01—Abstract
Summary
Summary of the 10-K filed February 12, 2025. Cited figures are marked; the original filing is the authoritative source.
NiSource Inc. (NI) reported 2024 total operating revenues of $5.46 billiona, 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 billionb, 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 billionc 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.
02—Key points
Key Highlights
- Diluted EPS of $1.62 for 2024 versus $1.48 in 2023; net income available to common shareholders of $739.7 million.
- Operating income rose to $1.46 billion from $1.30 billion, led by new base rates and regulatory capital programs.
- Planned capital investments of approximately $19.4 billion over 2025-2029, with 2025 estimated at $4.0-4.3 billion.
- NIPSCO's 2024 IRP reflects data center load growth and calls for additional gas-fired resources if significant new data center load is contracted.
- Coal retirements are planned: R.M. Schahfer's remaining two units by end of 2025 and Michigan City by end of 2028.
- The NIPSCO Minority Interest Transaction brought a $2.16 billion capital contribution from Blackstone affiliates, and higher noncontrolling interest income followed.
- Net available liquidity fell to $1.57 billion from $3.07 billion, with year-end cash of $156.6 million, and total long-term debt of $13.36 billion.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2024filed February 12, 2025Financial Statements
FY2024 against FY2023
| Line item | FY2024FY2023 | Change |
|---|---|---|
| Revenue | $5.28B$5.35B | −1.2% |
| Operating Income | $1.46B$1.30B | +12.4% |
| Net Income | $760.40M$714.30M | +6.5% |
| EPS (Basic) | $1.63$1.59 | +2.5% |
| EPS (Diluted) | $1.62$1.48 | +9.5% |
| Shares Outstanding (Basic) | 454.20M416.10M | +9.2% |
| Shares Outstanding (Diluted) | 456.00M447.90M | +1.8% |
05—Questions
Frequently Asked Questions
How did NiSource's 2024 earnings compare with 2023?
Net income available to common shareholders was $739.7 million in 2024, up from $661.7 million, and diluted EPS was $1.62 versus $1.48. Growth was driven mainly by higher revenues net of cost of energy, supported by investment in safety, reliability and low- or zero-emission generation, and by increased AFUDC related to the Cavalry and Dunns Bridge II projects. Higher depreciation, interest expense and noncontrolling interest income partly offset these gains.
What is the company's capital spending plan?
NiSource spent $3.69 billion in capital expenditures in 2024 and expects to invest approximately $19.4 billion during 2025-2029 across infrastructure modernization, generation transition and customer growth. The estimate includes about $1.6 billion of additional renewable generation investment. Estimated capital investments are $4.0-4.3 billion in 2025 and $3.8-4.1 billion in 2029.
How does the data center opportunity affect NiSource?
Management said it has seen accelerating customer interest in data center development in northern Indiana and is evaluating how to meet potential load growth. The filing notes this would require new generation and transmission capabilities, and the 2024 IRP calls for additional gas-fired resources if significant data center load is contracted. The filing also cautions that data center investments may require capital before any return is received and that these plans could change the timing of Net Zero Goal interim targets.
What are the main balance sheet and liquidity risks?
Total long-term debt was $13.36 billion at December 31, 2024, with $1.28 billion current. Net available liquidity fell to $1.57 billion from $3.07 billion, as cash dropped to $156.6 million from $2.25 billion and commercial paper outstanding decreased. The debt-to-capitalization ratio was 52.6% against a 70% covenant, and a ratings downgrade below investment grade could require about $115.5 million in collateral under ratings-trigger agreements.
06—Continue