NiSource(US:NI)2021-02-17 20:04Financial Data and Key Metrics Changes - In 2020, the company reported non-GAAP net operating earnings of approximately $508 million or $1.32 per share, compared to $495 million or $1.32 per share in 2019, indicating a stable earnings per share despite challenges [15] - The company reaffirmed its 2021 non-GAAP net operating earnings guidance of $1.28 to $1.36 per share, consistent with its long-term growth plan [12][49] Business Line Data and Key Metrics Changes - The gas segment saw an increase in operating earnings by about $36 million for the year, while operating revenues were down by approximately $19 million due to the sale of Columbia Gas of Massachusetts [16] - The electric segment experienced a decrease in non-GAAP operating earnings by nearly $40 million, primarily due to increased operating expenses and COVID-related impacts [17] Market Data and Key Metrics Changes - The company experienced a net gain of over 30,000 gas customers across its six-state footprint, with growth rates ranging from just below 1% to close to 2% [11][88] - The impact of COVID-19 on the company's earnings was approximately $0.05 per share, with expectations of an additional impact of the same amount in 2021 [18][19] Company Strategy and Development Direction - The company is focused on transitioning away from coal generation, with plans to retire nearly 80% of its remaining coal-fired generation by 2023 and all coal generation by 2028 [33] - The company plans to invest $1.9 billion to $2.2 billion in annual growth, safety, and asset modernization from 2021 through 2024, along with $1.8 billion to $2 billion in renewable generation investments through 2023 [12][49] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding economic recovery, noting strong residential usage but continued challenges in commercial usage due to COVID-19 [76] - The company emphasized the importance of reliability and capacity in its integrated resource planning process, especially in light of current industry events [55] Other Important Information - The company maintained a solid financial foundation with a debt level of about $9.7 billion and net available liquidity of approximately $1.7 billion [20][21] - NiSource was recognized in the Dow Jones Sustainability North America Index for the seventh consecutive year, reflecting its commitment to environmental, social, and governance criteria [46][47] Q&A Session Summary Question: Will the company be filing a new Integrated Resource Plan (IRP) this year? - Yes, the company will initiate the IRP process in the next quarter [52][54] Question: What is the expected pace of future Requests for Proposals (RFPs) for renewables? - The company will follow a similar process to 2018, with stakeholder engagement starting soon and potential RFPs likely in the summer [54] Question: What is the outlook for rate filings in Pennsylvania? - The company expects a commission decision soon and has a strong track record of rate cases in Pennsylvania, indicating a likely annual filing pattern [58][59] Question: What is the plan for hybrid or convertible financing? - The company plans to issue a hybrid or convertible in the first half of the year, which will inform future equity needs [61][66] Question: How is the company managing through the first heating season under COVID conditions? - The company is cautiously optimistic, noting strong residential usage and monitoring commercial usage closely [76][77] Question: What is the status of the company's renewable projects and remaining investment? - The company continues to track towards a range of $1.8 billion to $2 billion for renewable investments, with additional announcements expected in the first quarter [81]