01—Abstract
Summary
Summary of the 8-K filed August 7, 2024. Cited figures are marked; the original filing is the authoritative source.
NiSource Inc. filed an 8-K on August 7, 2024 furnishing its press release reporting results for the quarter and six months ended June 30, 2024.
For the second quarter, GAAP net income available to common shareholders was $85.8 milliona, or $0.19 per diluted share, up from $39.9 million, or $0.09, a year earlier. Non-GAAP adjusted net income available to common shareholders was $94.7 million, or $0.21 per share, compared with $50.3 million, or $0.11, in the prior-year quarter. Weather compared to normal added $12.1 million to second-quarter operating revenues, versus $5.9 million in 2023.
For the first six months of 2024, GAAP diluted EPS was $0.95b versus $0.80, and adjusted EPS was $1.06 versus $0.88. The company reaffirmed its 2024 adjusted EPS guidance of $1.70 to $1.74, its 2023-2028 adjusted EPS growth target of 6-8% annually, and its 8-10% annual rate base growth for the 2023-2028 period. The 2024-2028 base capital expenditure plan is $16.4 billion.
Management highlighted the in-service of the Cavalry Solar & Storage project during the quarter, progress on capital trackers and renewable project approvals, and the response to a July windstorm in the Indiana service area. The release also notes that the company changed its non-GAAP terminology from net operating earnings to adjusted net income beginning in the first quarter of 2024, with calculations unchanged.
02—Key points
Key Highlights
- Q2 2024 GAAP net income available to common shareholders of $85.8 million ($0.19 per diluted share), versus $39.9 million ($0.09) in Q2 2023
- Q2 2024 adjusted net income available to common shareholders of $94.7 million ($0.21 adjusted EPS), versus $50.3 million ($0.11) in Q2 2023
- Six-month 2024 adjusted EPS of $1.06 versus $0.88 in the prior-year period; GAAP diluted EPS of $0.95 versus $0.80
- 2024 adjusted EPS guidance of $1.70-1.74 reaffirmed, along with 6-8% annual adjusted EPS growth and 8-10% annual rate base growth for 2023-2028
- 2024-2028 base capital expenditure plan of $16.4 billion
- Cavalry Solar & Storage project placed into service during the second quarter
- Weather compared to normal contributed $12.1 million to Q2 2024 operating revenues, up from $5.9 million in Q2 2023
03—Questions
Frequently Asked Questions
Did NiSource change its guidance in this report?
No. The company reaffirmed its 2024 adjusted EPS guidance of $1.70-1.74 and its 2023-2028 annual adjusted EPS growth target of 6-8%, and reaffirmed 8-10% annual rate base growth for the 2023-2028 period.
What drove the increase in second-quarter earnings?
GAAP net income available to common shareholders rose to $85.8 million from $39.9 million. The filing's reconciliation shows weather compared to normal adding $12.1 million to operating revenues in Q2 2024 versus $5.9 million in Q2 2023, and a $6.2 million preferred dividend redemption premium in Q2 2023 that did not recur in Q2 2024.
What is the company's capital investment plan?
The 2024-2028 base capital expenditure plan is $16.4 billion. The company also cites progress on capital trackers and renewable project approvals as supporting its investment program.
Why does the company report adjusted EPS instead of operating EPS?
Beginning in the first quarter of 2024, NiSource changed its non-GAAP terminology from net operating earnings and net operating EPS to adjusted net income and adjusted EPS. The company states this is a name change only, and the calculations remain consistent with prior periods.
Does the company provide a GAAP reconciliation for its adjusted EPS guidance?
No. NiSource states it does not provide a GAAP equivalent for its adjusted EPS guidance because of unpredictable factors such as weather, asset sales, impairments, and other unusual or infrequent items, and it cannot estimate their impact on GAAP measures without unreasonable efforts.
04—Continue