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Jun 30, 2021

Nisource Q2 2021 Earnings Report

Reported second quarter results, remaining on track to achieve 2021 guidance and long-term EPS growth rates.

Key Takeaways

NiSource reported GAAP net income available to common shareholders of $46.5 million, or $0.11 diluted earnings per share, for the three months ended June 30, 2021. The company remains on track to achieve its 2021 non-GAAP diluted net operating earnings guidance of $1.32 to $1.36 per share.

Renewable generation transition remains ahead of original schedule with planned retirements, and now has Indiana regulatory approval of all renewable joint venture projects included in its estimated $2 billion investment

Safety, asset modernization and customer affordability remain top priorities

NiSource remains on track to achieve 2021 guidance and long-term EPS growth rates

The Safety Management System (SMS) continues to mature as the core operating model within NiSource, focusing on culture, asset management and process safety.

Total Revenue
$986M
Previous year: $963M
+2.4%
EPS
$0.13
Previous year: $0.13
+0.0%
Gross Profit
$395M
Previous year: $421M
-6.2%
Cash and Equivalents
$2.2B

Nisource

Nisource

Forward Guidance

NiSource remains on track to achieve its 2021 non-GAAP diluted net operating earnings guidance of $1.32 to $1.36 per share. The company expects to make capital investments of $1.9 billion to $2.1 billion in 2021.

Positive Outlook

  • Implemented a Management of Change process to reduce unplanned or intended risks and add layers of protection
  • Accelerated integration of contractors into safety plans
  • Expanded deployment of Picarro advanced leak detection technology that will provide additional data for risk-informed decision making
  • NIPSCO has received renewable energy project approvals from the Indiana Utility Regulatory Commission (IURC) for all joint-venture projects included in its estimated $2 billion investment, as well as 5 of the 6 power purchase agreements (PPAs) announced in its electric generation transition.
  • Two renewables projects have entered service, and the Indiana Crossroads wind project is expected to be completed in the fourth quarter of 2021.

Challenges Ahead

  • Potential incidents and other operating risks associated with our business
  • Impacts related to our aging infrastructure
  • Fluctuations in demand from residential and commercial customers
  • Potential cyber-attacks
  • Potential remaining liabilities related to the Greater Lawrence Incident