NiSource(US:NI)2021-05-05 17:08Financial Performance - For the three months ended March 31, 2021, NiSource reported operating revenues of $1,545.6 million, a decrease of $59.9 million compared to $1,605.5 million in the same period of 2020[153]. - Net income available to common shareholders for Q1 2021 was $281.7 million, or $0.72 per diluted share, compared to $61.8 million, or $0.16 per diluted share in Q1 2020, reflecting a significant increase of $219.9 million[154]. - Operating income for the Gas Distribution Operations segment increased to $346.9 million in Q1 2021, up by $268.4 million from $78.5 million in Q1 2020[160]. - The company reported a decrease in operating revenues for the Gas Distribution Operations segment to $1,138.9 million in Q1 2021, down from $1,231.0 million in Q1 2020[160]. - Operating revenues for Gas Distribution Operations were $1,138.9 million in Q1 2021, a decrease of $92.1 million from the same period in 2020[162]. - Electric Operations reported operating income of $87.9 million for Q1 2021, an increase of $9.4 million from Q1 2020[174]. - Operating revenues for Electric Operations were $402.7 million in Q1 2021, an increase of $25.2 million from the same period in 2020[175]. Customer and Operational Metrics - The number of gas distribution customers decreased by 298,646 to 3,224,160 in Q1 2021, compared to 3,522,806 in Q1 2020[160]. - Total volumes sold and transported in Gas Distribution Operations decreased to 334.7 MMDth in Q1 2021 from 350.4 MMDth in Q1 2020, primarily due to the sale of the Massachusetts Business[167]. Capital and Investment - Incremental capital investment requirements for NIPSCO's electric generation transition are expected to be approximately $2.0 billion, primarily in 2022 and 2023[181]. - Total projected capital expenditures for 2021 are approximately $1.9 to $2.1 billion[189]. - The company completed the sale of 8.625 million Equity Units on April 19, 2021, providing net proceeds of $835.5 million for renewable generation investments and general corporate purposes[185]. Environmental and Regulatory Initiatives - NiSource plans to replace all coal generation capacity by the end of 2028 with primarily renewable resources, having executed agreements for 650 MW of solar and 200 MW of wind capacity[146]. - NIPSCO plans to retire all remaining coal-fired generation by 2028, aiming for a 90% reduction in greenhouse gas emissions by 2030 compared to 2005 levels[181]. - The company aims for a 90% reduction in greenhouse gas emissions by 2030 and plans to be coal-free by 2028, in line with the U.S. commitment to the Paris Agreement[213]. Cash Flow and Liquidity - Net cash from operating activities for Q1 2021 was $448.3 million, an increase of $78.4 million compared to Q1 2020, primarily due to a decrease in payments related to the Greater Lawrence Incident[188]. - Net cash used for investing activities in Q1 2021 was $401.8 million, a decrease of $82.8 million compared to Q1 2020, driven by lower capital expenditures[189]. - As of March 31, 2021, the company had net available liquidity of $1,866.0 million, including cash and credit available under the revolving credit facility[194]. Risk Management - Interest rate risk exposure indicates that a 100 basis point change in short-term rates would affect interest expense by $1.2 million for Q1 2021[223]. - Commodity price risk is managed through derivatives, with regulations allowing recovery of prudently incurred costs through the ratemaking process[219]. - The company has established a Corporate Credit Risk Policy to manage credit risk associated with customer and counterparty obligations[225]. Regulatory and Compliance - Regulatory deferrals for certain costs have been allowed by state regulatory commissions, which may vary by state, to help manage the financial impact of COVID-19[151]. - The Protecting Our Infrastructure of Pipelines and Enhancing Safety (PIPES) Act of 2020 may lead to increased costs for natural gas companies due to new safety regulations[211]. - Columbia of Pennsylvania requested an incremental revenue of $98.3 million with a proposed Return on Equity (ROE) of 10.95%, currently in process[207]. - The company has implemented a straight fixed variable rate design in Columbia of Ohio to better align fixed cost recovery with fixed charges[206]. Corporate Governance - NiSource Inc. reported effective disclosure controls and procedures, ensuring accurate financial information processing and reporting[232]. - There were no changes in internal control over financial reporting that materially affected the company's financial reporting during the last quarter[233]. - Credit ratings for NiSource and its subsidiaries remain stable, with NiSource rated BBB+ by S&P and Baa2 by Moody's as of March 31, 2021[199].