• Adjusted EPS for 2024: $1.75 per share, a 9.4% increase from 2023.
• 2025 Adjusted EPS Guidance: Raised to $1.85 to $1.89 per share.
• Capital Expenditures (CapEx) 2024: $6.9 billion invested over the last 24 months.
• 2025-2029 Base Capital Plan: $19.4 billion, with an 8% to 10% rate base growth.
• Incremental Revenue from Rate Base Investments 2024: $367 million.
• Fourth Quarter 2024 Adjusted EPS: $0.49 per share, a decrease of $0.04 from the previous year.
• Annualized Dividend Target 2025: Increased from $1.06 to $1.12 per share.
• FFO to Debt 2024: 14.6%, up from 14.1% in 2023.
• Incremental Revenue from Customer Additions and Usage 2024: $36 million.
• O&M Savings 2024: $77 million through the Apollo Continuous Improvement program.

• Warning! GuruFocus has detected 10 Warning Signs with NI.

Release Date: February 12, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• NiSource Inc (NYSE:NI) reported an adjusted EPS of $1.75 for 2024, exceeding the top end of both original and updated guidance ranges, marking a 9.4% increase from 2023.
• The company has a robust five-year base capital plan of $19.4 billion, which is expected to drive an 8% to 10% rate base growth from 2025 to 2029.
• NiSource Inc (NYSE:NI) has successfully executed regulatory settlements in multiple states, supporting over $300 million in incremental investments.
• The company has been recognized for its customer service, with NIPSCO Electric and Columbia Gas of Virginia named number one in regional customer service satisfaction surveys.
• NiSource Inc (NYSE:NI) has been included in the Dow Jones Sustainability Indices for the 11th consecutive year, highlighting its commitment to sustainability and economic development.

Negative Points

• The fourth quarter adjusted EPS of $0.49 per share was a decrease of $0.04 compared to the previous year, driven by increased depreciation and other taxes.
• The company faces risks and uncertainties related to forward-looking statements, which could cause actual results to differ materially.
• There is a need for regulatory approval from the IURC for the NIPSCO GENCO entity, which could impact the timing of new projects.
• The company is exposed to evolving policy mandates at the federal level, although its five-year plan is insulated from these changes.
• NiSource Inc (NYSE:NI) has increased its upside CapEx plan by $400 million, which may require additional financing strategies to support these investments.

Q & A Highlights

Q: Can you elaborate on the GENCO filing and its implications for NIPSCO and potential data center customers? A: Lloyd Yates, President and CEO, explained that the GENCO filing is a strategic move to serve large load customers like data centers while protecting existing customers. Michael Luhrs, EVP of Strategy and Risk, added that it allows NiSource to encapsulate services for large customers, maintaining financial integrity and flexibility. Shawn Anderson, CFO, noted that this approach aligns cash flows with capital projects, potentially offering returns beyond traditional rate-making.

Q: What is the current status and outlook for data center opportunities in Northern Indiana? A: Lloyd Yates stated that data center opportunities are expected to materialize in 2025. Discussions are progressing well, and NiSource is optimistic about finalizing agreements. Michael Luhrs mentioned that the reference case includes 2,600 megawatts, with an upside of 8,000 megawatts, and discussions have been positive.

Q: How does NiSource plan to finance the increased capital expenditures, especially with potential data center developments? A: Shawn Anderson highlighted that NiSource plans to leverage cash from operations, capital allocation efficiencies, and potentially junior subordinated notes to finance increased CapEx. The company is comfortable with its current ATM program and internal cash flow to support these investments.

Q: What is the timeline for the IURC approval of the GENCO entity, and how does it affect potential deals? A: Michael Luhrs clarified that while IURC approval is needed to establish the GENCO entity, it is not required to announce deals. The approval process is expected to conclude by Q3 2025, allowing concurrent progress on customer agreements.

Q: Are there opportunities for NiSource to serve data centers through its gas infrastructure? A: Michael Luhrs confirmed that NiSource sees opportunities to serve data centers via its gas system, which is robust and reliable. Lloyd Yates added that there is potential for capital investment in Virginia and Ohio to support these opportunities.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.