[PART I - FINANCIAL INFORMATION](index=8&type=section&id=PART%20I%20-%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements](index=8&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements for Q1 2025, showing increased net income and diluted EPS year-over-year [Condensed Statements of Consolidated Income (unaudited)](index=8&type=section&id=Item%201.%20Financial%20Statements) | Indicator (in millions) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | **Total Operating Revenues** | $2,183.2 | $1,706.3 | | **Operating Income** | $759.4 | $583.4 | | **Net Income** | $526.7 | $400.3 | | **Net Income Attributable to NiSource** | $474.8 | $365.0 | | **Net Income Available to Common Shareholders** | $474.8 | $344.3 | | **Diluted Earnings Per Share** | $1.00 | $0.77 | [Condensed Consolidated Balance Sheet Highlights (unaudited)](index=8&type=section&id=Item%201.%20Financial%20Statements) | Asset/Liability (in millions) | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | $33,105.1 | $31,788.1 | | Net Property, Plant and Equipment | $26,489.9 | $25,453.9 | | **Total Stockholders' Equity** | $10,946.0 | $10,668.3 | | **Total Liabilities** | $22,159.1 | $21,119.8 | | Long-term debt (including current portion) | $14,114.1 | $13,355.7 | [Condensed Statements of Consolidated Cash Flows (unaudited)](index=8&type=section&id=Item%201.%20Financial%20Statements) | Cash Flow Activity (in millions) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | **Net Cash Flows from Operating Activities** | $686.4 | $456.2 | | **Net Cash Flows used for Investing Activities** | $(1,352.7) | $(723.0) | | **Net Cash Flows from (used for) Financing Activities** | $771.4 | $(1,873.8) | [Notes to Condensed Consolidated Financial Statements (unaudited)](index=15&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements%20(unaudited)) Detailed notes disclose accounting policies, revenue, debt, and regulatory matters, including new segment reporting and a $750 million debt issuance - The company adopted ASU 2023-07 for segment reporting, enhancing disclosures about significant segment expenses and information about the Chief Operating Decision Maker (CODM)[33](index=33&type=chunk) [Revenue by Segment (Q1 2025 vs Q1 2024)](index=15&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements%20(unaudited)) | Segment (in millions) | Q1 2025 Total Operating Revenues | Q1 2024 Total Operating Revenues | | :--- | :--- | :--- | | Columbia Operations | $1,240.6 | $953.7 | | NIPSCO Operations | $941.4 | $752.4 | | Corporate and Other | $1.2 | $0.2 | | **Total** | **$2,183.2** | **$1,706.3** | - In March 2025, NiSource issued **$750.0 million of 5.850% senior unsecured notes** due in 2055, with net proceeds of approximately **$739.6 million**[64](index=64&type=chunk) - NIPSCO made significant milestone payments for its renewable generation projects, including a **$336.6 million payment** for the Fairbanks project and a **$217.6 million payment** for the Dunns Bridge II project upon its substantial completion in January 2025[111](index=111&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=35&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2025 financial results, highlighting increased net income from new rates, liquidity, and strategic capital investments - Net income available to common shareholders increased by **$130.5 million** YoY, primarily due to higher revenues from capital investments, partially offset by increased operating and interest expenses[137](index=137&type=chunk)[138](index=138&type=chunk) - The company is advancing its energy transition, with **1,500 MW of owned renewable projects** and **600 MW of PPA projects** in service as of March 31, 2025. It remains on track to retire remaining coal units at R.M. Schahfer by the end of 2025[129](index=129&type=chunk) - NiSource is evaluating significant potential load growth from data center development in its northern Indiana service territory, which would require new generation resources[131](index=131&type=chunk) - The company plans to make capital investments of **$4.0 billion to $4.3 billion** in 2025 and approximately **$19.4 billion** during the 2025-2029 period[175](index=175&type=chunk) [Executive Summary](index=37&type=section&id=Executive%20Summary) NiSource's vision focuses on infrastructure investment, energy transition, operational excellence, and managing economic factors like data center growth - NiSource is advancing its energy transition by retiring coal-fired generation and replacing it with a balanced mix of low- or zero-emission sources. As of Q1 2025, **1,500 MW of owned renewable projects are in service**[129](index=129&type=chunk) - The company is evaluating potential data center development in its service territory, which could significantly increase power demand and require new generation resources[131](index=131&type=chunk) - An enterprise-wide transformation is underway, focusing on operational excellence and efficiency through investments in technology like the WAM program, which is expected to be fully implemented by the end of 2025[133](index=133&type=chunk) [Results and Discussion of Segment Operations](index=39&type=section&id=Results%20and%20Discussion%20of%20Segment%20Operations) Segment operations show increased operating income for both Columbia and NIPSCO, driven by new rates and favorable weather conditions [Columbia Operations Operating Income (in millions)](index=39&type=section&id=Results%20and%20Discussion%20of%20Segment%20Operations) | Period | Operating Income | Change (Favorable) | | :--- | :--- | :--- | | Q1 2025 | $445.8 | $83.8 | | Q1 2024 | $362.0 | | - Columbia Operations' revenue increase was primarily driven by new rates from base rate proceedings and regulatory capital programs (**$73.2M**) and the effects of colder weather (**$27.2M**)[147](index=147&type=chunk) [NIPSCO Operations Operating Income (in millions)](index=39&type=section&id=Results%20and%20Discussion%20of%20Segment%20Operations) | Period | Operating Income | Change (Favorable) | | :--- | :--- | :--- | | Q1 2025 | $311.9 | $95.5 | | Q1 2024 | $216.4 | | - NIPSCO Operations' revenue increase was primarily driven by new rates from base rate proceedings and regulatory programs (**$82.1M**) and the effects of weather (**$28.2M**)[157](index=157&type=chunk) [Liquidity and Capital Resources](index=48&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity, issued $750 million in debt, and is on track with its 2025 capital expenditure plans [Net Available Liquidity (in millions)](index=48&type=section&id=Liquidity%20and%20Capital%20Resources) | Date | Net Available Liquidity | | :--- | :--- | | March 31, 2025 | $1,712.9 | | December 31, 2024 | $1,567.6 | - On March 27, 2025, the company issued **$750.0 million of 5.850% senior unsecured notes** maturing in 2055[170](index=170&type=chunk) - The company is on track to invest **$4.0 to $4.3 billion** in capital projects during 2025 and forecasts **$19.4 billion** in investments from 2025-2029[175](index=175&type=chunk) - Credit ratings from S&P, Moody's, and Fitch remain stable and investment-grade for both NiSource and NIPSCO[183](index=183&type=chunk) [Regulatory, Environmental and Safety Matters](index=52&type=section&id=Regulatory,%20Environmental%20and%20Safety%20Matters) The company addresses regulatory engagement, environmental goals including Net Zero by 2040, and safety protocols, monitoring new rules - The company has a **Net Zero GHG emissions goal by 2040** for Scope 1 and 2 emissions and had reduced Scope 1 emissions by approximately **72% from 2005 levels** as of the end of 2024[205](index=205&type=chunk) [Pending Rate Cases](index=52&type=section&id=Regulatory,%20Environmental%20and%20Safety%20Matters) | Company | Requested Incremental Revenue (in millions) | Status | | :--- | :--- | :--- | | NIPSCO - Electric | $368.7 | Settlement filed for $257.0M increase | | Columbia of Virginia | $37.2 | Settlement filed for $28.2M increase | | Columbia of Pennsylvania | $110.5 | In process | - The company is monitoring proposed PHMSA rules for leak detection and repair (LDAR) and safety of gas distribution pipelines (SGDP), which could impact operations and costs[195](index=195&type=chunk)[196](index=196&type=chunk)[197](index=197&type=chunk) - The EPA's final GHG standards for power plants are not expected to impact NIPSCO's existing generation but may affect new generation and are estimated to add **$675 million in costs** to customers[203](index=203&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=57&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section refers to Item 2 for market risk disclosures, focusing on commodity price, interest rate, and credit risks - The report directs readers to the Market Risk Disclosures section in Item 2 for detailed information[218](index=218&type=chunk) - A **100 basis point (1%) change** in short-term interest rates would impact interest expense by approximately **$2.5 million** for the three months ended March 31, 2025[212](index=212&type=chunk) - Commodity price risk is largely mitigated as prudently incurred costs, including gains or losses on derivatives, are recovered through regulatory mechanisms like GCA and FAC[209](index=209&type=chunk) [Item 4. Controls and Procedures](index=57&type=section&id=Item%204.%20Controls%20and%20Procedures) CEO and CFO concluded disclosure controls were effective as of March 31, 2025, with no material changes to internal controls - The CEO and CFO concluded that as of the end of the reporting period, the company's disclosure controls and procedures were effective at a reasonable assurance level[218](index=218&type=chunk) - There were no changes in internal control over financial reporting during the quarter that materially affected, or are reasonably likely to materially affect, these controls[219](index=219&type=chunk) [PART II - OTHER INFORMATION](index=58&type=section&id=PART%20II%20-%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=58&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to Note 14 for legal proceedings, with the company expecting no material impact from pending claims - For details on legal proceedings, the report refers to Note 14, 'Other Commitments and Contingencies - B. Legal Proceedings,' in the financial statements[222](index=222&type=chunk) [Item 1A. Risk Factors](index=58&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors were reported from the Annual Report on Form 10-K for the year ended December 31, 2024 - There have been no material changes to the risk factors set forth in the Annual Report on Form 10-K for the year ended December 31, 2024[223](index=223&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=58&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No unregistered sales of equity securities or use of proceeds were reported during the period - None reported for the period[224](index=224&type=chunk) [Item 5. Other Information](index=58&type=section&id=Item%205.%20Other%20Information) No directors or executive officers adopted or terminated Rule 10b5-1 trading plans during Q1 2025 - During the quarter ended March 31, 2025, no directors or executive officers adopted or terminated a Rule 10b5-1 trading plan or a non-Rule 10b5-1 trading arrangement[226](index=226&type=chunk) [Item 6. Exhibits](index=59&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including new notes, CEO/CFO certifications, and XBRL data - The list of exhibits includes CEO and CFO certifications (31.1, 31.2, 32.1, 32.2) and the form of the 5.850% Notes due 2055[229](index=229&type=chunk)

[First Quarter 2025 Earnings Release](index=1&type=section&id=First%20Quarter%202025%20Earnings%20Release) NiSource reported robust first-quarter 2025 financial performance, reaffirming its full-year guidance and providing essential disclosures on non-GAAP measures and forward-looking statements [Financial Highlights and Outlook](index=1&type=section&id=Financial%20Highlights%20and%20Outlook) NiSource reported strong first-quarter 2025 results with significant year-over-year growth in both GAAP and non-GAAP earnings per share, reaffirming full-year 2025 EPS guidance and long-term growth targets Q1 2025 vs Q1 2024 Financial Performance | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | **GAAP Net Income** | $474.8 million | $344.3 million | +37.9% | | **GAAP Diluted EPS** | $1.00 | $0.77 | +29.9% | | **Non-GAAP Adjusted Net Income** | $462.3 million | $382.8 million | +20.8% | | **Non-GAAP Adjusted EPS** | $0.98 | $0.85 | +15.3% | - NiSource reaffirmed its financial guidance, signaling confidence in its long-term strategy[3](index=3&type=chunk)[5](index=5&type=chunk) Company Guidance | Period | Metric | Guidance | | :--- | :--- | :--- | | **2025** | Non-GAAP Adjusted EPS | $1.85 - $1.89 | | **2025-2029** | Annual Rate Base Growth | 8% - 10% | | **2025-2029** | Annual Non-GAAP Adjusted EPS Growth | 6% - 8% | - CEO Lloyd Yates attributed the strong Q1 results to the team's execution on growth and sustainability plans, highlighting the enduring and resilient nature of the company's investments despite market conditions[4](index=4&type=chunk) [Reconciliation of GAAP to Non-GAAP Measures](index=5&type=section&id=Schedule%201%20-%20Reconciliation%20of%20Consolidated%20Net%20Income%20Available%20to%20Common%20Shareholders%20to%20Adjusted%20Net%20Income%20Available%20to%20Common%20Shareholders%20%28Non-GAAP%29%20%28unaudited%29) The company provided a detailed reconciliation of its GAAP net income to non-GAAP adjusted net income for the first quarter, with primary adjustments related to weather impacts and a preferred dividends redemption premium Reconciliation of GAAP to Non-GAAP Net Income (in millions) | Description | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | **GAAP Net Income Available to Common Shareholders** | **$474.8** | **$344.3** | | Weather impact (compared to normal) | $(16.8) | $32.9 | | Tax effect of adjustments | $4.3 | $(8.4) | | Preferred dividends redemption premium | — | $14.0 | | Total adjustments | $(12.5) | $38.5 | | **Adjusted Net Income Available to Common Shareholders** | **$462.3** | **$382.8** | Reconciliation of GAAP to Non-GAAP Diluted EPS | Description | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | **GAAP Diluted EPS** | **$1.00** | **$0.77** | | Adjustments to diluted EPS | $(0.02) | $0.08 | | **Adjusted EPS** | **$0.98** | **$0.85** | [Disclosures and Company Information](index=2&type=section&id=Disclosures%20and%20Company%20Information) This section contains important disclosures regarding the use of non-GAAP financial measures, a detailed safe harbor statement on forward-looking information and associated risks, and general information about NiSource's business operations and corporate profile [Non-GAAP Disclosure Statement](index=2&type=section&id=Non-GAAP%20Disclosure%20Statement) NiSource explains its use of non-GAAP measures to help investors evaluate ongoing business performance, noting the unpredictability of certain factors prevents GAAP reconciliation for guidance - Management uses non-GAAP financial measures because they believe it allows investors to evaluate the company's ongoing business performance with the same tools management uses[6](index=6&type=chunk) - NiSource does not provide a reconciliation of its non-GAAP adjusted EPS guidance to the comparable GAAP measure without unreasonable efforts due to the impact of unpredictable factors[6](index=6&type=chunk) [Forward-Looking Statements](index=3&type=section&id=Forward-Looking%20Statements) This section cautions investors that the press release contains forward-looking statements subject to numerous risks and uncertainties, where actual results could differ materially from projections - Statements concerning guidance, plans, strategies, and expected performance are forward-looking and based on assumptions that may not be realized[10](index=10&type=chunk) - Material risks that could cause actual results to differ include the ability to execute on business plans like data center development, manage infrastructure and technology risks, regulatory changes, adverse economic conditions, and cybersecurity attacks[11](index=11&type=chunk) [About NiSource](index=2&type=section&id=About%20NiSource) NiSource is one of the largest fully-regulated utility companies in the U.S., serving approximately 3.3 million natural gas and 500,000 electric customers across six states - Serves approximately **3.3 million** natural gas customers and **500,000** electric customers across six states[8](index=8&type=chunk) - Employs approximately **7,700** people and is a member of the Dow Jones Sustainability - North America Index[8](index=8&type=chunk)

Core Viewpoint - The Zacks Utilities sector is expected to see a 13.2% increase in first-quarter 2025 earnings, driven by new electric, natural gas, and water rates, cost-saving initiatives, and customer growth [1] Group 1: Earnings Expectations - Four utilities, DTE Energy, American Electric Power, Exelon Corporation, and NiSource Inc., are identified as likely to exceed earnings expectations this reporting cycle due to positive Earnings ESP and favorable Zacks Ranks [2] - The Zacks Consensus Estimate for DTE Energy's first-quarter earnings is $1.91, reflecting a 14.4% increase year-over-year [9] - American Electric Power's first-quarter earnings estimate is $1.75, indicating a 37.8% increase from the previous year [11] - Exelon's first-quarter earnings per share estimate is 75 cents, representing an 8.7% year-over-year increase [13] - NiSource's first-quarter earnings estimate is 88 cents, showing a 3.5% increase from the year-ago figure [15] Group 2: Influencing Factors - Utility providers are benefiting from higher electricity rates, accretive acquisitions, cost reductions, and energy-efficiency programs [3] - The shift to renewable energy sources and improvements in electric infrastructure resilience are also contributing positively [3] - Economic improvements in service territories have increased demand for utility services, boosting revenues [5] - The rise of data centers, particularly those supporting AI, has significantly increased electricity consumption, benefiting utility revenues [5] - Lower capital servicing expenses due to a one percentage point reduction in the Fed's fund rate since September 2024 are expected to enhance margins and profitability for capital-intensive utilities [6] Group 3: Challenges - Severe storms in March 2025 caused power outages in some service regions, potentially leading to higher operating expenses for utilities [7] - DTE Energy's profitability may be impacted by severe storms in southeast Michigan, despite benefiting from rising demand from data centers [8] - American Electric Power also faced negative impacts on earnings due to power outages caused by severe storms in its service areas [10]

Core Viewpoint - The utility sector is viewed as a safe investment during economic turbulence, providing essential services that consumers prioritize even in difficult times [1][7][8]. Group 1: Definition and Characteristics of Utility Stocks - Utility stocks are companies primarily involved in distributing essential services such as electricity, gas, and water [5][6]. - The Global Industry Classification Standard (GICS) categorizes the utility sector to include electric, gas, and water utilities, as well as independent power producers and energy traders [6]. - Utility companies exhibit low economic sensitivity, generating stable revenues and profits, and are known for their substantial dividends [8][9]. Group 2: Investment Appeal - Investors are drawn to utility stocks due to their "stickiness" in revenues, similar to healthcare and consumer staples, making them defensive stocks [7][8]. - Utilities are often among the best-yielding market sectors, providing safety and potential upside during market downturns [9]. - The sector's stability allows for gradual rate increases, although growth is typically capped at low single-digit rates [11]. Group 3: Recent Trends and Opportunities - The rise of artificial intelligence (AI) is expected to significantly increase power usage over the next decade, presenting a unique growth opportunity for utility companies [12][13]. - This trend may enable utilities to enhance their business results in a way that has not been seen before [13]. Group 4: Criteria for Selecting Utility Stocks - A quality screen for selecting utility stocks includes companies within the S&P Composite 1500, with a long-term estimated earnings-per-share growth rate of at least 5% [15]. - Stocks should have a dividend yield of at least 2.5%, with a history of growing dividends by at least 5% over the past year [16][17]. - Companies should have at least five covering analysts and a consensus Buy rating of 2.5 or less on S&P Global Market Intelligence's ratings scale [18][19]. Group 5: Recommended Utility Stocks - Recommended utility stocks include: - IDACORP (IDA): 2.9% yield, 5.5% estimated annual dividend growth, 8.3% long-term EPS growth, consensus rating 1.75 [19]. - NiSource (NI): 2.8% yield, 6.8% estimated annual dividend growth, 8.0% long-term EPS growth, consensus rating 1.53 [19]. - DTE Energy (DTE): 3.1% yield, 6.9% estimated annual dividend growth, 8.0% long-term EPS growth, consensus rating 2.05 [19]. - New Jersey Resources (NJR): 3.6% yield, 5.4% estimated annual dividend growth, 7.6% long-term EPS growth, consensus rating 2.22 [19]. - CMS Energy (CMS): 2.9% yield, 5.8% estimated annual dividend growth, 7.3% long-term EPS growth, consensus rating 2.21 [19]. - Sempra (SRE): 3.7% yield, 5.6% estimated annual dividend growth, 7.0% long-term EPS growth, consensus rating 2.11 [19]. - Ameren (AEE): 2.6% yield, 6.3% estimated annual dividend growth, 6.9% long-term EPS growth, consensus rating 2.24 [19]. - Public Service Enterprise Group (PEG): 3.1% yield, 5.7% estimated annual dividend growth, 6.6% long-term EPS growth, consensus rating 2.35 [19]. - Essential Utilities (WTRG): 3.2% yield, 6.6% estimated annual dividend growth, 6.5% long-term EPS growth, consensus rating 1.46 [19]. - FirstEnergy (FE): 4.1% yield, 5.6% estimated annual dividend growth, 5.7% long-term EPS growth, consensus rating 2.39 [20].

Economic Overview - The University of Michigan's Consumer Sentiment Index for mid-March dropped to 57.9, significantly below the consensus estimate of 63.2 and the final reading of 64.7 in February, indicating a decline in consumer confidence [4] - The short-term inflation outlook increased to 4.9% in March from 4.3% in February, the highest since November 2022, while the long-term inflation outlook rose to 3.9% from 3.4%, marking the highest since February 1991 [5] Investment Strategy - Investment in low-beta high-yielding stocks is recommended as a strategy to safeguard portfolios during uncertain market conditions, with the potential for upside if markets recover [6][8] - The utility sector is highlighted for its stability and consistent demand, making it a favorable choice for income-oriented investors [7][8] Company Highlights Ameren Corp. (AEE) - Ameren plans to invest up to $26.3 billion from 2025 to 2029 to enhance customer reliability and transition to cleaner energy sources [11][12] - Expected revenue and earnings growth rates for the current year are 6% and 6.7%, respectively, with a current dividend yield of 2.90% [14] Atmos Energy Corp. (ATO) - Atmos Energy benefits from rising demand for natural gas and has a long-term investment plan to improve pipeline reliability [15] - Expected revenue and earnings growth rates for the current year are 18.2% and 5.1%, respectively, with a current dividend yield of 2.37% [17] American Water Works Co. Inc. (AWK) - American Water Works is expanding through acquisitions and new water rates, with pending acquisitions expected to add 24,200 customers [21] - Expected revenue and earnings growth rates for the current year are 1.1% and 5.9%, respectively, with a current dividend yield of 2.15% [22] Entergy Corp. (ETR) - Entergy plans to invest $37 billion from 2025 to 2028 to modernize its infrastructure and expand renewable capacity [23] - Expected revenue and earnings growth rates for the current year are 5.5% and 6.3%, respectively, with a current dividend yield of 2.90% [25] NiSource Inc. (NI) - NiSource expects to invest $19.4 billion from 2025 to 2029 to modernize infrastructure and aims to retire all coal-generating sources by 2028 [26][27] - Expected revenue and earnings growth rates for the current year are 11.1% and 9.1%, respectively, with a current dividend yield of 2.90% [28]

Financial Data and Key Metrics Changes - The adjusted EPS for 2024 was reported at $1.75 per share, reflecting a year-over-year increase of 9.4% compared to 2023 [16][56] - The adjusted EPS guidance for 2025 has been raised to a range of $1.85 to $1.89 per share, consistent with a 6% to 8% growth outlook [17][58] - The company achieved $367 million in incremental revenue driven by higher rate base investments, partially offset by increased O&M, depreciation, and non-controlling interest [56][64] Business Line Data and Key Metrics Changes - The NIPSCO electric rate case is driven by nearly $2.5 billion of incremental investment for customers in Northern Indiana [32] - The average residential gas customer bill in Virginia declined by 11% on a total bill basis over the trailing twelve-month period ending December [35] - The company reported an adjusted EPS of $0.49 per share for the fourth quarter, a decrease of $0.04 per share compared to the previous year [56] Market Data and Key Metrics Changes - The company has invested $6.9 billion in capital expenditures across six states over the last two years to support system reliability [12] - The base capital plan for 2025-2029 is set at $19.4 billion, with expected rate base growth of 8% to 10% during this period [18][59] - The company has seen strong customer additions and expanded customer usage, contributing $36 million in revenues across electric and gas businesses for the year [57] Company Strategy and Development Direction - The company aims to deliver safe and reliable energy while maintaining affordable rates through efficient capital deployment and constructive regulatory recovery mechanisms [8][10] - The focus remains on economic development, particularly in Indiana, to attract data center operations, leveraging favorable infrastructure and regulatory conditions [21][24] - The company is actively pursuing a robust portfolio of investment opportunities, including data center strategies, to enhance value for customers and shareholders [53][74] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving long-term growth rates despite external market conditions, supported by a strong regulatory framework [61][70] - The company remains focused on minimizing the financial impact of safety, reliability, and compliance work on customers, projecting less than 5% average annual bill increases [62][66] - The management highlighted the importance of stakeholder engagement and regulatory processes in supporting their investment strategies [11][30] Other Important Information - NiSource Inc. was named to the 2024 Dow Jones Sustainability Indices, marking the eleventh consecutive year of recognition [41] - The company has implemented AI initiatives to enhance operational efficiency, resulting in a 16% increase in work productivity [27] - The company has a strong balance sheet, with FFO to debt for 2024 at 14.6%, up from 14.1% in 2023 [64][66] Q&A Session Summary Question: Can you speak to the Genco filing and risk-sharing considerations? - Management discussed the Genco filing as a regulated entity that allows for flexibility in serving large load customers while protecting existing customers [78][82] Question: What is the timing for commercial arrangements related to data centers? - Management indicated that 2025 is a key year for data center opportunities, with ongoing discussions progressing positively [80][90] Question: Do you need IURC approval for the Genco filing before announcing a deal? - It was clarified that while IURC approval is needed for the Genco entity, it is not required to announce deals with large load customers [110][112] Question: What is the status of the La Porte facility project? - Management confirmed that negotiations are ongoing, but no construction has begun yet [120] Question: How do you view the potential for serving data centers through the gas system? - Management sees significant opportunities to serve data centers through the gas infrastructure, which is robust and reliable [122][123]

Financial Performance and Guidance - NiSource achieved 2024 adjusted EPS of $1.75, exceeding the guidance of $1.70-$1.74[14] - The company is raising its 2025 adjusted EPS guidance to $1.85-$1.89, up from the previous $1.84-$1.88[14] - NiSource reaffirms its annual adjusted EPS growth target of 6%-8% for the period 2025-2029[14] - The company targets an annual FFO/Debt ratio of 14%-16% through 2029[9, 14] - NiSource projects a total shareholder return of 9%-11% annually, assuming a constant P/E ratio and a 3.0% dividend yield[9, 10] Capital Investments and Rate Base - NiSource plans base plan capital expenditures of $19.4 billion for 2025-2029, supporting an 8%-10% rate base growth[9, 14] - The company is shifting approximately $100 million from upside to base plan capital expenditures and adding $500 million of upside opportunity[14] - NiSource's year-end 2024 regulated electric and gas rate base stands at $21.3 billion[9] - The company anticipates an annual average customer bill increase of less than 5% from 2023-2029[38] Segment Results - For the year 2024, NIPSCO Operations reported an adjusted operating income of $741.7 million, compared to $569.0 million in 2023, representing an increase of $172.7 million[36] - Columbia Operations reported an adjusted operating income of $767.2 million in 2024, slightly lower than the $771.6 million in 2023, a decrease of $4.4 million[36] Debt and Equity - As of December 31, 2024, NiSource's debt level was approximately $14.0 billion[59] - The company plans to raise $200-$300 million of annual equity via ATM from 2025-2029 as part of its base capital plan[42]

Financial Data and Key Metrics Changes - The adjusted EPS for 2024 was reported at $1.75 per share, reflecting a year-over-year increase of 9.4% compared to 2023 [11][31] - The 2025 adjusted EPS guidance has been raised to a range of $1.85 to $1.89 per share, consistent with a 6% to 8% growth outlook [12][31] - The company's FFO to debt ratio improved to 14.6% in 2024, up from 14.1% in 2023 [35] Business Line Data and Key Metrics Changes - NiSource invested $6.9 billion in capital expenditures across six states to enhance system reliability and compliance with regulatory expectations [9] - The base capital plan for 2025 to 2029 is set at $19.4 billion, driving an expected rate base growth of 8% to 10% during this period [12][32] Market Data and Key Metrics Changes - The company reported a recovery of $340 million in revenue in 2024 associated with capital investments [9] - The regulatory landscape remains constructive, with rate case settlements approved in Pennsylvania and Kentucky, and a universal settlement reached in Virginia [21][22] Company Strategy and Development Direction - NiSource's strategy focuses on delivering safe and reliable energy while maintaining affordable pricing through efficient capital deployment and regulatory recovery mechanisms [6][7] - The company is actively pursuing opportunities in data center development, particularly in Northern Indiana, leveraging favorable infrastructure and regulatory conditions [14][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving long-term growth rates, citing strong customer growth and effective regulatory execution [33][39] - The company remains optimistic about its ability to serve new customers while protecting existing ones, particularly in the context of large load customers and data centers [46][61] Other Important Information - NiSource's operational excellence initiatives have led to significant improvements in safety metrics and operational efficiency, including a 16% increase in work productivity [17][18] - The company has a robust portfolio of customer investments that could extend beyond the five-year plan horizon [13] Q&A Session Summary Question: Can you speak to the Genco filing and its implications? - Management indicated that the Genco filing allows for a regulated entity to serve large load customers while protecting existing customers and maintaining financial integrity [46][48] Question: What is the timing for potential data center deals? - Management reiterated that 2025 is expected to be a significant year for data center opportunities, with ongoing positive discussions [61][89] Question: How does the company plan to finance incremental CapEx? - The primary focus will be on cash from operations, with additional options including junior subordinated notes and maintaining flexibility in capital allocation [64][66] Question: What is the status of the La Porte facility with Microsoft? - Currently, there is no construction at the La Porte facility, but negotiations and discussions with multiple counterparties are progressing well [78] Question: Will IURC approval be needed for Genco before announcing deals? - IURC approval is required for the Genco declination but not for announcing deals with large load customers [72][96]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K NiSource Inc. (Exact name of registrant as specified in its charter) | DE | 35-2108964 | | --- | --- | | (State or other jurisdiction of | (I.R.S. Employer | | incorporation or organization) | Identification No.) | | 801 East 86th Avenue | | | Merrillville, IN | 46410 | | (Address of principal executive offices) | (Zip Code) | | (877) 647-5990 | | ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT O ...

Exhibit 99.1 FOR IMMEDIATE RELEASE: February 12, 2025 NiSource announces full-year 2024 results MERRILLVILLE, Ind. - NiSource Inc. (NYSE: NI) today announced, on a GAAP basis, net income available to common shareholders for the year ended December 31, 2024, of $739.7 million, or $1.62 of earnings per diluted share, compared to net income available to common shareholders of $661.7 million, or $1.48 of earnings per diluted share, for the same period of 2023. NiSource also reported full-year 2024 non-GAAP adju ...