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Sep 30, 2020

Nisource Q3 2020 Earnings Report

NiSource reported a net loss on a GAAP basis, but reaffirmed 2020 capital expenditure and 2021 non-GAAP NOEPS guidance.

Key Takeaways

NiSource reported a GAAP net loss of $186.7 million, or $0.49 per share, for the three months ended September 30, 2020. However, the company reaffirmed its 2020 capital investment forecast of $1.7 to $1.8 billion and its 2021 non-GAAP net operating earnings guidance in the range of $1.28 to $1.36 per share.

Safety & asset modernization, renewable generation transition and continued customer affordability remain top priorities

2020 CapEx and 2021 non-GAAP NOEPS guidance reaffirmed

Additional renewable generation projects announced in Indiana

Sale of Columbia Gas of Massachusetts closed in October

Total Revenue
$903M
Previous year: $932M
-3.1%
EPS
$0.09
Previous year: $0.0176
+410.2%
Gross Profit
$380M
Previous year: $341M
+11.3%

Nisource

Nisource

Forward Guidance

NiSource reaffirmed its 2020 capital investment forecast of $1.7 to $1.8 billion, and its 2021 non-GAAP net operating earnings guidance in the range of $1.28 to $1.36 per share. The company continues to expect to grow its net operating earnings per share by 7 to 9% on a compound annual growth rate basis from 2021 through 2024, including near-term annual growth of 5 to 7% through 2023.

Positive Outlook

  • Reaffirmed 2020 capital investment forecast
  • Reaffirmed 2021 non-GAAP net operating earnings guidance
  • Expects 7-9% net operating earnings per share growth from 2021-2024
  • Expects $1.9 to $2.2 billion annual growth, safety, and modernization investments
  • Expects $1.8 to $2.0 billion of investments in renewable generation assets

Challenges Ahead

  • Modest commercial and industrial load impacts due to COVID-19
  • Impacts on revenues are being mitigated by cost management measures
  • Pennsylvania base rate case order expected in Q1 2021, creating uncertainty
  • Maryland base rate case order expected in November 2020, creating uncertainty
  • NIPSCO tracker update request order expected by year-end, creating uncertainty