NiSource Reports Strong First-Quarter Earnings

Apr 27, 2001, 01:00 ET from NiSource Inc.

    MERRILLVILLE, Ind., April 27 /PRNewswire/ -- NiSource Inc. (NYSE:   NI)
 today reported net income of $188.8 million, or 92 cents per basic share, for
 the three months ended March 31, 2001, compared to $79.6 million, or 64 cents
 per basic share, for the same period in 2000.  The year-over-year results are
 not directly comparable due to the acquisition of Columbia Energy Group
 (Columbia) that was completed on Nov. 1, 2000.
 
     Key earnings events include:
 
     * Higher gas distribution income caused primarily by the addition of more
       than two million Columbia customers
     * The inclusion of results from new business segments of Exploration and
       Production and Gas Transmission and Storage
     * Weather during the quarter that was 4 percent warmer than normal
     * A one-time after-tax charge of $9.3 million or 5 cents per share due to
       the settlement of a lawsuit related to Market Hub Partners which was
       sold in the third quarter of 2000
     * The amortization of goodwill associated with the Columbia acquisition of
       $25.4 million or 12 cents per share
     * Reduced Energy Marketing results reflecting the sale of Market Hub
       Partners, the lawsuit settlement referred to above and mark to market
       adjustments due to a decline in the value of basis positions related to
       structured transactions in Northeast markets.
 
     As previously stated, because of the seasonal nature of the gas business,
 which accounts for a greater portion of NiSource's business since the Columbia
 acquisition, it is expected that the first- and fourth-quarter results will be
 stronger and the second- and third-quarter results weaker when compared to
 NiSource's historical performance, assuming normal weather patterns.
     "The first-quarter results demonstrate the accretive value of the
 strategic combination of NiSource-Columbia, and we continue to be on track to
 meet analyst expectations for 2001," said Gary L. Neale, NiSource chairman,
 president and chief executive officer.
 
     2001 First-Quarter Operating Income by Segment
     First-quarter 2001 operating income for gas distribution operations was
 $288.1 million, up $191.9 million over the same period in 2000 reflecting the
 addition of Columbia's five distribution subsidiaries on Nov. 1, 2000.
     Gas transmission and storage and exploration and production operations
 reported operating income of $124.2 million and $21.3 million, respectively,
 for the first-quarter of 2001.
     First-quarter 2001 operating income for electric operations was $85.6
 million, an increase of $2.9 million over last year as a result of increased
 residential and wholesale sales, partially offset by lower industrial sales.
     Energy marketing operations reported a loss of $31.8 million, compared to
 operating income of $8.4 million in 2000, due to the sale of Market Hub
 Partners (MHP) in the third quarter of 2000, the settlement of a lawsuit
 related to MHP and mark to market adjustments in energy marketing due to basis
 changes related to structured transactions in Northeast markets.
     Other products and services reported an operating loss of $9.7 million
 versus an operating loss of $2.8 million in 2000 reflecting start-up costs
 related to ongoing technology initiatives.
 
     Other Items
     Interest expense was $163.2 million for the quarter, compared to $44.5
 million in the first quarter of last year, due to additional borrowing needed
 for the acquisition of Columbia, the inclusion of interest expense on
 Columbia's debt and increased carrying costs due to the elevated price of
 natural gas.  Income tax expense for the first quarter of 2001 was $122.3
 million, compared to $46.5 million in 2000, due to higher pre-tax income in
 the current period.  Also in the first quarter of 2001, a change in accounting
 principle (FASB133) for derivative instruments contributed $4.0 million to net
 income.
     NiSource is a holding company with headquarters in Merrillville, Ind.,
 whose operating companies engage in nearly all phases of the natural gas and
 electric business from exploration and production to transmission, storage and
 distribution of natural gas, as well as electric generation, transmission and
 distribution.  Its operating companies provide service to 3.6 million
 customers located within the high-growth energy corridor that runs 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 .
     This release contains forward-looking statements within the meaning of the
 federal securities laws.  These forward-looking statements are subject to
 various risks and uncertainties.  The factors that could cause actual results
 to differ materially from the projections, forecasts, estimates and
 expectations discussed herein include, among other things, increased
 competition in deregulated energy markets, weather, fluctuations in supply and
 demand for energy commodities, successful consummation of proposed
 acquisitions and dispositions, growth opportunities for NiSource's regulated
 and nonregulated businesses, dealings with third parties over whom NiSource
 has no control, actual operating experience of acquired assets, NiSource's
 ability to integrate acquired operations into its operations, the regulatory
 process, regulatory and legislative changes, changes in general economic,
 capital and commodity market conditions, and counter-party credit risk, many
 of which are beyond the control of NiSource.  These and other risk factors are
 detailed from time to time in the company's SEC reports.  Readers are
 cautioned not to place undue reliance on these forward-looking statements,
 which speak only as of the date of this release.  The company does not
 undertake any obligation to publicly release any revision to these forward-
 looking statements to reflect events or circumstances after the date of this
 release.
 
                                   NiSource Inc.
                               Income Statement Data
 
                                                         Three Months Ended
                                                             March 31,
     ($ in millions)                                  2001              2000
 
     Revenues
       Gas Distribution                             2,043.5             442.9
       Gas Transmission and Storage                   170.4              15.2
       Electric                                       370.0             317.5
       Exploration and Production                      48.2                 -
       Energy Marketing                             1,102.5             283.9
       Other                                           63.5              46.8
     Gross Revenues                                 3,798.1           1,106.3
     Cost of Sales                                  2,700.3             681.3
     Total Net Revenues                             1,097.8             425.0
     Operating Expenses
       Operation and maintenance                      366.5             144.4
       Depreciation, depletion and
        amortization                                  161.2              80.1
       Other taxes                                     97.9              25.8
     Total Operating Expenses                         625.6             250.3
     Operating Income                                 472.2             174.7
     Other Income (Deductions)
       Interest expense, net                         (163.2)            (44.5)
       Minority interest                               (5.1)             (5.0)
       Dividend requirements on preferred
        stock of subsidiaries                          (1.9)             (2.0)
       Other, net                                       4.5               2.4
     Total Other Income (Deductions)                 (165.7)            (49.1)
     Income from Continuing Operations
      before Income Taxes                             306.5             125.6
     Income Taxes                                     122.3              46.5
     Income (Loss) from Continuing
      Operations                                      184.2              79.1
     Income from Discontinued Operations -
      net of taxes                                      0.6               0.5
     Change in Accounting- net of taxes                 4.0                 -
     Net Income                                       188.8              79.6
 
     Basic Earnings Per Share ($)
       Continuing operations                           0.90              0.64
       Discontinued operations                         0.00              0.00
       Change in accounting                            0.02              0.00
       Basic Earnings Per Share                        0.92              0.64
 
     Diluted Earnings Per Share ($)
       Continuing operations                           0.88              0.62
       Discontinued operations                         0.00              0.00
       Change in accounting                            0.02              0.00
       Diluted Earnings Per Share                      0.90              0.62
 
     Basic Average Common Shares
      Outstanding (millions)                          205.0             124.3
     Diluted Average Common Shares
      (millions)                                      209.4             128.2
 
 
                                   NiSource Inc.
                      Summary of Financial and Operating Data
 
                                                        Three Months Ended
     Gas Distribution Operations                             March 31,
     ($ in millions)                                  2001              2000
     Net Revenues
         Sales Revenues                             1,911.4             437.4
         Less: Cost of gas sold                     1,486.7             280.4
         Net Sales Revenues                           424.7             157.0
         Transportation Revenues                      152.7              35.2
     Net Revenues                                     577.4             192.2
     Operating Expenses
         Operation and maintenance                    166.0              53.5
         Depreciation and amortization                 64.5              32.1
         Other taxes                                   58.8              10.4
     Total Operating Expenses                         289.3              96.0
     Operating Income                                 288.1              96.2
 
 
     Revenues ($ in Millions)
         Residential                                1,197.1             301.6
         Commercial                                   475.7              97.3
         Industrial                                    90.5              34.7
         Transportation                               152.7              35.2
         Other                                        148.1               3.8
     Total                                          2,064.1             472.6
 
 
     Sales (MDth)
         Residential sales                            107.0              43.0
         Commercial sales                              40.4              18.2
         Industrial sales                               7.7               4.8
         Transportation                               168.1              67.8
         Other                                        148.1               3.8
     Total                                            471.3             137.6
 
 
     Heating Degree Days                              2,907             2,855
     Normal Heating Degree Days                       3,040             3,246
     % Colder (Warmer) than Normal                       (4%)             (12%)
 
 
     Customers
         Residential                              2,370,612           961,569
         Commercial                                 214,070            86,052
         Industrial                                  10,792             3,867
         Transportation                             643,045            19,073
         Other                                           19                71
     Total                                        3,238,538         1,070,632
 
 
                                   NiSource Inc.
                Summary of Financial and Operating Data (continued)
 
                                                         Three Months Ended
     Transmission and Storage Operations                       March 31,
     ($ in millions)                                    2001             2000
     Operating Revenues
          Transportation Revenues                      232.7             13.9
          Storage revenues                              44.6                -
          Other revenues                                16.5                -
     Total Operating Revenues                          293.8             13.9
          Less: Cost of gas sold                        35.1             11.4
     Net Revenues                                      258.7              2.5
     Operating Expenses
          Operation and maintenance                     79.4              1.0
          Depreciation and amortization                 40.0              0.4
          Other taxes                                   15.1              0.2
     Total Operating Expenses                          134.5              1.6
     Operating Income                                  124.2              0.9
 
     Throughput (Bcf)
     Columbia Transmission
          Market Area                                  366.7                -
     Columbia Gulf
          Mainline                                     161.3                -
          Short-haul                                    37.0                -
          Intrasegment eliminations                   (157.3)               -
     Columbia Pipeline Deep Water                        0.8                -
     Crossroads Gas Pipeline                            10.9             10.5
     Granite State Pipeline                             13.1             14.1
     Total                                             432.5             24.6
 
 
                                                Three Months Ended
     Exploration and Production Operations            March 31,
     ($ in millions)                                    2001
     Operating Revenues
          Gas revenues                                  50.0
          Other revenues                                 3.8
     Total Operating Revenues                           53.8
     Operating Expenses
          Operation and maintenance                     16.7
          Depreciation and depletion                    10.2
          Other taxes                                    5.6
     Total Operating Expenses                           32.5
     Operating Income                                   21.3
 
     Average Price of Gas Production ($per Dth)
          U.S.                                          2.92
          Canada                                        7.42
 
     Volumes (MDth):
          U.S.                                        16,513
          Canada                                          30
     Total                                            16,543
 
 
                                   NiSource Inc.
                Summary of Financial and Operating Data (continued)
 
                                                         Three Months Ended
     Electric Operations                                      March 31,
     ($ in millions)                                   2001              2000
     Net Revenues
          Sales revenues                              370.6             318.2
          Less: Cost of sales                         177.0             127.7
     Net Revenues                                     193.6             190.5
     Operating Expenses
          Operation and maintenance                    52.7              54.4
          Depreciation and amortization                41.5              40.0
          Other taxes                                  13.8              13.4
     Total Operating Expenses                         108.0             107.8
     Operating Income                                  85.6              82.7
 
     Revenues ($ in millions)
          Residential                                  68.8              66.4
          Commercial                                   68.0              67.3
          Industrial                                  105.0             109.8
          Wholesale & Power Trading                   127.6              73.7
          Other electric service                        1.2               1.0
     Total                                            370.6             318.2
 
     Sales (Gigawatt Hours)
          Residential                                 697.6             667.6
          Commercial                                  815.4             798.2
          Industrial                                2,323.0           2,535.8
          Wholesale & Power Trading                 2,593.0           2,753.0
          Other electric service                       16.2              32.0
     Total                                          6,445.2           6,786.6
 
     Electric Customers
          Residential                               379,898           376,715
          Commercial                                 46,670            45,953
          Industrial                                  2,660             2,676
          Wholesale & Power Trading                     303               315
          Other electric service                        524               534
     Total                                          430,055           426,193
 
 
                                    NiSource Inc.
               Summary of Financial and Operating Data (continued)
 
                                                         Three Months Ended
     Energy Marketing Operations                             March 31,
     ($ in millions)                                  2001              2000
     Net Revenues
          Sales revenues                            1,152.7             311.1
          Less: Cost of products purchased          1,161.8             288.7
     Net Revenues                                      (9.1)             22.4
     Operating Expenses
          Operation and maintenance                     5.9               9.7
          Lawsuit settlement charges                   15.5                 -
          Depreciation and amortization                 0.7               3.9
          Other taxes                                   0.6               0.4
     Total Operating Expenses                          22.7              14.0
     Operating Income (Loss)                          (31.8)              8.4
 
 
                                                        Three Months Ended
     Other Products and Services                              March 31,
     ($ in millions)                                   2001              2000
     Net Revenues
          Products and services revenue                42.9              52.0
          Less: Cost of products purchased             22.2              28.8
     Net Revenues                                      20.7              23.2
     Operating Expenses
          Operation and maintenance                    27.0              21.7
          Depreciation and amortization                 2.0               2.9
          Other taxes                                   1.4               1.4
     Total Operating Expenses                          30.4              26.0
     Operating Loss                                    (9.7)             (2.8)
 
 
                                                        Three Months Ended
     Corporate                                                March 31,
     ($ in millions)                                   2001              2000
 
     Operating Loss                                   (13.5)             (6.9)
 
 
                                   NiSource Inc.
                Summary of Financial and Operating Data (continued)
 
 
     Capitalization                                 March 31,      December 31,
     ($ in millions)                                  2001              2000
 
     Common Stock Equity
     Common stock                                       2.1               2.1
 
         Additional paid in capital                 2,592.7           2,579.0
 
         Retained earnings                            898.7             829.7
 
         Accumulated Other Comprehensive
          Income                                       25.2               4.4
 
     Total Common Stock Equity                      3,518.7           3,415.2
 
     Company-obligated mandatorily
      redeemable preferred securities
      of subsidiary trust holding solely
      Company debentures                              345.0             345.0
 
     Preferred Stock                                  132.7             132.7
 
     Long-Term Debt                                 5,799.4           5,802.7
 
     Total Capitalization                           9,795.8           9,695.6
 
     Current Maturities of Long-Term Debt              64.4              64.8
 
     Short-Term Debt                                2,202.1           2,496.7
 
 
 
     Shares Outstanding (thousands)                 206,520           205,553
 
     Book Value of Common Shares                      17.04             16.61
 
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SOURCE NiSource Inc.
    MERRILLVILLE, Ind., April 27 /PRNewswire/ -- NiSource Inc. (NYSE:   NI)
 today reported net income of $188.8 million, or 92 cents per basic share, for
 the three months ended March 31, 2001, compared to $79.6 million, or 64 cents
 per basic share, for the same period in 2000.  The year-over-year results are
 not directly comparable due to the acquisition of Columbia Energy Group
 (Columbia) that was completed on Nov. 1, 2000.
 
     Key earnings events include:
 
     * Higher gas distribution income caused primarily by the addition of more
       than two million Columbia customers
     * The inclusion of results from new business segments of Exploration and
       Production and Gas Transmission and Storage
     * Weather during the quarter that was 4 percent warmer than normal
     * A one-time after-tax charge of $9.3 million or 5 cents per share due to
       the settlement of a lawsuit related to Market Hub Partners which was
       sold in the third quarter of 2000
     * The amortization of goodwill associated with the Columbia acquisition of
       $25.4 million or 12 cents per share
     * Reduced Energy Marketing results reflecting the sale of Market Hub
       Partners, the lawsuit settlement referred to above and mark to market
       adjustments due to a decline in the value of basis positions related to
       structured transactions in Northeast markets.
 
     As previously stated, because of the seasonal nature of the gas business,
 which accounts for a greater portion of NiSource's business since the Columbia
 acquisition, it is expected that the first- and fourth-quarter results will be
 stronger and the second- and third-quarter results weaker when compared to
 NiSource's historical performance, assuming normal weather patterns.
     "The first-quarter results demonstrate the accretive value of the
 strategic combination of NiSource-Columbia, and we continue to be on track to
 meet analyst expectations for 2001," said Gary L. Neale, NiSource chairman,
 president and chief executive officer.
 
     2001 First-Quarter Operating Income by Segment
     First-quarter 2001 operating income for gas distribution operations was
 $288.1 million, up $191.9 million over the same period in 2000 reflecting the
 addition of Columbia's five distribution subsidiaries on Nov. 1, 2000.
     Gas transmission and storage and exploration and production operations
 reported operating income of $124.2 million and $21.3 million, respectively,
 for the first-quarter of 2001.
     First-quarter 2001 operating income for electric operations was $85.6
 million, an increase of $2.9 million over last year as a result of increased
 residential and wholesale sales, partially offset by lower industrial sales.
     Energy marketing operations reported a loss of $31.8 million, compared to
 operating income of $8.4 million in 2000, due to the sale of Market Hub
 Partners (MHP) in the third quarter of 2000, the settlement of a lawsuit
 related to MHP and mark to market adjustments in energy marketing due to basis
 changes related to structured transactions in Northeast markets.
     Other products and services reported an operating loss of $9.7 million
 versus an operating loss of $2.8 million in 2000 reflecting start-up costs
 related to ongoing technology initiatives.
 
     Other Items
     Interest expense was $163.2 million for the quarter, compared to $44.5
 million in the first quarter of last year, due to additional borrowing needed
 for the acquisition of Columbia, the inclusion of interest expense on
 Columbia's debt and increased carrying costs due to the elevated price of
 natural gas.  Income tax expense for the first quarter of 2001 was $122.3
 million, compared to $46.5 million in 2000, due to higher pre-tax income in
 the current period.  Also in the first quarter of 2001, a change in accounting
 principle (FASB133) for derivative instruments contributed $4.0 million to net
 income.
     NiSource is a holding company with headquarters in Merrillville, Ind.,
 whose operating companies engage in nearly all phases of the natural gas and
 electric business from exploration and production to transmission, storage and
 distribution of natural gas, as well as electric generation, transmission and
 distribution.  Its operating companies provide service to 3.6 million
 customers located within the high-growth energy corridor that runs 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 .
     This release contains forward-looking statements within the meaning of the
 federal securities laws.  These forward-looking statements are subject to
 various risks and uncertainties.  The factors that could cause actual results
 to differ materially from the projections, forecasts, estimates and
 expectations discussed herein include, among other things, increased
 competition in deregulated energy markets, weather, fluctuations in supply and
 demand for energy commodities, successful consummation of proposed
 acquisitions and dispositions, growth opportunities for NiSource's regulated
 and nonregulated businesses, dealings with third parties over whom NiSource
 has no control, actual operating experience of acquired assets, NiSource's
 ability to integrate acquired operations into its operations, the regulatory
 process, regulatory and legislative changes, changes in general economic,
 capital and commodity market conditions, and counter-party credit risk, many
 of which are beyond the control of NiSource.  These and other risk factors are
 detailed from time to time in the company's SEC reports.  Readers are
 cautioned not to place undue reliance on these forward-looking statements,
 which speak only as of the date of this release.  The company does not
 undertake any obligation to publicly release any revision to these forward-
 looking statements to reflect events or circumstances after the date of this
 release.
 
                                   NiSource Inc.
                               Income Statement Data
 
                                                         Three Months Ended
                                                             March 31,
     ($ in millions)                                  2001              2000
 
     Revenues
       Gas Distribution                             2,043.5             442.9
       Gas Transmission and Storage                   170.4              15.2
       Electric                                       370.0             317.5
       Exploration and Production                      48.2                 -
       Energy Marketing                             1,102.5             283.9
       Other                                           63.5              46.8
     Gross Revenues                                 3,798.1           1,106.3
     Cost of Sales                                  2,700.3             681.3
     Total Net Revenues                             1,097.8             425.0
     Operating Expenses
       Operation and maintenance                      366.5             144.4
       Depreciation, depletion and
        amortization                                  161.2              80.1
       Other taxes                                     97.9              25.8
     Total Operating Expenses                         625.6             250.3
     Operating Income                                 472.2             174.7
     Other Income (Deductions)
       Interest expense, net                         (163.2)            (44.5)
       Minority interest                               (5.1)             (5.0)
       Dividend requirements on preferred
        stock of subsidiaries                          (1.9)             (2.0)
       Other, net                                       4.5               2.4
     Total Other Income (Deductions)                 (165.7)            (49.1)
     Income from Continuing Operations
      before Income Taxes                             306.5             125.6
     Income Taxes                                     122.3              46.5
     Income (Loss) from Continuing
      Operations                                      184.2              79.1
     Income from Discontinued Operations -
      net of taxes                                      0.6               0.5
     Change in Accounting- net of taxes                 4.0                 -
     Net Income                                       188.8              79.6
 
     Basic Earnings Per Share ($)
       Continuing operations                           0.90              0.64
       Discontinued operations                         0.00              0.00
       Change in accounting                            0.02              0.00
       Basic Earnings Per Share                        0.92              0.64
 
     Diluted Earnings Per Share ($)
       Continuing operations                           0.88              0.62
       Discontinued operations                         0.00              0.00
       Change in accounting                            0.02              0.00
       Diluted Earnings Per Share                      0.90              0.62
 
     Basic Average Common Shares
      Outstanding (millions)                          205.0             124.3
     Diluted Average Common Shares
      (millions)                                      209.4             128.2
 
 
                                   NiSource Inc.
                      Summary of Financial and Operating Data
 
                                                        Three Months Ended
     Gas Distribution Operations                             March 31,
     ($ in millions)                                  2001              2000
     Net Revenues
         Sales Revenues                             1,911.4             437.4
         Less: Cost of gas sold                     1,486.7             280.4
         Net Sales Revenues                           424.7             157.0
         Transportation Revenues                      152.7              35.2
     Net Revenues                                     577.4             192.2
     Operating Expenses
         Operation and maintenance                    166.0              53.5
         Depreciation and amortization                 64.5              32.1
         Other taxes                                   58.8              10.4
     Total Operating Expenses                         289.3              96.0
     Operating Income                                 288.1              96.2
 
 
     Revenues ($ in Millions)
         Residential                                1,197.1             301.6
         Commercial                                   475.7              97.3
         Industrial                                    90.5              34.7
         Transportation                               152.7              35.2
         Other                                        148.1               3.8
     Total                                          2,064.1             472.6
 
 
     Sales (MDth)
         Residential sales                            107.0              43.0
         Commercial sales                              40.4              18.2
         Industrial sales                               7.7               4.8
         Transportation                               168.1              67.8
         Other                                        148.1               3.8
     Total                                            471.3             137.6
 
 
     Heating Degree Days                              2,907             2,855
     Normal Heating Degree Days                       3,040             3,246
     % Colder (Warmer) than Normal                       (4%)             (12%)
 
 
     Customers
         Residential                              2,370,612           961,569
         Commercial                                 214,070            86,052
         Industrial                                  10,792             3,867
         Transportation                             643,045            19,073
         Other                                           19                71
     Total                                        3,238,538         1,070,632
 
 
                                   NiSource Inc.
                Summary of Financial and Operating Data (continued)
 
                                                         Three Months Ended
     Transmission and Storage Operations                       March 31,
     ($ in millions)                                    2001             2000
     Operating Revenues
          Transportation Revenues                      232.7             13.9
          Storage revenues                              44.6                -
          Other revenues                                16.5                -
     Total Operating Revenues                          293.8             13.9
          Less: Cost of gas sold                        35.1             11.4
     Net Revenues                                      258.7              2.5
     Operating Expenses
          Operation and maintenance                     79.4              1.0
          Depreciation and amortization                 40.0              0.4
          Other taxes                                   15.1              0.2
     Total Operating Expenses                          134.5              1.6
     Operating Income                                  124.2              0.9
 
     Throughput (Bcf)
     Columbia Transmission
          Market Area                                  366.7                -
     Columbia Gulf
          Mainline                                     161.3                -
          Short-haul                                    37.0                -
          Intrasegment eliminations                   (157.3)               -
     Columbia Pipeline Deep Water                        0.8                -
     Crossroads Gas Pipeline                            10.9             10.5
     Granite State Pipeline                             13.1             14.1
     Total                                             432.5             24.6
 
 
                                                Three Months Ended
     Exploration and Production Operations            March 31,
     ($ in millions)                                    2001
     Operating Revenues
          Gas revenues                                  50.0
          Other revenues                                 3.8
     Total Operating Revenues                           53.8
     Operating Expenses
          Operation and maintenance                     16.7
          Depreciation and depletion                    10.2
          Other taxes                                    5.6
     Total Operating Expenses                           32.5
     Operating Income                                   21.3
 
     Average Price of Gas Production ($per Dth)
          U.S.                                          2.92
          Canada                                        7.42
 
     Volumes (MDth):
          U.S.                                        16,513
          Canada                                          30
     Total                                            16,543
 
 
                                   NiSource Inc.
                Summary of Financial and Operating Data (continued)
 
                                                         Three Months Ended
     Electric Operations                                      March 31,
     ($ in millions)                                   2001              2000
     Net Revenues
          Sales revenues                              370.6             318.2
          Less: Cost of sales                         177.0             127.7
     Net Revenues                                     193.6             190.5
     Operating Expenses
          Operation and maintenance                    52.7              54.4
          Depreciation and amortization                41.5              40.0
          Other taxes                                  13.8              13.4
     Total Operating Expenses                         108.0             107.8
     Operating Income                                  85.6              82.7
 
     Revenues ($ in millions)
          Residential                                  68.8              66.4
          Commercial                                   68.0              67.3
          Industrial                                  105.0             109.8
          Wholesale & Power Trading                   127.6              73.7
          Other electric service                        1.2               1.0
     Total                                            370.6             318.2
 
     Sales (Gigawatt Hours)
          Residential                                 697.6             667.6
          Commercial                                  815.4             798.2
          Industrial                                2,323.0           2,535.8
          Wholesale & Power Trading                 2,593.0           2,753.0
          Other electric service                       16.2              32.0
     Total                                          6,445.2           6,786.6
 
     Electric Customers
          Residential                               379,898           376,715
          Commercial                                 46,670            45,953
          Industrial                                  2,660             2,676
          Wholesale & Power Trading                     303               315
          Other electric service                        524               534
     Total                                          430,055           426,193
 
 
                                    NiSource Inc.
               Summary of Financial and Operating Data (continued)
 
                                                         Three Months Ended
     Energy Marketing Operations                             March 31,
     ($ in millions)                                  2001              2000
     Net Revenues
          Sales revenues                            1,152.7             311.1
          Less: Cost of products purchased          1,161.8             288.7
     Net Revenues                                      (9.1)             22.4
     Operating Expenses
          Operation and maintenance                     5.9               9.7
          Lawsuit settlement charges                   15.5                 -
          Depreciation and amortization                 0.7               3.9
          Other taxes                                   0.6               0.4
     Total Operating Expenses                          22.7              14.0
     Operating Income (Loss)                          (31.8)              8.4
 
 
                                                        Three Months Ended
     Other Products and Services                              March 31,
     ($ in millions)                                   2001              2000
     Net Revenues
          Products and services revenue                42.9              52.0
          Less: Cost of products purchased             22.2              28.8
     Net Revenues                                      20.7              23.2
     Operating Expenses
          Operation and maintenance                    27.0              21.7
          Depreciation and amortization                 2.0               2.9
          Other taxes                                   1.4               1.4
     Total Operating Expenses                          30.4              26.0
     Operating Loss                                    (9.7)             (2.8)
 
 
                                                        Three Months Ended
     Corporate                                                March 31,
     ($ in millions)                                   2001              2000
 
     Operating Loss                                   (13.5)             (6.9)
 
 
                                   NiSource Inc.
                Summary of Financial and Operating Data (continued)
 
 
     Capitalization                                 March 31,      December 31,
     ($ in millions)                                  2001              2000
 
     Common Stock Equity
     Common stock                                       2.1               2.1
 
         Additional paid in capital                 2,592.7           2,579.0
 
         Retained earnings                            898.7             829.7
 
         Accumulated Other Comprehensive
          Income                                       25.2               4.4
 
     Total Common Stock Equity                      3,518.7           3,415.2
 
     Company-obligated mandatorily
      redeemable preferred securities
      of subsidiary trust holding solely
      Company debentures                              345.0             345.0
 
     Preferred Stock                                  132.7             132.7
 
     Long-Term Debt                                 5,799.4           5,802.7
 
     Total Capitalization                           9,795.8           9,695.6
 
     Current Maturities of Long-Term Debt              64.4              64.8
 
     Short-Term Debt                                2,202.1           2,496.7
 
 
 
     Shares Outstanding (thousands)                 206,520           205,553
 
     Book Value of Common Shares                      17.04             16.61
 
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 SOURCE  NiSource Inc.