NiSource - Industry Leading Natural Gas and Electric Utility Company Investor Presentation May 14, 2015 1
NiSource and Columbia Pipeline Group Separation Update Bob Skaggs, President & CEO, NiSource Investor Update May 14, 2015
Creating Two Independent, Premier Energy Companies Expected to Unlock Pathway to Successful, Full Potential for Long-Term Growth Strategy Both Companies Focused on Distinct Pure-Play Growth Opportunities, Businesses Assets and…
Separation Timeline - Creating Two Independent, Premier Companies MLP IPO Complete Credit Agency Review Complete Recapitalization On Schedule SEC Form 10 On Track Separation on Track for July 1, 2015 Expected Record Date for…
Creating Two Independent, Premier Energy Companies Combined Dividends Reflect 8% Increase Current Annual Dividend 1.04 Expected Initial Annual Dividend - 0.62 Expected Initial Annual Dividend - 0.50 Confidence in Outlook for…
NiSource* - Industry Leading Natural Gas and Electric Utility Company Joe Hamrock, President & CEO Donald Brown, EVP & Chief Financial Officer Jim Stanley, EVP & Chief Operating Officer Carl Levander, EVP & Chief Regulatory Officer…
NiSource Strategic Framework Creating Value Aspiration Premier Regulated Utility Company Value Proposition Best-in-Class Risk-Adjusted Total Return Proposition 30B of 100% Regulated Utility Infrastructure Investment Opportunities…
Premier Utility Businesses Operating on a Large Scale, Diverse Footprint Headquarters: Merrillville, IN NYSE: NI 7-State Footprint Electric Operations Gas Distribution 3.5M Gas LDC Customers 500K Electric Customers NIPSCO…
NiSource Leadership* NiSource Board of Directors Richard L. Thompson (Independent Chairman) - Director Since 2004 Richard A. Abdoo - Director Since 2008 Aristides S. Candris - Director Since 2012 Michael E. Jesanis - Director Since…
NiSource Key Investment Considerations Focused Business Strategy Transparent Earnings Drivers and Attractive Risk-Adjusted Returns 30B of Expected Infrastructure Enhancements Over 20+ Years Meet Safety and Reliability Needs Enhance…
NiSource Key Investment Considerations Transparent, Sustainable Growth Drives Premium Equity Value 2016 Guidance EPS* 1.00 - 1.10 CapEx 1.4B Expected Initial Annual Dividend of 0.62 per Share (Increase at Separation Consistent…
Business Profile: Pure-Play Utility with 7-State Footprint Gas Distribution Utilities Fully Integrated Electric Utility Total Rate Base* of Total Rate Base* of 5B 3.0B Constructive Regulatory Constructive Regulatory Environments…
Revenue Profile: Stable, 100% Regulated Revenue Stream Net Revenue* Commercial 25% Non-Volume Residential Volumetric Sensitive 55% 35% 65% Industrial 20% Consistently Earning Allowed Returns on Investments * Based on…
A Well-Established Platform of Operations Execution Across 7-States State-by-State Jurisdictional Focus Support by Central Operations Platform Leverages experienced leadership Drives efficiencies across operations…
Significant, Long-Term Infrastructure Investments 30B Expected Enhancements Provide Over 20+ Years of Visible Growth 30 Generation Investment (1.7B) Electric Transmission Investment (1.0B) 20 in Billions Electric…
Indiana Electric (NIPSCO) Business Profile Rate Design Third largest electric utility in Indiana 100% fuel costs pass-through (500K customers) 55% net revenue requirement collected through fixed Fully integrated electric utility…
Indiana Electric (NIPSCO) Transmission Projects Under the MISO comprehensive transmission expansion plan, NIPSCO is constructing two large Multi Value Projects (MVPs) to meet the reliability needs of the electric system and its…
Columbia Gas of Ohio Business Profile Rate Design Largest LDC in Ohio (1.4M customers) Straight fixed variable rate design (fully fixed 20,000 miles of pipe residential distribution rate) 3,000 miles of bare steel & cast iron Bad…
Indiana Gas (NIPSCO) Business Profile Rate Design Largest LDC in Indiana (800K customers) 60% of residential distribution rate fixed 17,000 miles of pipe Low income program fully tracked 35 miles of bare steel Regulatory construct…
Columbia Gas of Pennsylvania Business Profile Rate Design 420K customers in Pa. 75% revenue generated by residential customers 7,400 miles of pipe with 50% fixed distribution rate (assuming average customer usage) 1,700 miles of…
Columbia Gas of Massachusetts Business Profile Rate Design Largest gas-only LDC in Mass. Revenue decoupling adjustment provides (300K customers) residential distribution revenue recovery 5,000 miles of pipe Full cost recovery…
Columbia Gas of Virginia Business Profile Rate Design 250K customers in Virginia Revenue normalization adjustments provides full 5,000 miles of pipe residential distribution revenue recovery 200 miles of bare steel Energy…
Columbia Gas of Kentucky Business Profile Rate Design 135K customers in Ky. 65% of revenue generated by residential customers 2,600 miles of pipe with a 60% fixed distribution rate 430 miles of bare steel & Weather normalization…
Columbia Gas of Maryland Business Profile Rate Design 33K customers in Md. Revenue normalization adjustment provides full 750 miles of pipe residential distribution revenue recovery 95 miles of bare steel & cast iron Energy…
NiSource Utility Company Summary Highly Visible 30B / 20+ Year Infrastructure Investment Opportunity Industry-leading regulated natural gas and Complementary rate structures and tracker electric utilities company platform mechanisms;…
Financial Profile Donald Brown, EVP & Chief Financial Officer CONFIDENTIAL DRAFT September 10, 2014
NiSource Debt and Credit Profile* Recapitalization Reduces NiSource Net Debt NiSource Long-Term Debt Profile at Separation Weighted Average Maturity of 14 years Weighted Average Rate of 5.8% Solid Liquidity 1.5B / 5-Year Committed…
NiSource Primary Sources & Uses of Cash (Illustrative) Annual Net Funding Requirement (400M-500M) DRIP (50M) Growth CapEx (1,000M) Maintenance CapEx Funds From Operations (350M) (1,100M) Dividend (200M) Primary Uses…
NiSource Key Investment Considerations Compelling Pure-Play Utility Investment Proposition Focused Business Strategy 30B of Expected Infrastructure Enhancements Over 20+ years Significant Scale with 4.0M Customers Across 7 States…
Appendix
NiSource Leadership Team* Joe Hamrock President & Chief Executive Officer Previously, Hamrock was Executive Vice President & Group CEO for NiSources Gas Distribution segment Hamrock joined NiSource in May 2012 after serving in a…
NiSource Leadership Team Carrie Hightman Executive Vice President & Chief Legal Officer Prior to joining NiSource in 2007, Hightman served as President of AT&T Illinois Previously, Hightman was a partner at the Chicago law firm of…
NiSource Leadership Team* Rob Campbell Executive Vice President, Corporate Affairs & Human Resources Previously, Campbell was Senior Vice President of Human Resources Campbell also was employed at NiSource in executive roles from June…
NiSource Leadership Team Brent Archer President, Columbia Gas of Virginia Previously, Archer served in a variety of leadership positions at the Columbia Gas companies, most recently as Director of Business Policy at Columbia Gas of…
NiSource Leadership Team Mark Kempic President, Columbia Gas of Pennsylvania/Maryland Previously, Kempic was Director of Rates and Regulatory Policy Kempic joined Columbia Gas in 1998 as an attorney. He previously worked for…
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