How did NiSource perform in 2023 on a GAAP and non-GAAP basis?

GAAP net income available to common shareholders was $661.7 million, or $1.48 per diluted share, down from $749.0 million, or $1.70, in 2022. Non-GAAP net operating earnings available to common shareholders were $716.3 million, or $1.60 per diluted share, up from $648.2 million, or $1.47, in 2022. The company reconciles the non-GAAP measure to GAAP in Schedule 1 of the press release.

What is NiSource's updated 2024 earnings guidance?

The company raised its 2024 non-GAAP NOEPS guidance to $1.70-1.74 per share from $1.68-1.72. It does not provide GAAP guidance because it cannot reliably estimate the impact of items such as weather, asset sales, impairments and other unusual or infrequent items.

What long-term growth targets did management reaffirm?

Management reaffirmed annual non-GAAP NOEPS growth of 6-8% for 2023-2028 and projected annual rate base growth of 8-10% over the same period. Both are tied to a 5-year $16 billion base capital expenditure plan.

What was the NIPSCO minority interest transaction?

The company said it successfully closed the NIPSCO minority interest transaction in December 2023. Management stated that the transaction left the balance sheet stronger and more flexible. The filing does not give further transaction terms.

How did fourth-quarter 2023 results compare with the prior year?

GAAP net income available to common shareholders for the fourth quarter was $225.6 million, or $0.50 per diluted share, compared with $230.8 million, or $0.52, in the fourth quarter of 2022. Non-GAAP net operating earnings were $239.3 million, or $0.53 per diluted share, compared with $221.0 million, or $0.50.

NI 8-K: Earnings & Results

01—Abstract

Summary

Summary of the 8-K filed February 21, 2024. Cited figures are marked; the original filing is the authoritative source.

NiSource Inc. (NYSE: NI) reported full-year 2023 GAAP net income available to common shareholders of $661.7 million^a, or $1.48 per diluted share, compared with $749.0 million, or $1.70 per diluted share, in 2022.

On a non-GAAP basis, net operating earnings available to common shareholders (NOEPS) were $716.3 million^b, or $1.60 per diluted share, up from $648.2 million, or $1.47, in 2022. The company said 2023 non-GAAP NOEPS reached the top end of its guidance range. Management raised its 2024 non-GAAP NOEPS guidance to $1.70-1.74 from $1.68-1.72 and reaffirmed expected annual non-GAAP NOEPS growth of 6-8% for 2023-2028.

It tied this outlook to a 5-year $16 billion^c base capital expenditure plan, which it said drives annual rate base growth of 8-10% over 2023-2028, with core business rate base growth in select years possibly exceeding that range. The company also said it successfully closed the NIPSCO minority interest transaction in December 2023, which it described as strengthening and adding flexibility to the balance sheet. For the fourth quarter of 2023, GAAP net income available to common shareholders was $225.6 million, or $0.50 per diluted share, versus $230.8 million, or $0.52, in the fourth quarter of 2022.

Non-GAAP net operating earnings for the quarter were $239.3 million^d, or $0.53 per diluted share, compared with $221.0 million, or $0.50. The filing furnishes the results in a press release (Exhibit 99.1) dated February 21, 2024.

02—Key points

Key Highlights

2023 GAAP diluted EPS of $1.48, down from $1.70 in 2022; GAAP net income available to common shareholders was $661.7 million versus $749.0 million.
2023 non-GAAP NOEPS of $1.60 per diluted share (net operating earnings of $716.3 million), up from $1.47 (or $648.2 million) in 2022, and at the top end of guidance.
2024 non-GAAP NOEPS guidance raised to $1.70-1.74 from $1.68-1.72.
Reaffirmed 2023-2028 annual non-GAAP NOEPS growth of 6-8%, supported by a 5-year $16 billion base capital expenditure plan.
Projected 2023-2028 annual rate base growth of 8-10%, based on core business rate base growth.
Closed the NIPSCO minority interest transaction in December 2023, which management said strengthened and added flexibility to the balance sheet.
Weather compared to normal contributed $60.6 million to 2023 operating revenue adjustments, versus a negative $24.9 million in 2022.

03—Questions

Frequently Asked Questions

How did NiSource perform in 2023 on a GAAP and non-GAAP basis?
GAAP net income available to common shareholders was $661.7 million, or $1.48 per diluted share, down from $749.0 million, or $1.70, in 2022. Non-GAAP net operating earnings available to common shareholders were $716.3 million, or $1.60 per diluted share, up from $648.2 million, or $1.47, in 2022. The company reconciles the non-GAAP measure to GAAP in Schedule 1 of the press release.
What is NiSource's updated 2024 earnings guidance?
The company raised its 2024 non-GAAP NOEPS guidance to $1.70-1.74 per share from $1.68-1.72. It does not provide GAAP guidance because it cannot reliably estimate the impact of items such as weather, asset sales, impairments and other unusual or infrequent items.
What long-term growth targets did management reaffirm?
Management reaffirmed annual non-GAAP NOEPS growth of 6-8% for 2023-2028 and projected annual rate base growth of 8-10% over the same period. Both are tied to a 5-year $16 billion base capital expenditure plan.
What was the NIPSCO minority interest transaction?
The company said it successfully closed the NIPSCO minority interest transaction in December 2023. Management stated that the transaction left the balance sheet stronger and more flexible. The filing does not give further transaction terms.
How did fourth-quarter 2023 results compare with the prior year?
GAAP net income available to common shareholders for the fourth quarter was $225.6 million, or $0.50 per diluted share, compared with $230.8 million, or $0.52, in the fourth quarter of 2022. Non-GAAP net operating earnings were $239.3 million, or $0.53 per diluted share, compared with $221.0 million, or $0.50.

04—Continue

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