COLUMBIA PIPELINE GROUP INC MERRILLVILLE, Ind., Feb. 18, 2016 /PRNewswire/ -- NiSource Inc. (NYSE: NI) today announced net operating earnings (non-GAAP) of $298.8 million, or $0.94 per share, for the twelve months ended Dec. 31, 2015, compared to $256.4 million, or $0.81 per share, in 2014. Operating earnings (non-GAAP) for the twelve months ended Dec. 31, 2015 were $832.1 million, compared to $777.8 million in 2014.
On a GAAP basis, NiSource reported income from continuing operations for the twelve months ended Dec. 31, 2015 of $198.6 million, or $0.63 per share, compared with $256.2 million, or $0.81 per share, in 2014. Operating income was $799.9 million for the twelve months ended Dec. 31, 2015, compared with $789.1 million in 2014. Schedules 1 and 2 of this news release contain a reconciliation of net operating earnings and operating earnings to GAAP net income and operating income, respectively.
For the three months ended Dec. 31, 2015, NiSource's net operating earnings (non-GAAP) were $99.6 million, or $0.31 per share, compared with $79.6 million, or $0.25 per share, for the same period in 2014. On a GAAP basis, income from continuing operations for the three months ended Dec. 31, 2015 was $64.4 million, or $0.20 per share, compared with $79.5 million, or $0.25 per share, for the same period in 2014.
As outlined in our third quarter update, on July 1, 2015 NiSource successfully completed the separation of Columbia Pipeline Group Inc. (CPG) (NYSE: CPGX) through a distribution of all of the common stock of CPG held by NiSource to NiSource shareholders. CPG financial results for all periods are classified as discontinued operations.
"2015 was a dynamic year of exciting change and progress for NiSource," said NiSource President and CEO Joseph Hamrock. "Our teams executed for our customers through our investment-driven utility business plan while maintaining the commitments outlined throughout the separation of Columbia Pipeline Group. We finished 2015 continuing to build momentum with an eye toward continued growth and enhanced performance in 2016."
NiSource invested a record $1.37 billion across its gas and electric utilities in 2015. Since outlining its $30 billion in identified long-term regulated utility infrastructure investments, the company has now executed against approximately $2 billion of those investments. NiSource expects to invest $1.4 billion in capital during 2016 to continue to modernize and improve its system across all seven states.
Significant NiSource milestones achieved in 2015 included:
-- J.D. Power recognizing NiSource utilities for customer satisfaction,
with Columbia Gas of Pennsylvania (CPA) an award winner for the second
straight year, and Columbia Gas of Virginia (CVA) named one of the most
improved brands in the nation.
-- Replacing 361 miles of priority pipe, including removing the last known
cast iron pipe from the CVA system, and continuing to enhance safety and
reliability for customers.
-- Completing significant regulatory initiatives that support enhanced
safety, reliability, training and customer programs. This includes
successful rate settlements in Massachusetts, Pennsylvania and Virginia;
extension of CVA's modernization program; approval of the first year of
Columbia Gas of Massachusetts' (CMA) Gas System Enhancement Plan; and
continued execution of Columbia Gas of Ohio's (COH) modernization
program.
-- Completion of the last of three flue gas desulfurization (FGD) units at
Northern Indiana Public Service Co.'s (NIPSCO) coal-generation
facilities, the culmination of $850 million in investments over
approximately five years that have improved air quality and help ensure
NIPSCO's generation fleet remains in compliance with current
environmental regulations.
-- Full deployment of automated meter reading (AMR) devices across our
nearly 4 million natural gas and electric customers, completing a
six-year project. This new meter technology enhances customer service
and safety and reduces costs.
Fourth Quarter 2015 Highlights
During the fourth quarter of 2015, NiSource continued to advance its business plan by executing on its customer-focused infrastructure investments and regulatory programs.
Gas Distribution Operations
-- On Dec. 3, 2015, the Pennsylvania Public Utility Commission approved a
settlement in CPA's base rate case. The settlement maintains CPA's
ability to continue replacing and upgrading its natural gas distribution
system. The approved rate adjustment went into effect on Dec. 18, 2015
and will increase the company's annual revenues by approximately $28
million. The settlement also included new incentives that will
significantly reduce costs for customers converting to natural gas.
-- On Nov. 1, 2015, CMA implemented new rates under its previously approved
base rate case settlement. The settlement supports CMA's continued
effort to modernize its pipeline infrastructure and transform its
operations to continue to serve customers safely and reliably. The
approved settlement provides for increased annual revenues of $32.8
million starting Nov. 1, 2015, with an additional $3.6 million annual
increase starting Nov. 1, 2016.
-- NIPSCO continued executing on its seven-year, $817 million natural gas
system modernization program. The company filed its semi-annual tracker
and program update on Aug. 31, 2015, and expects an order from the
Indiana Utility Regulatory Commission (IURC) in the first quarter of
2016.
Electric Operations
-- On Dec. 16, 2015, the IURC approved a settlement between NIPSCO, the
Indiana Office of Utility Consumer Counselor and NIPSCO's largest
industrial customers which resolved all outstanding issues raised by
parties in an Indiana Court of Appeals proceeding related to the
company's previous long-term electric infrastructure modernization plan.
-- On Dec. 31, 2015, NIPSCO filed a new $1.3 billion, seven-year electric
infrastructure modernization plan with the IURC. The plan is focused on
electric transmission and distribution investments made for safety,
reliability and system modernization. NIPSCO expects an order on its
seven-year plan in the third quarter of 2016.
-- NIPSCO remains on schedule with its electric base rate case filed on
Oct. 1, 2015 with the IURC. The case seeks to update rates to reflect
the current costs of generating and distributing power, plus ongoing
investments which are delivering substantial benefits to customers,
including programs that have reduced the duration of power outages by 40
percent. An IURC decision is expected in the third quarter of 2016.
-- Progress also continued on two major electric transmission projects
designed to enhance region-wide system flexibility and reliability.
Right-of-way acquisition, permitting and substation construction are
under way for both projects. Line and tower construction is expected to
begin in 2016. These projects involve an investment of approximately
$450 million for NIPSCO and are anticipated to be in service by the end
of 2018.
"Our well-established utility investment programs continued to produce high value for our customers and investors in 2015," Hamrock said. "Now in our first full year as a pure utility company, we're deeply committed to leadership in safety and service to our customers and communities as core drivers of sustained and growing value."
2016 Guidance, Financial & Growth Commitments Reaffirmed
Hamrock reaffirmed that NiSource expects to deliver non-GAAP net operating earnings per share of $1.00 to $1.10 in 2016. As outlined above, NiSource also expects to make approximately $1.4 billion in planned infrastructure enhancement investments during the year. This 2016 earnings and investment guidance provides the starting point for NiSource's long-term annual earnings per share and dividend growth projections of 4-6 percent annually.
NiSource remains committed to maintaining solid, investment grade credit ratings. Standard & Poor's rates NiSource at BBB+, Moody's rates NiSource at Baa2, and Fitch rates NiSource at BBB- with a positive outlook. As of Dec. 31, 2015, NiSource maintained $1.2 billion in net available liquidity, consisting of cash and available capacity under credit facilities.
Full-Year 2015 Operating Earnings - Segment Results (non-GAAP)
NiSource's consolidated operating earnings (non-GAAP) for the year ended Dec. 31, 2015, were $832.1 million, compared to $777.8 million for the same period in 2014. Refer to Schedule 2 for the items included in 2015 and 2014 GAAP operating income but excluded from operating earnings.
Operating earnings for NiSource's business segments for the year ended Dec. 31, 2015, are discussed below.
Gas Distribution Operations reported operating earnings of $567.8 million for the year ended Dec. 31, 2015, compared with operating earnings of $517.4 million for the prior year period. Net revenues, excluding the impact of trackers, increased by $105.5 million primarily attributable to an increase in regulatory and service programs, including the impact of new rates at CPA, CMA and CVA and the implementation of rates under COH's approved infrastructure replacement program.
Operating expenses, excluding the impact of trackers, increased by $55.1 million due primarily to higher employee and administrative costs, increased depreciation and higher property taxes. Additionally, 2015 included increased outside service costs and higher environmental expenses.
Electric Operations reported operating earnings of $279.5 million for the year ended Dec. 31, 2015, compared with operating earnings of $287.7 million for the prior year period. Net revenues, excluding the impact of trackers, increased by $1.8 million from the comparable 2014 period.
Operating expenses, excluding the impact of trackers, increased by $10.0 million due primarily to increased depreciation due to higher capital expenditures placed in service.
Corporate and Other Operations reported an operating earnings loss of $15.2 million for the year ended Dec. 31, 2015, compared to an operating earnings loss of $27.3 million for the comparable prior period. The change is primarily attributable to lower corporate insurance costs in 2015.
Other Income (Deductions)
Interest expense in 2015 increased by $0.7 million compared to the prior year period.
Other, net reflected income of $17.4 million compared to income of $13.4 million in 2014.
The effective tax rate of net operating earnings was 36.3 percent compared to 37.7 percent for the same period last year.
Fourth Quarter 2015 Operating Earnings - Segment Results (non-GAAP)
NiSource's consolidated operating earnings (non-GAAP) for the three months ended Dec. 31, 2015, were $248.9 million, compared to $227.1 million for the same period in 2014. Refer to Schedule 2 for the items included in 2015 and 2014 GAAP operating income but excluded from operating earnings.
Operating earnings for NiSource's business segments for the three months ended Dec. 31, 2015, are discussed below.
Gas Distribution Operations reported operating earnings of $184.8 million for the three months ended Dec. 31, 2015, compared with operating earnings of $173.8 million for the prior year period. Net revenues, excluding the impact of trackers, increased by $26.9 million primarily attributable to increases in regulatory and service programs, including the impact of new rates at CPA and CMA, as well as the implementation of rates under COH's approved infrastructure replacement program.
Operating expenses, excluding the impact of trackers, increased by $15.9 million due primarily to increased environmental expenses and higher depreciation. Additionally, 2015 included increased employee and administrative costs.
Electric Operations reported operating earnings of $54.1 million for the three months ended Dec. 31, 2015, compared with operating earnings of $63.5 million for the prior year period. Net revenues, excluding the impact of trackers, increased by $4.6 million primarily due to increased environmental investment cost recovery and higher revenues resulting from two electric transmission projects.
Operating expenses, excluding the impact of trackers, increased by $14.0 million due primarily to higher outside service costs, increased depreciation and higher other taxes.
Corporate and Other Operations reported operating earnings of $10.0 million for the three months ended Dec. 31, 2015, compared to an operating earnings loss of $10.2 million for the comparable prior period. The change is primarily due to decreased employee and administrative costs and lower corporate insurance costs in 2015.
Other Income (Deductions)
Interest expense increased by $2.2 million in the last quarter of 2015 compared to the prior year period.
Other, net reflected income of $5.8 million compared to no income or loss in 2014.
The effective tax rate of net operating earnings was 37.9 percent compared to 41.0 percent for the same period last year. The change in the effective tax rate was primarily due to state apportionment changes and permanent items as the result of re-measurement following the separation of CPG.
Regulation G Disclosure Statement
This press release includes financial results and guidance for NiSource with respect to net operating earnings and operating earnings, which are non-GAAP financial measures as defined by the SEC's Regulation G. The company includes such measures because management believes they permit investors to view the company's performance using the same tools that management uses and to better evaluate the Company's ongoing business performance. With respect to such guidance, it should be noted that there will likely be differences between such measures and GAAP equivalents due to various factors, including, but not limited to, fluctuations in weather, environmental laws, the impact of asset sales, separation-related costs, and certain income tax items. NiSource is not able to estimate the impact of such factors on GAAP earnings and, as such, is not providing earnings guidance on a GAAP basis.
About NiSource
NiSource Inc. (NYSE: NI) is one of the largest fully-regulated utility companies in the United States, serving approximately 3.5 million natural gas customers and 500,000 electric customers across seven states through its local Columbia Gas and NIPSCO brands. Based in Merrillville, Indiana, NiSource's more than 7,000 employees are focused on safely delivering reliable and affordable energy to our customers and communities we serve. NiSource has been designated a World's Most Ethical Company by the Ethisphere Institute since 2012 and is a member of the Dow Jones Sustainability - North America Index. Additional information about NiSource, its investments in modern infrastructure and systems, its commitments and its local brands can be found at www.nisource.com. NI-F
Forward-Looking Statements
This news release contains forward-looking statements within the meaning of federal securities laws. These forward-looking statements are subject to various risks and uncertainties. Examples of forward-looking statements in this release include statements and expectations regarding NiSource's business, performance, infrastructure investments and growth. Factors that could cause actual results to differ materially from the projections, forecasts, estimates and expectations discussed in this release include, but are not limited to, NiSource's debt obligations; any changes in NiSource's credit rating; NiSource's ability to execute its growth strategy; changes in general economic, capital and commodity market conditions; pension funding obligations; economic regulation and the impact of regulatory rate reviews; compliance with environmental laws and the costs of associated liabilities; fluctuations in demand from residential and commercial customers; economic conditions of certain industries; the price of energy commodities and related transportation costs; the reliability of customers and suppliers to fulfill their payment and contractual obligations; potential impairments of goodwill or definite-lived intangible assets; changes in taxation and accounting principles; potential incidents and other operating risks associated with our business; the impact of an aging infrastructure; the impact of climate change; potential cyber-attacks; risks associated with construction and natural gas cost and supply; extreme weather conditions; the ability of subsidiaries to generate cash; uncertainties related to the expected benefits of the separation of CPG and other matters set forth in the "Risk Factors" section of NiSource's Annual Report on Form 10-K and in other filings with the Securities and Exchange Commission. NiSource expressly disclaims any duty to update, supplement or amend any of its forward-looking statements contained in this release, whether as a result of new information, subsequent events or otherwise, except as required by applicable law.
NiSource Inc.
Consolidated Net Operating Earnings (Non-GAAP)
(unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
------------ ------------
(in millions, except per share
amounts) 2015 2014 2015 2014
------------------------------ ---- ---- ---- ----
Net Revenues
Gas Distribution $510.3 $718.3 $2,093.1 $2,578.4
Gas Transportation 229.9 276.8 969.8 987.2
Electric 377.4 392.1 1,577.3 1,677.1
Other 7.3 4.8 27.2 15.2
--- --- ---- ----
Gross Revenues 1,124.9 1,392.0 4,667.4 5,257.9
Cost of Sales (excluding
depreciation and
amortization) 336.4 603.3 1,643.7 2,372.7
------------------------ ----- ----- ------- -------
Total Net Revenues 788.5 788.7 3,023.7 2,885.2
------------------ ----- ----- ------- -------
Operating Expenses
Operation and maintenance 316.9 312.3 1,230.9 1,206.2
Operation and maintenance -
trackers 30.4 64.5 180.2 161.1
Depreciation and amortization 128.5 122.6 508.6 483.8
Depreciation and amortization
-trackers 4.9 1.2 15.8 3.1
Other taxes 43.2 40.3 186.9 179.3
Other taxes - trackers 15.7 20.7 69.2 73.9
---------------------- ---- ---- ---- ----
Total Operating Expenses 539.6 561.6 2,191.6 2,107.4
------------------------ ----- ----- ------- -------
Operating Earnings 248.9 227.1 832.1 777.8
------------------ ----- ----- ----- -----
Other Income (Deductions)
Interest expense, net (94.3) (92.1) (380.2) (379.5)
Other, net 5.8 - 17.4 13.4
---------- --- ---- ----
Total Other Deductions (88.5) (92.1) (362.8) (366.1)
---------------------- ----- ----- ------ ------
Operating Earnings From Continuing Operations
Before Income Taxes 160.4 135.0 469.3 411.7
Income Taxes 60.8 55.4 170.5 155.3
------------ ---- ---- ----- -----
Net Operating Earnings from
Continuing Operations 99.6 79.6 298.8 256.4
--------------------------- ---- ---- ----- -----
GAAP Adjustment (35.2) (0.1) (100.2) (0.2)
--------------- ----- ---- ------ ----
GAAP Income from Continuing
Operations $64.4 $79.5 $198.6 $256.2
=========================== ===== ===== ====== ======
Basic Net Operating Earnings
Per Share from Continuing
Operations $0.31 $0.25 $0.94 $0.81
---------------------------- ----- ----- ----- -----
GAAP Basic Earnings Per Share
from Continuing Operations $0.20 $0.25 $0.63 $0.81
----------------------------- ----- ----- ----- -----
Basic Average Common Shares
Outstanding 318.8 315.8 317.7 315.1
=========================== ===== ===== ===== =====
NiSource Inc.
Segment Operating Earnings (Non-GAAP)
(unaudited)
Three Months Ended Twelve Months Ended
Gas Distribution Operations December 31, December 31,
------------ ------------
(in millions) 2015 2014 2015 2014
------------ ---- ---- ---- ----
Net Revenues
Sales revenues $743.3 $999.0 $3,080.3 $3,574.5
Less: Cost of gas sold 225.6 467.9 1,155.5 1,762.7
Net Revenues 517.7 531.1 1,924.8 1,811.8
------------ ----- ----- ------- -------
Operating Expenses
Operation and maintenance 208.2 197.7 796.4 763.6
Operation and maintenance - trackers 22.9 58.2 148.9 136.7
Depreciation and amortization 59.8 55.9 232.6 217.6
Other taxes 26.3 24.8 109.9 102.6
Other taxes - trackers 15.7 20.7 69.2 73.9
---------------------- ---- ---- ---- ----
Total Operating Expenses 332.9 357.3 1,357.0 1,294.4
------------------------ ----- ----- ------- -------
Operating Earnings $184.8 $173.8 $567.8 $517.4
================== ====== ====== ====== ======
GAAP Adjustment (23.9) 0.8 (12.0) 19.6
--------------- ----- --- ----- ----
GAAP Operating Income $160.9 $174.6 $555.8 $537.0
===================== ====== ====== ====== ======
Three Months Ended Twelve Months Ended
Electric Operations December 31, December 31,
------------ ------------
(in millions) 2015 2014 2015 2014
------------ ---- ---- ---- ----
Net Revenues
Sales revenues $377.5 $392.4 $1,578.8 $1,678.5
Less: Cost of sales 110.9 135.5 488.4 609.7
Net Revenues 266.6 256.9 1,090.4 1,068.8
------------ ----- ----- ------- -------
Operating Expenses
Operation and maintenance 122.2 113.4 448.1 450.5
Operation and maintenance - trackers 7.5 6.3 31.3 24.4
Depreciation and amortization 63.5 60.3 251.9 241.3
Depreciation and amortization - trackers 4.9 1.2 15.8 3.1
Other taxes 14.4 12.2 63.8 61.8
Total Operating Expenses 212.5 193.4 810.9 781.1
------------------------ ----- ----- ----- -----
Operating Earnings $54.1 $63.5 $279.5 $287.7
================== ===== ===== ====== ======
GAAP Adjustment (3.9) 0.5 (15.1) (5.0)
---------------
GAAP Operating Income $50.2 $64.0 $264.4 $282.7
===================== ===== ===== ====== ======
Three Months Ended Twelve Months Ended
Corporate and Other Operations December 31, December 31,
------------ ------------
(in millions) 2015 2014 2015 2014
------------ ---- ---- ---- ----
Operating Earnings (Loss) $10.0 $(10.2) $(15.2) $(27.3)
======================== ===== ====== ====== ======
GAAP Adjustment (1.6) (1.5) (5.1) (3.3)
---------------
GAAP Operating Earnings (Loss) $8.4 $(11.7) $(20.3) $(30.6)
============================= ==== ====== ====== ======
NiSource Inc.
Segment Volumes and Statistical Data
Three Months Ended Twelve Months Ended
December 31, December 31,
------------ ------------
Gas Distribution
Operations 2015 2014 2015 2014
---------------- ---- ---- ---- ----
Sales and Transportation
(MMDth)
Residential 64.0 88.3 262.0 295.2
Commercial 41.3 54.6 171.5 189.6
Industrial 124.9 128.2 522.7 512.9
Off System 8.0 9.3 32.7 44.9
Other 1.7 - (0.2) (0.1)
----- --- --- ---- ----
Total 239.9 280.4 988.7 1,042.5
----- ----- ----- ----- -------
Weather Adjustment 36.5 (2.6) 8.2 (36.4)
------------------ ---- ---- --- -----
Sales and Transportation
Volumes -Excluding
Weather 276.4 277.8 996.9 1,006.1
======================== ===== ===== ===== =======
Heating Degree Days 1,523 2,084 5,459 6,176
Normal Heating Degree
Days 2,034 2,034 5,610 5,610
% Colder (Warmer) than
Normal (25)% 2% (3)% 10%
Customers
Residential 3,113,324 3,098,052
Commercial 283,357 282,749
Industrial 7,578 7,637
Other 13 15
----- --- ---
Total 3,404,272 3,388,453
----- --------- ---------
Three Months Ended Twelve Months Ended
December 31, December 31,
------------ ------------
Electric Operations 2015 2014 2015 2014
------------------- ---- ---- ---- ----
Sales (Gigawatt Hours)
Residential 725.3 779.6 3,309.9 3,384.2
Commercial 931.0 932.2 3,866.8 3,864.2
Industrial 2,258.4 2,546.6 9,249.1 10,114.2
Wholesale - 190.2 194.8 675.5
Other 32.5 43.5 137.7 148.2
----- ---- ---- ----- -----
Total 3,947.2 4,492.1 16,758.3 18,186.3
----- ------- ------- -------- --------
Weather Adjustment 45.3 (7.0) 64.7 72.3
------------------ ---- ---- ---- ----
Sales Volumes -Excluding
Weather 3,992.5 4,485.1 16,823.0 18,258.6
======================== ======= ======= ======== ========
Cooling Degree Days 762 663
Normal Cooling Degree
Days 806 806
% Colder than Normal (5)% (18)%
Electric Customers
Residential 404,889 403,272
Commercial 55,053 54,635
Industrial 2,343 2,352
Wholesale 743 751
Other 6 5
----- --- ---
Total 463,034 461,015
----- ------- -------
NiSource Inc.
Schedule 1 - Reconciliation of Net Operating Earnings to GAAP
Three Months Ended Twelve Months Ended
December 31, December 31,
------------ ------------
(in millions, except per
share amounts) 2015 2014 2015 2014
------------------------ ---- ---- ---- ----
Net Operating Earnings from
Continuing Operations $99.6 $79.6 $298.8 $256.4
--------------------------- ----- ----- ------ ------
Items excluded from operating
earnings
Net Revenues:
Weather - compared to normal (27.1) 1.3 (15.6) 14.3
Operating Expenses:
Environmental costs (0.7) - (10.7) -
Transaction costs (1.2) - (4.3) -
Loss on sale of assets (0.4) (1.5) (1.6) (3.0)
---------------------- ---- ---- ---- ----
Total items excluded from
operating earnings (29.4) (0.2) (32.2) 11.3
------------------------- ----- ---- ----- ----
Other Deductions:
Loss on early extinguishment
of long-term debt - - (97.2) -
Income taxes - discrete items (14.5) - (17.8) (7.4)
Tax effect of above items 8.7 0.1 47.0 (4.1)
Total items excluded from net
operating earnings (35.2) (0.1) (100.2) (0.2)
----------------------------- ----- ---- ------ ----
GAAP Income from Continuing
Operations $64.4 $79.5 $198.6 $256.2
=========================== ===== ===== ====== ======
Basic Average Common Shares
Outstanding 318.8 315.8 317.7 315.1
=========================== ===== ===== ===== =====
Basic Net Operating Earnings
Per Share from Continuing
Operations $0.31 $0.25 $0.94 $0.81
---------------------------- ----- ----- ----- -----
Items excluded from net
operating earnings (after-
tax) (0.11) - (0.31) -
--------------------------- --- ---
GAAP Basic Earnings Per Share
from Continuing Operations $0.20 $0.25 $0.63 $0.81
----------------------------- ----- ----- ----- -----
NiSource Inc.
Schedule 2 - Adjustments by Segment from Operating Earnings to GAAP
For the Quarter ended December 31,
Electric
--------
Gas Corporate & Other
Distribution
------------
2015(in millions) Total
---------------- -----
Operating Earnings $184.8 $54.1 $10.0 $248.9
Net Revenues:
Weather -compared to
normal (23.9) (3.2) - (27.1)
-------------------- ----- ---- --- -----
Total Impact - Net Revenues (23.9) (3.2) - (27.1)
Operating Expenses:
Environmental costs - (0.7) - (0.7)
Transaction costs - - (1.2) (1.2)
Loss on sale of assets - - (0.4) (0.4)
--- ----
Total Impact -Operating
Expenses - (0.7) (1.6) (2.3)
----------------------- --- ---- ---- ----
Total Impact -Operating
Loss $(23.9) $(3.9) $(1.6) $(29.4)
----------------------- ------ ----- ----- ------
Operating Income - GAAP $160.9 $50.2 $8.4 $219.5
----------------------- ------ ----- ---- ------
Electric
--------
Gas Corporate & Other
Distribution
------------
2014(in millions) Total
---------------- -----
Operating Earnings (Loss) $173.8 $63.5 $(10.2) $227.1
Net Revenues:
Weather -compared to
normal 0.8 0.5 - 1.3
-------------------- --- --- --- ---
Total Impact - Net Revenues 0.8 0.5 - 1.3
Operating Expenses:
Loss on sale of assets - - (1.5) (1.5)
---------------------- --- --- ---- ----
Total Impact -Operating
Expenses - - (1.5) (1.5)
----------------------- --- --- ---- ----
Total Impact -Operating
Income (Loss) $0.8 $0.5 $(1.5) $(0.2)
----------------------- ---- ---- ----- -----
Operating Income (Loss) -
GAAP $174.6 $64.0 $(11.7) $226.9
------------------------- ------ ----- ------ ------
NiSource Inc.
Schedule 2 - Adjustments by Segment from Operating Earnings to GAAP
For the Twelve Months Ended December 31,
Electric
--------
Gas Corporate & Other
Distribution
------------
2015(in millions) Total
---------------- -----
Operating Earnings (Loss) $567.8 $279.5 $(15.2) $832.1
Net Revenues:
Weather -compared to
normal (11.2) (4.4) - (15.6)
-------------------- ----- ---- --- -----
Total Impact - Net Revenues (11.2) (4.4) - (15.6)
Operating Expenses:
Environmental costs - (10.7) - (10.7)
Transaction costs - - (4.3) (4.3)
Loss on sale of assets (0.8) - (0.8) (1.6)
Total Impact -Operating
Expenses (0.8) (10.7) (5.1) (16.6)
----------------------- ---- ----- ---- -----
Total Impact -Operating
Loss $(12.0) $(15.1) $(5.1) $(32.2)
----------------------- ------ ------ ----- ------
Operating Income (Loss) -
GAAP $555.8 $264.4 $(20.3) $799.9
------------------------- ------ ------ ------ ------
Electric
--------
Gas Corporate & Other
Distribution
------------
2014(in millions) Total
---------------- -----
Operating Earnings (Loss) $517.4 $287.7 $(27.3) $777.8
Net Revenues:
Weather -compared to
normal 19.4 (5.1) - 14.3
Total Impact - Net Revenues 19.4 (5.1) - 14.3
Operating Expenses:
Gain (Loss) on sale of
assets 0.2 0.1 (3.3) (3.0)
---------------------- --- --- ---- ----
Total Impact -Operating
Expenses 0.2 0.1 (3.3) (3.0)
----------------------- --- --- ---- ----
Total Impact -Operating
Income (Loss) $19.6 $(5.0) $(3.3) $11.3
----------------------- ----- ----- ----- -----
Operating Income (Loss) -
GAAP $537.0 $282.7 $(30.6) $789.1
------------------------- ------ ------ ------ ------
NiSource Inc.
Consolidated Income Statements (GAAP)
(unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
------------ ------------
(in millions, except per share
amounts) 2015 2014 2015 2014
------------------------------ ---- ---- ---- ----
Net Revenues
Gas Distribution $486.4 $719.0 $2,081.9 $2,597.8
Gas Transportation 229.9 276.9 969.8 987.4
Electric 374.2 392.6 1,572.9 1,672.0
Other 7.3 4.8 27.2 15.2
----- --- --- ---- ----
Gross Revenues 1,097.8 1,393.3 4,651.8 5,272.4
Cost of Sales (excluding
depreciation and
amortization) 336.4 603.3 1,643.7 2,372.9
------------------------ ----- ----- ------- -------
Total Net Revenues 761.4 790.0 3,008.1 2,899.5
------------------ ----- ----- ------- -------
Operating Expenses
Operation and maintenance 349.2 376.8 1,426.1 1,367.3
Depreciation and amortization 133.4 123.8 524.4 486.9
Loss on sale of assets and
impairments, net 0.4 1.5 1.6 3.0
Other taxes 58.9 61.0 256.1 253.2
Total Operating Expenses 541.9 563.1 2,208.2 2,110.4
------------------------ ----- ----- ------- -------
Operating Income 219.5 226.9 799.9 789.1
---------------- ----- ----- ----- -----
Other Income (Deductions)
Interest expense, net (94.3) (92.1) (380.2) (379.5)
Other, net 5.8 - 17.4 13.4
Loss on early extinguishment
of long-term debt - - (97.2) -
---------------------------- --- -----
Total Other Deductions (88.5) (92.1) (460.0) (366.1)
---------------------- ----- ----- ------ ------
Income from Continuing
Operations before Income
Taxes 131.0 134.8 339.9 423.0
Income Taxes 66.6 55.3 141.3 166.8
------------ ---- ---- ----- -----
Income from Continuing
Operations 64.4 79.5 198.6 256.2
---------------------- ---- ---- ----- -----
Income (loss) from
Discontinued Operations -net
of taxes (5.0) 74.7 103.5 273.8
Net Income 59.4 154.2 302.1 530.0
Less: Net income attributable
to noncontrolling interest - - 15.6 -
----------------------------- --- --- ---- ---
Net Income attributable to
NiSource $59.4 $154.2 $286.5 $530.0
========================== ===== ====== ====== ======
Amounts attributable to NiSource:
Income from continuing
operations $64.4 $79.5 $198.6 $256.2
Income (loss) from
discontinued operations (5.0) 74.7 87.9 273.8
Net Income attributable to
NiSource $59.4 $154.2 $286.5 $530.0
-------------------------- ----- ------ ------ ------
Basic Earnings (Loss) Per Share
Continuing operations $0.20 $0.25 $0.63 $0.81
Discontinued operations (0.01) 0.24 0.27 0.87
-----------------------
Basic Earnings Per Share $0.19 $0.49 $0.90 $1.68
------------------------ ----- ----- ----- -----
Diluted Earnings (Loss) Per Share
Continuing operations $0.20 $0.25 $0.63 $0.81
Discontinued operations (0.01) 0.24 0.27 0.86
-----------------------
Diluted Earnings Per Share $0.19 $0.49 $0.90 $1.67
-------------------------- ----- ----- ----- -----
Basic Average Common Shares
Outstanding 318.8 315.8 317.7 315.1
Diluted Average Common Shares 321.1 317.5 319.8 316.6
----------------------------- ----- ----- ----- -----
NiSource Inc.
Consolidated Balance Sheets (GAAP)
(unaudited)
December 31, December 31,
(in millions) 2015 2014
------------ ---- ----
ASSETS
Property, Plant and Equipment
Utility plant $18,946.9 $17,668.4
Accumulated
depreciation
and
amortization (6,853.4) (6,629.5)
------------- -------- --------
Net utility
plant 12,093.5 11,038.9
----------- -------- --------
Other
property, at
cost, less
accumulated
depreciation 18.0 18.5
Net Property,
Plant and
Equipment 12,111.5 11,057.4
------------- -------- --------
Investments and Other Assets
Unconsolidated
affiliates 6.9 8.3
Other
investments 187.7 204.8
------------ ----- -----
Total
Investments
and Other
Assets 194.6 213.1
------------ ----- -----
Current Assets
Cash and cash
equivalents 15.5 24.9
Restricted
cash 29.7 24.9
Accounts
receivable
(less reserve
of $20.3 and
$24.9,
respectively) 660.0 920.8
Gas inventory 343.5 440.3
Underrecovered
gas costs 34.8 32.0
Material and
supplies, at
average cost 86.8 81.1
Electric
production
fuel, at
average cost 106.3 64.8
Exchange gas
receivable 21.0 28.3
Assets of
discontinued
operations - 283.4
Regulatory
assets 172.1 187.4
Prepayments
and other 107.5 106.5
Total Current
Assets 1,577.2 2,194.4
------------- ------- -------
Other Assets
Regulatory
assets 1,599.8 1,544.5
Goodwill 1,690.7 1,690.7
Intangible
assets 253.7 264.7
Assets of
discontinued
operations - 7,546.0
Deferred
charges and
other 65.0 79.0
------------ ---- ----
Total Other
Assets 3,609.2 11,124.9
----------- ------- --------
Total Assets $17,492.5 $24,589.8
============ ========= =========
NiSource Inc.
Consolidated Balance Sheets (GAAP) (continued)
(unaudited)
December 31, December 31,
(in millions, except share
amounts) 2015 2014
-------------------------- ---- ----
CAPITALIZATION AND LIABILITIES
Capitalization
Common Stockholders' Equity
Common stock -$0.01 par value,
400,000,000 shares authorized;
319,110,083 and 316,037,421
shares outstanding,
respectively $3.2 $3.2
Additional paid-in capital 5,078.0 4,787.6
Retained earnings (deficit) (1,123.3) 1,494.0
Accumulated other comprehensive
loss (35.1) (50.6)
Treasury stock (79.3) (58.9)
-------------- ----- -----
Total Common Stockholders'
Equity 3,843.5 6,175.3
Long-term debt, excluding
amounts due within one year 5,948.5 8,151.5
Total Capitalization 9,792.0 14,326.8
-------------------- ------- --------
Current Liabilities
Current portion of long-term
debt 433.7 266.6
Short-term borrowings 567.4 1,576.9
Accounts payable 433.4 610.1
Customer deposits and credits 316.3 280.9
Taxes accrued 183.5 169.2
Interest accrued 129.0 140.7
Overrecovered gas and fuel costs 148.1 45.6
Exchange gas payable 62.3 101.5
Deferred revenue 6.6 3.4
Regulatory liabilities 83.3 61.1
Accrued liability for
postretirement and
postemployment benefits 4.9 5.3
Liabilities of discontinued
operations 0.3 369.0
Legal and environmental 37.6 22.7
Accrued compensation and
employee benefits 136.4 166.8
Other accruals 114.7 144.5
Total Current Liabilities 2,657.5 3,964.3
------------------------- ------- -------
Other Liabilities and Deferred Credits
Deferred income taxes 2,365.3 2,165.8
Deferred investment tax credits 14.8 17.1
Deferred credits 90.7 100.9
Accrued liability for
postretirement and
postemployment benefits 759.7 733.9
Liabilities of discontinued
operations - 1,558.4
Regulatory liabilities 1,350.4 1,379.6
Asset retirement obligations 254.0 136.2
Other noncurrent liabilities 208.1 206.8
---------------------------- -----
Total Other Liabilities and
Deferred Credits 5,043.0 6,298.7
--------------------------- ------- -------
Commitments and Contingencies - -
----------------------------- --- ---
Total Capitalization and
Liabilities $17,492.5 $24,589.8
======================== ========= =========
NiSource Inc.
Statements of Consolidated Cash Flows (GAAP)
(unaudited)
Year Ended December 31,
(in millions) 2015 2014
----------------------- ---- ----
Operating Activities
Net Income $302.1 $530.0
Adjustments to Reconcile Net Income to Net Cash from Continuing
Operations:
Loss on early
extinguishment of debt 97.2 -
Depreciation and
amortization 524.4 486.9
Net changes in price risk
management assets and
liabilities 3.7 2.6
Deferred income taxes and
investment tax credits 135.3 161.4
Deferred revenue 7.2 (0.1)
Stock compensation
expense and 401(k)
profit sharing
contribution 50.7 66.0
Loss on sale of assets
and impairment, net 1.6 3.0
Income (loss) from
unconsolidated
affiliates 0.6 0.8
Income from discontinued
operations -net of
taxes (103.5) (273.8)
Amortization of discount/
premium on debt 8.7 10.0
AFUDC equity (11.5) (10.7)
Changes in Assets and Liabilities
Accounts receivable 262.2 (42.8)
Income tax receivable (0.6) 2.3
Inventories 46.9 (115.9)
Accounts payable (190.5) 29.9
Customer deposits and
credits 35.5 29.8
Taxes accrued 8.7 4.5
Interest accrued (11.6) 4.3
Overrecovered gas and
fuel costs 99.6 27.9
Exchange gas receivable/
payable (31.7) (43.9)
Other accruals (55.1) 4.4
Prepayments and other
current assets 0.7 (4.5)
Regulatory assets/
liabilities (17.6) (255.6)
Postretirement and
postemployment benefits 25.6 136.0
Deferred credits (10.1) 9.1
Deferred charges and
other noncurrent assets 5.2 3.9
Other noncurrent
liabilities (20.3) (4.3)
---------------- ----- ----
Net Operating Activities
from Continuing
Operations 1,163.4 761.2
Net Operating Activities
from Discontinued
Operations 293.4 558.4
------------------------
Net Cash Flows from
Operating Activities 1,456.8 1,319.6
--------------------- ------- -------
Investing Activities
Capital expenditures (1,360.7) (1,282.5)
Proceeds from disposition
of assets 4.5 4.7
Restricted cash
withdrawals (deposits) (4.8) (17.1)
Cash contributions from
CPG 3,798.2 -
Other investing
activities (62.2) (18.6)
--------------- ----- -----
Net Investing Activities
from (used for)
Continuing Operations 2,375.0 (1,313.5)
Net Investing Activities
used for Discontinued
Operations (430.1) (803.1)
------------------------ ------ ------
Net Cash Flows from (used
for) Investing
Activities 1,944.9 (2,116.6)
------------------------- ------- --------
Financing Activities
Cash of CPG at Separation (136.8) -
Issuance of long-term
debt - 748.4
Repayments of long-term
debt and capital lease
obligations (2,092.2) (521.0)
Premiums and other debt
related costs (93.5) (8.7)
Change in short-term
borrowings, net (936.4) 878.1
Issuance of common stock 22.5 30.3
Acquisition of treasury
stock (20.4) (10.2)
Dividends paid -common
stock (263.4) (321.3)
---------------------- ------ ------
Net Financing Activities
from (used for)
Continuing Operations (3,520.2) 795.6
Net Financing Activities
from Discontinued
Operations 108.6 -
------------------------ ----- ---
Net Cash Flow from (used
for) Financing
Activities (3,411.6) 795.6
------------------------ -------- -----
Change in cash and cash
equivalents from
continuing operations 18.2 243.3
Change in cash and cash
equivalents used for
discontinued operations (28.1) (244.7)
Change in cash included
in discontinued
operations 0.5 (0.2)
Cash and cash equivalents
at beginning of period 24.9 26.5
------------------------- ---- ----
Cash and Cash Equivalents
at End of Period $15.5 $24.9
========================= ===== =====
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SOURCE NiSource Inc.
