Supplemental Slides Second Quarter 2020 Earnings August 5, 2020 Forward-Looking Statements This presentation contains "forward-looking statements" within the meaning of federal securities laws. Investors and prospective investors should understand that many factors govern whether any forward-looking statement contained herein will be or can be realized. Any one of those factors could cause actual results to differ materially from those projected. These forward-looking statements include, but are not limited ...

Financial Performance - For the six months ended June 30, 2020, the company experienced approximately $17.8 million in lower usage revenue primarily due to decreased commercial and industrial demand, partially offset by a $6.9 million increase in residential usage revenue [242]. - The company reported a net loss available to common shareholders of $18.5 million, or $0.05 per basic share for Q2 2020, compared to a net income of $283.1 million, or $0.76 per basic share for Q2 2019, reflecting a decrease of $301.6 million [255]. - For the six months ended June 30, 2020, net income available to common shareholders was $43.3 million, or $0.11 per basic share, down from $488.2 million, or $1.31 per basic share for the same period in 2019, indicating a decrease of $444.9 million [256]. - Operating revenues for Q2 2020 were $962.7 million, a decrease of $47.7 million from $1,010.4 million in Q2 2019, and for the six months ended June 30, 2020, revenues were $2,568.2 million, down $312.0 million from $2,880.2 million in 2019 [254]. - Operating income for Q2 2020 was $91.7 million, a significant decline from $463.5 million in Q2 2019, and for the six months ended June 30, 2020, operating income was $239.9 million, down from $837.7 million in the same period of 2019 [257][258]. COVID-19 Impact - The company incurred approximately $10.8 million in expenses related to personal protective equipment and other COVID-19 related services and supplies during the first half of 2020 [242]. - The company anticipates lower revenue and cash flow during the second half of 2020 compared to the same period in 2019 due to decreased commercial and industrial demand and the suspension of late payment and reconnection fees [243]. - The company has suspended shut-offs for non-payment and late payment charges in response to the COVID-19 pandemic, which is expected to remain in effect through the third or fourth quarters of 2020 [239]. - The company is continuously monitoring the impact of COVID-19 on its operations and liquidity, with potential future risks including increased bad debt and delays in capital construction projects [245]. - Increased bad debt expense primarily related to COVID-19 was $6.2 million for the six months ended June 30, 2020 [283]. Capital Investments and Expenditures - The company has reduced its expected 2020 capital investments by $145 million to conserve cash, while maintaining its capital construction programs and renewable generation projects [242]. - The company expects to invest approximately $1.7 to $1.8 billion in capital during 2020 as part of its long-term infrastructure investment strategy, which totals an estimated $30 billion [264]. - The company invested $819.3 million in capital expenditures for the six months ended June 30, 2020, focusing on safety and reliability improvements in gas distribution and electric generation [263]. - Capital expenditures for the first half of 2020 were $819.3 million, down from $843.5 million in the same period in 2019, with total projected capital expenditures for 2020 estimated at $1.7 to $1.8 billion [311]. Liquidity and Financial Position - The company is actively managing its liquidity and has sufficient resources for the next 12 to 24 months, supported by refinancing efforts and anticipated cash proceeds from the sale of the Massachusetts Business [242]. - The company has $1,982.0 million in net liquidity available as of June 30, 2020, compared to $1,409.1 million as of December 31, 2019, indicating improved liquidity [266]. - The debt to capitalization ratio as of June 30, 2020, was 63.8%, below the 70% limit set by the revolving credit facility [317]. - The company collected $800 million from insurance providers related to the Greater Lawrence Incident, but total costs have exceeded available insurance coverage [308]. Operational Performance - Operating expenses increased by $379.4 million for the three months ended June 30, 2020 compared to the same period in 2019 [276]. - The decrease in operating expenses for the six months ended June 30, 2020, was $88.4 million (approximately 13.5%) compared to the same period in 2019 [294]. - Total volumes sold and transported for the three months ended June 30, 2020 were 196.5 MMDth, an increase from 195.0 MMDth for the same period in 2019 [282]. - Total volumes sold and transported for the six months ended June 30, 2020 were 546.9 MMDth, a decrease from 577.2 MMDth for the same period in 2019 [283]. Strategic Initiatives - The company has launched a multi-year strategic initiative aimed at improving cost structure and operational capabilities, which includes a voluntary separation program for certain employees [253]. - The company has entered into an Asset Purchase Agreement to sell the Massachusetts Business to Eversource for a purchase price of $1,100 million in cash, subject to adjustments [252]. - NIPSCO plans to retire 2,080 MW of generating capacity by 2023, representing 72% of its remaining capacity and 100% of its coal-fired capacity [305]. - The planned replacement of approximately 1,400 MW of retiring coal-fired generation could lead to capital investment opportunities of $1.8 to $2.0 billion in 2022 and 2023 [305]. Regulatory and Compliance - Disclosure controls and procedures were evaluated as effective by the CEO and CFO, ensuring accurate financial information processing and reporting [340]. - No changes in internal control over financial reporting during the fiscal quarter that materially affected internal controls [341]. - The credit rating agencies have maintained a stable outlook for NiSource and its subsidiaries as of June 30, 2020 [319].

PART I FINANCIAL INFORMATION [Item 1. Financial Statements](index=7&type=section&id=Item%201.%20Financial%20Statements) NiSource reported a significant decline in Q1 2020 operating revenues and net income, primarily due to a **$280.2 million** pre-tax loss from classifying its Massachusetts business as held for sale Condensed Statements of Consolidated Income (unaudited) | Indicator | Three Months Ended March 31, 2020 | Three Months Ended March 31, 2019 | | :--- | :--- | :--- | | **Total Operating Revenues** | $1,605.5 million | $1,869.8 million | | **Operating Income** | $148.2 million | $374.2 million | | **Net Income** | $75.6 million | $218.9 million | | **Net Income Available to Common Shareholders** | $61.8 million | $205.1 million | | **Diluted Earnings Per Share** | $0.16 | $0.55 | Condensed Consolidated Balance Sheets (unaudited) | Indicator | March 31, 2020 | December 31, 2019 | | :--- | :--- | :--- | | **Total Assets** | $22,592.7 million | $22,659.8 million | | **Total Liabilities** | $16,851.3 million | $16,673.1 million | | **Total Stockholders' Equity** | $5,741.4 million | $5,986.7 million | Condensed Statements of Consolidated Cash Flows (unaudited) | Indicator | Three Months Ended March 31, 2020 | Three Months Ended March 31, 2019 | | :--- | :--- | :--- | | **Net Cash Flows from Operating Activities** | $369.9 million | $399.1 million | | **Net Cash Flows used for Investing Activities** | ($484.6) million | ($375.4) million | | **Net Cash Flows from Financing Activities** | $179.3 million | $16.0 million | [Notes to Condensed Consolidated Financial Statements (unaudited)](index=16&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements%20%28unaudited%29) Key notes include the adoption of new accounting standards, the classification of the Massachusetts business as held for sale, ongoing legal proceedings, and NIPSCO's coal-fired capacity retirement plan - The company adopted ASU 2016-13 (ASC 326) regarding credit losses on January 1, 2020, which did not have a material impact on the financial statements[37](index=37&type=chunk) - The company agreed to sell its Massachusetts Business for **$1.1 billion** in cash, resulting in a **$280.2 million** pre-tax loss in Q1 2020 as assets were classified as held for sale[54](index=54&type=chunk) - The company faces legal proceedings related to the September 2018 Greater Lawrence Incident, including a **$53 million** fine and a **$143 million** class action settlement[115](index=115&type=chunk)[132](index=132&type=chunk)[138](index=138&type=chunk) - NIPSCO plans to retire all coal-fired generating capacity by **2028**, replacing it with lower-cost, cleaner energy resources, including renewables[160](index=160&type=chunk)[161](index=161&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=46&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the financial impacts of the Massachusetts business sale and Greater Lawrence Incident, outlines COVID-19 responses, and confirms sufficient liquidity for the next 12-24 months with projected 2020 capital expenditures of **$1.7 to $1.8 billion** [Executive Summary](index=47&type=section&id=Executive%20Summary) The executive summary details the company's COVID-19 response, potential negative impacts, and the financial implications of the Greater Lawrence Incident and the Massachusetts business sale - In response to the COVID-19 pandemic, NiSource activated its Incident Command System, implemented work-from-home policies, suspended non-essential work inside customer premises, and offered flexible payment plans[190](index=190&type=chunk)[191](index=191&type=chunk)[192](index=192&type=chunk) - Potential negative impacts from COVID-19 include reduced commercial/industrial demand, increased bad debt, supply chain disruptions, and delays in capital projects, with a 1% annual decrease in commercial and industrial sales estimated to decrease operating income by approximately **$10.0 million** in 2020[196](index=196&type=chunk)[197](index=197&type=chunk) Greater Lawrence Incident Costs (Incident to Date as of March 31, 2020) | Category | Amount (in millions) | | :--- | :--- | | Third-party claims | $1,041 | | Other incident-related costs | $429 | | **Total Costs** | **$1,470** | | Insurance recoveries recorded | ($800) | | **Total Net Costs Incurred** | **$670** | - The company entered into an agreement to sell its Columbia of Massachusetts business to Eversource for **$1.1 billion** in cash, expected to close by the end of Q3 2020[205](index=205&type=chunk) [Summary of Consolidated Financial Results](index=50&type=section&id=Summary%20of%20Consolidated%20Financial%20Results) Consolidated net income significantly decreased in Q1 2020, primarily due to the Massachusetts Business sale classification loss, lower industrial revenue, and warmer weather, despite increased capital expenditures - Consolidated net income available to common shareholders for Q1 2020 was **$61.8 million** (**$0.16/share**), a significant decrease from **$205.1 million** (**$0.55/share**) in Q1 2019[207](index=207&type=chunk) - The decrease in net income was primarily due to a **$280.2 million** loss on the classification of the Massachusetts Business as held for sale, lower industrial revenue, and warmer weather, partially offset by new rates and lower income taxes[207](index=207&type=chunk)[209](index=209&type=chunk)[210](index=210&type=chunk) - Capital expenditures for Q1 2020 were **$452.1 million**, with the full-year 2020 capital investment expected to be between **$1.7 billion** and **$1.8 billion**[214](index=214&type=chunk)[215](index=215&type=chunk) [Results and Discussion of Segment Operations](index=53&type=section&id=Results%20and%20Discussion%20of%20Segment%20Operations) Segment operating income saw significant declines in both Gas Distribution and Electric Operations for Q1 2020 Segment Operating Income (Three Months Ended March 31) | Segment | 2020 (in millions) | 2019 (in millions) | Change (in millions) | | :--- | :--- | :--- | :--- | | Gas Distribution Operations | $78.5 | $275.4 | ($196.9) | | Electric Operations | $78.5 | $95.0 | ($16.5) | [Gas Distribution Operations](index=54&type=section&id=Gas%20Distribution%20Operations) Gas Distribution operating income significantly decreased to **$78.5 million**, primarily due to a **$280.2 million** loss from the Massachusetts business classification and unfavorable weather, partially offset by lower Greater Lawrence Incident expenses and new rates - The segment's operating income decreased by **$196.9 million**, primarily due to the **$280.2 million** loss recorded on the classification of the Massachusetts Business as held for sale[223](index=223&type=chunk)[225](index=225&type=chunk) - Operating revenues decreased by **$211.1 million**, driven by lower pass-through gas costs (**$172.7 million**) and unfavorable weather (**$36.1 million**), partially offset by new rates (**$14.7 million**)[226](index=226&type=chunk) - Weather in Q1 2020 was approximately **16%** warmer than normal and **16%** warmer than Q1 2019, leading to a decrease in operating revenues of **$36.1 million**[227](index=227&type=chunk) [Electric Operations](index=58&type=section&id=Electric%20Operations) Electric Operations' operating income decreased by **$16.5 million** due to lower industrial revenue and higher depreciation, partially offset by new residential and commercial rates - Operating income decreased by **$16.5 million** compared to the prior year period[235](index=235&type=chunk)[236](index=236&type=chunk) - The decrease was primarily driven by lower industrial revenue (**$12.5 million**) and higher depreciation expense (**$15.1 million**) from a recent rate case[237](index=237&type=chunk) - New residential and commercial rates from the recent base rate proceeding partially offset negative impacts, adding **$13.2 million** to revenue[237](index=237&type=chunk) [Liquidity and Capital Resources](index=61&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains adequate capital for the next 12 to 24 months, supported by operating cash flow, credit facilities, and recent debt issuances, while adhering to its debt-to-capitalization ratio - The company believes it has adequate capital for the next 12 to 24 months, supported by operating cash flow, credit facilities, and access to capital markets, enhanced by a new **$850.0 million** term loan and a **$1.0 billion** senior unsecured notes issuance[216](index=216&type=chunk)[217](index=217&type=chunk) Net Available Liquidity | Component | March 31, 2020 (in millions) | December 31, 2019 (in millions) | | :--- | :--- | :--- | | Revolving Credit Facility | $1,850.0 | $1,850.0 | | Less: Borrowings & Letters of Credit | ($510.2) | ($10.2) | | Less: Commercial Paper | ($237.0) | ($570.0) | | Accounts Receivable Program Utilized | $0.0 | $0.0 | | Add: Cash and Cash Equivalents | $203.8 | $139.3 | | **Net Available Liquidity** | **$1,306.6** | **$1,409.1** | - The company is required to maintain a debt-to-capitalization ratio below **70%** under its credit facilities, with the ratio at **63.2%** as of March 31, 2020[257](index=257&type=chunk) - Credit ratings from S&P, Moody's, and Fitch remain investment grade, and S&P revised the company's outlook from Negative to Stable in February 2020[259](index=259&type=chunk)[261](index=261&type=chunk) [Market Risk Disclosures](index=63&type=section&id=Market%20Risk%20Disclosures) The company's primary market risks include commodity price, interest rate, and credit risks, with active oversight by the Risk Management Committee and anticipated increases in customer bad debt due to COVID-19 - The company's principal market risks are commodity price risk, interest rate risk, and credit risk, actively overseen by the Risk Management Committee[266](index=266&type=chunk) - Commodity price risk at rate-regulated subsidiaries is limited as prudently incurred fuel and gas costs are generally recovered through rates[269](index=269&type=chunk) - A **100 basis point (1%)** increase in short-term rates would have increased Q1 2020 interest expense by approximately **$4.3 million** due to exposure to interest rate risk on variable-rate debt[272](index=272&type=chunk) - As a result of COVID-19, the company anticipates an increase in customer bad debt due to the suspension of shutoffs and customers' potential inability to pay[277](index=277&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=65&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section refers to the 'Market Risk Disclosures' section within Management's Discussion and Analysis for information regarding the company's exposure to commodity price, interest rate, and credit risks - The report directs readers to the "Management's Discussion and Analysis of Financial Condition and Results of Operations - Market Risk Disclosures" section for details on market risk[281](index=281&type=chunk) [Item 4. Controls and Procedures](index=65&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, evaluated the company's disclosure controls and procedures and concluded they were effective as of March 31, 2020, with no material changes to internal control over financial reporting during the quarter - The CEO and CFO concluded that as of the end of the period, the company's disclosure controls and procedures were effective at a reasonable assurance level[281](index=281&type=chunk) - There were no changes in internal control over financial reporting during the quarter that have materially affected, or are reasonably likely to materially affect, these controls[282](index=282&type=chunk) PART II OTHER INFORMATION [Item 1. Legal Proceedings](index=66&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to Note 18-B in the Notes to Condensed Consolidated Financial Statements for a detailed description of the company's legal proceedings, primarily related to the Greater Lawrence Incident - For a description of legal proceedings, the report refers to Note 18-B, "Legal Proceedings," in the Notes to Condensed Consolidated Financial Statements[285](index=285&type=chunk) [Item 1A. Risk Factors](index=66&type=section&id=Item%201A.%20Risk%20Factors) The company has added a new risk factor concerning the COVID-19 pandemic, highlighting its potential material adverse impact on business operations, financial condition, and cash flows through various channels - A new risk factor has been added to supplement the 2019 Form 10-K, specifically addressing the potential material adverse impact of the COVID-19 pandemic on the business[286](index=286&type=chunk)[287](index=287&type=chunk) - Potential impacts from COVID-19 include prolonged reduction in economic activity, disruptions to supply chains and capital markets, reduced labor availability, increased bad debt, and fluctuations in demand for gas and electric services[287](index=287&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=66&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered sales of equity securities or use of proceeds during the period - None reported for the period[288](index=288&type=chunk) [Item 6. Exhibits](index=67&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including the Asset Purchase Agreement for the sale of the Massachusetts business, the Columbia Gas of Massachusetts Plea Agreement, the NiSource Deferred Prosecution Agreement, a new Term Loan Agreement, and various officer certifications

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2019 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. (Exact name of registrant as specified in its charter) | DE | | 35-2108964 | | --- | --- | --- | | (State or other jurisdict ...

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 September 30, 2019 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. (Exact name of registrant as specified in its charter) DE 35-2108964 (State or other jurisdiction of incorporation ...

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, 2019 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. (Exact name of registrant as specified in its charter) DE 35-2108964 (State or other jurisdiction of incorporation or or ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q þ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2019 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. (Exact name of registrant as specified in its charter) Delaware 35-2108964 (State or other jurisdiction of incorporatio ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K þ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2018 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. (Exact name of registrant as specified in its charter) | Delaware | 35-2108964 | | --- | --- | | (State or other jurisdictio ...