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Dec 31, 2019
Nisource Q4 2019 Earnings Report
NiSource reported a net loss for Q4 2019 and announced an agreement to sell Columbia Gas of Massachusetts assets.
Key Takeaways
NiSource reported a net loss of $153.0 million, or $0.41 per share, for the three months ended December 31, 2019, compared to a net loss of $19.8 million, or $0.05 per share, for the same period of 2018. Non-GAAP net operating earnings were $169.6 million, or $0.45 per share, compared to $141.9 million, or $0.38 per share, for the same period of 2018. The company also announced an agreement to sell its Columbia Gas of Massachusetts assets to Eversource for $1.1 billion.
Safety Management System implementation remains a top priority.
Execution was consistent with 2019 financial commitments.
An electric base rate case settlement was approved, and the generation strategy advanced.
Agreements were reached with the United States Attorney for the District of Massachusetts.
Nisource
Nisource
Forward Guidance
NiSource withdrew its 2020 net operating earnings per share guidance of $1.36 to $1.40 due to the pending sale of Columbia Gas of Massachusetts. However, the company expects to make capital investments of $1.8 to $1.9 billion in 2020. Following the transaction, NiSource expects to initiate 2021 net operating earnings per share guidance and establish a 5 to 7 percent long-term growth rate for both net operating earnings per share and dividend with 2021 as the base year.
Positive Outlook
- The transaction is expected to enable NiSource to eliminate its previously planned 2020 block equity issuance.
- The strategy and long-term growth opportunity for the remaining operating companies is unchanged.
- NiSource remains committed to maintaining its current investment-grade credit ratings.
- The company had approximately $1.4 billion in net available liquidity as of December 31, 2019.
- New long-term guidance is expected to be extended beyond 2022 to include significant investments related to the company’s electric generation strategy.
Challenges Ahead
- NiSource withdrew its 2020 net operating earnings per share (non-GAAP) guidance of $1.36 to $1.40.
- The sale of Columbia Gas of Massachusetts assets is expected to close by the end of the third quarter 2020.
- The company does not provide a GAAP equivalent of its earnings guidance due to unpredictable factors.
- Massachusetts Department of Public Utilities (DPU) continues its review of the cause of the September 2018 event
- Massachusetts Attorney General’s Office is continuing its investigation focused primarily on the restoration work following the incident.