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NiSource Reports First Quarter 2015 Earnings

- Consistent execution of core infrastructure investment strategy

- Columbia Pipeline Group separation on track for July 1, 2015

- Companies to highlight post-separation growth strategies on May 14, 2015


News provided by

NiSource Inc.

Apr 30, 2015, 06:30 ET

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MERRILLVILLE, Ind., April 30, 2015 /PRNewswire/ -- NiSource Inc. (NYSE: NI) today announced net operating earnings from continuing operations – controlling interest (non-GAAP) of $268.3 million, or $0.85 per share, for the three months ended March 31, 2015, compared with $258.4 million, or $0.82 per share, for the same period in 2014. Operating earnings for the first quarter (non-GAAP) were $528.7 million, compared to $509.1 million in the prior period.

On a GAAP basis, NiSource reported income from continuing operations – controlling interest of $268.4 million, or $0.85 per share, for the three months ended March 31, 2015, compared with $266.4 million, or $0.85 per share, for the same period in 2014. Operating income for the first quarter was $530.1 million, compared to $533.7 million in the prior 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.

"Our core infrastructure-focused business strategies at our utilities and pipeline businesses continued to deliver solid financial and operational results," NiSource President & Chief Executive Officer Robert C. Skaggs, Jr. said. "NiSource teams are successfully delivering on significant growth and modernization projects, advancing a variety of important regulatory and customer programs, and implementing our plan to separate into two premier, independent companies."

Columbia Pipeline Group separation on track for July 1, 2015

During the first quarter, NiSource continued to make progress on its planned separation of Columbia Pipeline Group (CPG) into a stand-alone, publicly traded company, which is expected to become effective on July 1, 2015. CPG is expected to begin trading the next day on the New York Stock Exchange under the ticker symbol "CPGX."

In early April, the companies discussed their respective financial plans with the three major credit rating agencies. NiSource expects that CPG will be formally rated prior to its May debt recapitalization transaction and that NiSource's credit rating will be addressed at or just prior to the separation.  

"We are solidly on track with our core separation strategies and key goals at both companies," Skaggs said. "Each company will be positioned to be premier in its respective business segment – well capitalized, with robust and transparent long-term growth plans, expected growing dividends and solid leadership – with the capacity and focus to deliver enhanced long-term growth."

The debt recapitalization process is expected to close in May 2015 and will include CPG issuing its own long-term debt to fund a one-time cash distribution to NiSource prior to the separation, which will be used, in large part, to reduce NiSource's net debt.

At the separation, NiSource shareholders will retain their current shares of NiSource stock and receive a pro-rata dividend of shares of CPG stock, expected to be at a 1-to-1 ratio. The actual number of CPG shares to be distributed to NiSource shareholders will be determined prior to closing. The transaction is expected to be tax-free to NiSource and its shareholders, and is subject to various conditions, including final approval by the NiSource board of directors.

Webcasts scheduled for May 14, 2015, to highlight independent company investment propositions

To highlight NiSource's and CPG's growth strategies following the planned separation, the companies are hosting webcasts on Thursday, May 14, 2015.

NiSource's post-separation executive team, led by announced Chief Executive Officer Joseph Hamrock, will present an update on the separation process, and provide an overview of its pure-play utility investment and customer proposition from 9:00 a.m. – 10:30 a.m. ET. A webcast of the event with accompanying presentations will be available at www.nisource.com. The webcast also will be archived at the NiSource website.

CPG's post-separation executive team, led by announced Chairman & Chief Executive Officer Bob Skaggs, will provide an overview of CPG's business strategy, highlighting its growth and infrastructure investment inventory, from 10:30 a.m. – noon ET. A webcast of the event with accompanying presentations will be available at www.nisource.com. The webcast also will be archived at the NiSource website.

First Quarter 2015 Highlights

Columbia Pipeline Group growth projects address market needs and complement long-term system modernization program

During the first quarter, CPG continued to strengthen its competitive market position in the Marcellus and Utica Shale production regions by advancing several major growth projects and executing on the company's long-term system modernization program. In total, CPG is on track to invest approximately $1.1 billion in these and other infrastructure projects during 2015.

  • In January, CPG commenced the third year of the Columbia Gas Transmission long-term system modernization program. CPG expects to invest approximately $300 million in modernization investments during the year. Recovery of approximately $320 million of investments made in 2014 began on February 1, 2015. A settlement with the company's customers – approved in early 2013 – addresses the initial five years of an expected 10-15 year program that exceeds $4 billion in investment.
  • On March 27, CPG launched binding open seasons for its proposed Mountaineer XPress (MXP) and Gulf XPress (GXP) projects. These projects, which have a critical mass of firm customer commitments in place, would provide significant new transportation capacity for Marcellus and Utica Shale production. MXP would provide up to 2.7 billion cubic feet per day of firm transportation capacity along the Columbia Gas Transmission system. GXP would provide nearly 900 million cubic feet per day of firm transportation capacity by adding compression and looping along the existing Columbia Gulf Transmission system. Together, both projects could involve an investment of approximately $2.6 billion. CPG is very encouraged by the results of the open season, which concluded April 23.
  • CPG's East Side Expansion project remains on schedule to be placed in service in the fourth quarter of 2015. The $275 million project will provide approximately 315 million cubic feet per day of additional capacity for Marcellus Shale supplies to reach growing – and capacity constrained – northeastern and mid-Atlantic markets.
  • Progress continues on several other major growth projects, including CPG's approximately $1.8 billion combined investment in the Leach and Rayne XPress projects, the $850 million WB XPress project, the $310 million Cameron Access project, the $50 million Utica Access project, the $30 million Chesapeake LNG Plant Upgrade project, and the $25 million Kentucky Power Plant Conversion project. Together, these projects will entail approximately 4 billion cubic feet of new capacity commitments across the CPG system, including access to LNG export facilities in Louisiana and Maryland.
  • Columbia Midstream Group remains on budget and schedule with the first phase of its $120 million Washington County Gathering project and its approximately $65 million Big Pine Expansion project. Both are expected to be in service before the end of 2015.

NIPSCO on track with modernization, environmental and electric transmission investments

Northern Indiana Public Service Co. (NIPSCO), NiSource's Indiana natural gas and electric business, remains on track with a broad agenda of reliability, modernization, customer service and environmental investments.

  • NIPSCO remains on schedule and on budget with its flue gas desulfurization (FGD) unit at its Michigan City Generating Station. The approximately $265 million project is expected to be placed in service by the end of this year. Another approximately $80 million in environmental investments also will be completed at NIPSCO's coal-fired generating facilities this year. These investments, supported with cost recovery, help improve air quality and ensure NIPSCO's generation fleet remains in compliance with current environmental regulations. These investments also help ensure that NIPSCO can continue offering low-cost, reliable and efficient generating capacity for its customers.
  • During the first quarter, NIPSCO commenced 2015 investments under the company's seven-year, approximately $2 billion electric and natural gas modernization programs. The company plans to invest approximately $193 million ($124 million gas | $69 million electric) on modernization projects in 2015. The investments will help improve system reliability and safety while delivering economic development benefits to the region. NIPSCO remains committed to these investments while continuing to work through the legal process following a recent Indiana Court of Appeals decision.
  • Progress also continued on two major NIPSCO electric transmission projects designed to enhance region-wide system flexibility and reliability. The Greentown-Reynolds project is an approximately 70-mile, 765-kilovolt line being constructed in a joint development agreement with Pioneer Transmission, and the Reynolds-Topeka project is a 100-mile, 345-kilovolt line. Right-of-way acquisition and permitting are under way for both projects and construction has begun on the Reynolds-Topeka line. These projects involve an investment of approximately $500 million for NIPSCO and are anticipated to be in service by the end of 2018.

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

NiSource Gas Distribution companies continue to execute expanded infrastructure replacement and enhancement programs, complemented by a variety of customer programs and regulatory initiatives.

  • NiSource expects to invest approximately $900 million during 2015 as part of more than $20 billion in long-term infrastructure investment opportunities for the company's gas distribution businesses. These investments help improve reliability and safety for customers and the community, provide additional customer access to natural gas service and reduce emissions. Through transparent recovery mechanisms, these investments also generate sustainable returns for shareholders.
  • On March 19, Columbia Gas of Pennsylvania (CPA) filed a rate case with the Pennsylvania Public Utility Commission to support continuation of CPA's infrastructure modernization and safety programs. If approved as filed, the case would increase annual revenues by approximately $46 million. A decision is expected later this year.
  • Columbia Gas of Massachusetts (CMA) filed a base rate case on April 16, 2015, with the Massachusetts Department of Public Utilities (DPU). The case seeks to recover costs to support CMA's multi-year modernization plan to maintain the safety and reliability of natural gas service for customers. If approved as filed, the case would increase annual revenues by approximately $49 million. A decision is expected with rates in effect by March 1, 2016.
  • A decision on CMA's 2015 Gas System Enhancement Plan is expected to be issued by the DPU later today. Cost recovery associated with the 2015 investments outlined in the current plan would begin on May 1, 2015, and increase annual revenues by approximately $2.6 million.
  • Columbia Gas of Virginia's base rate case remains pending with the Virginia State Corporation Commission. A stipulated settlement with staff and intervening parties approved a revenue increase of approximately $25 million. A final order is expected later this year.  
  • On April 22, the Public Utilities Commission of Ohio approved Columbia Gas of Ohio's (COH) annual infrastructure replacement and demand-side management rider. The rider provides for recovery of COH's well-established pipeline replacement program and customer energy efficiency program investments. 

First Quarter 2015 Operating Earnings - Segment Results (non-GAAP)

NiSource's consolidated operating earnings (non-GAAP) for the three months ended March 31, 2015, were $528.7 million, compared to $509.1 million for the same period in 2014. Refer to Schedule 2 for the items included in 2015 and 2014 GAAP operating income but excluded from operating earnings.

Operating earnings for NiSource's business segments for the three months ended March 31, 2015, are discussed below.

Columbia Pipeline Group Operations reported operating earnings of $163.0 million for the three months ended March 31, 2015, compared with operating earnings of $158.9 million for the prior year period. Net revenues, excluding the impact of trackers, increased by $21.6 million primarily due to higher demand margin revenue as a result of growth projects placed into service and new firm contracts. This increase was partially offset by decreased mineral rights royalty revenue.

Operating expenses, excluding the impact of trackers, increased by $23.1 million primarily due to lower gains on the conveyance of mineral interests, higher employee and administrative costs and increased depreciation. Equity earnings increased by $5.6 million primarily from increased earnings at Millennium Pipeline and Pennant Midstream.

Electric Operations reported operating earnings of $67.2 million for the three months ended March 31, 2015, compared with operating earnings of $74.2 million for the prior year period. Net revenues, excluding the impact of trackers, decreased by $0.2 million primarily due to decreased off-system sales and lower industrial margins. These decreases were partially offset by lower fuel handling costs, higher revenue related to two electric transmission projects authorized by the Midcontinent Independent System Operator (MISO), and increased environmental investment cost recovery.

Operating expenses, excluding the impact of trackers, increased by $6.8 million due primarily to higher employee and administrative costs and increased environmental expenses.

Gas Distribution Operations reported operating earnings of $305.8 million for the three months ended March 31, 2015, compared with operating earnings of $280.1 million for the prior year period. Net revenues, excluding the impact of trackers, increased by $42.8 million primarily attributable to increases in regulatory and service programs, including the impact of new rates at Columbia Gas of Pennsylvania, Columbia Gas of Virginia and Columbia Gas of Massachusetts, as well as the implementation of new rates under Columbia Gas of Ohio's approved infrastructure replacement program.

Operating expenses, excluding the impact of trackers, increased by $17.1 million due primarily to increased employee and administrative costs, higher depreciation and increased outside service costs.

Corporate and Other Operations reported an operating earnings loss of $7.3 million for the three months ended March 31, 2015, compared with an operating loss of $4.1 million for the three months ended March 31, 2014. The increase is primarily due to higher employee and administrative costs.

Other Items 
Interest expense, net was $111.0 million for the three months ended March 31, 2015 compared to interest expense, net of $109.1 million for the prior period.

Other, net reflected income of $7.1 million compared to income of $4.5 million in 2014 primarily due to current period transmission agreement income.

The effective tax rate of net operating earnings was 35.2 percent compared to 36.1 percent for the same period last year.

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

Forward-Looking Statements 
This news release contains forward-looking statements within the meaning of federal securities laws. These forward-looking statements are subject to various risks and uncertainties. Examples of forward-looking statements in this release include statements and expectations regarding the timing of the separation, as well as NiSource's and CPG's leadership, business, performance and growth following the separation. Factors that could cause actual results to differ materially from the projections, forecasts, estimates and expectations discussed in this release include, among other things, the timing to consummate the transactions described herein; the risk that a condition to consummation is not satisfied; disruption to operations as a result of the proposed transactions; the inability of one or more of the businesses to operate independently following the completion of the proposed transactions; weather; fluctuations in supply and demand for energy commodities; growth opportunities for NiSource's businesses; increased competition in deregulated energy markets; the success of regulatory and commercial initiatives; dealings with third parties over whom NiSource has no control; actual operating experience of NiSource's assets; the regulatory process; regulatory and legislative changes; changes in general economic, capital and commodity market conditions; and counter-party credit risk, and the matters set forth in the "Risk Factors" section in NiSource's 2014 Form 10-K, many of which are beyond the control of NiSource. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this news release. NiSource expressly disclaims any obligation to update, amend or clarify any of the forward-looking statements contained in this release to reflect events, new information or circumstances occurring after the date of this release except as required by applicable law.

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

NiSource Inc.

Consolidated Net Operating Earnings (Non-GAAP)

(unaudited)






























Three Months Ended






March 31,

(in millions, except per share amounts)





2015


2014

Net Revenues








Gas Distribution





$  1,061.3


$ 1,193.3

Gas Transportation and Storage





628.0


578.5

Electric





391.9


445.3

Other





46.3


77.0

Gross Revenues





2,127.5


2,294.1

Cost of Sales (excluding depreciation and amortization)





806.0


1,061.3

Total Net Revenues





1,321.5


1,232.8

Operating Expenses








Operation and maintenance





404.6


376.9

Operation and maintenance - trackers





149.0


124.3

Depreciation and amortization





156.4


148.7

Depreciation and amortization - trackers





1.1


—

Gain on sale of assets





(5.3)


(17.5)

Other taxes





72.3


70.6

Other taxes - trackers





30.1


30.5

Total Operating Expenses





808.2


733.5

Equity Earnings in Unconsolidated Affiliates





15.4


9.8

Operating Earnings





528.7


509.1

Other Income (Deductions)








Interest expense, net





(111.0)


(109.1)

Other, net





7.1


4.5

Total Other Deductions





(103.9)


(104.6)

Operating Earnings From Continuing Operations








Before Income Taxes





424.8


404.5

Income Taxes





149.6


146.1

Net Operating Earnings from Continuing Operations





275.2


258.4

Net Operating Earnings from Continuing Operations - Noncontrolling Interest




(6.9)


—

Net Operating Earnings from Continuing Operations - Controlling Interest





268.3


258.4

GAAP Adjustment





0.1


8.0

GAAP Income from Continuing Operations - Controlling Interest





$     268.4


$    266.4

Basic Net Operating Earnings Per Share from Continuing Operations





$       0.85


$      0.82

GAAP Basic Earnings Per Share from Continuing Operations





$       0.85


$      0.85

Basic Average Common Shares Outstanding





316.6


314.2









NiSource Inc.

Segment Operating Earnings (Non-GAAP)

(unaudited)






































Three Months Ended

Gas Distribution Operations





March 31, 

(in millions)





2015


2014

Net Revenues








Sales revenues





$           1,436.9


$           1,543.9

Less: Cost of gas sold





722.6


923.0

Net Revenues





714.3


620.9

Operating Expenses








Operation and maintenance





193.4


181.4

Operation and maintenance - trackers





98.4


47.4

Depreciation and amortization





56.1


52.2

Other taxes





30.5


29.3

Other taxes - trackers





30.1


30.5

Total Operating Expenses





408.5


340.8

Operating Earnings





$              305.8


$              280.1

GAAP Adjustment





19.4


21.7

GAAP Operating Income





$              325.2


$              301.8






























Three Months Ended

Columbia Pipeline Group Operations





March 31, 

(in millions)





2015


2014

Net Revenues








Transportation revenues





$              251.1


$              222.3

Storage revenues





50.0


50.0

Other revenues





38.7


73.3

Total Operating Revenues





339.8


345.6

Less: Cost of sales





0.1


0.1

Net Revenues





339.7


345.5

Operating Expenses








Operation and maintenance





102.2


94.7

Operation and maintenance - trackers





43.6


71.0

Depreciation and amortization





32.5


29.7

Gain on sale of assets





(5.3)


(17.5)

Other taxes





19.1


18.5

Total Operating Expenses





192.1


196.4

Equity Earnings in Unconsolidated Affiliates





15.4


9.8

Operating Earnings





$              163.0


$              158.9

GAAP Adjustment





—


—

GAAP Operating Income





$              163.0


$              158.9









NiSource Inc.

Segment Operating Earnings (Non-GAAP)

(unaudited)






































Three Months Ended

Electric Operations





March 31,

(in millions)





2015


2014

Net Revenues








Sales revenues





$              393.0


$              445.7

Less: Cost of sales





125.7


180.4

Net Revenues





267.3


265.3

Operating Expenses








Operation and maintenance





113.2


106.6

Operation and maintenance - trackers





7.0


5.9

Depreciation and amortization





61.1


60.4

Depreciation and amortization - trackers





1.1


—

Other taxes





17.7


18.2

Total Operating Expenses





200.1


191.1

Operating Earnings





$                67.2


$                74.2

GAAP Adjustment





2.8


4.7

GAAP Operating Income





$                70.0


$                78.9






























Three Months Ended

Corporate and Other Operations





March 31, 

(in millions)





2015


2014

Operating Earnings (Loss)





$                (7.3)


$                (4.1)

GAAP Adjustment





(20.8)


(1.8)

GAAP Operating Income (Loss)





$              (28.1)


$                (5.9)









NiSource Inc.

Segment Volumes and Statistical Data






































Three Months Ended






March 31, 

Gas Distribution Operations





2015


2014

Sales and Transportation (MMDth)








Residential 





153.1


156.5

Commercial





88.7


90.1

Industrial





146.8


136.8

Off System





13.5


14.3

Other





—


0.2

Total





402.1


397.9

Weather Adjustment





(35.5)


(36.1)

Sales and Transportation Volumes - Excluding Weather





366.6


361.8









Heating Degree Days





3,404


3,437

Normal Heating Degree Days





2,892


2,892

% Colder than Normal





18%


19%

Customers








Residential 





3,111,880


3,094,353

Commercial





284,081


283,000

Industrial





7,641


7,570

Other





15


20

Total





3,403,617


3,384,943






























Three Months Ended






March 31, 

Columbia Pipeline Group Operations





2015


2014

Throughput (MMDth)








Columbia Transmission





497.3


459.5

Columbia Gulf 





145.7


184.9

Crossroads Pipeline





5.1


5.7

Intrasegment eliminations





(28.7)


(61.6)

Total





619.4


588.5









NiSource Inc.

Segment Volumes and Statistical Data






































Three Months Ended






March 31, 

Electric Operations





2015


2014

Sales (Gigawatt Hours)








Residential 





865.8


896.2

Commercial





940.0


935.5

Industrial





2,425.4


2,607.1

Wholesale





116.9


311.8

Other





34.6


33.4

Total





4,382.7


4,784.0

Weather Adjustment





(42.2)


(70.0)

Sales Volumes - Excluding Weather





4,340.5


4,714.0









Electric Customers








Residential 





403,409


402,676

Commercial





54,695


54,378

Industrial





2,354


2,370

Wholesale





747


724

Other





5


5

Total





461,210


460,153









NiSource Inc.

Schedule 1 - Reconciliation of Net Operating Earnings to GAAP






































Three Months Ended






March 31, 

(in millions, except per share amounts)





2015


2014

Net Operating Earnings from Continuing Operations - Controlling Interest




$   268.3


$   258.4

Items excluded from operating earnings








Net Revenues:








Weather - compared to normal





22.2


26.4

Operating Expenses:








Transaction Costs





(20.5)


—

Loss on sale of assets and asset impairments





(0.3)


(1.8)

Total items excluded from operating earnings





1.4


24.6

Other Deductions:








Tax effect of above items





(0.7)


(9.6)

Income taxes - discrete items





(0.6)


(7.0)

Total items excluded from net operating earnings





0.1


8.0

GAAP Income from Continuing Operations - Controlling Interest





$   268.4


$   266.4

Basic Average Common Shares Outstanding





316.6


314.2

Basic Net Operating Earnings Per Share from Continuing Operations





$     0.85


$     0.82

Items excluded from net operating earnings (after-tax)





—


0.03

GAAP Basic Earnings Per Share from Continuing Operations





$     0.85


$     0.85









NiSource Inc.

Schedule 2 - Adjustments by Segment from Operating Earnings to GAAP

For the Quarter ended March 31,












































Columbia
Pipeline
Group








Gas
Distribution





Corporate
& Other



2015 (in millions)



Electric



Total

Operating Earnings (Loss)

$           305.8


$       163.0


$         67.2


$         (7.3)


$       528.7

Net Revenues:










Weather - compared to normal

19.4


—


2.8


—


22.2

Total Impact - Net Revenues

19.4


—


2.8


—


22.2

Operating Expenses:










Transaction costs

—


—


—


(20.5)


(20.5)

Loss on sale of assets and asset impairments

—


—


—


(0.3)


(0.3)

Total Impact - Operating Expenses

—


—


—


(20.8)


(20.8)

Total Impact - Operating Income (Loss)

$             19.4


$            —


$           2.8


$       (20.8)


$           1.4

Operating Income (Loss) - GAAP

$           325.2


$       163.0


$         70.0


$       (28.1)


$       530.1


































Columbia
Pipeline
Group








Gas
Distribution





Corporate
& Other



2014 (in millions)



Electric



Total

Operating Earnings (Loss)

$           280.1


$       158.9


$         74.2


$         (4.1)


$       509.1

Net Revenues:










Weather - compared to normal

21.7


—


4.7


—


26.4

Total Impact - Net Revenues

21.7


—


4.7


—


26.4

Operating Expenses:










Loss on sale of assets and asset impairments

—


—


—


(1.8)


(1.8)

Total Impact - Operating Expenses

—


—


—


(1.8)


(1.8)

Total Impact - Operating Income (Loss)

$             21.7


$            —


$           4.7


$         (1.8)


$         24.6

Operating Income (Loss) - GAAP

$           301.8


$       158.9


$         78.9


$         (5.9)


$       533.7











NiSource Inc.

Consolidated Income Statements (GAAP)

(unaudited)






























Three Months Ended






March 31, 

(in millions, except per share amounts)





2015


2014

Net Revenues








Gas Distribution





$ 1,080.7


$ 1,215.0

Gas Transportation and Storage





628.0


578.5

Electric





394.7


450.0

Other





46.3


77.0

Gross Revenues





2,149.7


2,320.5

Cost of Sales (excluding depreciation and amortization)





806.0


1,061.3

Total Net Revenues





1,343.7


1,259.2

Operating Expenses








Operation and maintenance





574.1


501.2

Depreciation and amortization





157.5


148.7

Gain on sale of assets





(5.0)


(15.7)

Other taxes





102.4


101.1

Total Operating Expenses





829.0


735.3

Equity Earnings in Unconsolidated Affiliates





15.4


9.8

Operating Income





530.1


533.7

Other Income (Deductions)








Interest expense, net





(111.0)


(109.1)

Other, net





7.1


4.5

Total Other Deductions





(103.9)


(104.6)

Income from Continuing Operations before Income Taxes





426.2


429.1

Income Taxes





150.9


162.7

Income from Continuing Operations





275.3


266.4

Loss from Discontinued Operations - net of taxes





—


(0.2)

Net Income





275.3


266.2

Less: Net income attributable to noncontrolling interest





6.9


—

Net Income attributable to NiSource





$    268.4


$    266.2

Amounts attributable to NiSource:








Income from continuing operations





$    268.4


$    266.4

Loss from discontinued operations  





—


(0.2)

Net Income attributable to NiSource





$    268.4


$    266.2

Basic Earnings Per Share








Continuing operations





$      0.85


$      0.85

Discontinued operations





—


—

Basic Earnings Per Share





$      0.85


$      0.85

Diluted Earnings Per Share








Continuing operations





$      0.85


$      0.85

Discontinued operations





—


—

Diluted Earnings Per Share





$      0.85


$      0.85

Dividends Declared Per Common Share





$      0.52


$      0.50

Basic Average Common Shares Outstanding





316.6


314.2

Diluted Average Common Shares





317.4


315.1









NiSource Inc.

Consolidated Balance Sheets (GAAP)

(unaudited)














March 31, 


December 31,

(in millions)

2015


2014

ASSETS




Property, Plant and Equipment




Utility plant

$         25,593.9


$         25,234.8

Accumulated depreciation and amortization

(9,686.7)


(9,578.6)

Net utility plant

15,907.2


15,656.2

Other property, at cost, less accumulated depreciation

376.2


360.9

Net Property, Plant and Equipment

16,283.4


16,017.1

Investments and Other Assets




Unconsolidated affiliates

447.9


452.6

Other investments

208.7


210.4

Total Investments and Other Assets

656.6


663.0

Current Assets




Cash and cash equivalents

42.0


25.4

Restricted cash

21.6


24.9

Accounts receivable (less reserve of $40.3 and $25.2, respectively)

1,152.0


1,070.1

Gas inventory

134.4


445.1

Underrecovered gas and fuel costs

25.5


32.0

Material and supplies, at average cost

109.0


106.0

Electric production fuel, at average cost

75.5


64.8

Exchange gas receivable

77.0


63.1

Regulatory assets

159.5


193.5

Deferred income taxes

277.2


272.1

Prepayments and other

187.3


169.5

Total Current Assets

2,261.0


2,466.5

Other Assets




Regulatory assets

1,683.2


1,696.4

Goodwill

3,666.2


3,666.2

Intangible assets

261.9


264.7

Deferred charges and other

86.6


92.4

Total Other Assets

5,697.9


5,719.7

Total Assets

$         24,898.9


$         24,866.3





NiSource Inc.

Consolidated Balance Sheets (GAAP) (continued)

(unaudited)














March 31, 


December 31,

(in millions, except share amounts)

2015


2014

CAPITALIZATION AND LIABILITIES




Capitalization




NiSource Common Stockholders' Equity




Common stock - $0.01 par value, 400,000,000 shares authorized; 317,281,405 and 316,037,421 shares outstanding, respectively

$                  3.2


$                  3.2

Additional paid-in capital

5,048.4


4,787.6

Retained earnings

1,597.5


1,494.0

Accumulated other comprehensive loss

(46.6)


(50.6)

Treasury stock

(79.0)


(58.9)

Total NiSource Common Stockholders' Equity

6,523.5


6,175.3

Noncontrolling interest in consolidated subsidiaries

946.2


—

Total Equity

7,469.7


6,175.3

Long-term debt, excluding amounts due within one year

7,957.9


8,155.9

Total Capitalization

15,427.6


14,331.2

Current Liabilities




Current portion of long-term debt

462.7


266.6

Short-term borrowings

314.0


1,576.9

Accounts payable

563.9


670.6

Dividends Payable

82.4


—

Customer deposits and credits

172.6


294.3

Taxes accrued

287.1


266.7

Interest accrued

81.4


140.7

Overrecovered gas and fuel costs

172.3


45.6

Exchange gas payable

65.8


136.2

Deferred revenue

25.5


25.6

Regulatory liabilities

102.0


62.4

Accrued capital expenditures

80.3


61.1

Accrued liability for postretirement and postemployment benefits

5.9


5.9

Legal and environmental

25.4


24.2

Other accruals

317.1


378.1

Total Current Liabilities

2,758.4


3,954.9

Other Liabilities and Deferred Credits




Deferred income taxes

3,803.5


3,661.6

Deferred investment tax credits

16.7


17.3

Deferred credits

105.5


101.1

Accrued liability for postretirement and postemployment benefits

653.7


675.9

Regulatory liabilities

1,678.6


1,673.8

Asset retirement obligations

160.9


159.4

Other noncurrent liabilities

294.0


291.1

Total Other Liabilities and Deferred Credits

6,712.9


6,580.2

Commitments and Contingencies

—


—

Total Capitalization and Liabilities

$         24,898.9


$         24,866.3





NiSource Inc.

Statements of Consolidated Cash Flows (GAAP)

(unaudited)

















Three Months Ended March 31, (in millions)

2015


2014

Operating Activities




Net Income

$              275.3


$              266.2

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




Depreciation and amortization

157.5


148.7

Net changes in price risk management assets and liabilities

(0.5)


0.8

Deferred income taxes and investment tax credits

135.1


148.9

Deferred revenue

5.3


1.8

Stock compensation expense and 401(k) profit sharing contribution

19.4


13.9

Gain on sale of assets

(5.0)


(15.7)

Income from unconsolidated affiliates

(14.5)


(9.6)

Loss from discontinued operations - net of taxes

—


0.2

Amortization of debt related costs

2.5


2.4

AFUDC equity

(6.0)


(4.0)

Distributions of earnings received from equity investees

18.3


7.6

Changes in Assets and Liabilities




Accounts receivable

(93.8)


(265.1)

Income tax receivable

—


0.9

Inventories

297.2


274.0

Accounts payable

(84.2)


126.5

Customer deposits and credits

(121.7)


(23.1)

Taxes accrued

22.0


19.3

Interest accrued

(59.3)


(61.1)

Over (Under) recovered gas and fuel costs

133.2


(74.2)

Exchange gas receivable/payable

(84.3)


(134.2)

Other accruals

(60.3)


(30.1)

Prepayments and other current assets

(16.2)


4.5

Regulatory assets/liabilities

90.6


2.9

Postretirement and postemployment benefits

(21.6)


(19.3)

Deferred credits

5.8


8.4

Deferred charges and other noncurrent assets

5.2


(0.2)

Other noncurrent liabilities

4.3


4.0

Net Operating Activities from Continuing Operations

604.3


394.4

Net Operating Activities from (used for) Discontinued Operations

—


(0.4)

Net Cash Flows from Operating Activities

604.3


394.0

Investing Activities




Capital expenditures

(407.5)


(386.3)

Proceeds from disposition of assets

11.7


5.3

Restricted cash withdrawals (deposits)

3.3


(2.9)

Distributions from (contributions to) equity investees

1.2


(31.0)

Other investing activities

2.4


7.0

Net Cash Flows used for Investing Activities

(388.9)


(407.9)

Financing Activities




Issuance of common units of CPPL, net of issuance costs

1,168.4


—

Repayments of long-term debt and capital lease obligations

(8.0)


(9.1)

Change in short-term borrowings, net

(1,262.9)


113.8

Issuance of common stock

5.9


8.9

Acquisition of treasury stock

(20.1)


(10.0)

Dividends paid - common stock

(82.1)


(78.5)

Net Cash Flow (used for) from Financing Activities

(198.8)


25.1

Change in cash and cash equivalents from continuing operations

16.6


11.6

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

—


(0.4)

Cash and cash equivalents at beginning of period

25.4


26.8

Cash and Cash Equivalents at End of Period

$                42.0


$                38.0









SOURCE NiSource Inc.

Related Links

http://www.nisource.com

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