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. When looking at the last two reports, this energy holding company has recorded a strong streak of surpassing earnings estimates. The company has topped estimates by 3.43%, on average, in the last tw ...

Core Viewpoint - The article emphasizes the importance of identifying stocks with strong price trends and solid fundamentals for successful short-term investing, highlighting NiSource (NI) as a potential candidate for trend investors. Group 1: Stock Performance - NiSource (NI) has shown a solid price increase of 8.9% over the past 12 weeks, indicating investor willingness to pay more for its potential upside [3] - The stock is currently trading at 97.6% of its 52-week high-low range, suggesting it may be on the verge of a breakout [4] - Over the past four weeks, NI has experienced a price increase of 9.3%, confirming that the upward trend is still intact [10] Group 2: Fundamental Strength - NiSource carries a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises [11] - The stock has an Average Broker Recommendation of 1 (Strong Buy), indicating high optimism from the brokerage community regarding its near-term price performance [12] Group 3: Investment Strategy - The "Recent Price Strength" screen is a useful tool for investors to identify stocks like NI that are on an uptrend supported by strong fundamentals [2] - The Zacks Rank stock-rating system has a proven track record, with Zacks Rank 1 stocks generating an average annual return of +25% since 1988, suggesting that NI's price trend may continue [5]

NiSource Inc. (NI) and its subsidiaries provide natural gas, electricity, and other products and services in the United States. Its long-term capital expenditure plans and strategic investments for expansion in clean energy will boost the performance of the company. NiSource is working on a long-term utility infrastructure modernization program. The company aims to invest in the range of $3.3-$3.5 billion for 2024. It also expects to invest approximately $16.4 billion during 2024- 2028. NiSource is set to r ...

Core Insights - The Zacks Rank and Style Scores provide a comprehensive framework for investors to identify stocks with high potential for market outperformance, particularly focusing on earnings estimate revisions and various investment styles [11][12][19]. Investment Framework - The Zacks Rank utilizes earnings estimate revisions to help investors build successful portfolios, with a strong emphasis on stocks rated 1 (Strong Buy) and 2 (Buy) [11][5]. - The Zacks Style Scores categorize stocks based on value, growth, and momentum characteristics, assigning ratings from A to F, where A indicates the highest potential for outperformance [9][24]. Style Scores Breakdown - The Value Style Score identifies attractive stocks based on financial ratios like P/E and Price/Cash Flow, appealing to value investors [16]. - The Growth Style Score focuses on a company's future prospects, analyzing projected earnings and cash flow to find sustainable growth opportunities [3]. - The Momentum Style Score helps investors capitalize on price trends, using metrics like weekly price changes and monthly earnings estimate shifts [10]. Company Spotlight: NiSource Inc. - NiSource Inc. is highlighted as a potential growth investment, holding a Growth Style Score of B and forecasting a year-over-year earnings growth of 6.9% for the current fiscal year [7]. - The company has a Zacks Rank of 3 (Hold) and a VGM Score of B, indicating a solid position among its peers [14][15]. - Recent analyst revisions have increased the earnings estimate for NiSource to $1.71 per share for fiscal 2024, with an average earnings surprise of 6.8% [21]. Market Context - The Zacks Rank has demonstrated historical success, with 1 stocks achieving an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [5]. - There are over 800 top-rated stocks available, making it essential for investors to strategically select those with favorable Zacks Ranks and Style Scores [18][25].

NiSource Inc.'s (NI) consistent investments to strengthen its existing infrastructure, stable returns from regulated assets and cost-saving initiatives should boost its earnings. The company's focus on clean energy helps to enhance its overall performance. Tailwinds However, this Zacks Rank #3 (Hold) company faces risks related to any delay in the completion of projects and weather fluctuations. NiSource is working on a long-term utility infrastructure modernization program. The company expects investments ...

Risource NiSource | NYSE: NI | nisource.com | We exist to deliver safe, reliable energy that drives value to our customers | --- | --- | --- | --- | --- | --- | |-----------------------------|-------|-------|-------|-------|-------| | | | | | | | | | | | | | | | SUPPLEMENTAL SLIDES | | | | | | | 1Q 2024 RESULTS May 8, 2024 | | | | | | LEGAL DISCLAIMER NiSource | NYSE: NI | nisource.com | Forward-Looking Statements This presentation contains "forward-looking statements," within the meaning of Section 27A of ...

NiSource (NI) reported first-quarter 2024 operating earnings per share (EPS) of 85 cents, which surpassed the Zacks Consensus Estimate of 81 cents by 4.9%. The bottom line increased 10.4% from the year-ago quarter’s recorded figure of 77 cents.On a GAAP basis, the company reported an EPS of 77 cents compared with 71 cents in the prior-year quarter.Total RevenuesOperating revenues of $1.71 billion missed the Zacks Consensus Estimate of $2.07 billion by 17.5%. The top line also decreased 13.2% from the prior- ...

NiSource (NI) came out with quarterly earnings of $0.85 per share, beating the Zacks Consensus Estimate of $0.81 per share. This compares to earnings of $0.77 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 4.94%. A quarter ago, it was expected that this energy holding company would post earnings of $0.52 per share when it actually produced earnings of $0.53, delivering a surprise of 1.92%.Over the last four quarters, the comp ...

[Company Information](index=1&type=section&id=Company%20Information) This section details NiSource Inc.'s registrant information, filer status, and common stock outstanding [Registrant Details and Filer Status](index=1&type=section&id=Registrant%20Details%20and%20Filer%20Status) NiSource Inc. is a large accelerated filer, compliant with SEC requirements, with 448.3 million common shares outstanding as of April 30, 2024 - NiSource Inc. is a **large accelerated filer**, compliant with **SEC filing requirements**[3](index=3&type=chunk)[4](index=4&type=chunk) Common Stock Outstanding | Metric | Value | | :--- | :--- | | Common Stock Outstanding (April 30, 2024) | 448,305,338 shares | [Defined Terms](index=3&type=section&id=Defined%20Terms) This section provides a glossary of abbreviations and acronyms used throughout the report [Glossary of Abbreviations and Acronyms](index=3&type=section&id=Glossary%20of%20Abbreviations%20and%20Acronyms) This glossary defines key abbreviations and acronyms for NiSource subsidiaries, financial, accounting, and regulatory terms - The section lists key subsidiaries like **Columbia Gas companies** (Kentucky, Maryland, Ohio, Pennsylvania, Virginia) and **Northern Indiana Public Service Company LLC (NIPSCO)**[9](index=9&type=chunk) - It defines financial and regulatory terms such as **AFUDC, AOCI, GAAP, EPS, IRA, MISO, OPEB, PHMSA, PPA, RNG, SEC, and TCJA**[9](index=9&type=chunk)[10](index=10&type=chunk) [Note regarding forward-looking statements](index=5&type=section&id=Note%20regarding%20forward-looking%20statements) This section provides a cautionary note regarding forward-looking statements and associated risks [Forward-Looking Statements and Risk Factors](index=5&type=section&id=Forward-Looking%20Statements%20and%20Risk%20Factors) This section warns that forward-looking statements are based on assumptions and may differ from actual results, with no obligation to update - **Forward-looking statements** concern plans, strategies, objectives, expected performance, expenditures, and recovery of expenditures through rates, based on management's reasonable assumptions[11](index=11&type=chunk) - **Factors that could cause actual results to differ** include business plan execution, operating risks, third-party investor relations, technology adaptation, aging infrastructure, insurance coverage, electric generation strategy, construction and supply risks, demand fluctuations, energy commodity price volatility, workforce management, cybersecurity, climate change impacts, debt obligations, credit ratings, economic conditions, regulatory outcomes, and legal proceedings[12](index=12&type=chunk)[15](index=15&type=chunk) - The company **expressly disclaims any obligation to update or revise forward-looking statements**, except as required by law[14](index=14&type=chunk) [PART I. FINANCIAL INFORMATION](index=8&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This part presents NiSource Inc.'s unaudited condensed consolidated financial statements and management's discussion and analysis [Item 1. Financial Statements - unaudited](index=8&type=section&id=Item%201.%20Financial%20Statements%20-%20unaudited) This section provides NiSource Inc.'s unaudited condensed consolidated financial statements and detailed explanatory notes - The financial statements are **unaudited** and reflect normal recurring adjustments necessary for **GAAP presentation**, prepared pursuant to SEC rules and regulations[31](index=31&type=chunk)[33](index=33&type=chunk) - Interim period income may **not be indicative of full calendar year results** due to weather variations and other factors[32](index=32&type=chunk) [Condensed Statements of Consolidated Income (unaudited)](index=8&type=section&id=Condensed%20Statements%20of%20Consolidated%20Income%20(unaudited)) This statement presents NiSource Inc.'s unaudited consolidated income for the three months ended March 31, 2024 and 2023 Condensed Statements of Consolidated Income (unaudited) | (in millions, except per share amounts) | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | Change (YoY) | | :------------------------------------ | :--------------------------------: | :--------------------------------: | :--------------------------------: | | Total Operating Revenues | $1,706.3 | $1,966.0 | $(259.7) | | Total Operating Expenses | $1,122.9 | $1,435.0 | $(312.1) | | Operating Income | $583.4 | $531.0 | $52.4 | | Net Income Attributable to NiSource | $365.0 | $333.0 | $32.0 | | Basic Earnings Per Share | $0.77 | $0.77 | $0.00 | | Diluted Earnings Per Share | $0.77 | $0.71 | $0.06 | - Cost of energy significantly decreased from **$765.1 million** in Q1 2023 to **$425.0 million** in Q1 2024, contributing to higher operating income despite lower total revenues[18](index=18&type=chunk) [Condensed Statements of Consolidated Comprehensive Income (unaudited)](index=9&type=section&id=Condensed%20Statements%20of%20Consolidated%20Comprehensive%20Income%20(unaudited)) This statement presents NiSource Inc.'s unaudited consolidated comprehensive income for the three months ended March 31, 2024 and 2023 Condensed Statements of Consolidated Comprehensive Income (unaudited) | (in millions, net of taxes) | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :-------------------------- | :--------------------------------: | :--------------------------------: | | Net Income | $400.3 | $337.8 | | Total other comprehensive income (loss) | $(0.2) | $2.4 | | Comprehensive Income | $400.1 | $340.2 | - The total other comprehensive income shifted from a gain of **$2.4 million** in Q1 2023 to a loss of **$(0.2) million** in Q1 2024, mainly due to net unrealized losses on available-for-sale debt securities[20](index=20&type=chunk) [Condensed Consolidated Balance Sheets (unaudited)](index=10&type=section&id=Condensed%20Consolidated%20Balance%20Sheets%20(unaudited)) This statement presents NiSource Inc.'s unaudited consolidated balance sheets as of March 31, 2024 and December 31, 2023 Condensed Consolidated Balance Sheets (unaudited) | (in millions) | March 31, 2024 | December 31, 2023 | Change | | :------------------------------------ | :--------------: | :---------------: | :------: | | Total Assets | $29,338.1 | $31,077.2 | $(1,739.1) | | Net Property, Plant and Equipment | $22,946.1 | $22,274.9 | $671.2 | | Total Current Assets | $2,060.2 | $4,499.4 | $(2,439.2) | | Total Stockholders' Equity | $9,794.9 | $10,136.3 | $(341.4) | | Long-term debt, excluding current portion | $11,724.6 | $11,055.5 | $669.1 | | Short-term borrowings | $1,222.3 | $3,048.6 | $(1,826.3) | | Total Current Liabilities | $3,125.0 | $5,265.1 | $(2,140.1) | - Cash and cash equivalents decreased significantly from **$2,245.4 million** at December 31, 2023, to **$102.2 million** at March 31, 2024[22](index=22&type=chunk) - Preferred stock decreased from **$486.1 million** to **zero**, reflecting redemptions during the quarter[24](index=24&type=chunk) [Condensed Statements of Consolidated Cash Flows (unaudited)](index=12&type=section&id=Condensed%20Statements%20of%20Consolidated%20Cash%20Flows%20(unaudited)) This statement presents NiSource Inc.'s unaudited consolidated cash flows for the three months ended March 31, 2024 and 2023 Condensed Statements of Consolidated Cash Flows (unaudited) | (in millions) | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | Change (YoY) | | :------------------------------------ | :--------------------------------: | :--------------------------------: | :--------------------------------: | | Net Cash Flows from Operating Activities | $456.2 | $683.4 | $(227.2) | | Net Cash Flows used for Investing Activities | $(723.0) | $(727.8) | $4.8 | | Net Cash Flows from Financing Activities | $(1,873.8) | $117.3 | $(1,991.1) | | Change in cash, cash equivalents and restricted cash | $(2,140.6) | $72.9 | $(2,213.5) | - Significant financing activities in Q1 2024 included repayment of **$1,650.0 million** in short-term credit agreements and redemption of **$486.1 million** in preferred stock[25](index=25&type=chunk) [Condensed Statements of Consolidated Equity (unaudited)](index=13&type=section&id=Condensed%20Statements%20of%20Consolidated%20Equity%20(unaudited)) This statement presents NiSource Inc.'s unaudited consolidated equity changes for the three months ended March 31, 2024 Condensed Statements of Consolidated Equity (unaudited) | (in millions) | Balance as of January 1, 2024 | Balance as of March 31, 2024 | Change | | :------------------------------------ | :---------------------------: | :--------------------------: | :------: | | Total NiSource Stockholders' Equity | $8,269.6 | $7,895.9 | $(373.7) | | Noncontrolling interest | $1,866.7 | $1,899.0 | $32.3 | | Total Stockholders' Equity | $10,136.3 | $9,794.9 | $(341.4) | - The company redeemed **$486.1 million** of Series B and B-1 Preferred Stock and incurred a **$14.0 million** redemption premium, recorded as a reduction to retained earnings[28](index=28&type=chunk)[57](index=57&type=chunk) - Net income attributable to NiSource was **$365.0 million** for the period, contributing positively to equity[28](index=28&type=chunk) [Notes to Condensed Consolidated Financial Statements (unaudited)](index=15&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements%20(unaudited)) This section provides detailed disclosures and explanations for NiSource Inc.'s unaudited financial statements - The notes provide context for the **unaudited** financial statements, highlighting that certain information and disclosures are condensed or omitted per SEC rules[31](index=31&type=chunk)[33](index=33&type=chunk) - Key areas covered include **changes in reportable segments**, details on **noncontrolling interests** from joint ventures, and the impact of **preferred stock redemptions** on equity[37](index=37&type=chunk)[50](index=50&type=chunk)[57](index=57&type=chunk) [1. Basis of Accounting Presentation](index=15&type=section&id=1.%20Basis%20of%20Accounting%20Presentation) This note outlines the basis for preparing the unaudited condensed consolidated financial statements under GAAP and SEC rules - Financial statements are **unaudited**, prepared under **GAAP** and **SEC rules**, and include NiSource, majority-owned subsidiaries, and VIEs[31](index=31&type=chunk)[33](index=33&type=chunk) - Interim results may **not be indicative of full calendar year results** due to weather variations and other factors[32](index=32&type=chunk) [2. Recent Accounting Pronouncements](index=15&type=section&id=2.%20Recent%20Accounting%20Pronouncements) This note discusses recently issued accounting pronouncements and their potential impact on NiSource Inc.'s financial reporting - **ASU 2023-05** (Joint Venture Formations) requires fair value measurement for initial assets/liabilities in joint ventures, effective **January 1, 2025**[34](index=34&type=chunk) - **ASU 2023-07** (Segment Reporting) enhances annual and interim disclosure requirements for reportable segments, effective for fiscal years beginning after **December 15, 2024**[35](index=35&type=chunk) - **ASU 2023-09** (Income Tax Disclosures) enhances income tax disclosures, effective for annual periods beginning after **December 15, 2024**, with no early adoption expected[36](index=36&type=chunk) [3. Revenue Recognition](index=15&type=section&id=3.%20Revenue%20Recognition) This note details NiSource Inc.'s revenue recognition policies and segment reporting changes effective January 1, 2024 - Reportable segments changed from Gas Distributions and Electric Operations to **Columbia Operations** and **NIPSCO Operations** as of **January 1, 2024**[37](index=37&type=chunk) Total Operating Revenues by Segment | (in millions) | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :-------------------- | :--------------------------------: | :--------------------------------: | | Columbia Operations | $953.7 | $1,048.9 | | NIPSCO Operations | $752.4 | $916.9 | | Corporate and Other | $0.2 | $0.2 | | **Total** | **$1,706.3** | **$1,966.0** | Allowance for Credit Losses | (in millions) | March 31, 2024 | December 31, 2023 | | :-------------------- | :--------------: | :---------------: | | Total Allowance | $31.6 | $22.9 | [4. Noncontrolling Interest](index=18&type=section&id=4.%20Noncontrolling%20Interest) This note describes NiSource Inc.'s noncontrolling interests, primarily from NIPSCO's consolidated joint ventures - NIPSCO consolidates four joint ventures (Rosewater, Indiana Crossroads Wind, Indiana Crossroads Solar, Dunns Bridge I) as **VIEs**, owning and operating wind and solar facilities with a combined nameplate capacity of **869 MW**[45](index=45&type=chunk) - The **NIPSCO Minority Interest Transaction** in December 2023 resulted in a **$2.16 billion** cash capital contribution from Blackstone for an equity interest in NIPSCO Holdings II, with NiSource retaining control[50](index=50&type=chunk) VIE Assets and Liabilities | (in millions) | March 31, 2024 | December 31, 2023 | | :-------------------------- | :--------------: | :---------------: | | Total assets | $1,419.0 | $1,433.4 | | Total liabilities | $117.2 | $124.0 | [5. Earnings Per Share](index=19&type=section&id=5.%20Earnings%20Per%20Share) This note provides the calculation of basic and diluted earnings per share for NiSource Inc. Earnings Per Share | (in millions, except per share amounts) | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :------------------------------------ | :--------------------------------: | :--------------------------------: | | Net Income Available to Common Shareholders - Basic | $344.0 | $319.0 | | Basic Earnings Per Share | $0.77 | $0.77 | | Diluted Earnings Per Share | $0.77 | $0.71 | | Basic Average Common Shares Outstanding | 447.9 | 412.8 | | Diluted Average Common Shares | 449.4 | 447.1 | - The increase in diluted EPS from **$0.71** to **$0.77** is partly due to the settlement of Equity Units purchase contracts in December 2023, which previously had a dilutive effect[51](index=51&type=chunk)[54](index=54&type=chunk) [6. Equity](index=21&type=section&id=6.%20Equity) This note details changes in NiSource Inc.'s equity, including an ATM program and preferred stock redemption - An **ATM equity program** was established in February 2024, allowing the sale of up to **$900.0 million** in common stock by December 31, 2025, with **$700.0 million** remaining available as of March 31, 2024[55](index=55&type=chunk) - All **40,000 outstanding shares** of Series B and B-1 Preferred Stock were redeemed on **March 15, 2024**, for **$500.0 million**, incurring a **$14.0 million** redemption premium[57](index=57&type=chunk) - The redemption of preferred stock led to their **delisting from the NYSE** and their return to authorized but unissued status[58](index=58&type=chunk) [7. Short-Term Borrowings](index=22&type=section&id=7.%20Short-Term%20Borrowings) This note outlines NiSource Inc.'s short-term borrowing activities, including commercial paper and credit agreements Short-Term Borrowings | (in millions) | March 31, 2024 | December 31, 2023 | Change | | :-------------------------- | :--------------: | :---------------: | :------: | | Short-term borrowings | $1,222.3 | $3,048.6 | $(1,826.3) | | Commercial paper outstanding | $1,222.3 | $1,061.0 | $161.3 | | Short-term borrowings from securitization | $0.0 | $337.6 | $(337.6) | - The company repaid **$1.65 billion** in term credit agreements on **January 3, 2024**, using proceeds from the NIPSCO Minority Interest Transaction[69](index=69&type=chunk) - The commercial paper program limit was increased from **$1.50 billion** to **$1.85 billion** in February 2024[63](index=63&type=chunk) [8. Long-Term Debt](index=23&type=section&id=8.%20Long-Term%20Debt) This note details NiSource Inc.'s long-term debt, including recent senior unsecured note issuances - Issued **$650.0 million** of **5.35% senior unsecured notes** maturing in **2034**, with net proceeds of approximately **$642.6 million**[71](index=71&type=chunk) Long-Term Debt (excluding current portion) | (in millions) | March 31, 2024 | December 31, 2023 | Change | | :-------------------------- | :--------------: | :---------------: | :------: | | Long-term debt | $11,724.6 | $11,055.5 | $669.1 | [9. Gas in Storage](index=23&type=section&id=9.%20Gas%20in%20Storage) This note describes the valuation methodologies and balances for NiSource Inc.'s natural gas in storage - Natural gas in storage is valued using **LIFO** and **weighted-average cost methodologies**[72](index=72&type=chunk) - The LIFO basis exceeded the replacement cost of the current portion of stored gas by **$27.5 million** at March 31, 2024, indicating a change from December 31, 2023, where there was no such excess[72](index=72&type=chunk) [10. Regulatory Matters](index=23&type=section&id=10.%20Regulatory%20Matters) This note discusses ongoing regulatory proceedings and their impact on NiSource Inc.'s operations and costs - NIPSCO filed petitions in March 2024 with the IURC to approve **direct ownership** of the Gibson and Fairbanks solar projects, with final orders expected in **August and September 2024**, respectively[73](index=73&type=chunk) - NIPSCO also filed a petition to defer costs for a new **WAM program**, an information technology system for optimizing field work, with a final order expected in **August 2024**[74](index=74&type=chunk) - Regulatory deferrals related to renewable energy investments resulted in an increase to depreciation expense of **$3.5 million** in Q1 2024, compared to a decrease of **$4.4 million** in Q1 2023[75](index=75&type=chunk)[76](index=76&type=chunk) [11. Risk Management Activities](index=24&type=section&id=11.%20Risk%20Management%20Activities) This note explains NiSource Inc.'s use of derivatives to manage commodity price risk and related accounting - NiSource uses derivatives (futures, options, forwards) to mitigate **commodity price risk** for natural gas purchases, not for speculative trading[79](index=79&type=chunk)[219](index=219&type=chunk) Risk Management Assets and Liabilities | (in millions) | March 31, 2024 (Assets) | March 31, 2024 (Liabilities) | December 31, 2023 (Assets) | December 31, 2023 (Liabilities) | | :------------------------------------ | :-----------------------: | :------------------------: | :------------------------: | :------------------------: | | Derivatives not designated as hedging instruments | $23.2 | $13.5 | $23.3 | $9.4 | - All gains and losses on derivative contracts are deferred as **regulatory liabilities or assets** and are remitted to or collected from customers through **GCA mechanisms**, limiting earnings exposure[78](index=78&type=chunk)[220](index=220&type=chunk) [12. Fair Value](index=26&type=section&id=12.%20Fair%20Value) This note provides fair value measurements for NiSource Inc.'s financial instruments, including derivatives and debt Recurring Fair Value Measurements (March 31, 2024) | (in millions) | Level 1 | Level 2 | Level 3 | Total | | :-------------------------- | :-----: | :-----: | :-----: | :-----: | | Assets: Risk management assets | $0.0 | $23.2 | $0.0 | $23.2 | | Assets: Available-for-sale debt securities | $0.0 | $150.1 | $0.0 | $150.1 | | Liabilities: Risk management liabilities | $0.0 | $13.5 | $0.0 | $13.5 | - Available-for-sale debt securities, primarily U.S. Treasury and corporate debt, are valued using a **matrix pricing model** and classified within **Level 2**[89](index=89&type=chunk) Long-term Debt Fair Value | (in millions) | March 31, 2024 (Carrying Amount) | March 31, 2024 (Estimated Fair Value) | | :------------------------------------ | :------------------------------: | :-----------------------------------: | | Long-term debt (including current portion) | $11,748.6 | $10,852.3 | [13. Income Taxes](index=30&type=section&id=13.%20Income%20Taxes) This note details NiSource Inc.'s effective tax rates and deferred tax liabilities and assets Effective Tax Rates | Period | Effective Tax Rate | | :-------------------------- | :----------------: | | Three Months Ended March 31, 2024 | 16.0% | | Three Months Ended March 31, 2023 | 20.3% | - The decrease in the effective tax rate by **4.3%** is mainly attributed to lower renewable partnership income and jurisdictional mix, offset by lower amortization of excess deferred federal income tax liabilities[98](index=98&type=chunk) - **No material changes** to unrecognized tax benefits are expected in the next twelve months[99](index=99&type=chunk) [14. Pension and Other Postemployment Benefits](index=30&type=section&id=14.%20Pension%20and%20Other%20Postemployment%20Benefits) This note outlines NiSource Inc.'s defined benefit and contribution plans, and postemployment benefit costs - NiSource offers **defined contribution** and **defined benefit** retirement plans, and postemployment health care and life insurance benefits[100](index=100&type=chunk) Net Periodic Benefit Cost | (in millions) | Pension Benefits (2024) | Pension Benefits (2023) | OPEB (2024) | OPEB (2023) | | :------------------------------------ | :---------------------: | :---------------------: | :---------: | :---------: | | Service cost | $5.4 | $5.1 | $1.3 | $1.3 | | Interest cost | $16.3 | $17.1 | $5.4 | $5.4 | | Expected return on assets | $(23.8) | $(23.6) | $(4.0) | $(3.8) | | Recognized actuarial loss | $7.2 | $8.4 | $0.8 | $0.8 | | **Total Net Periodic Benefit Cost** | **$5.1** | **$7.0** | **$3.1** | **$3.2** | [15. Other Commitments and Contingencies](index=30&type=section&id=15.%20Other%20Commitments%20and%20Contingencies) This note describes NiSource Inc.'s guarantees, environmental liabilities, and legal proceedings - Guarantees for BTAs for renewable generation projects totaled **$672.3 million** at March 31, 2024, increasing from **$646.1 million** at December 31, 2023[103](index=103&type=chunk) - Environmental remediation liability was **$77.8 million** at March 31, 2024, and MGP site remediation liability was **$72.8 million**, with a reasonably possible variance of up to **$15.1 million**[108](index=108&type=chunk)[111](index=111&type=chunk) - New **EPA rules on Coal Combustion Residuals (CCRs)** were issued on **April 25, 2024**, and their potential impact is under evaluation[112](index=112&type=chunk) [16. Accumulated Other Comprehensive Loss](index=32&type=section&id=16.%20Accumulated%20Other%20Comprehensive%20Loss) This note details the components and changes in NiSource Inc.'s accumulated other comprehensive loss Accumulated Other Comprehensive Loss (AOCI) | (in millions) | Balance as of January 1, 2024 | Balance as of March 31, 2024 | Change | | :------------------------------------ | :---------------------------: | :--------------------------: | :------: | | Total Accumulated Other Comprehensive Loss | $(33.6) | $(33.8) | $(0.2) | - Net current-period other comprehensive loss was **$(0.2) million** for Q1 2024, driven by losses on securities and cash flow hedges[114](index=114&type=chunk) [17. Business Segment Information](index=33&type=section&id=17.%20Business%20Segment%20Information) This note provides financial data for NiSource Inc.'s revised reportable segments: Columbia and NIPSCO Operations - Reportable segments were revised to **Columbia Operations** and **NIPSCO Operations** following the NIPSCO Minority Interest Transaction, reflecting a shift to state-level evaluation[115](index=115&type=chunk) Operating Income by Segment | (in millions) | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | Change (YoY) | | :-------------------- | :--------------------------------: | :--------------------------------: | :--------------------------------: | | Columbia Operations | $362.0 | $351.8 | $10.2 | | NIPSCO Operations | $216.4 | $177.0 | $39.4 | | Corporate and Other | $5.0 | $2.2 | $2.8 | | **Consolidated Operating Income** | **$583.4** | **$531.0** | **$52.4** | Consolidated Assets by Segment | (in millions) | March 31, 2024 | December 31, 2023 | Change | | :-------------------- | :--------------: | :---------------: | :------: | | Columbia Operations | $13,789.8 | $13,664.5 | $125.3 | | NIPSCO Operations | $14,221.0 | $13,962.6 | $258.4 | | Corporate and Other | $1,327.3 | $3,450.1 | $(2,122.8) | | **Consolidated Assets** | **$29,338.1** | **$31,077.2** | **$(1,739.1)** | [18. Other, Net](index=35&type=section&id=18.%20Other,%20Net) This note details the components of NiSource Inc.'s 'Other, net' income and expenses Components of Other, Net | (in millions) | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | Change (YoY) | | :------------------------------------ | :--------------------------------: | :--------------------------------: | :--------------------------------: | | Interest income | $2.5 | $1.8 | $0.7 | | AFUDC equity | $11.3 | $4.8 | $6.5 | | Pension and other postretirement non-service benefit (cost) | $(2.2) | $(3.5) | $1.3 | | Miscellaneous | $(2.4) | $(1.6) | $(0.8) | | **Total Other, net** | **$9.2** | **$1.5** | **$7.7** | - **AFUDC equity** saw a significant increase from **$4.8 million** in Q1 2023 to **$11.3 million** in Q1 2024[118](index=118&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=36&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's analysis of NiSource Inc.'s financial condition, results of operations, and strategic initiatives - **Management's Discussion** provides **analysis of past financial results**, **potential future factors**, **risks**, and **risk management approaches**[122](index=122&type=chunk) - The company's goal is to benefit stakeholders through infrastructure investment, safety programs, tariff alignment, and addressing changing customer energy demand, focusing on **safety, reliability, customer experience, affordability, and emissions reduction**[125](index=125&type=chunk) [Executive Summary](index=37&type=section&id=Executive%20Summary) This summary outlines NiSource Inc.'s business model, energy transition strategy, and operational transformation roadmap - NiSource is an energy holding company with utility subsidiaries in six states, generating operating income through **rate-regulated businesses** (Columbia Operations and NIPSCO Operations)[124](index=124&type=chunk) - The company is advancing its **energy transition strategy**, including retiring coal-fired electric generation by **2028** and replacing it with low- or zero-emission sources, with **1,950 MW** of wind/solar BTAs and **1,400 MW** of PPAs approved[126](index=126&type=chunk) - NIPSCO received IURC approval for **full ownership** of Cavalry and Dunns Bridge II projects to leverage **Inflation Reduction Act (IRA) tax credits**, and is seeking similar approval for Gibson and Fairbanks solar projects[126](index=126&type=chunk)[113](index=113&type=chunk) - An **enterprise-wide transformation roadmap** focuses on operational excellence, safety, and efficiency, with the first phase of the **Work and Asset Management (WAM) program** anticipated for **Q3 2024**[130](index=130&type=chunk) [Summary of Consolidated Financial Results](index=39&type=section&id=Summary%20of%20Consolidated%20Financial%20Results) This summary provides an overview of NiSource Inc.'s key consolidated financial performance metrics for the quarter Consolidated Financial Results | (in millions, except per share amounts) | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | Favorable (Unfavorable) | | :------------------------------------ | :--------------------------------: | :--------------------------------: | :--------------------------------: | | Operating Revenues | $1,706.3 | $1,966.0 | $(259.7) | | Cost of energy | $425.0 | $765.1 | $340.1 | | Operating Income | $583.4 | $531.0 | $52.4 | | Net Income Attributable to NiSource | $365.0 | $333.0 | $32.0 | | Net Income Available to Common Shareholders | $344.3 | $319.2 | $25.1 | | Diluted Earnings Per Share | $0.77 | $0.71 | $0.06 | - The increase in net income available to common shareholders was primarily due to **higher revenues, net of cost of energy**, driven by **rate increases** from regulatory outcomes[136](index=136&type=chunk) - Preferred dividends and redemption premium increased due to a **$14 million Series B preferred redemption premium**, partially offset by shortened dividend accrual periods[137](index=137&type=chunk) [Results and Discussion of Segment Operations](index=40&type=section&id=Results%20and%20Discussion%20of%20Segment%20Operations) This section analyzes the financial and operational performance of NiSource Inc.'s Columbia and NIPSCO Operations segments - Segment reporting now consists of **Columbia Operations** and **NIPSCO Operations**, following the NIPSCO Minority Interest Transaction[143](index=143&type=chunk) - **Columbia Operations** aggregates results from NiSource Gas Distribution Group subsidiaries, while **NIPSCO Operations** aggregates results from NIPSCO Holdings I and its subsidiaries[143](index=143&type=chunk) - **Operating income** is the primary measurement for each segment, with finance, dividends, and taxes managed at the corporate level[116](index=116&type=chunk) [Columbia Operations](index=41&type=section&id=Columbia%20Operations) This section details the financial and operational performance of NiSource Inc.'s Columbia Operations segment Columbia Operations Financial & Operational Data | (in millions, except MMDth) | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | Favorable (Unfavorable) | | :------------------------------------ | :--------------------------------: | :--------------------------------: | :--------------------------------: | | Operating Revenues | $956.9 | $1,051.9 | $(95.0) | | Cost of energy | $228.8 | $338.3 | $109.5 | | Operation and maintenance | $210.7 | $220.5 | $9.8 | | Operating Income | $362.0 | $351.8 | $10.2 | | Total Sales and Transportation (MMDth) | 207.3 | 194.3 | 13.0 | | Total Customers | 2,413,724 | 2,403,546 | 10,178 | - **New rates** from base rate proceedings and regulatory capital programs contributed **$34.9 million** in favorable revenue changes[148](index=148&type=chunk) - The increase in total volumes was primarily attributable to **increased industrial usage**[150](index=150&type=chunk) [NIPSCO Operations](index=44&type=section&id=NIPSCO%20Operations) This section details the financial and operational performance of NiSource Inc.'s NIPSCO Operations segment NIPSCO Operations Financial & Operational Data | (in millions, except GWh/MMDth) | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | Favorable (Unfavorable) | | :------------------------------------ | :--------------------------------: | :--------------------------------: | :--------------------------------: | | Operating Revenues | $752.7 | $917.2 | $(164.5) | | Cost of energy | $196.2 | $426.8 | $230.6 | | Depreciation and amortization | $132.7 | $108.3 | $(24.4) | | Operating Income | $216.4 | $177.0 | $39.4 | | NIPSCO Electric Sales (GWh) | 3,648.9 | 3,582.8 | 66.1 | | NIPSCO Gas Sales (MMDth) | 116.5 | 117.9 | $(1.4) | - **New rates** from base rate proceedings, regulatory capital, and DSM programs contributed **$65.6 million** in favorable revenue changes[163](index=163&type=chunk) - NIPSCO continues its **electric generation transition**, aiming to retire remaining coal units by **2028**, replacing them with renewable sources and a new natural gas peaking facility[169](index=169&type=chunk)[172](index=172&type=chunk) [Liquidity and Capital Resources](index=49&type=section&id=Liquidity%20and%20Capital%20Resources) This section discusses NiSource Inc.'s financing sources, capital expenditure plans, and recent financing activities - NiSource's financing sources include cash flow from operations, long-term debt, accounts receivable securitization, and a **$1.85 billion commercial paper program** backed by a revolving credit facility[175](index=175&type=chunk) Net Available Liquidity | (in millions) | March 31, 2024 | December 31, 2023 | Change | | :-------------------------- | :--------------: | :---------------: | :------: | | Net Available Liquidity | $1,139.8 | $3,070.8 | $(1,931.0) | - The company expects to invest approximately **$16.4 billion** in capital expenditures during the **2024-2028 period**, supporting generation transition and infrastructure programs[179](index=179&type=chunk) - Key financing activities in Q1 2024 included repaying **$1.65 billion** in term credit agreements, issuing **$650.0 million** in senior unsecured notes, establishing a **$900.0 million ATM equity program**, and redeeming **$500.0 million** in preferred stock[179](index=179&type=chunk) [Regulatory, Environmental and Safety Matters](index=53&type=section&id=Regulatory,%20Environmental%20and%20Safety%20Matters) This section covers NiSource Inc.'s regulatory rate cases, environmental liabilities, and safety initiatives - **Regulatory trackers** allow for recovery of certain costs (e.g., gas costs, fuel costs) in rates, generally offsetting expense increases with revenue increases and having **minimal impact on operating income**[193](index=193&type=chunk)[194](index=194&type=chunk)[196](index=196&type=chunk) Approved Rate Cases (Selected) | Company | Approved ROE | Approved Incremental Revenue (in millions) | Rates Effective | | :-------------------------- | :----------: | :----------------------------------------: | :--------------: | | Columbia of Pennsylvania | None specified | $44.5 | December 2022 | | Columbia of Maryland | None specified | $3.9 | December 2023 | | NIPSCO - Electric | 9.80 % | $261.9 | August 2023 | - NiSource is committed to reducing **methane emissions** and improving **public safety**, evaluating proposed PHMSA regulatory revisions for increased leak detection, repair, and distribution system safety[202](index=202&type=chunk)[203](index=203&type=chunk) - The company announced a **Net Zero Goal** for Scope 1 and Scope 2 GHG emissions by **2040**, building on a **72% reduction** from 2005 levels by the end of 2023[216](index=216&type=chunk) [Market Risk Disclosures](index=57&type=section&id=Market%20Risk%20Disclosures) This section outlines NiSource Inc.'s strategies for identifying, assessing, and managing market risks - NiSource identifies, assesses, monitors, and manages **commodity price risk, interest rate risk, and credit risk** through a multi-faceted process with oversight by the Risk Management Committee[218](index=218&type=chunk) - **Commodity price risk** from natural gas and power purchases is managed using derivatives, with gains/losses passed through to customers via **GCA and FAC mechanisms**, limiting earnings exposure[219](index=219&type=chunk)[220](index=220&type=chunk) - A **100 basis point increase** in short-term interest rates would have increased interest expense by **$2.6 million** for the three months ended March 31, 2024[223](index=223&type=chunk) [Other Information](index=58&type=section&id=Other%20Information) This section addresses critical accounting estimates and references recent accounting pronouncements - **No material changes** were made to critical accounting estimates as of March 31, 2024[226](index=226&type=chunk) - Information on recently issued accounting pronouncements is provided in **Note 2** to the Condensed Consolidated Financial Statements[227](index=227&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 market risk disclosures provided within Management's Discussion and Analysis of Financial Condition and Results of Operations - Quantitative and qualitative disclosures about market risk are reported in **Item 2, 'Management's Discussion and Analysis of Financial Condition and Results of Operations - Market Risk Disclosures'**[229](index=229&type=chunk) [Item 4. Controls and Procedures](index=57&type=section&id=Item%204.%20Controls%20and%20Procedures) This section confirms the effectiveness of NiSource Inc.'s disclosure controls and procedures as of March 31, 2024 - The CEO and CFO concluded that **disclosure controls and procedures were effective** as of March 31, 2024, ensuring accurate and timely financial reporting[229](index=229&type=chunk) - **No material changes** in internal control over financial reporting occurred during the most recently completed quarter[230](index=230&type=chunk) [PART II. OTHER INFORMATION](index=58&type=section&id=PART%20II.%20OTHER%20INFORMATION) This part includes disclosures on legal proceedings, risk factors, equity sales, defaults, mine safety, and exhibits [Item 1. Legal Proceedings](index=58&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to Note 15 for a description of NiSource Inc.'s legal proceedings - Legal proceedings are described in **Note 15, 'Other Commitments and Contingencies - B. Legal Proceedings,'** of the Notes to the Condensed Consolidated Financial Statements[233](index=233&type=chunk) [Item 1A. Risk Factors](index=58&type=section&id=Item%201A.%20Risk%20Factors) This section states no material changes to risk factors since the 2023 Annual Report on Form 10-K - **No material changes** to risk factors have occurred since the Annual Report on Form 10-K for the year ended December 31, 2023[234](index=234&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) This section reports no unregistered sales of equity securities or use of proceeds for the period - **No unregistered sales** of equity securities or use of proceeds were reported[235](index=235&type=chunk) [Item 3. Defaults Upon Senior Securities](index=58&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) This section reports no defaults upon senior securities for the period - **No defaults** upon senior securities were reported[236](index=236&type=chunk) [Item 4. Mine Safety Disclosures](index=58&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to NiSource Inc. - **Mine Safety Disclosures are not applicable** to the registrant[236](index=236&type=chunk) [Item 5. Other Information](index=58&type=section&id=Item%205.%20Other%20Information) This section reports no changes to Rule 10b5-1 trading arrangements by directors or officers during Q1 2024 - **No director or Section 16 officer** adopted, terminated, or modified Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during Q1 2024[237](index=237&type=chunk) [Item 6. Exhibits](index=59&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including various agreements and certifications - Exhibits include **Certificate of Elimination for Series B Preferred Stock**, Form of **5.350% Notes due 2034**, Separation Agreement, Second Amended and Restated LLC Agreement of NIPSCO Holdings II, and various RSU/PSU Award Agreements[240](index=240&type=chunk) - Certifications from the **Chief Executive Officer** and **Chief Financial Officer** are included pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act of 2002[240](index=240&type=chunk) [Signature](index=62&type=section&id=Signature) This section provides the official signature for the Form 10-Q report - The report was signed by **Gunnar J. Gode, Vice President, Chief Accounting Officer**, on **May 8, 2024**[241](index=241&type=chunk)

[Q1 2024 Financial Highlights and Outlook](index=1&type=section&id=NiSource%20announces%20first%20quarter%202024%20results) NiSource reported strong Q1 2024 financial results, reaffirmed its 2024 guidance and long-term outlook, and increased capital expenditure plans [Q1 2024 Financial Performance (GAAP & Non-GAAP)](index=1&type=section&id=Q1%202024%20Financial%20Performance%20%28GAAP%20%26%20Non-GAAP%29) NiSource reported increased net income and EPS for Q1 2024 on both a GAAP and non-GAAP adjusted basis compared to Q1 2023, demonstrating strong financial growth GAAP Financials (Q1 2024 vs. Q1 2023) | Metric | Q1 2024 | Q1 2023 | Change | % Change | | :--------------------------------- | :------ | :------ | :----- | :------- | | Net Income Available to Common Shareholders (Millions) | $344.3 | $319.2 | +$25.1 | +7.86% | | Earnings Per Diluted Share | $0.77 | $0.71 | +$0.06 | +8.45% | Non-GAAP Adjusted Financials (Q1 2024 vs. Q1 2023) | Metric | Q1 2024 | Q1 2023 | Change | % Change | | :--------------------------------- | :------ | :------ | :----- | :------- | | Adjusted Net Income Available to Common Shareholders (Millions) | $382.8 | $343.0 | +$39.8 | +11.60% | | Adjusted Earnings Per Share | $0.85 | $0.77 | +$0.08 | +10.39% | [2024 Guidance and Long-Term Outlook](index=1&type=section&id=2024%20Guidance%20and%20Long-Term%20Outlook) NiSource reaffirmed its 2024 adjusted EPS guidance and long-term growth targets, while increasing its base capital expenditure plan for 2024-2028, signaling continued investment and stable future performance - Reaffirmed 2024 non-GAAP adjusted EPS guidance of **$1.70 - $1.74**[3](index=3&type=chunk)[5](index=5&type=chunk) - Reaffirmed 2023-2028 annual non-GAAP adjusted EPS growth of **6-8%**[3](index=3&type=chunk)[5](index=5&type=chunk) - Reaffirmed 2023-2028 annual core business rate base growth of **8-10%**[3](index=3&type=chunk) - Increased 2024-2028 base capital expenditure plan to **$16.4 billion**, a **$400 million** increase from the prior **$16 billion** plan[3](index=3&type=chunk) [CEO Commentary](index=1&type=section&id=CEO%20Commentary) CEO Lloyd Yates highlighted the company's strong Q1 performance, regulatory progress, and the balance sheet's flexibility to support increased capital investments without additional equity issuance, reinforcing commitment to stakeholder value - Q1 2024 earnings and regulatory progress underscore the ability to deliver on stakeholder commitments[4](index=4&type=chunk) - The balance sheet's improving position and flexibility support the portfolio of organic investment opportunities, allowing for an increased base capital expenditure plan without incremental equity issuance[4](index=4&type=chunk) - Employee and contractor efforts drive improved value and reliability of service for nearly **four million** customers[4](index=4&type=chunk) [Non-GAAP Financial Measures Disclosure](index=2&type=section&id=Non-GAAP%20Disclosure%20Statement) This section details NiSource's updated non-GAAP metric terminology and explains the rationale behind using these measures for financial reporting and guidance [Non-GAAP Disclosure Statement](index=2&type=section&id=Non-GAAP%20Disclosure%20Statement) NiSource announced a name change for its non-GAAP metrics, transitioning from "net operating earnings" to "adjusted net income" and "net operating EPS" to "adjusted EPS" starting Q1 2024, with no alteration to the underlying calculation methodology - Beginning Q1 2024, NiSource changed the names of its non-GAAP metrics: From "net operating earnings available to common shareholders" to "adjusted net income available to common shareholders"; From "net operating EPS" to "adjusted EPS"[6](index=6&type=chunk) - The change reflects a name change only; the calculations of these non-GAAP metrics remain consistent with historical calculations[6](index=6&type=chunk) [Rationale for Non-GAAP Measures](index=2&type=section&id=Rationale%20for%20Non-GAAP%20Measures) Management utilizes non-GAAP measures to provide investors with a clearer perspective on the company's ongoing business performance, while refraining from providing GAAP equivalents for guidance due to the inherent unpredictability of certain factors - Management includes non-GAAP measures to allow investors to view the company's performance using the same tools as management and to better evaluate ongoing business performance[7](index=7&type=chunk) - NiSource does not provide a GAAP equivalent for its adjusted EPS guidance due to the unpredictable impact of factors such as weather, asset sales, impairments, and other unusual or infrequent items[7](index=7&type=chunk) - The company is unable to estimate the impact of such factors on comparable GAAP measures or provide a reconciliation of non-GAAP adjusted EPS guidance to GAAP equivalents without unreasonable efforts[7](index=7&type=chunk) [Company Overview](index=2&type=section&id=About%20NiSource) This section provides a concise overview of NiSource Inc., highlighting its status as a major regulated utility, customer base, mission, and industry recognitions [About NiSource](index=2&type=section&id=About%20NiSource) NiSource Inc. is a major fully-regulated utility in the U.S., serving millions of natural gas and electric customers across six states, dedicated to delivering safe, reliable energy and recognized for its leadership in sustainability and diversity - NiSource Inc. (NYSE: NI) is one of the largest fully-regulated utility companies in the United States[9](index=9&type=chunk) - Serves approximately **3.3 million** natural gas customers and **500,000** electric customers across six states through its local Columbia Gas and NIPSCO brands[9](index=9&type=chunk) - Mission: To deliver safe, reliable energy that drives value to customers[9](index=9&type=chunk) - Recognitions: Member of the Dow Jones Sustainability - North America Index and on Forbes lists of America's Best Employers for Women and Diversity[9](index=9&type=chunk) [Forward-Looking Statements](index=3&type=section&id=Forward-Looking%20Statements) This section defines forward-looking statements, outlines their scope, and details various risk factors that could cause actual results to differ materially from projections [Definition and Scope](index=3&type=section&id=Forward-Looking%20Statements%20-%20Definition%20and%20Scope) This section defines forward-looking statements as per SEC regulations, emphasizing that actual results may significantly diverge from projections due to various influencing factors, and outlines the types of statements covered - Forward-looking statements are defined under Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934[11](index=11&type=chunk) - Actual results may differ materially from projections due to numerous factors, and there is no assurance that forward-looking statements will be realized[11](index=11&type=chunk) - Statements covered include **2024 guidance on adjusted EPS**, plans, strategies, objectives, expected performance, expenditures, and recovery of expenditures through rates[11](index=11&type=chunk) - Identified by expressions such as "may," "will," "should," "expects," "plans," "anticipates," "intends," "believes," "estimates," "predicts," "potential," "targets," "forecast," and "continue"[11](index=11&type=chunk) [Risk Factors](index=3&type=section&id=Forward-Looking%20Statements%20-%20Risk%20Factors) A comprehensive list of risk factors is presented, detailing potential challenges that could materially affect actual results, including operational, market, economic, financial, regulatory, and legal considerations - Operational and Strategic Risks: Ability to execute business plan, potential incidents, third-party investor relations, technology adaptation, aging infrastructure, insurance coverage, electric generation strategy, construction and supply risks, workforce management, cybersecurity attacks, and reputational damage[12](index=12&type=chunk) - Market and Environmental Risks: Fluctuations in demand and energy commodity prices, impacts of natural disasters, potential terrorist attacks, physical impacts of climate change, and risks related to achieving carbon emission reduction goals[12](index=12&type=chunk) - Financial and Regulatory Risks: Debt obligations, credit rating changes, adverse economic and capital market conditions (e.g., inflation, interest rates, recession), economic regulation, ability to obtain expected financial or regulatory outcomes, customer and supplier reliability, pension funding obligations, and potential impairments of goodwill[13](index=13&type=chunk) - Legal and Compliance Risks: Outcome of legal and regulatory proceedings, compliance with changes in laws, regulations, and tariffs, cost of environmental compliance, and changes in tax laws[13](index=13&type=chunk) [Financial Reconciliation (Non-GAAP)](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) This section provides a detailed reconciliation of GAAP net income to non-GAAP adjusted net income, outlining specific adjustments and their impact on reported figures [Schedule 1: Reconciliation of Net Income to Adjusted Net Income](index=5&type=section&id=Schedule%201%3A%20Reconciliation%20of%20Net%20Income%20to%20Adjusted%20Net%20Income) Schedule 1 provides an unaudited, detailed reconciliation of GAAP Net Income to Adjusted Net Income for Q1 2024 and Q1 2023, itemizing specific adjustments for weather, income taxes, and preferred dividends redemption premium Reconciliation of Consolidated Net Income to Adjusted Net Income (Unaudited) | (in millions, except per share amounts) | 2024 | 2023 | | :------------------------------------ | :--- | :--- | | GAAP Net Income Available to Common Shareholders | $344.3 | $319.2 | | **Adjustments to Operating Income:** | | | | Weather - compared to normal | 32.9 | 32.3 | | Total adjustments to operating income | 32.9 | 32.3 | | **Income Taxes:** | | | | (1) Tax effect of above items | (8.4) | (8.5) | | **Preferred Dividends:** | | | | (2) Preferred dividends redemption premium | 14.0 | — | | Total adjustments to net income | 38.5 | 23.8 | | **Adjusted Net Income Available to Common Shareholders** | **$382.8** | **$343.0** | | Diluted Average Common Shares (Millions) | 449.4 | 447.1 | | (3) GAAP Diluted Earnings Per Share | $0.77 | $0.71 | | Adjustments to diluted earnings per share | 0.08 | 0.06 | | **Adjusted Earnings Per Share** | **$0.85** | **$0.77** | - Notes on Adjustments: (1) Tax effect calculated using statutory tax rates; (2) Preferred dividends redemption premium represents the difference between the carrying value on the redemption date of Series B Preferred Stock and the total consideration paid, net of common shares issued; (3) GAAP Diluted Earnings Per Share includes effects of income allocated to participating securities and adds back the dilutive effect of Equity Units in the prior year[16](index=16&type=chunk)