Creating Two Premier Energy Infrastructure Companies NiSource Inc. Investor Day Millennium Broadway New York, NY 09.29.14
Speaker Bios Bob Skaggs Steve Smith Joe Hamrock Jim Stanley President & Executive VP & Executive VP & Group CEO, Executive VP & Group CEO, Chief Executive Officer Chief Financial Officer NiSource Gas Distribution NIPSCO Bob is…
Speaker Bios Glen Kettering Stan Chapman III Brett Stovern Shawn Patterson Executive VP & Group CEO, Chief Commercial Officer, Chief Operating Officer, President, Operations & Project Columbia Pipeline Group Columbia Pipeline…
Todays Agenda NiSource Investor Day 2014 8:00 8:30 AM Registration and Welcome 8:30 9:30 AM Separation Overview Bob Skaggs, Steve Smith 9:30 9:45 AM Break 9:45 10:30 AM NiSource Utility Company Jim Stanley, Joe Hamrock…
Separation Overview Bob Skaggs President & Chief Executive Officer
Strategic Separation Expected to Deliver Significant Value Plan to Separate Columbia Pipeline Group Into a Stand-Alone, Publicly Traded Company Creates two pure-play, premier energy infrastructure companies Enhances overall…
Creating Two Premier Energy Infrastructure Companies Expected to Unlock Logical Step in Successful, Full Potential for Long-Term Growth Strategy Both Companies Focused on Distinct Pure-Play Investment Opportunities,…
Separation Snapshot Total Employees 8,800 Headquarters: Merrillville, IN Headquarters: Houston, TX NYSE: NI NYSE: COLP Columbia Pipeline Group Operating Columbia Pipeline Partners (MLP) NYSE: CPPL Gas Distribution Company…
Creating Two Premier Energy Infrastructure Companies Pure-Play Natural Gas & Pure-Play Pipeline, Electric Utilities Midstream & Storage Proven operators, focused on Company safety, reliability and customer Significant scale and…
Two Premier Pure-Play Companies With Significant Scale LDCs, Producers, Marketers, Electric 4M Gas/Electric Distribution Customers Generators and Other Large End Users 15K Miles of Transmission 58K Miles Distribution Pipe 1.3…
Financial Overview of Separation Steve Smith Chief Financial Officer
Two Premier Companies with Significant Growth Potential Pure-Play Natural Gas & Electric Strategic Focus Pure-play Pipeline, Midstream & Utilities Company & Clarity Storage Company Utility System Modernization & Long-Term…
Significant Inventory of Projected Growth & Modernization Projects NiSource Columbia Pipeline Group 30B of expected infrastructure 12-15B of expected infrastructure investment opportunities over next investment opportunities over…
Establishing Columbia Pipeline Group (CPG) Columbia Pipeline Partners (NYSE: CPPL) MLP Forming MLP 1Q/2015 MLP will be primary funding source for CPG growth capital Expected IPO during 1Q 2015 Debt Recapitalization (3B)…
Transparent Approach to Future CPG Funding Columbia Pipeline Partners (CPPL) S-1 Filed September 29, 2014 100% of CPG assets and growth projects will reside in CPG Op Co Columbia MLP will hold 15% initial interest Pipeline…
Summary: Creating Two Premier Energy Infrastructure Companies Two Companies Positioned to Realize Enhanced Growth Opportunities Expected to Unlock Full Potential for Both Companies Focused on Distinct Investment…
NiSource: Premier, Pure-Play Natural Gas & Electric Utilities Joe Hamrock EVP and Group CEO, NiSource Gas Distribution Jim Stanley EVP and Group CEO, NIPSCO CONFIDENTIAL DRAFT September 10, 2014 19
NiSource: Premier, Pure-Play Natural Gas & Electric Utilities Industry-leading regulated natural gas and electric utilities company Expected to maintain investment-grade credit rating 30B infrastructure investment inventory…
NiSource: 100% Regulated Natural Gas & Electric Utilities Indiana Natural Gas Distribution Indiana Electric Generation, Large Scale Footprint Transmission & Distribution Across 7 States 3.5M Gas LDC Customers 500K Electric…
NiSource Natural Gas & Electric Utilities: Significant Size and Scale NIPSCO Electric Columbia Gas of Ohio Columbia Gas of Massachusetts Fully Integrated Electric Utility in 1.4 Million Customers 300,000 Customers Indiana 20,000…
NiSource Natural Gas & Electric Utilities: Strong Execution Track Record Substantial, growing rate base, earning allowed returns Stable and affordable rate design, 75% of CapEx expected to be revenue-producing Constructive…
NiSource Natural Gas & Electric Utilities: Business Profile Pure-Play Utility With Large Footprint Across Seven States Gas Distribution Utilities Fully Integrated Electric Utility Total Rate Base of Total Rate Base of 3.0B*…
NiSource Natural Gas & Electric Utilities: Investment-Driven Growth Strategy 30B / 20+ Year Infrastructure Investment Inventory Expand Programs and 1.2B Grow Customer Base 4-6% Expected Expected Enhance Electric Annual EPS &…
NiSource Natural Gas Utilities: Attractive Regulatory Construct Aligning Revenue, Costs and Investments Fixed Rate Design Decoupling/Weather LDC (% of Distribution Charge) Normalization Columbia Gas of Ohio 100% N/A Columbia…
NiSource Natural Gas Utilities: Industry-Leading Modernization Programs 20B / 20+ Year Infrastructure Program Investment Opportunity Expected Total LDC Annual Recovery Investment Investment Opportunity ( in Millions)…
NiSource Electric Utility: NIPSCO Infrastructure Investment 10B / 20+ Year Electric Infrastructure Investment Opportunity Expected Total NIPSCO Electric Tracked Annual Investment Investments Recovery Investment Opportunity ( in…
NiSource Natural Gas & Electric Utilities: Summary 30B / 20+ Year Infrastructure Investment Inventory Industry-leading regulated natural gas and Complementary rate structures and tracker electric utilities company mechanisms; 75%…
Columbia Pipeline Group (CPG): A Premier Pipeline, Midstream & Storage Company Glen Kettering EVP and Group CEO, Columbia Pipeline Group Stan Chapman EVP and Chief Commercial Officer Brett Stovern Chief Operating Officer, Midstream…
CPG: A Premier Pipeline, Midstream & Storage Company Highly focused, pure-play pipeline, midstream and storage company Strategically located infrastructure links Marcellus and Utica supply regions to the Midwest, Mid-Atlantic and…
CPG: A Premier Pipeline, Midstream & Storage Company Serving Attractive Midwest, Mid-Atlantic and Gulf Coast Markets Strategically Positioned Overlaying Marcellus and Utica Shale Regions Significant Scale, 15,000+ Pipeline…
CPG: Investment-Driven Growth Strategy 12-15B Expected Organic Growth and Modernization Projects 1B+ Core System Expansion Long-Term Expected Infrastructure EBITDA & Annual Modernization Dividend Capital Growth Complementary…
CPG: A Premier Pipeline, Midstream & Storage Company Stable 90% Demand Based Underpinned with Long-Term Firm Contracts Revenue Minimal Commodity/Volumetric Exposure Streams Customer Supported Modernization Program in Place…
CPG: System Modernization Program 4-5B of Long-Term Investment Over 10-15 Years Groundbreaking FERC-Approved Settlement 300M/Year Investment to Modernize Columbia Gas Transmission Upgrading Compression Replacing Aging…
CPG Growth: Unique Opportunity Created by Strategic Footprint CPG Well Positioned in Rapidly Changing Landscape Past Gas Flows from Gulf Coast to Appalachia, Mid-Atlantic and Northeast Markets Current Production Growth and New…
CPG: FERC-Regulated Growth Projects 3.6B in Current Growth Projects Expected Expected In Service (MM) Project CapEx 1 ( in millions) In-Service In Execution 1 Millennium - Hancock 20 1Q 2014 In Development 2 Warren County 35…
CPG Growth: East Side Expansion 275M Investment, Supported by East Coast LDCs and Marcellus Producers Expands facilities to transport Northeast Marcellus supplies to Mid-Atlantic markets 315 MMcf/D of additional capacity Key…
CPG Growth: Leach and Rayne XPress Projects Combined 1.75B Investment, Supported by Long-Term Firm Contracts Adding capacity to transport 1.5 Bcf/D of Marcellus and Utica supplies from constrained production areas to liquid…
CPG Growth: Cameron Access Project 310M Investment, Linking Shale Supplies to LNG Export Market Transports supplies from numerous basins to Cameron Leach, KY (TCO) LNG facility New pipeline to the Cameron LNG Facility…
CPG Growth: WB XPress Project* 875M Investment, Linking Marcellus Supplies to Gulf and East Coast Markets Additional capacity providing market access for Marcellus supplies 500 MMcf/D east toward Loudon 800 MMcf/D west toward…
CPG: Growing Midstream Franchise Majorsville Gathering System Northern West Virginia and Southwest Pennsylvania 350 MMcfd wet gas gathering pipeline system Big Pine Gathering System Western Pennsylvania 20 and 24 high pressure…
CPG Growth: Current Midstream Projects In Service In Execution Expected Expected (MM) Project CapEx In Development ( in millions) In-Service 1 Big Pine 165 2Q 2013 1 Pennant 165 4Q 2013- 2 Gathering/Processing 2Q 2014 2 5…
CPG Investments Expected to Build Significant Scale Executing on a Robust Investment Opportunity 1.0B 12.5B 2.0B 0.9B 1.75B 0.3B 0.8B 1.8B 4.0B Current * Modernization Projects Cameron Rayne/Leach WB XPress Add'l…
CPG: A Premier Pipeline, Midstream & Storage Company 12-15B of Expected Organic Growth and Modernization Projects Over 10 Years Stable, 90% fixed revenue stream, Significant scale, with 4B in net investment, underpinned with…
Investment Proposition Steve Smith Chief Financial Officer CONFIDENTIAL DRAFT September 10, 2014 46
NiSource Has Historically Delivered Significant Shareholder Value Established Track Record and Commitment to Creating Shareholder Value Cumulative Total Shareholder Return = 185%* 39.33 32.88 23.81 24.89 12.4 10.3 17.62…
Potential to Deliver Enhanced Shareholder Value Highlights and unlocks the value of two unique Separation would create two well- businesses positioned energy companies, Both businesses positioned to deliver enhanced each with high…
NiSource Utility Company: Key Investment Considerations Premier Pure-Play Natural Gas & Electric Utilities Company Focused Business Strategy 100% Regulated Companies Operating in Constructive Regulatory Environments…
Columbia Pipeline Group: Key Investment Considerations Pure-Play Pipeline, Midstream & Storage Company Focused Business Strategy Strategically Located Assets In rapidly growing Marcellus/Utica production regions with significant…
Closing Closing Remarks Remarks Bob Skaggs President & Chief Executive Officer Bob Skaggs President & CEO September 29, 2014 CONFIDENTIAL DRAFT September 10, 2014 51
Summary: Creating Two Premier Energy Infrastructure Companies Two Companies Positioned to Realize Enhanced Growth Opportunities Expected to Unlock Full Potential for Both Companies Focused on Distinct Investment Opportunities,…
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