NiSource (NI) is scheduled to release first-quarter 2024 results on May 8, before market open. The company delivered an earnings surprise of 1.9% in the last reported quarter.Let’s discuss the factors that are likely to be reflected in the upcoming quarterly results.Factors to ConsiderNiSource’s Sugar Creek facility added an additional generating capacity in January 2024, which is expected to have boosted the total electricity generation outcome. This must have positively impacted the first-quarter earnings ...

Wall Street expects a year-over-year increase in earnings on higher revenues when NiSource (NI) reports results for the quarter ended March 2024. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on May 8. On the othe ...

If you are looking for a stock that has a solid history of beating earnings estimates and is in a good position to maintain the trend in its next quarterly report, you should consider NiSource (NI) . This company, which is in the Zacks Utility - Electric Power industry, shows potential for another earnings beat.This energy holding company has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. The average surprise for the last two quarters was 18.82%.For th ...

5 Advanced Leak Survey Technology and Repair accelerating the elimination of large-volume leaks with greater precision ROBUST RENEWABLE INVESTMENTS IN INDIANA 1) Represents anticipated in-service timing for projects in construction and pre-construction statuses 2) Investment amounts represent base capital plan only. Assumes full ownership of the Cavalry, Dunns Bridge II projects and ownership through tax equity joint ventures for the Fairbanks and Gibson projects | --- | --- | --- | |-------|--------------- ...

Part I [Business](index=8&type=section&id=Item%201.%20Business) NiSource Inc. is a regulated energy holding company serving approximately 3.8 million customers across six states, focused on infrastructure investment and renewable energy transition - NiSource is an energy holding company with fully regulated natural gas and electric utilities serving approximately **3.8 million customers** in six states[23](index=23&type=chunk) - On December 31, 2023, NiSource closed a transaction with Blackstone, selling a **19.9% minority interest** in NIPSCO Holdings II for **$2.16 billion in cash**[24](index=24&type=chunk)[219](index=219&type=chunk) - The company's business strategy is centered on safety, long-term infrastructure investment, aligning tariff structures with costs, and reducing emissions to generate sustainable returns[26](index=26&type=chunk) - NiSource has two primary reportable segments: Gas Distribution Operations and Electric Operations[28](index=28&type=chunk) [Gas Distribution Operations](index=8&type=section&id=Gas%20Distribution%20Operations) The Gas Distribution segment serves 3.3 million customers in six states through 55,000 miles of pipelines, with revenues seasonally higher in winter Gas Distribution Operations Overview | Metric | Value | | :--- | :--- | | **Customers** | ~3.3 million | | **States Served** | 6 | | **Distribution Main Pipeline** | ~55,000 miles | | **Transmission Main Pipeline** | ~1,000 miles | - A significant portion of residential (**25.9%**) and commercial (**34.7%**) customers purchase natural gas from third-party suppliers, using NiSource's subsidiaries for transportation services[30](index=30&type=chunk) - Revenues from gas distribution are seasonally higher during the heating season, primarily from November through March[32](index=32&type=chunk) [Electric Operations](index=9&type=section&id=Electric%20Operations) The Electric Operations segment serves 0.5 million customers in northern Indiana, transitioning its generation portfolio from coal to renewables by 2028 Electric Operations Overview | Metric | Value | | :--- | :--- | | **Customers** | ~0.5 million | | **Service Area** | 20 counties in northern Indiana | | **Transmission System** | ~2,920 circuit miles | Owned Generating Capacity as of Dec 31, 2023 | Fuel Type | Capacity (MW) | | :--- | :--- | | Steam - Coal | 1,177 | | CCGT | 563 | | Natural Gas | 155 | | Hydro | 16 | | Wind | 404 | | Solar | 465 | | **Total** | **2,780** | - NIPSCO plans to retire its remaining coal generating assets by **2028** and replace them with a diverse portfolio including solar, energy storage, and new gas peaking resources[36](index=36&type=chunk) [Regulatory](index=11&type=section&id=Regulatory) NiSource's subsidiaries are regulated at state and federal levels, actively engaging in rate case proceedings to recover costs and earn returns on investment Recent Rate Case Actions (in millions) | Company | Requested Incremental Revenue | Approved Incremental Revenue | Rates Effective | | :--- | :--- | :--- | :--- | | Columbia of Pennsylvania | $82.2 | $44.5 | Dec 2022 | | Columbia of Maryland | $6.5 | $3.9 | Dec 2023 | | Columbia of Ohio | $221.4 | $68.3 | Mar 2023 | | NIPSCO - Gas | $109.7 | $71.8 | Sep 2022 | | NIPSCO - Electric | $291.8 | $261.9 | Aug 2023 | | **Pending: NIPSCO - Gas** | **$161.9** | **In process** | **Sep 2024 (Expected)** | - The company utilizes regulatory trackers for cost recovery, such as the Fuel Adjustment Clause (FAC) for electric fuel costs and Gas Cost Adjustment (GCA) for gas commodity costs, which minimizes the impact of commodity price fluctuations on operating income[49](index=49&type=chunk)[50](index=50&type=chunk)[51](index=51&type=chunk) [Environmental and Safety Matters](index=13&type=section&id=Environmental%20and%20Safety%20Matters) The company is committed to environmental stewardship and safety, adhering to regulations and aiming for net-zero emissions by 2040 through infrastructure modernization - The company is subject to PHMSA regulations, with proposed rules in **2023** aiming to minimize methane emissions and enhance distribution system safety through improved leak detection, repair, and over-pressurization protections[53](index=53&type=chunk)[54](index=54&type=chunk)[55](index=55&type=chunk) - NiSource announced a goal of achieving **net zero Scope 1 and Scope 2 greenhouse gas emissions by 2040**, building on interim targets of reducing fugitive methane emissions by **50% by 2025** and Scope 1 GHG emissions by **90% by 2030**, from **2005 levels**[70](index=70&type=chunk) - As of the end of **2022**, the company had reduced Scope 1 GHG emissions by approximately **67% from 2005 levels**, primarily through retiring coal-fired generation and ongoing pipe replacement programs[70](index=70&type=chunk)[72](index=72&type=chunk) [Human Capital](index=15&type=section&id=Human%20Capital) As of December 31, 2023, NiSource employed 7,411 people, with a strong emphasis on diversity, equity, and inclusion, and high talent retention Workforce Composition (as of Dec 31, 2023) | Metric | Value | | :--- | :--- | | **Total Employees** | 7,411 (7,364 full-time, 47 part-time) | | **Union Representation** | 34% | | **2023 Retention Rate** | >93% | - The company has a strong focus on DE&I, with **75%** of its executive leadership team represented by people of color and females. In **2023**, **32%** of external hires were racially/ethnically diverse and **49%** were female[77](index=77&type=chunk)[78](index=78&type=chunk) - NiSource prioritizes internal talent development, filling **72%** of leadership positions (supervisor and above) with internal employees in **2023**[85](index=85&type=chunk) [Information about our Executive Officers](index=18&type=section&id=Information%20about%20our%20Executive%20Officers) This section lists the executive officers of NiSource Inc., providing their age, current role, and business experience over the past five years Key Executive Officers | Name | Age | Title | | :--- | :--- | :--- | | Lloyd M. Yates | 63 | President and Chief Executive Officer | | Shawn Anderson | 42 | Executive Vice President and Chief Financial Officer | | Melody Birmingham | 52 | Executive Vice President, and President, NiSource Utilities | | Donald E. Brown | 52 | Executive Vice President and Chief Innovation Officer | | William Jefferson, Jr | 62 | Executive Vice President, Operations and Chief Safety Officer | [Risk Factors](index=19&type=section&id=Item%201A.%20Risk%20Factors) NiSource faces operational, financial, and legal/regulatory risks, including execution challenges, substantial indebtedness, and compliance with evolving environmental laws [Operational Risks](index=19&type=section&id=Operational%20Risks) Operational risks include business plan execution failure, inherent utility hazards, supply chain issues, cybersecurity threats, and climate change impacts - The company faces risks in executing its business plan, including natural gas pipeline modernization and renewable energy projects, which could be hindered by operational, financial, or regulatory conditions, as well as supply chain challenges[96](index=96&type=chunk)[97](index=97&type=chunk) - Inherent hazards in utility operations, such as gas leaks, downed power lines, and other incidents, could result in loss of life, property damage, and substantial financial losses[98](index=98&type=chunk) - The electric generation strategy faces risks from supply chain issues for solar panels and other components, which could delay the retirement of coal units and impact the ability to meet capacity obligations and decarbonization goals[109](index=109&type=chunk)[110](index=110&type=chunk)[111](index=111&type=chunk) - Cybersecurity attacks on information or operational technology systems pose a significant risk, potentially disrupting operations, leading to data loss, and resulting in liability[132](index=132&type=chunk)[133](index=133&type=chunk)[134](index=134&type=chunk) - Achieving the **2040 Net Zero Goal** is subject to risks and uncertainties, requiring supportive policies, favorable stakeholder environments, and advancement of technologies that are not currently economical[145](index=145&type=chunk) [Financial, Economic and Market Risks](index=27&type=section&id=Financial%2C%20Economic%20and%20Market%20Risks) Significant financial risks stem from substantial indebtedness of **$14.1 billion**, potential credit rating downgrades, and adverse economic conditions impacting capital access and customer demand - The company has substantial indebtedness, totaling **$14,127.9 million** as of December 31, 2023, which could limit its ability to borrow additional funds and reduce cash flow available for other corporate purposes[146](index=146&type=chunk) - A downgrade of credit ratings could adversely affect the ability to access capital, increase financing costs, and trigger collateral requirements amounting to approximately **$90.1 million** if ratings fall below investment grade[149](index=149&type=chunk)[150](index=150&type=chunk) - Adverse economic conditions, including inflation and rising interest rates, could negatively affect the company's ability to raise capital on favorable terms, impacting its ability to fund its infrastructure investment program[152](index=152&type=chunk)[153](index=153&type=chunk) [Litigation, Regulatory and Legislative Risks](index=31&type=section&id=Litigation%2C%20Regulatory%20and%20Legislative%20Risks) The company is exposed to risks from legal and regulatory proceedings, where unfavorable outcomes could materially affect financial results, and compliance costs may not be fully recoverable - The outcomes of legal and regulatory proceedings are inherently uncertain and could have a material adverse effect on the company's results of operations, financial position, or liquidity[170](index=170&type=chunk) - The cost of compliance with numerous environmental laws, including potential future GHG legislation and regulations concerning Coal Combustion Residuals (CCR), could be significant and may not be fully recoverable from customers[172](index=172&type=chunk)[173](index=173&type=chunk)[175](index=175&type=chunk) - Changes in tax laws or their interpretation could adversely affect financial results, including expected returns from planned renewable energy projects[179](index=179&type=chunk) [Unresolved Staff Comments](index=33&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports no unresolved staff comments - None[180](index=180&type=chunk) [Cybersecurity](index=33&type=section&id=Item%201C.%20Cybersecurity) NiSource maintains a comprehensive cybersecurity program with Board oversight, including risk assessments and incident response, reporting no material incidents - The cybersecurity program includes risk assessment, third-party risk management, security controls, and an incident response plan[183](index=183&type=chunk) - Oversight is provided by the Board's Audit Committee, and the program is led by a Chief Information Security Officer (CISO) with over **15 years of experience** and multiple certifications[187](index=187&type=chunk)[188](index=188&type=chunk) - The company is not aware of any material cybersecurity incidents during the past year[190](index=190&type=chunk) [Properties](index=35&type=section&id=Item%202.%20Properties) This section describes NiSource's principal properties, including its Merrillville headquarters, with most properties owned free from major encumbrances - The company owns its **325,000 square foot** headquarters building, the Southlake Complex, in Merrillville, Indiana[194](index=194&type=chunk) - Principal properties are generally owned free from major encumbrances, and utility infrastructure is located on land with appropriate rights obtained from governmental authorities or private owners[195](index=195&type=chunk) [Legal Proceedings](index=35&type=section&id=Item%203.%20Legal%20Proceedings) This section refers to Note 19 of the Notes to Consolidated Financial Statements for a description of the company's legal proceedings - For a description of legal proceedings, see Note 19, "Other Commitments and Contingencies - C. Legal Proceedings," in the Notes to Consolidated Financial Statements[196](index=196&type=chunk) [Mine Safety Disclosures](index=35&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This section is not applicable to the company - Not applicable[197](index=197&type=chunk) Part II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=36&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) NiSource's common stock is traded on the NYSE under the symbol "NI", with a quarterly cash dividend of **$0.265 per share** declared in January 2024 - NiSource common stock is listed on the NYSE under the symbol "NI"[198](index=198&type=chunk) - As of February 14, 2024, NiSource had **15,832 common stockholders** of record and **447,524,529 shares outstanding**[200](index=200&type=chunk) - On January 25, 2024, the Board declared a quarterly common dividend of **$0.265 per share**[198](index=198&type=chunk) [Reserved](index=38&type=section&id=Item%206.%20Reserved) This section is not applicable - Not applicable[204](index=204&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=39&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the company's 2023 financial condition and results, covering segment performance, liquidity, capital resources, and market risks [Executive Summary](index=39&type=section&id=Executive%20Summary) In 2023, NiSource advanced strategic goals by placing two solar projects in service, securing favorable rate cases, and closing the NIPSCO minority interest sale, investing **$1.5 billion** in infrastructure - In **2023**, the company invested **$1.5 billion** in infrastructure modernization, including replacing **339 miles** of distribution main and service lines[212](index=212&type=chunk) - The company is advancing its "Your Energy, Your Future" initiative, with plans to retire remaining coal-fired electric generation by **2028** and replace it with a mix of low or zero-emission sources[214](index=214&type=chunk) - The NIPSCO Minority Interest Transaction with Blackstone closed on December 31, 2023, providing a capital contribution of **$2.16 billion in cash**[219](index=219&type=chunk) [Summary of Consolidated Financial Results](index=41&type=section&id=Summary%20of%20Consolidated%20Financial%20Results) For 2023, NiSource reported Net Income Available to Common Shareholders of **$661.7 million**, a decrease from **$749.0 million** in 2022, primarily due to weather and non-recurring insurance Consolidated Financial Results (in millions, except per share amounts) | Metric | 2023 | 2022 | 2021 | | :--- | :--- | :--- | :--- | | **Operating Revenues** | $5,505.4 | $5,850.6 | $4,899.6 | | **Operating Income** | $1,295.5 | $1,265.8 | $1,006.9 | | **Net Income attributable to NiSource** | $714.3 | $804.1 | $584.9 | | **Net Income Available to Common Shareholders** | $661.7 | $749.0 | $529.8 | | **Diluted Earnings Per Share** | $1.48 | $1.70 | $1.27 | - The decrease in net income available to common shareholders in **2023** was primarily driven by lower revenue from weather effects, the absence of a **2022** insurance settlement, and higher interest expense, partially offset by lower tax expense[226](index=226&type=chunk) [Results and Discussion of Operations](index=42&type=section&id=Results%20and%20Discussion%20of%20Operations) This section details the operational and financial performance of NiSource's Gas Distribution and Electric Operations segments, highlighting impacts of new rates, weather, and customer usage [Gas Distribution Operations](index=43&type=section&id=Gas%20Distribution%20Operations) Gas Distribution Operations operating income decreased to **$901.9 million** in 2023 due to non-recurring insurance gain and warmer weather, partially offset by new rates Gas Distribution Operations Financial Summary (in millions) | Metric | 2023 | 2022 | | :--- | :--- | :--- | | **Operating Revenues** | $3,732.7 | $4,019.8 | | **Operating Income** | $901.9 | $915.8 | - The change in operating revenues before pass-through costs was a favorable **$200.3 million**, primarily driven by **$241.1 million** from new rates, offset by a **$59.9 million** negative impact from warmer weather[236](index=236&type=chunk) - Operating expenses before pass-through costs increased by **$214.2 million**, largely due to a **$105.0 million** property insurance settlement gain recorded in **2022** that did not recur, higher depreciation (**$50.6M**), and higher employee-related expenses (**$38.3M**)[240](index=240&type=chunk) [Electric Operations](index=46&type=section&id=Electric%20Operations) Electric Operations operating income increased to **$378.7 million** in 2023, driven by new rates, despite negative impacts from colder weather and decreased customer usage Electric Operations Financial Summary (in millions) | Metric | 2023 | 2022 | | :--- | :--- | :--- | | **Operating Revenues** | $1,785.0 | $1,831.7 | | **Operating Income** | $378.7 | $362.4 | - The change in operating revenues before pass-through costs was a favorable **$89.7 million**, primarily driven by **$103.5 million** from new rates, offset by a **$25.6 million** negative impact from weather[244](index=244&type=chunk) - The company is executing its electric generation transition to retire remaining coal units by **2028**. It has executed agreements for eight remaining renewable projects, including BTAs for Cavalry, Dunns Bridge II, Fairbanks, and Gibson, and PPAs for four other projects[249](index=249&type=chunk)[252](index=252&type=chunk)[253](index=253&type=chunk) [Liquidity and Capital Resources](index=50&type=section&id=Liquidity%20and%20Capital%20Resources) NiSource maintains adequate liquidity via operating cash flow, a **$1.85 billion** revolving credit facility, and capital markets access, significantly strengthened by a **$2.16 billion** NIPSCO minority interest sale Net Available Liquidity (in millions) | Component | Dec 31, 2023 | Dec 31, 2022 | | :--- | :--- | :--- | | Revolving Credit Facility | $1,850.0 | $1,850.0 | | Accounts Receivable Programs | $383.9 | $447.2 | | Less: Commercial Paper & Other | ($1,408.5) | ($772.4) | | Add: Cash and Cash Equivalents | $2,245.4 | $40.8 | | **Net Available Liquidity** | **$3,070.8** | **$1,565.6** | Capital Investments (in billions) | Period | Amount | | :--- | :--- | | **2023 Actual** | $3.6 | | **2024-2028 Estimated** | ~$16.0 | - The company maintains investment-grade credit ratings from S&P (**BBB+**), Moody's (**Baa2**), and Fitch (**BBB**), all with stable outlooks[274](index=274&type=chunk)[275](index=275&type=chunk) [Market Risk Disclosures](index=54&type=section&id=Market%20Risk%20Disclosures) The company actively manages market risks, including commodity price, interest rate, and credit risk, with commodity price risk largely mitigated by regulatory recovery mechanisms - Commodity price risk is limited for earnings as regulatory mechanisms (GCA and FAC) allow for the recovery of prudently incurred fuel and gas costs from customers[286](index=286&type=chunk) - The company is exposed to interest rate risk on its variable-rate borrowings. A **100 basis point (1%)** increase in short-term rates would have increased **2023** interest expense by **$18.9 million**[290](index=290&type=chunk) [Other Information](index=56&type=section&id=Other%20Information) This section outlines the company's critical accounting estimates, requiring significant management judgment, including rate-regulated operations, pension benefits, goodwill impairment, and income taxes - The company's accounting for its rate-regulated subsidiaries allows certain costs to be deferred as regulatory assets (**$2.46 billion** at year-end **2023**) for future recovery through customer rates[293](index=293&type=chunk) - Pension and postretirement benefit calculations require significant judgment on assumptions like discount rates and expected long-term rates of return on plan assets (**7.00%** for pension assets in **2023**)[298](index=298&type=chunk)[301](index=301&type=chunk) - Goodwill, primarily from the **2000 Columbia acquisition**, totaled **$1.486 billion** at year-end **2023**. The annual impairment test in May **2023** indicated no impairment[304](index=304&type=chunk)[305](index=305&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=59&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section refers back to the "Market Risk Disclosures" section within Item 7, Management's Discussion and Analysis of Financial Condition and Results of Operations - Disclosures about market risk are reported in Item 7, "Management's Discussion and Analysis of Financial Condition and Results of Operations – Market Risk Disclosures"[314](index=314&type=chunk) [Financial Statements and Supplementary Data](index=60&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section contains the company's consolidated financial statements for the three years ended December 31, 2023, along with the unqualified audit report from Deloitte & Touche LLP [Report of Independent Registered Public Accounting Firm](index=61&type=section&id=Report%20of%20Independent%20Registered%20Public%20Accounting%20Firm) Deloitte & Touche LLP issued an unqualified opinion on NiSource's consolidated financial statements and internal control over financial reporting, identifying two critical audit matters - The auditor, Deloitte & Touche LLP, issued an unqualified (clean) opinion on the financial statements, stating they present fairly, in all material respects, the financial position and results of operations[318](index=318&type=chunk) - The audit identified two Critical Audit Matters: 1) The accounting and tax treatment of the **$2.16 billion** minority interest investment in NIPSCO Holdings II LLC due to its complexity. 2) The impact of rate regulation and the significant judgments required to assess the likelihood of recovering costs deferred as regulatory assets[323](index=323&type=chunk)[326](index=326&type=chunk)[328](index=328&type=chunk) [Changes in and Disagreements With Accountants on Accounting and Financial Disclosure](index=127&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20With%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) The company reports no changes in or disagreements with its accountants on accounting and financial disclosure - None[602](index=602&type=chunk) [Controls and Procedures](index=127&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded the company's disclosure controls and internal control over financial reporting were effective as of December 31, 2023, with an unqualified audit opinion from Deloitte & Touche LLP - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of the end of the period[603](index=603&type=chunk) - Management concluded that the company's internal control over financial reporting was effective as of December 31, 2023. This assessment was audited by Deloitte & Touche LLP, which also issued an unqualified opinion[604](index=604&type=chunk)[605](index=605&type=chunk) [Other Information](index=129&type=section&id=Item%209B.%20Other%20Information) This section discloses that no director or Section 16 officer adopted, terminated, or modified a Rule 10b5-1 trading arrangement during 2023 - During **2023**, no director or Section 16 officer adopted, terminated, or modified a Rule 10b5-1 trading arrangement[614](index=614&type=chunk) [Disclosure Regarding Foreign Jurisdictions that Prevent Inspections](index=129&type=section&id=Item%209C.%20Disclosure%20Regarding%20Foreign%20Jurisdictions%20that%20Prevent%20Inspections) This section is not applicable to the company - Not applicable[615](index=615&type=chunk) Part III [Directors, Executive Officers and Corporate Governance](index=130&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Information required by this item is incorporated by reference from the company's Proxy Statement for the Annual Meeting of Stockholders to be held on May 13, 2024 - Information is incorporated by reference from the Proxy Statement for the Annual Meeting of Stockholders to be held on May 13, 2024[618](index=618&type=chunk) [Executive Compensation](index=130&type=section&id=Item%2011.%20Executive%20Compensation) Information required by this item is incorporated by reference from the company's Proxy Statement for the Annual Meeting of Stockholders to be held on May 13, 2024 - Information is incorporated by reference from the Proxy Statement for the Annual Meeting of Stockholders to be held on May 13, 2024[619](index=619&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=130&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Information required by this item is incorporated by reference from the company's Proxy Statement for the Annual Meeting of Stockholders to be held on May 13, 2024 - Information is incorporated by reference from the Proxy Statement for the Annual Meeting of Stockholders to be held on May 13, 2024[620](index=620&type=chunk) [Certain Relationships and Related Transactions, and Director Independence](index=130&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Information required by this item is incorporated by reference from the company's Proxy Statement for the Annual Meeting of Stockholders to be held on May 13, 2024 - Information is incorporated by reference from the Proxy Statement for the Annual Meeting of Stockholders to be held on May 13, 2024[621](index=621&type=chunk) [Principal Accounting Fees and Services](index=130&type=section&id=Item%2014.%20Principal%20Accounting%20Fees%20and%20Services) Information required by this item is incorporated by reference from the company's Proxy Statement for the Annual Meeting of Stockholders to be held on May 13, 2024 - Information is incorporated by reference from the Proxy Statement for the Annual Meeting of Stockholders to be held on May 13, 2024[622](index=622&type=chunk) Part IV [Exhibits, Financial Statement Schedules](index=131&type=section&id=Item%2015.%20Exhibits%2C%20Financial%20Statement%20Schedules) This section lists the financial statements, financial statement schedules, and exhibits filed as part of the Annual Report on Form 10-K, including an index of all filed documents - This section contains a list of all financial statements, schedules, and exhibits filed with the Form 10-K[625](index=625&type=chunk)[626](index=626&type=chunk) [Form 10-K Summary](index=140&type=section&id=Item%2016.%20Form%2010-K%20Summary) The company reports no Form 10-K summary - None[641](index=641&type=chunk)

Exhibit 99.1 FOR IMMEDIATE RELEASE: February 21, 2024 NiSource announces fourth quarter 2023 results This press release includes financial results and guidance for NiSource with respect to net operating earnings available to common shareholders and diluted earnings per share (NOEPS), which is a non-GAAP financial measure as defined by the SEC. The company includes this measure because management believes they permit investors to view the company's performance using the same tools that management uses and to ...

Risource® NiSource | NYSE: NI | nisource.com | We exist to deliver safe, reliable energy that drives value to our customers | --- | --- | --- | --- | --- | --- | |----------------------------------|-------|-------|-------|-------|-------| | | | | | | | | 3Q 2023 RESULTS November 1, 2023 | | | | | | FORWARD-LOOKING STATEMENTS NiSource | NYSE: NI | nisource.com | This presentation contains "forward-looking statements," within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securitie ...

Financial Performance - NiSource reported operating revenues of $1,027.4 million for the three months ended September 30, 2023, a decrease of $62.1 million compared to $1,089.5 million in the same period of 2022[150]. - The net income available to common shareholders for the three months ended September 30, 2023, increased by $25.0 million to $77.0 million, primarily due to higher revenues driven by regulatory rate increases[151]. - Total operating expenses decreased by $138.4 million to $794.4 million for the three months ended September 30, 2023, compared to $932.8 million in the same period of 2022[150]. - NiSource's operating income for the three months ended September 30, 2023, was $233.0 million, an increase of $76.3 million compared to $156.7 million in the same period of 2022[150]. - Operating revenues for Q3 2023 were $531.5 million, a decrease of $44.0 million (7.7%) compared to Q3 2022, while revenues for the nine months ended September 30, 2023, were $2,731.8 million, down $27.8 million (1.0%) year-over-year[162]. - Operating income for Q3 2023 increased to $52.2 million, up $18.8 million (56.3%) from Q3 2022, while for the nine months, it decreased to $614.5 million, down $10.3 million (1.7%) year-over-year[162]. - The decrease in net income available to common shareholders for the nine months ended September 30, 2023, was primarily due to the absence of an insurance settlement received in 2022[152]. Energy Costs and Revenue Drivers - The company achieved a significant reduction in the cost of energy, which fell by $149.5 million to $181.3 million for the three months ended September 30, 2023[150]. - The cost of energy for Q3 2023 was $72.1 million, down $85.9 million (54.3%) from Q3 2022, and for the nine months, it was $823.1 million, a decrease of $177.4 million (17.7%) compared to the previous year[162]. - The change in operating revenues for Q3 2023 was primarily driven by new rates from base rate proceedings and regulatory capital programs, contributing $42.3 million, while the impact of weather resulted in a decrease of $2.6 million[164]. - The decrease in operating revenues was primarily due to a $63.6 million reduction in the cost of energy billed to customers, which was offset by lower operating expenses[174]. Customer and Market Dynamics - Residential revenues increased by $20.4 million (6.1%) in Q3 2023 compared to Q3 2022, and for the nine months, they rose by $56.0 million (3.2%) year-over-year[162]. - The total number of gas distribution customers increased to 3,236,685, an increase of 28,445 customers compared to the previous year[162]. - Residential sales decreased by 2.7% to $176.0 million in Q3 2023, while industrial sales saw a significant decline of 36.1% to $116.0 million compared to Q3 2022[172]. - The total volume of electricity sold decreased by 137.3 GWh (3.2%) in Q3 2023 compared to Q3 2022, primarily due to reduced usage by industrial and residential customers[176]. Renewable Energy Transition - The company plans to replace its coal generation capacity by the end of 2028 with primarily renewable resources, with substantial completion of its first two solar projects achieved in August 2023[143]. - NIPSCO is transitioning to renewable energy sources, with three wind projects and two solar projects totaling approximately 1,269 MW of nameplate capacity already in service[184]. - The company is working on several renewable projects, with the majority expected to be placed in service in 2024 and 2025, amid challenges related to supply chain issues and regulatory investigations[185]. - NiSource continues to implement energy efficiency programs to reduce emissions and conserve resources, contributing to a long-term trend of declining average use per customer[213]. - NiSource Inc. announced a Net-Zero Goal of achieving net-zero greenhouse gas emissions by 2040, with interim targets to reduce fugitive methane emissions by 50% from 2005 levels by 2025[229]. Regulatory and Compliance Matters - NiSource filed a request for a certificate of public convenience and necessity for a new 400 MW natural gas peaking generation unit in September 2023, expected to enhance system reliability[144]. - The approved revenue increase for NIPSCO's electric operations is $291.8 million, effective August 2023, with an approved ROE of 9.80%[217]. - NIPSCO's gas operations have an active rate case with a proposed revenue increase of $161.9 million, with an order expected in Q3 2024[217]. - The company is evaluating proposed regulatory revisions under the PIPES Act of 2020, which may require increased leak detection and repair efforts[219]. - NiSource is monitoring potential impacts from proposed EPA regulations aimed at reducing carbon dioxide emissions from natural gas and coal-fired electric generating units[225]. Financial Position and Investments - NiSource reported cash from operating activities of $1,535.9 million for the nine months ended September 30, 2023, an increase of $499.7 million compared to $1,036.2 million in 2022[189]. - The company utilized $2,503.3 million in investing activities during the same period, which is an increase of $820.6 million from $1,682.7 million in 2022, primarily due to higher capital expenditures[189][191]. - NiSource's financing activities generated $998.6 million, up by $368.4 million from $630.2 million in 2022, reflecting improved access to capital[189]. - The company plans to invest between $3.3 billion and $3.6 billion in capital expenditures for 2023 and approximately $16.0 billion from 2024 to 2028 to support its renewable generation transition strategy[192]. - NiSource entered into a BIP Purchase Agreement for a 19.9% equity interest in NIPSCO for $2.150 billion, aimed at funding capital expenditure plans and reducing debt[188]. Risk Management and Financial Stability - The company has a $1.5 billion commercial paper program backed by a $1.85 billion revolving credit facility, ensuring liquidity for ongoing operations[187]. - The debt to capitalization ratio was 63.1% as of September 30, 2023, remaining below the covenant limit of 70.0%[203]. - NiSource's credit ratings remained stable with S&P rating at BBB+ and Moody's at Baa2 as of September 30, 2023[204]. - The company has approximately $89.5 million in collateral requirements that would be triggered by a downgrade below investment grade[204]. - Interest rate risk exposure indicates that a 100 basis point increase in short-term interest rates would have increased interest expense by $4.8 million for Q3 2023[237]. Employee and Operational Challenges - The company is facing increased competition for talent, leading to higher costs for attracting and retaining employees, which may impact operational efficiency[147]. - Higher employee and administrative expenses contributed to an unfavorable change of $8.2 million in Q3 2023 compared to Q3 2022[170]. - The company continues to monitor regulatory approvals for its coal units, which are critical for its operational strategy and future financial performance[182].

NiSource, Inc. (NYSE:NI) Q2 2023 Earnings Conference Call August 2, 2023 11:00 AM ET Company Participants Christopher Turnure - Director, IR Lloyd Yates - President, CEO & Director Michael Luhrs - EVP, Strategy & Risk and Chief Commercial Officer Shawn Anderson - EVP & CFO Conference Call Participants Shahriar Pourreza - Guggenheim Securities Richard Sunderland - JPMorgan Chase & Co. Steven Fleishman - Wolfe Research Julien Dumoulin-Smith - Bank of America Merrill Lynch Durgesh Chopra - Evercore ISI Travis ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-16189 NiSource Inc. | | Trading | Name of Each Exchange on Which | | --- | --- | --- | | Title of Each Class | Symbol(s) | Registered | | Co ...