NiSource(US:NI)2020-11-02 19:24Financial Data and Key Metrics Changes - NiSource reported non-GAAP net operating earnings of $0.09 per share in Q3 2020, compared to a net operating loss of $0.00 per share in Q3 2019, reflecting a year-over-year increase driven primarily by improved gas segment results [10][13] - Year-to-date, net operating earnings increased by approximately $52 million or $0.11 per share compared to the same period in 2019 [13] - The company expects to make capital investments of $1.7 billion to $1.8 billion in 2020, with a reaffirmation of non-GAAP net operating earnings per share guidance for 2021 in the range of $1.28 to $1.36, including an expected COVID-19 impact of $0.05 [10][11][35] Business Line Data and Key Metrics Changes - The gas segment's operating earnings increased by about $36 million in Q3 2020, primarily due to infrastructure investment revenue and cost management measures [14] - The electric segment's operating earnings decreased by $2.5 million, attributed to higher depreciation from accelerated depreciation of coal-fired generation assets, despite slightly higher revenues [14] Market Data and Key Metrics Changes - The impact of COVID-19 on the company included lower commercial and industrial sales, partially offset by increased residential sales, with a total impact of approximately $0.01 per share in Q3 and $0.07 per share year-to-date [15] - The company anticipates that COVID-19 will reduce EPS by $0.05 in 2021 under the base case scenario [15] Company Strategy and Development Direction - NiSource is focused on executing safety and asset modernization programs while transitioning to renewable energy, aiming for a 90% reduction in greenhouse gas emissions by 2030 [9][35] - The company plans to invest $1.9 billion to $2.2 billion annually in safety, modernization, and growth from 2021 through 2024, alongside $1.8 billion to $2 billion in renewable generation investments across 2022 and 2023 [11][35] - The NiSource Next initiative is designed to enhance organizational capabilities and drive efficiencies [36] Management's Comments on Operating Environment and Future Outlook - Management noted that the pandemic has not significantly hindered safety and infrastructure modernization programs or long-term growth [15] - The company is closely monitoring the impacts of COVID-19 on customer behavior and financial performance as it enters the heating season [40][42] Other Important Information - NiSource's debt level as of September 30 was approximately $10.6 billion, with a weighted average interest rate of about 3.68%, which was reduced by over 60 basis points through a liability management transaction [17][18] - The company maintains net available liquidity of about $1.6 billion and is committed to maintaining investment-grade credit ratings [18] Q&A Session Summary Question: COVID impact on 2021 guidance - Management reaffirmed the $0.05 impact for 2021, monitoring trends closely as they progress through Q4 [40][41] Question: Renewable projects timeline - Additional information on the 8 to 10 renewable projects in advanced negotiations is expected by year-end [43][44] Question: CPCN process for new projects - CPCN approval is still pending for several projects, with expectations for updates by year-end [50][51] Question: Asset monetization strategy - Management reiterated that they continuously evaluate portfolio optimization but have no specific timetable for asset sales [91][96] Question: Hydrogen blending initiatives - The company is monitoring hydrogen blending opportunities but has not yet included it in their investment plans [71][72]