Net Operating Activities used for
Discontinued Operations (254.5) (2.5)
----------------------------------------------------------------------
Net Cash Flows from Operating Activities 1,650.7 585.3
----------------------------------------------------------------------
Investing Activities
--------------------
Capital Expenditures (777.2) (970.2)
Sugar Creek Purchase - (329.7)
Insurance Recoveries 62.7 46.7
Proceeds from Disposition of Assets 5.7 47.8
Restricted Cash 111.9 (228.8)
Distributions from or (contributions
to) equity investments (23.5) (39.2)
Other Investing Activities (42.0) (38.1)
--------------------------------------------------------------------
Net Investing Activities used for
Continuing Operations (662.4) (1,511.5)
Net Investing Activities from
Discontinued Operations 7.6 397.2
----------------------------------------------------------------------
Net Cash Flows used for Investing Activities (654.8) (1,114.3)
----------------------------------------------------------------------
Financing Activities
--------------------
Issuance of Long-Term Debt 1,460.0 959.3
Retirement of Long-Term Debt (1,169.8) (40.6)
Repurchase of Long-Term Debt - (254.0)
Change in Short-Term Debt - Net (1,060.5) 102.5
Issuance of Common Stock 26.1 1.3
Acquisition of Treasury Stock (2.6) -
Dividends Paid - Common Stock (253.3) (252.4)
----------------------------------------------------------------------
Net Cash Flows used for Financing Activities (1,000.1) 516.1
----------------------------------------------------------------------
Change in cash and cash equivalents from
continuing operations 242.7 (407.6)
Cash (contributions to) receipts from
discontinued operations (246.9) 393.6
Cash and cash equivalents at
beginning of period 20.6 34.6
----------------------------------------------------------------------
Cash and Cash Equivalents at End of Period 16.4 20.6
======================================================================
SOURCE NiSource Inc.
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