NiSource(US:NI)2023-02-22 21:25Financial Data and Key Metrics Changes - Full year earnings for 2022 were $648 million or $1.47 per share, compared to $571 million or $1.37 per share in 2021, reflecting a growth of over 7% [22][38] - The company raised its 2023 guidance to a range of $1.54 to $1.60 per share, an increase of over $0.03 versus the prior midpoint [14][49] - Operating revenues, net of the cost of energy and tracked expenses, increased by $66 million, while operating expenses decreased by $6 million due to lower O&M and other taxes [6][47] Business Line Data and Key Metrics Changes - Gas distribution operating earnings for Q4 were $288 million, an increase of $72 million compared to the same quarter last year [22] - In the electric segment, non-GAAP operating earnings for Q4 were $68 million, a decrease of $14 million from the same quarter last year, primarily due to lower weather-normalized customer usage [23] Market Data and Key Metrics Changes - The company maintained net available liquidity of over $1.6 billion, consisting of cash and available capacity under credit facilities [24] - A favorable drop in natural gas prices is expected to lead to a 20% to 25% decrease in customer bills in 2023 compared to 2022 [66] Company Strategy and Development Direction - The company is committed to a 6% to 8% annual growth in NOEPS through 2027 and plans to invest $15 billion in regulated CapEx from 2023 to 2027 [2][14] - The strategic focus includes enhancing operational efficiency, optimizing cost profiles, and pursuing renewable energy projects [12][40] - The company aims to retire all coal-fired generation by the end of 2028, transitioning to new assets primarily in wind and solar [42] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the execution of the five-year plan and the potential for a balanced outcome in the NIPSCO electric rate case [12][84] - The company remains focused on safety, reliability, affordability, and sustainability despite macroeconomic headwinds [50] Other Important Information - The company is actively pursuing a minority interest sale in NIPSCO to strengthen its balance sheet and has observed a broad range of qualified partners for this initiative [28][39] - The company is also engaged in several hydrogen hub proposals and is analyzing tax credits on a project-by-project basis [20][43] Q&A Session Summary Question: Timeline for NIPSCO rate case settlement - Management is optimistic about settling the NIPSCO rate case before the March 13 hearings, with discussions already underway [62] Question: Impact of coal plant cost recovery mechanism - Management believes the mechanism is beneficial for customers and is optimistic about its approval [64] Question: Timing of minority interest sale - The timeline for the minority interest sale remains on track for 2023, independent of the rate case conclusion [70] Question: Customer bill implications of lower gas prices - Management expects a 20% to 25% decrease in customer bills in 2023 due to favorable natural gas prices [66] Question: Updates on renewable projects and timelines - All renewable projects are on schedule with revised in-service dates, and management is working closely with developer partners [95]