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Jun 30, 2023
Nisource Q2 2023 Earnings Report
NiSource's Q2 2023 earnings reflect a slight decrease in both GAAP and non-GAAP earnings per share compared to the same period last year, but the company raised its 2023 EPS guidance and reaffirmed long-term growth commitments.
Key Takeaways
NiSource reported a decrease in GAAP net income and diluted earnings per share for Q2 2023 compared to Q2 2022. Non-GAAP net operating earnings also saw a slight decrease. However, the company raised its 2023 non-GAAP NOEPS guidance to the upper half of $1.54 to $1.60 and reaffirmed its annual non-GAAP NOEPS growth target of 6-8% through 2027.
NiSource's 2023 EPS guidance raised to the upper half of the range, reaffirming long-term growth commitments.
Leading regulatory execution continues in both electric and gas businesses.
NIPSCO minority sale agreement with Blackstone Infrastructure Partners announced, expected to close by year-end.
Columbia Gas of Ohio has been awarded the Most Trusted Utility Brand Award for 2023 by Escalent for the second consecutive year.
Nisource
Nisource
Forward Guidance
NiSource is raising 2023 non-GAAP NOEPS guidance to the upper half of $1.54 to $1.60. Annual non-GAAP NOEPS growth of 6-8% through 2027 is reaffirmed. Annual rate base growth of 8-10% is driven by $15 billion of capital expenditures anticipated during the 2023-27 period.
Positive Outlook
- The increased 2023 earnings expectations underscore our focus and ability to deliver on our financial commitments while supporting the growth and reliability of our energy systems.
- Partnership with Blackstone Infrastructure Partners marks yet another example of NiSource’s steadfast execution.
- Transaction enables to support ongoing investments in the state of Indiana and strengthens balance sheet and financial flexibility.
- The request seeks to recover approximately $40 million in capital invested in improving system safety and reliability through the 12-months ended July 2023.
- The base rate adjustment approval authorizes recovery of approximately $390 million of capital invested during the 2021 through 2023 period.
Challenges Ahead
- Fluctuations in weather
- Impact of asset sales and impairments
- Unusual or infrequent items included in GAAP results
- Economic conditions in certain industries
- Potential impairments of goodwill