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NI · NiSource

29 filings

10-K

NI 10-K Annual Reports

NiSource - 29 annual reports

Filing record · 2016–202610-K1210-Q338-K177

2025
NiSource Annual Report, Year Ended Dec 31, 2025
NiSource Inc. reported 2025 operating revenues of $6.64 billion, up from $5.46 billion in 2024, and net income attributable to NiSource of $929.5 million, or $1.95 diluted EPS, compared with $1.62 in 2024. Operating income rose to $1.84 billion from $1.46 billion. The company is an energy holding company whose primary subsidiaries are fully regulated natural gas and electric utilities serving approximately 3.8 million customers in six states, organized into two reportable segments: Columbia Operations and NIPSCO Operations. Total capital expenditures were $4.05 billion in 2025, and the company expects roughly $21.0 billion of base-business capital investment over 2026-2030, plus about $7.0 billion to develop the Contract Assets for the ADS data center contract. The central strategic development is the ADS Contract, entered into in September 2025 with Amazon Data Services, under which NIPSCO will provide electricity to ADS data centers, pending IURC approval. The contract calls for capacity increasing to 2,400 MW by the end of 2032, and GenCo will build roughly 3,000 MW of dispatchable generation. Amazon.com, Inc. has guaranteed ADS's payment obligations. ADS holds a one-time option, exercisable by March 31, 2029, to halve committed capacity to 1,200 MW, and it may terminate for convenience, with reimbursement capped. The company also sold a 19.9% equity interest in Generation Holdings II to Blackstone affiliates in October 2025 for $35.2 million, with up to $1.325 billion of further Blackstone capital contributions committed. Management states that the ADS Contract and future data center contracts will require significant additional debt and equity financing. Balance sheet and financing points include total consolidated indebtedness of $16,213.5 million at year-end 2025, a debt-to-capitalization covenant ratio of 51.0% against a 70% limit, and credit ratings of BBB+ (S&P), Baa2 (Moody's), and BBB (Fitch), all with stable outlooks at NiSource. The company paid common dividends of $1.12 per share in 2025, and its Board declared a quarterly dividend of $0.300 per share in January 2026. Risk factors emphasize the financing needs, data center concentration risk, MISO accreditation changes, and the 202(c) emergency order keeping the R.M. Schahfer coal units running.
Feb 11, 2026
2024
NiSource Annual Report, Year Ended Dec 31, 2024
NiSource Inc. (NI) reported 2024 total operating revenues of $5.46 billion, up from operating income of $1.46 billion versus $1.30 billion in 2023, and net income available to common shareholders of $739.7 million, or $1.62 diluted EPS, compared with $1.48 in 2023. The results were driven by new rates from base rate proceedings and regulatory capital programs, along with higher AFUDC, partly offset by higher depreciation and interest expense and higher net income attributable to noncontrolling interest following the NIPSCO Minority Interest Transaction with Blackstone. Capital investment remains the central theme. Total 2024 capital expenditures were $3.69 billion, and the company expects to invest approximately $19.4 billion during 2025-2029 for infrastructure modernization, generation transition and customer growth. The generation transition continues, with the remaining two R.M. Schahfer coal units slated for retirement by end of 2025 and Michigan City by end of 2028. Management also highlighted growing data center interest in northern Indiana, which could require new generation and transmission, and noted that the 2024 IRP calls for additional gas-fired resources if significant new data center load is contracted. Balance sheet and liquidity remain important considerations. Total long-term debt was $13.36 billion at year end, and the company reported net available liquidity of $1.57 billion, down from $3.07 billion a year earlier as cash on hand fell from $2.25 billion to $156.6 million. The debt-to-capitalization ratio was 52.6% against a 70% covenant, and credit ratings remained BBB+ (S&P), Baa2 (Moody's) and BBB (Fitch), with stable outlooks.
Feb 12, 2025
2023
NiSource Annual Report, Year Ended Dec 31, 2023
NiSource Inc. reported 2023 operating revenues of $5,505.4 million, down from $5,850.6 million in 2022, while operating income rose to $1,295.5 million from $1,265.8 million. Net income attributable to NiSource was $714.3 million, and net income available to common shareholders was $661.7 million, or $1.59 basic and $1.48 diluted EPS, compared with $1.84 and $1.70 in 2022. The decline in common earnings was attributed mainly to lower revenue from weather, the 2022 insurance settlement related to the Greater Lawrence Incident not recurring, and higher interest expense. Gas Distribution Operations and Electric Operations contributed operating income of $901.9 million and $378.7 million, respectively. The defining event of the year was the December 31, 2023 closing of the NIPSCO Minority Interest Transaction, in which Blackstone's affiliate contributed $2.16 billion in cash for a 19.9% interest in NIPSCO Holdings II. Operating cash flow rose to $1,935.1 million, and cash and cash equivalents ended the year at $2,245.4 million. Management expects capital investments of approximately $16.0 billion over 2024-2028, and total consolidated indebtedness was $14,127.9 million at year end. Key risks highlighted include the pace of the electric generation transition, including coal retirements by 2025 and 2028 and renewable project delays tied to solar supply chain issues, along with regulatory outcomes, cybersecurity, and rising borrowing costs. The company reported a debt-to-capitalization ratio of 58.2% against a 70% revolving credit facility covenant, and its credit ratings were BBB+ (S&P), Baa2 (Moody's), and BBB (Fitch), all stable.
Feb 21, 2024
2022
NiSource Annual Report, Year Ended Dec 31, 2022
NiSource Inc. is an energy holding company whose primary subsidiaries are fully regulated natural gas and electric utilities serving approximately 3.7 million customers in six states. Net income attributable to NiSource was $804.1 million in 2022, up from $584.9 million in 2021, and diluted EPS rose to $1.70 from $1.27. Operating revenues were $5,850.6 million versus $4,899.6 million, with the company citing higher revenues from gas base rate proceedings and regulatory capital programs, plus an insurance settlement related to the Greater Lawrence Incident, partly offset by higher income taxes. Capital expenditures were $2,298.0 million in 2022, and management expects roughly $15 billion of capital investments over 2023-2027. The company's strategy centers on infrastructure modernization and an electric generation transition, with plans to retire remaining coal generation by the end of 2028, replacing it with primarily renewable resources. Execution risk is significant: the filing notes uncertainty around solar panel availability, the pending DOC Investigation, and delays to planned renewable projects. NiSource also announced intent to sell a minority interest in NIPSCO, with no assurance of timing or completion, and a Net Zero Goal of net zero Scope 1 and 2 greenhouse gas emissions by 2040. Balance sheet items include total consolidated indebtedness of $11,315.5 million, a debt-to-capitalization ratio of 58.9% against a 70% covenant, and short-term borrowings of $1,761.9 million at year-end. Credit ratings were unchanged since February 2020 (S&P BBB+, Moody's Baa2, Fitch BBB at NiSource level), and the company declared a quarterly common dividend of $0.250 per share in January 2023.
Feb 22, 2023
2021
NiSource Annual Report, Year Ended Dec 31, 2021
NiSource Inc. is an energy holding company whose principal subsidiaries are fully regulated natural gas and electric utilities serving approximately 3.7 million customers in six states. It has two reportable segments, Gas Distribution Operations and Electric Operations, and the filing states that it derives substantially all of its revenues and earnings from these rate-regulated businesses. For 2021, operating revenues were $4,899.6 million, operating income was $1,006.9 million, and net income available to common shareholders was $529.8 million, or $1.27 per diluted share, compared with a net loss available to common shareholders of $72.7 million in 2020. The 2020 results were affected by the October 9, 2020 sale of the Massachusetts Business to Eversource and a $412.4 million pre-tax loss on that sale. The company reported that it invested $1.3 billion in infrastructure modernization in 2021 and expects capital investments of approximately $10 billion over 2021-2024. Its electric generation transition, which plans to replace coal capacity by the end of 2028 with primarily renewable resources, is a central element of that plan. As of December 31, 2021, NiSource had total consolidated indebtedness of $9,801.5 million, and it reported a debt-to-capitalization ratio of 57.4% against a 70% covenant. Its credit ratings were BBB+ (S&P), Baa2 (Moody's) and BBB (Fitch), all with stable outlooks. The filing also describes ongoing liabilities tied to the Greater Lawrence Incident, including a deferred prosecution agreement with the U.S. Attorney's Office.
Feb 23, 2022
2020
NiSource Annual Report, Year Ended Dec 31, 2020
NiSource Inc. is an energy holding company whose primary subsidiaries are fully regulated natural gas and electric utilities serving approximately 3.7 million customers in six states. In 2020 the company reported operating revenues of $4,681.7 million, down from $5,208.9 million in 2019, and operating income of $550.8 million versus $890.7 million. The decline was driven primarily by the sale of the Massachusetts Business to Eversource, which closed on October 9, 2020 for net proceeds of approximately $1,113 million, and by a $412.4 million loss on that sale. Net loss available to common shareholders was $72.7 million, or $0.19 per basic share, compared with income of $328.0 million, or $0.88 per share, in 2019. Other deductions included a $243.5 million loss on early extinguishment of long-term debt. The filing highlights continuing investment in the utility base. The company projects 2021 capital spending of approximately $1.9 to $2.1 billion, and plans to retire the R.M. Schahfer Generating Station by mid-2023 and Michigan City by the end of 2028, with replacement renewable capacity from PPAs and build-transfer agreements. NiSource Next, a multi-year cost optimization program, is projected to reduce ongoing operation and maintenance costs by approximately 8% in 2021 compared with 2020. Liabilities tied to the Greater Lawrence Incident remain a key risk, with total third-party claims and government penalties estimated at $1,036 million to $1,050 million, exceeding the $800 million of third-party liability insurance coverage. Liquidity stood at $1,721.6 million of net available liquidity at year-end 2020, and total long-term debt was $9,243.1 million including finance leases. The debt-to-capitalization ratio was 62.5% against a 70% covenant. Credit ratings were BBB+ at S&P, Baa2 at Moody's and BBB at Fitch, all with stable outlooks. The Board declared a quarterly common dividend of $0.22 per share in January 2021.
Feb 17, 2021
2019
NiSource Annual Report, Year Ended Dec 31, 2019
NiSource Inc. is an energy holding company whose subsidiaries are fully regulated natural gas and electric utilities serving approximately 4.0 million customers in seven states, with substantially all operating income generated by rate-regulated businesses in two segments: Gas Distribution Operations and Electric Operations. Net income available to common shareholders was $328.0 million, or $0.88 per basic share, in 2019, compared with a loss of $65.6 million in 2018, with operating income of $890.7 million versus $124.7 million. The improvement reflected lower Greater Lawrence Incident expenses, $665 million of insurance recoveries recorded in 2019, and new rates, partially offset by $414.5 million of goodwill and intangible impairment charges related to Columbia of Massachusetts. The filing is dominated by the Greater Lawrence Incident of September 13, 2018, which resulted in one fatality. Through December 31, 2019, the company recorded $1,041 million of third-party claims and government fines, penalties and settlements, with an estimated total of $1,041 million to $1,065 million, plus $420 million of other incident-related costs. Insurance coverage of $800 million has been fully collected, and expenses have exceeded that coverage. On February 26, 2020, the company agreed to sell Columbia of Massachusetts to Eversource for $1,100 million in cash, subject to adjustment, and entered into agreements with the U.S. Attorney's Office, including a plea agreement by Columbia of Massachusetts and a deferred prosecution agreement for the company. The company estimates a pre-tax loss of approximately $360 million on the sale, and expects to close by September 30, 2020. Financially, total debt was $9,642.8 million at year-end 2019, the debt-to-capitalization ratio was 61.7% against covenant limits of 70% and 75%, and net available liquidity was $1,409.1 million. Capital expenditures were $1,867.8 million in 2019, with 2020 projected at $1.8 to $1.9 billion. The company also reported a quarterly common dividend of $0.21 per share.
Feb 28, 2020
2018
NiSource Annual Report, Year Ended Dec 31, 2018
NiSource Inc. reported a 2018 net loss available to common shareholders of $65.6 million, or $0.18 per basic share, compared with net income of $128.5 million, or $0.39 per share, in 2017. The decline was driven primarily by expenses related to the Greater Lawrence Incident, a September 13, 2018 series of fires and explosions in Massachusetts involving Columbia of Massachusetts. During 2018 the company recorded a loss of approximately $757 million for third-party claims and approximately $266 million for other incident-related expenses, and it expects total third-party claim costs of $757 million to $790 million and other incident-related costs of $330 million to $345 million. Operating income fell to $124.7 million from $921.2 million, while total operating revenues rose to $5,114.5 million from $4,874.6 million. The company is an energy holding company whose subsidiaries are fully regulated natural gas and electric utilities serving approximately 4.0 million customers in seven states, with reportable segments in Gas Distribution Operations and Electric Operations. Management cites an estimated $30 billion in long-term regulated utility infrastructure investments and expects capital expenditures of approximately $1.6 to $1.7 billion in 2019. Liquidity stood at $974.6 million at December 31, 2018, and total consolidated indebtedness was $9,132.6 million. Credit ratings were placed on negative outlook at S&P (BBB+) in September 2018 due to the incident, and the company faces an SEC investigation, a U.S. Attorney criminal investigation, an NTSB investigation, and private class action suits related to the incident. The company also raised significant equity and preferred capital in 2018, including a $606.0 million private placement of common stock, $400.0 million of Series A preferred stock and $500.0 million of Series B preferred stock, and it declared a quarterly common dividend of $0.20 per share payable February 20, 2019.
Feb 20, 2019
2017
NiSource Annual Report, Year Ended Dec 31, 2017
NiSource Inc. is an energy holding company whose subsidiaries are fully regulated natural gas and electric utilities serving approximately 3.9 million customers in seven states. For 2017, total operating revenues were $4,874.6 million, up from $4,492.5 million in 2016, and operating income was $910.6 million versus $858.2 million. Income from continuing operations fell to $128.6 million, or $0.39 per diluted share, from $328.1 million, or $1.01 per diluted share, in 2016. The decline was driven primarily by a $161.1 million charge to tax expense from the TCJA and a $111.5 million loss on early extinguishment of long-term debt, partially offset by higher operating income. The company reports that its Gas Distribution and Electric Operations segments generated substantially all operating income from rate-regulated businesses. Management cites approximately $1.7 billion of 2017 cash capital expenditures, a planned $1.7 to $1.8 billion for 2018, and an estimated $30 billion in total projected long-term regulated utility infrastructure investments. Net available liquidity was $998.9 million at year-end 2017, and total consolidated indebtedness was $9,002.2 million. The debt-to-capitalization ratio was 67.6%, below the 70% covenant under the revolving credit facility and the 75% covenant under a 2005 private placement note agreement. Investors should note several items: the TCJA is expected to reduce cash collections from customers and to require pass-backs of approximately $1.5 billion of excess deferred taxes, NIPSCO's electric generation strategy calls for retiring Bailly Units 7 and 8 by May 31, 2018, and NIPSCO has a pending gas base rate request seeking a revenue increase of $117.9 million with an order expected in the second half of 2018. The Board declared a quarterly dividend of $0.195 per share payable February 20, 2018.
Feb 20, 2018
2016-A
NiSource Annual Report (Amendment), Year Ended Dec 31, 2016
NiSource Inc. is an energy holding company whose subsidiaries are rate-regulated natural gas and electric utilities serving approximately 3.9 million customers in seven states. For 2016, gross revenues were $4,492.5 million, down from $4,651.8 million in 2015, while operating income rose to $858.2 million from $799.9 million. Net income attributable to NiSource was $331.5 million, compared with $286.5 million in 2015, and basic earnings per share were $1.03 versus $0.90. The 2015 results reflect the July 1, 2015 spin-off of Columbia Pipeline Group, Inc., which is reported as discontinued operations. The balance sheet shows total assets of $18,691.9 million at December 31, 2016, up from $17,492.5 million. Short-term borrowings increased to $1,488.0 million from $567.4 million, including $1,178.0 million of commercial paper, and total long-term debt was $6,421.3 million. Management stated the debt-to-capitalization ratio was 66% against covenant limits of 70% and 75%. Capital expenditures were $1,475.2 million in cash terms for 2016. Common dividends paid fell to $205.5 million, reflecting $0.64 per share in 2016 compared with $0.83 in 2015. The filing highlights ongoing rate cases across several states and NIPSCO's 2016 Integrated Resource Plan, which proposes retiring Bailly Generating Station Units 7 and 8 by May 31, 2018 and two units at R.M. Schahfer by the end of 2023. The filing states that NIPSCO expects over $1 billion in operating, maintenance, environmental and other costs over the next seven years if the current coal-fired fleet remains operational. Pension plans were underfunded by $414.9 million and other postretirement plans by $297.6 million at year-end 2016.
May 8, 2017
2016
NiSource Annual Report, Year Ended Dec 31, 2016
NiSource Inc. (NI) reported higher 2016 income from continuing operations of $328.1 million, or $1.02 per basic share, compared with $198.6 million, or $0.63 per basic share, in 2015. The increase was driven mainly by higher operating income ($858.2 million versus $799.9 million) and the absence of the $97.2 million loss on early extinguishment of long-term debt recorded in 2015 as part of the Separation of Columbia Pipeline Group. Total net revenues rose to $3,102.3 million from $3,008.1 million, while gross revenues declined to $4,492.5 million from $4,651.8 million, reflecting lower gas costs and warmer weather. Gas Distribution Operations and Electric Operations generated substantially all operating income, with segment operating income of $574.0 million and $291.4 million, respectively. Capital investment remained a central focus. NiSource invested approximately $1.5 billion in capital expenditures in 2016 and projects $1.6 billion to $1.7 billion for 2017, and it continues to execute on an estimated $30 billion in total projected long-term regulated utility infrastructure investments. Net available liquidity declined to $683.7 million at year-end 2016 from $1,179.4 million a year earlier, as short-term borrowings rose to $1,488.0 million. Total consolidated indebtedness was $7,909.3 million, and the debt-to-capitalization ratio stood at 66%, within the 70% and 75% covenant limits. Net cash from continuing operating activities fell to $804.1 million from $1,163.4 million. The filing also highlights regulatory and environmental risk. NIPSCO plans to retire the Bailly Generating Station Units 7 and 8 by May 31, 2018, and two units at R.M. Schahfer by the end of 2023, with $22.1 million of plant retirement-related charges recorded in the fourth quarter of 2016. Management estimates capital compliance costs of approximately $230 million for CCR rules and $170 million for ELG rules. The company also reported a federal NOL carryforward deferred tax asset of $600.9 million, and its quarterly common dividend was declared at $0.175 per share for February 2017.
Feb 22, 2017
2015
NiSource Annual Report, Year Ended Dec 31, 2015
NiSource Inc. (NI) reported 2015 income from continuing operations of $198.6 million, or $0.63 per basic share, down from $256.2 million, or $0.81 per basic share, in 2014. The decline was due primarily to a $97.2 million loss on early extinguishment of long-term debt recorded as part of the debt restructuring tied to the July 1, 2015 Separation of Columbia Pipeline Group (CPG). Operating income rose slightly to $799.9 million from $789.1 million, driven by higher net revenues from gas distribution regulatory and service programs and increased return on environmental capital investment at NIPSCO, partly offset by warmer weather and lower industrial usage. Total consolidated net revenues were $3,008.1 million, up $108.6 million. Total net income attributable to NiSource was $286.5 million, or $0.90 per basic share, including $87.9 million from discontinued operations. NiSource describes itself as an energy holding company whose subsidiaries are fully regulated natural gas and electric utilities serving approximately 3.9 million customers in seven states, with substantially all revenues and earnings derived from rate-regulated businesses. The company invested $1,367.5 million in capital during 2015 and expects to invest $1,391.6 million in 2016. Total consolidated indebtedness was $6,949.6 million at December 31, 2015, and the reported debt-to-capitalization ratio was 64%, against covenant maximums of 70% and 75%. Liquidity available at year-end totaled approximately $1,179.4 million. For investors, the key considerations are the post-Separation balance sheet, which shows total assets of $17,492.5 million (down from $24,589.8 million), the company's reduced scale without CPG, and its pending multi-year regulated infrastructure program. Regulatory outcomes at NIPSCO, including the pending electric base rate case seeking about $148.0 million and the seven-year electric TDSIC plan of about $1.3 billion, are important near-term items. The filing also notes that Standard & Poor's raised NiSource's senior unsecured rating to BBB+ in 2015, while Fitch revised its outlook to positive.
Feb 18, 2016
2014
NiSource Annual Report, Year Ended Dec 31, 2014
NiSource Inc. (NI) is an energy holding company whose subsidiaries provide natural gas, electricity and other services to approximately 3.8 million customers in a corridor running from the Gulf Coast through the Midwest to New England. For 2014, the company reported income from continuing operations of $530.7 million, or $1.68 per basic share, versus $490.9 million, or $1.57 per basic share, in 2013. Net income was $530.0 million, and gross revenues rose to $6,470.6 million from $5,657.3 million, while net revenues were $4,246.4 million, a $404.6 million increase. Growth was driven mainly by Gas Distribution Operations and Columbia Pipeline Group Operations, with capital expenditures of approximately $2.2 billion in 2014 and a projected $2.4 billion for 2015. The most significant strategic development is the Proposed Separation of the natural gas pipeline business into a stand-alone company, Columbia Pipeline Group, Inc. (CPG), expected in mid-2015 but subject to conditions and not assured. In addition, Columbia Pipeline Partners LP completed an IPO on February 11, 2015, raising $1,170.0 million in net proceeds, with NiSource consolidating the partnership while it remains a subsidiary. Total consolidated indebtedness was $9,999.4 million at December 31, 2014, and the debt-to-capitalization ratio was 62%, within the 70% covenant limit. Key risks cited include leverage, credit rating sensitivity (all ratings remain investment grade, with S&P and Fitch noting a downgrade would fall below investment grade), weather and regulatory rate proceedings, environmental compliance costs, and uncertainty around completing the separation on the contemplated timeline and tax-free terms. The quarterly dividend was $0.26 per share, declared January 30, 2015.
Feb 18, 2015
2013
NiSource Annual Report, Year Ended Dec 31, 2013
NiSource Inc. (NI) is an energy holding company whose subsidiaries provide natural gas, electricity and other products and services to approximately 3.8 million customers in a corridor running from the Gulf Coast through the Midwest to New England. Its business is organized into three segments: Gas Distribution Operations, Columbia Pipeline Group Operations, and Electric Operations (NIPSCO). For 2013, the company reported income from continuing operations of $490.9 million, or $1.57 per basic share, compared with $408.8 million, or $1.40 per share in 2012, and net income of $532.1 million, or $1.70 per basic share. Total net revenues were $3,841.8 million, up $327.8 million, driven mainly by Columbia Pipeline Group Operations and Gas Distribution Operations, with colder weather and the Columbia Transmission customer settlement contributing. Investors should note the company's capital program: capital expenditures were $2,046.0 million in 2013 and are projected at $2,150.0 million for 2014, with spending concentrated in pipeline modernization, Marcellus and Utica shale growth projects, and environmental and infrastructure replacement programs. Total consolidated indebtedness was $8,834.0 million at December 31, 2013, and the debt-to-capitalization ratio was 60.0%, below the 70% and 75% covenant levels. Moody's upgraded NiSource's senior unsecured rating to Baa2 on January 31, 2014, and all ratings remain investment grade, though a downgrade by Standard & Poor's or Fitch would move the rating below investment grade. The company also recorded net cash from operating activities of $1,436.8 million, helped by a $255.9 million increase in working capital from an income tax receivable related to an IRS refund. Its common dividend was $0.98 per share for 2013, and the Board declared a quarterly dividend of $0.25 per share in January 2014.
Feb 18, 2014
2012
NiSource Annual Report, Year Ended Dec 31, 2012
NiSource Inc. (NI) is an energy holding company whose subsidiaries provide natural gas, electricity and other services to approximately 3.8 million customers in a corridor running from the Gulf Coast through the Midwest to New England. Its three segments are Gas Distribution Operations, Gas Transmission and Storage Operations, and Electric Operations. For 2012, income from continuing operations was $410.6 million, or $1.41 per basic share, up from $294.8 million, or $1.05 per basic share in 2011. Net income was $416.1 million, and total net revenues were $3,519.7 million, a $90.8 million increase over 2011. Net revenue growth came mainly from Electric Operations (up $130.0 million after the electric rate case), partly offset by lower Gas Distribution net revenues ($53.6 million lower) and lower Gas Transmission and Storage net revenues ($5.2 million lower), the latter reflecting an $81.7 million Columbia Transmission customer settlement. The balance sheet carried total consolidated indebtedness of $8,103.2 million at December 31, 2012, and the debt-to-capitalization ratio was 59.3% against covenant maximums of 70% and 75%. Net cash from operating activities was $1,275.5 million. Capital expenditures were $1,585.1 million in 2012, and management projects $1,813.1 million for 2013, led by Gas Transmission and Storage growth projects in the Marcellus and Utica shale areas and the Columbia Transmission modernization program of about $1.5 billion over five years. The company reported net available liquidity of approximately $974.4 million at year-end. Pension plans were underfunded by $631.0 million and other postretirement plans by $462.5 million. Credit ratings remained investment grade: BBB- from Fitch and S&P, and Baa3 from Moody's, all with stable outlooks. The regular quarterly common dividend was raised in 2012 from $0.92 to $0.96 annualized, and a $0.24 quarterly dividend was declared in January 2013.
Feb 19, 2013
2011
NiSource Annual Report, Year Ended Dec 31, 2011
NiSource Inc. (NI) is an energy holding company whose subsidiaries provide natural gas, electricity and other services to approximately 3.8 million customers along a corridor from the Gulf Coast through the Midwest to New England. Its three segments are Gas Distribution Operations, Gas Transmission and Storage Operations, and Electric Operations (Northern Indiana). For 2011, the company reported net income of $299.1 million, or $1.06 per basic share, compared with $282.6 million, or $1.02 per basic share, in 2010. Income from continuing operations was $303.8 million, or $1.08 per basic share. Total gross revenues were $6,019.1 million and net revenues were $3,462.7 million. Gas Transmission and Storage Operations net revenue growth from new Marcellus-related growth projects was a key driver, offset by higher pension contributions and a $35.5 million environmental expense recorded in the fourth quarter. The balance sheet carries total consolidated indebtedness of $7,953.8 million at December 31, 2011, and the debt-to-capitalization ratio was 61.4% against covenant limits of 70% and 75%. Credit ratings remain investment grade (BBB- at S&P and Fitch, Baa3 at Moody's), all with stable outlooks. Capital expenditures were $1,125.2 million in 2011, and the company projects a 2012 capital program of $1,400.0 million, funded through operating cash flow, equity and short-term debt. Net cash from operating activities was $870.2 million. The company also reported an immaterial correction to prior-period financial statements and noted several open regulatory matters, including Indiana environmental compliance projects and a Pennsylvania NOV.
Feb 24, 2012
2010
NiSource Annual Report, Year Ended Dec 31, 2010
NiSource Inc. is an energy holding company whose subsidiaries provide natural gas, electricity and other products and services to approximately 3.8 million customers in a corridor running from the Gulf Coast through the Midwest to New England. In 2010 it reported gross revenues of $6,422.0 million, net revenues of $3,447.9 million, operating income of $921.3 million, and net income of $292.0 million, or $1.04 per diluted share, compared with $217.7 million in 2009. Income from continuing operations was $294.6 million, or $1.06 per basic share, up from $230.5 million, though results were reduced by a $96.7 million loss on early extinguishment of debt tied to the tender offer for 10.75% notes due 2016. The company states that virtually 100% of its operating income comes from rate-regulated businesses, and it is pursuing a four-part growth platform centered on rate cases and expansion of its gas transmission and storage business in the Marcellus Shale region. The balance sheet carries total indebtedness of $7,352.8 million at December 31, 2010, with a debt-to-capitalization ratio of 59.9% against covenant maximums of 70% and 75%. Operating cash flow fell to $725.4 million from $1,666.2 million, largely due to working capital changes, and capital expenditures were $803.8 million. The company projects a 2011 capital program of $1,100.0 million, funded through operating cash flow, equity and short-term debt. Credit ratings remain investment grade (BBB- at S&P and Fitch, Baa3 at Moody's), with all outlooks stable, though a downgrade below investment grade would raise borrowing costs and collateral requirements. Key legal and environmental items include the Tawney royalty litigation, for which NiSource's share of the settlement liability is up to $338.8 million with $330.5 million contributed as of December 31, 2010, and an EPA consent decree covering Northern Indiana's coal plants, which estimates NSR-related capital improvements of $550.0 to $650.0 million through 2018. The company also reports a $1,100.0 million 2011 capital plan and pending rate proceedings in Indiana, Pennsylvania and at Columbia Gulf.
Feb 28, 2011
2009
NiSource Annual Report, Year Ended Dec 31, 2009
NiSource Inc. is an energy holding company whose subsidiaries provide natural gas, electricity and other products and services to approximately 3.8 million customers in a corridor running from the Gulf Coast through the Midwest to New England. For 2009, the company reported gross revenues of $6,649.4 million (down from $8,879.0 million in 2008), net revenues of $3,331.4 million (up from $3,245.7 million), and income from continuing operations of $231.2 million, or $0.84 per basic share, versus $370.6 million, or $1.35 per share, in 2008. Net income was $217.7 million, or $0.79 per basic share, compared with $79.0 million in 2008. The 2009 decline in continuing income was driven mainly by a $102.3 million increase in employee and administrative expenses (including $84.8 million of higher pension expense), higher depreciation and interest expense, and a $41.0 million drop in Electric Operations net revenues, partly offset by higher Gas Distribution and Gas Transmission and Storage net revenues. The filing highlights a heavy reliance on debt and a sizable litigation settlement. Total consolidated indebtedness was $6,787.4 million at December 31, 2009, and the debt-to-capitalization ratio was 58.3% against covenant maximums of 70% and 75%. The company's share of the Tawney royalty litigation settlement is up to $338.8 million, of which $277.3 million had been contributed to the settlement fund. Liquidity improved in 2009 through a $295.7 million federal and state tax refund receivable, of which $263.5 million was received in October 2009, along with new long-term debt issuances. Pension plans were underfunded by $674.5 million and other postretirement plans by $444.7 million at year-end. Capital expenditures were $777.2 million in 2009, with projected 2010 capital spending of $900.4 million. Credit ratings remain investment grade (BBB- at S&P and Fitch, Baa3 at Moody's). Management is scaling back unregulated natural gas marketing to focus on core rate-regulated businesses, which the filing says generate virtually 100% of operating income. Several pending rate proceedings, including the Northern Indiana electric base rate case expected to be resolved in the first half of 2010, could affect future results.
Feb 26, 2010
2008
NiSource Annual Report, Year Ended Dec 31, 2008
NiSource Inc. reported 2008 net income of $79.0 million, or $0.29 per basic share, down sharply from $321.4 million, or $1.17 per share, in 2007. The decline was driven by a $290.8 million loss from discontinued operations, largely from an adjustment of $188.0 million for the Tawney litigation and after-tax losses of $108.2 million on dispositions. Income from continuing operations rose to $369.8 million, or $1.35 per basic share, from $302.9 million, helped by higher gas distribution net revenues and a lower income tax rate of 33.4%. Total gross revenues were $8.87 billion and net revenues were $3.24 billion, up $55.6 million from 2007. The company is a holding company whose subsidiaries provide natural gas and electricity to about 3.8 million customers from the Gulf Coast to New England. Management states that virtually 100% of operating income comes from rate-regulated businesses. Total consolidated indebtedness was $7,576.7 million at December 31, 2008, and the debt-to-capitalization ratio was 61.6% against covenant limits of 70% and 75%. Standard and Poor's changed its outlook to negative, and Fitch lowered its ratings on February 4, 2009, though all ratings remain investment grade. Key near-term items include a Tawney settlement of up to $338.8 million, pension expense expected to rise by about $100 million in 2009, and 2009 earnings guidance of $1.00 to $1.10 per basic share. Management reduced its projected 2009 financing requirement from nearly $1 billion to about $500 million, and it secured a two-year term loan with bank commitments of $265 million. Northern Indiana's electric base rate case, with final hearings planned for July 2009, could also affect results.
Feb 27, 2009
2007
NiSource Annual Report, Year Ended Dec 31, 2007
NiSource Inc. is an energy holding company whose subsidiaries provide natural gas, electricity and other products and services to approximately 3.8 million customers from the Gulf Coast through the Midwest to New England. Its business segments are Gas Distribution Operations, Gas Transmission and Storage Operations, Electric Operations and Other Operations. Net revenues were $3,263.7 million in 2007, up $139.1 million from 2006, and operating income was $931.9 million. Income from continuing operations was $312.0 million, or $1.14 per basic share, versus $313.5 million, or $1.15, in 2006. Net income was $321.4 million, or $1.17 per basic share. Management cites favorable weather, higher firm capacity reservation fees at the transmission business and the Whiting Clean Energy facility as drivers, partly offset by higher operating expenses, a $33.5 million Northern Indiana purchased-power settlement, a $40.6 million loss on early debt extinguishment and an unbilled revenue correction. The filing discloses a material weakness in internal control over financial reporting related to Northern Indiana's unbilled revenue estimating process, and Deloitte & Touche issued an adverse opinion on internal control. Total consolidated indebtedness was $6,689.3 million at year-end, and Standard and Poor's lowered NiSource's senior unsecured rating to BBB- in December 2007, one notch above junk, while Moody's placed its outlook on negative. Management projects 2008-2010 earnings from continuing operations of $1.23 to $1.35 per share and capital expenditures of $1,356.9 million for 2008. Key contingencies include a $404.3 million jury verdict in the Tawney royalty case, against which NiSource has not reserved the $270 million punitive portion, and a pending sale of Northern Utilities and Granite State Gas to Unitil Corporation for $160 million plus working capital.
Mar 5, 2008
2006
NiSource Annual Report, Year Ended Dec 31, 2006
NiSource Inc. (filed as NiSource Inc.) reported 2006 income from continuing operations before cumulative effect of $313.5 million, or $1.15 per basic share, up from $284.1 million, or $1.05 per basic share in 2005. Net income was $282.2 million, or $1.04 per basic share, compared with $306.5 million in 2005. Gross revenues were $7.49 billion and net revenues were $3.12 billion, a $22.0 million decrease from 2005. Operating income fell to $880.0 million from $952.6 million. Management attributed the decline mainly to unfavorable weather (approximately 12% warmer than normal in gas markets) and decreased residential gas usage, partly offset by higher shorter-term transportation and storage sales and improved Electric Operations results. Other Operations posted a larger operating loss of $40.2 million, driven largely by the Whiting Clean Energy facility. The balance sheet carries total indebtedness of $6,432.5 million at December 31, 2006, and a $404.3 million jury verdict in the Tawney royalty class action (January 27, 2007) that the company intends to contest, with a reserve increased but no reserve for the $270 million punitive portion. Net cash from operating activities was $1,156.2 million, and 2007 capital expenditures are projected at $801.1 million, to be funded through operations and new long-term debt. The company stated it had decided not to issue new long-term debt until its strategic and financial review, which it expected to communicate in early 2007, was completed. The quarterly common dividend was $0.23 per share, and common dividends totaled $0.92 per share in 2006. NiSource described its strategy as focused on rate-regulated, asset-based businesses generating virtually 100% of operating income from regulated operations. Its IBM outsourcing agreement targets upwards of $530 million in gross savings, although the company reported implementation delays and is reassessing the initiative.
Mar 1, 2007
2005
NiSource Annual Report, Year Ended Dec 31, 2005
NiSource Inc. reported 2005 net income of $306.5 million, or $1.13 per basic share, compared with $436.3 million, or $1.65 per basic share, in 2004. Income from continuing operations before the cumulative effect of an accounting change was $283.6 million, or $1.05 per basic share, versus $431.0 million, or $1.63 per basic share, in 2004. The filing attributes the decline mainly to $82.8 million of pre-tax restructuring and transition costs tied to a 10-year outsourcing agreement with IBM, a $108.6 million pre-tax loss on early extinguishment of long-term debt, and $21.8 million of asset impairment charges. Gross revenues rose to $7.90 billion from $6.66 billion, while net revenues were $3.15 billion. Operating income fell to $952.8 million from $1,077.5 million. NiSource describes itself as an energy holding company with about 3.8 million customers along a corridor from the Gulf Coast to New England, and states that virtually 100% of its operating income comes from rate-regulated businesses. Total consolidated indebtedness was approximately $6.61 billion at December 31, 2005, and the company refinanced $2.4 billion of long-term debt during the year, which it expects to yield about $43 million in annual interest savings beginning in 2006. Management guided to 2006 basic earnings per share from continuing operations of $1.42 to $1.52, and expects capital expenditures of $638.2 million for 2006. The filing also highlights ongoing risks, including the Whiting Clean Energy merchant facility, which the company anticipates will operate at a loss in the near term after an after-tax loss of approximately $21.5 million in 2005. Several legal proceedings are pending, including royalty class actions, the Grynberg False Claims Act case, and an EPA Notice of Violation at Northern Indiana. Millennium Pipeline development depends on partner agreements and regulatory approvals.
Mar 10, 2006
2004-A
NiSource Annual Report (Amendment), Year Ended Dec 31, 2004
This Form 10-K/A amends NiSource Inc.'s annual report for fiscal year 2004 to restate the Statements of Consolidated Cash Flows for 2003 and 2002. The restatement reclassifies cash flows from discontinued operations into operating, investing and financing activities and reclassifies restricted cash activity from operating to investing. Per the filing, the restatement does not change operating, financing and investing cash flows related to continuing operations or the net change in cash and cash equivalents. The filing also updates the Report of Independent Registered Public Accounting Firm, dated January 27, 2006 as to the restatement effects. The underlying results for 2004 show income from continuing operations of $430.2 million, or $1.63 per share, versus $425.7 million, or $1.64 per share, in 2003. Net income was $436.3 million, or $1.65 per share. Gross revenues were $6,666.2 million and total net revenues were $3,055.7 million. Net cash flows from operating activities were $1,056.3 million in 2004, after the restated presentation. Long-term debt, excluding current portion, fell to $4,835.9 million from $5,993.4 million at year-end 2003, and short-term borrowings declined to $307.6 million from $685.5 million. Management projected 2005 capital expenditures of $623.6 million and expected 2005 earnings per share from continuing operations to be $0.10 to $0.15 lower than 2004. For investors, the key points are the restatement's limited effect on continuing-operations cash flows and the 2004 earnings and debt-reduction trends described in the filing's MD&A, which attributes much of the improvement to regulatory initiatives, controlled operating costs and lower interest expense.
Jan 27, 2006
2004
NiSource Annual Report, Year Ended Dec 31, 2004
NiSource Inc. is an energy holding company whose subsidiaries provide natural gas, electricity and other products and services to over 3.7 million customers in a corridor running from the Gulf Coast through the Midwest to New England. The company states that it generates virtually 100% of its operating income from rate-regulated businesses. For 2004, gross revenues were $6,666.2 million, net revenues were $3,055.7 million, operating income was $1,072.0 million, and net income was $436.3 million, or $1.65 per basic share, compared with $85.2 million, or $0.33 per share, in 2003. Income from continuing operations was $430.2 million, or $1.63 per share, versus $425.7 million, or $1.64 per share, in 2003. Management highlighted regulatory initiatives in Ohio and Indiana, tighter control of operation and maintenance costs, and lower interest expense, which fell $60.8 million year over year. Total long and short-term borrowings decreased $353.8 million during 2004. Management said 2005 earnings per share from continuing operations could be $0.10 to $0.15 lower than 2004, reflecting the expiration of pipeline firm contracts on October 31, 2004 and other factors. The company also projected a 2005 capital program of $623.6 million, $100.2 million above 2004, funded primarily from operations. The quarterly dividend was reduced to $0.23 per share, and $0.92 per share was paid for 2004. The filing also discloses several pending matters, including a Federal Energy Regulatory Commission complaint by Virginia Natural Gas, a West Virginia royalty class action with trial scheduled for early in the third quarter of 2005, and an Environmental Protection Agency Notice of Violation issued to Northern Indiana Public Service Company. Management stated its internal control over financial reporting was effective as of December 31, 2004.
Mar 9, 2005
2003
NiSource Annual Report, Year Ended Dec 31, 2003
NiSource Inc. is an energy holding company whose subsidiaries provide natural gas, electricity and other products and services to approximately 3.7 million customers from the Gulf Coast through the Midwest to New England. For 2003, the company reported gross revenues of $6,246.6 million, net revenues of $3,060.3 million and operating income of $1,116.3 million, but net income fell to $85.2 million, or $0.33 per share, from $372.5 million, or $1.77 per share, in 2002. The decline was driven by a $331.7 million after-tax loss from discontinued operations, mainly the sale of its exploration and production unit, CER, for $330.0 million, and the sale of PEI subsidiaries. Income from continuing operations was $425.7 million, or $1.64 per share. The company describes its business as virtually 100% rate-regulated operating income, with segments in Gas Distribution, Gas Transmission and Storage, Electric Operations and Other Operations. Management focused on deleveraging and balance sheet repair during 2003. Interest expense, net decreased $51.7 million, debt was reduced by retiring $1.28 billion and reissuing $1.35 billion at lower rates, and the company's investment grade credit ratings were affirmed with stable outlooks by Moody's, Fitch and Standard and Poor's. The common dividend was reduced to $0.92 per share annualized from $1.16, which management said was aimed at debt reduction, cash flow and core business reinvestment. Total long-term debt rose to $5,993.4 million at year end from $4,849.5 million, while total assets declined to $16,623.8 million from $17,942.6 million. Cash flow from continuing operations was $614.4 million, and 2004 capital expenditures are projected at $518.6 million. Key risks flagged in the filing include regulatory changes (notably a March 11, 2004 Ohio PUCO order that could reduce operating income by approximately $20 million annually in 2005 through 2007), a Northern Indiana plan to address the idled Mitchell Station, pending litigation including a Virginia Natural Gas FERC complaint seeking more than $37 million, and royalty class actions in West Virginia. Contractual obligations total $7,474.5 million and total commercial commitments $6,632.6 million at December 31, 2003.
Mar 12, 2004
2002-A
NiSource Annual Report (Amendment), Year Ended Dec 31, 2002
This amendment to NiSource Inc.'s Form 10-K for the year ended December 31, 2002, filed March 7, 2003, was made for two narrow reasons: the Historical Results of Operations table in footnote 26 (Exploration and Production Activities) was omitted during EDGARization and is now included, and Item 15 was amended to include the updated consent of auditors Deloitte & Touche LLP. Per the filing, no other changes were made to the Form 10-K filed March 3, 2003. The amendment restates Item 8 financial statements, which show 2002 gross revenues of $6.49 billion, total net revenues of $3.33 billion, operating income of $1.20 billion, and net income of $372.5 million, or $1.75 per diluted share, compared with net income of $216.2 million in 2001. The balance sheet at December 31, 2002 shows total assets of $16.90 billion, down from $17.83 billion, with long-term debt excluding current portion reduced to $5.02 billion from $6.30 billion. The company reports that the November 2002 equity offering of 41.4 million shares raised net proceeds of approximately $734.9 million, used to reduce debt, and that proceeds from the sale of the Indianapolis Water Company for $540.0 million on April 30, 2002 were also received. Common stock equity rose to $4.17 billion from $3.47 billion. Short-term borrowings fell to $913.1 million from $1,854.3 million. The filing also discloses several items investors should note, including the exit from the telecommunications business, an additional deferred tax liability tied to an Indiana tax rate increase, a pension minimum liability adjustment that reduced other comprehensive income by $203.7 million after tax, and a December 30, 2002 FERC order creating a refund liability for Northern Indiana whose amount was still being determined at filing. Environmental reserves total approximately $132.1 million.
Mar 7, 2003
2002
NiSource Annual Report, Year Ended Dec 31, 2002
NiSource Inc. is an energy holding company whose subsidiaries provide natural gas, electricity and other services to approximately 3.7 million customers in a corridor from the Gulf Coast through the Midwest to New England. For 2002, the company reported net income of $372.5 million, or $1.77 per basic share, up from $216.2 million, or $1.05 per share, in 2001. Income from continuing operations rose to $425.7 million, or $2.02 per share, compared with $226.4 million in 2001. Gross revenues fell to $6,492.3 million from $9,461.0 million, largely because the company scaled back merchant and trading operations, and operating income rose to $1,202.7 million from $1,032.9 million. The company's balance sheet improved during 2002. A November 2002 equity offering of 41.4 million shares raised net proceeds of approximately $734.9 million, which was used to reduce debt. Long-term debt declined to $5,018.0 million from $6,301.5 million, and short-term borrowings fell to $913.1 million from $1,854.3 million. Management stated that additional balance sheet improvement measures may be necessary to secure a ratings upgrade or improve the current ratings outlook, and that Moody's downgraded NiSource and NiSource Finance senior unsecured debt to Baa3 in February 2002. The company also exited the telecommunications business, sold its water utilities for $540.0 million, and sold its interest in a New York exploration and production joint venture for approximately $95.0 million in January 2003. Key risks include pending regulatory and environmental matters, the Primary Energy project financings and guarantees, and the Whiting Clean Energy dispute with its contractor. Pension expense for 2003 is expected to rise $42.8 million, and the company plans to refinance approximately $1.2 billion of expiring long-term debt during 2003.
Mar 3, 2003
2001
NiSource Annual Report, Year Ended Dec 31, 2001
NiSource Inc. (NI) is an energy holding company whose subsidiaries provide natural gas, electricity and other services to approximately 3.7 million customers across a corridor from the Gulf Coast through the Midwest to New England. The company completed its roughly $6 billion acquisition of Columbia Energy Group on November 1, 2000, which made it the largest natural gas distribution company east of the Rocky Mountains by number of customers. Results for 2001 and 2000 are not comparable because 2001 includes twelve months of Columbia while 2000 included only November and December. For 2001, NiSource reported net income of $216.2 million, or $1.05 basic per share, compared with $150.9 million, or $1.12 per share, in 2000. Income from continuing operations was $212.1 million, or $1.03 per share, and after non-recurring items was $249.6 million, or $1.22 per share. Gross revenues rose to $9,458.7 million from $6,030.7 million, and total assets declined to $17,374.1 million from $19,682.7 million. Investors should note several pressures disclosed in the filing. Fitch downgraded NiSource's long-term debt ratings on December 6, 2001, and Moody's placed the company under review for possible downgrade and later downgraded the senior unsecured ratings to Baa3 on February 1, 2002, which constrained its access to the commercial paper market. Dividends paid per share were $1.16 in 2001 against a return on average common equity of 6.3%, and the filing shows a dividend payout ratio of 110.5%. Short-term borrowings were $1,854.3 million at year-end 2001, and the company used its $2.5 billion revolving credit facility to refinance commercial paper. Management stated its intent to improve liquidity through divestitures of the Indianapolis Water Company and SM&P, additional note issuances and equity sales. Operationally, the filing points to weather that was 12% warmer than normal in the Gas Distribution territory, an industrial downturn including steel-sector bankruptcies, a December 2001 decision to indefinitely shut down the Mitchell Station, a $28.7 million restructuring charge, and a $17.8 million pre-tax charge tied to Enron's bankruptcy. Capital expenditures were $679.2 million in 2001, and the 2002 program is projected at $650.8 million. Pending litigation includes the Grynberg and Quinque royalty cases, and the Whiting Clean Energy project at Primary Energy is expected to operate at a loss.
Feb 22, 2002
2000-A
NiSource Annual Report (Amendment), Year Ended Dec 31, 2000
This is Amendment No. 1 to NiSource Inc.'s Annual Report on Form 10-K for the fiscal year ended December 31, 2000. Its stated purpose is to amend Item 14 to add Exhibit 18, a letter regarding a change in accounting principle, and to make certain other changes. The filing states that Part III incorporates by reference portions of the Registrant's Notice of Annual Meeting and Proxy Statement dated March 12, 2001, for the Annual Meeting of Stockholders held April 11, 2001. The amendment consists mainly of an exhibit index. It lists agreements tied to NiSource's corporate history and financing, including the Agreement and Plan of Merger with Columbia Energy Group dated February 27, 2000, as amended and restated March 31, 2000, and the amended and restated certificate of incorporation effective October 31, 2000. It also lists the November 1, 2000 Rights Agreement, a 364-Day Revolving Credit Agreement dated November 1, 2000, and a 3-Year Revolving Credit Agreement dated March 23, 2001. Many indentures and supplemental indentures for Northern Indiana Public Service Company, Indianapolis Water Company, NIPSCO Industries, Columbia Gas System, and NiSource Finance Corp. are listed by reference. For investors, the filing mainly documents the corporate and debt instruments and management compensation plans that support NiSource's operations and financing. It does not present new financial results, and no financial figures are stated beyond the principal amounts of the referenced bond issues and the Columbia Energy Group credit agreements.
Dec 18, 2001