NiSource(US:NI)2022-05-04 19:19Financial Data and Key Metrics Changes - NiSource reported non-GAAP diluted net operating earnings per share (NOEPS) of $0.75 for Q1 2022, a decrease from $0.77 in Q1 2021, with total non-GAAP net operating earnings of approximately $329 million compared to $305 million last year [13][28] - The company reaffirmed its 2022 guidance of $1.42 to $1.48 diluted non-GAAP EPS and a compound annual growth rate (CAGR) of 7% to 9% from 2021 through 2024 [11][131] Business Line Data and Key Metrics Changes - Gas Distribution operating earnings were approximately $405 million for Q1 2022, an increase of about $31 million compared to the same quarter last year [29] - Electric segment non-GAAP operating earnings for Q1 were about $99 million, which was about $8 million higher than 2021 [31] Market Data and Key Metrics Changes - NiSource's debt level as of March 31 was approximately $9.8 billion, with $9.2 billion in long-term debt and a weighted average interest rate of approximately 3.7% [32] - The company maintained net available liquidity of about $1.9 billion, consisting of cash and available capacity under its credit facility [33] Company Strategy and Development Direction - NiSource is committed to completing its generation transition from coal by 2028, although delays in solar and storage projects are expected due to the Commerce Department investigation [10][22] - The company plans to adjust its modernization investments to account for the timing changes in renewable energy project investments, aiming for approximately $10 billion in capital investments during the 2021 to 2024 period [25][26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in reaffirming the 2022 guidance despite projected delays in solar projects, emphasizing the importance of flexibility in the business plan [11][12] - The company highlighted the potential unintended consequences of project delays on customer costs and the importance of accelerating savings through renewable transitions [24][116] Other Important Information - NiSource is actively pursuing regulatory excellence with several rate cases filed in Pennsylvania and Virginia, and a settlement in the NIPSCO gas rate case [15][131] - The company plans to host an Investor Day in the fall to provide a definitive long-term plan beyond 2024 [12][27] Q&A Session Summary Question: Details on renewable investments and project timelines - Management clarified that there is a projected delay of 6 to 18 months for solar projects due to the Commerce Department investigation, with some projects already under construction expected to be completed sooner [51][52] Question: Update on strategic business review - The CEO indicated that the strategic business review is ongoing, with more information expected to be revealed during the fall Investor Day [57][128] Question: Impact of solar project delays on financing plans - Management noted that delays would impact debt financing for projects, but no changes to the overall financing plan were anticipated at this time [125][126] Question: Cost overruns and recovery mechanisms - Cost overruns are primarily the responsibility of the developer, with the company needing to evaluate the impact of any tariffs on project costs [111][123] Question: Customer bill impacts from rate increases - Management is continuously considering customer bill impacts and is in discussions with regulators to mitigate potential increases [84][90]