01—Abstract
Summary
Summary of the 10-Q filed May 8, 2024. Cited figures are marked; the original filing is the authoritative source.
NiSource Inc. reported first-quarter 2024 net income of $400.3 milliona, up from $337.8 million in the first quarter of 2023, and net income available to common shareholders of $344.3 million versus $319.2 million a year earlier.
Diluted EPS was $0.77b compared with $0.71. Total operating revenues fell to $1,706.3 million from $1,966.0 million, mainly because lower cost of energy is passed through to customers, while operating income rose to $583.4 million from $531.0 million. The company attributes the earnings increase primarily to higher revenues net of cost of energy from rate increases driven by regulatory outcomes, partly offset by higher net income attributable to noncontrolling interest following the NIPSCO Minority Interest Transaction.
The balance sheet and financing picture changed significantly. Cash and cash equivalents fell to $102.2 millionc from $2,245.4 million at year-end 2023, and short-term borrowings declined to $1,222.3 million from $3,048.6 million, as proceeds from the NIPSCO Minority Interest Transaction were used to repay $1.0 billion and $650.0 million term credit agreements and to redeem $500.0 million of Series B and B-1 Preferred Stock on March 15, 2024. Long-term debt rose to $11,724.6 million, reflecting a $650.0 million 5.35% senior notes issuance due 2034.
The company also set up an at-the-market equity program of up to $900.0 milliond, with approximately $700.0 million available as of March 31, 2024. Total noncontrolling interest in consolidated subsidiaries was $1,899.0 million, and the debt-to-capitalization ratio under the revolving credit facility covenant was 57.0% against a 70.0% limit. Management reiterated expected capital investments of $3.3 billion to $3.5 billion in 2024 and approximately $16.4 billion over 2024 through 2028, and stated that it remains on track to retire the remaining two R.M.
Schahfer coal units by the end of 2025. Net available liquidity was $1,139.8 million at March 31, 2024, down from $3,070.8 million at December 31, 2023.
02—Key points
Key Highlights
- Net income attributable to NiSource rose to $365.0 million from $333.0 million; net income available to common shareholders was $344.3 million versus $319.2 million.
- Diluted EPS was $0.77 compared with $0.71 in the first quarter of 2023; basic EPS was flat at $0.77.
- Operating income increased to $583.4 million from $531.0 million, while operating revenues declined to $1,706.3 million from $1,966.0 million due to lower cost of energy.
- Noncontrolling interest income rose to $35.3 million from $4.8 million following the NIPSCO Minority Interest Transaction, which provided a $2.16 billion cash capital contribution on December 31, 2023.
- Cash fell to $102.2 million and short-term borrowings declined to $1,222.3 million as proceeds were used to repay $1.65 billion in term credit agreements; long-term debt rose to $11,724.6 million after a $650.0 million 5.35% notes issuance due 2034.
- Series B and B-1 Preferred Stock totaling $500.0 million was redeemed on March 15, 2024, with a $14.0 million redemption premium recorded against retained earnings.
- Forecast capital investments of $3.3 billion to $3.5 billion for 2024 and approximately $16.4 billion for 2024 through 2028; net available liquidity was $1,139.8 million at March 31, 2024.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2024filed May 8, 2024Financial Statements
Q1 FY2024 against Q1 FY2023
| Line item | Q1 FY2024Q1 FY2023 | Change |
|---|---|---|
| Revenue | $1.71B$1.97B | −13.2% |
| Operating Income | $583.40M$531.00M | +9.9% |
| Interest Expense | $116.30M$108.90M | +6.8% |
| Net Income | $365.00M$333.00M | +9.6% |
| EPS (Basic) | $0.77$0.77 | 0.0% |
| EPS (Diluted) | $0.77$0.71 | +8.5% |
| Shares Outstanding (Basic) | 447.90M412.80M | +8.5% |
| Shares Outstanding (Diluted) | 449.40M447.10M | +0.5% |
05—Questions
Frequently Asked Questions
Why did operating revenues decline while operating income increased?
Operating revenues dropped to $1,706.3 million from $1,966.0 million mainly because lower cost of energy was billed to customers, since energy costs are tracked and passed through directly. Operating income rose to $583.4 million from $531.0 million, driven by new rates from base rate proceedings and regulatory capital programs.
What was the effect of the NIPSCO Minority Interest Transaction on the company's results and balance sheet?
The transaction, completed December 31, 2023, brought in a $2.16 billion cash capital contribution, which was used to repay short-term debt and credit agreements. Net income attributable to noncontrolling interest increased to $35.3 million from $4.8 million, and noncontrolling interest in consolidated subsidiaries totaled $1,899.0 million at March 31, 2024.
How much liquidity does NiSource have and how is it funded?
Net available liquidity was $1,139.8 million at March 31, 2024, compared with $3,070.8 million at December 31, 2023. Funding comes from operating cash flow, the $1.85 billion commercial paper program backed by a $1.85 billion revolving credit facility, accounts receivable programs, and long-term debt and equity issuance, including a $900.0 million at-the-market program.
What are the company's capital investment plans?
Management expects to make capital investments of $3.3 billion to $3.5 billion during 2024 and approximately $16.4 billion over 2024 through 2028, including investments supporting its generation transition strategy. These forecasts are subject to ongoing review and adjustment.
What changes occurred in the company's equity and preferred stock?
On March 15, 2024, NiSource redeemed all Series B and B-1 Preferred Stock for $500.0 million, and recorded a $14.0 million redemption premium. The company also entered into an at-the-market equity program in February 2024 allowing sales of up to $900.0 million of common stock, with approximately $700.0 million available as of March 31, 2024.
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