Supplemental Slides | Segment & Financial Information | Listen to Webcast
- 2022 diluted NOEPS tops guidance range; 2023 guidance range increased
- NIPSCO minority interest sale launched and on track for 2023
NiSource (NYSE: NI) today announced, on a GAAP basis, 2022 net income available to common shareholders was $749.0 million, or $1.70 diluted earnings per share, compared to net income available to common shareholders of $529.8 million, or $1.27 diluted earnings per share, for the same period of 2021.
NiSource also reported 2022 non-GAAP net operating earnings available to common shareholders of $648.2 million, or $1.47 diluted earnings per share compared to non-GAAP net operating earnings available to common shareholders of $571.2 million, or $1.37 diluted earnings per share, for 2021. Schedule 1 of this press release contains a complete reconciliation of GAAP measures to non-GAAP measures.
Increasing 2023 earnings guidance
NiSource reaffirms its commitment to annual non-GAAP NOEPS growth of 6-8% through 2027. The Company is increasing its 2023 guidance to $1.54 to $1.60 non-GAAP NOEPS.
"Delivering earnings above our 2022 guidance and raising our 2023 guidance range are a testament to our team's sustained and consistent execution of our strategy," said NiSource President and CEO Lloyd Yates. "Our top tier and achievable growth plan unveiled at our 2022 Investor Day puts us on a path to drive compelling total shareholder returns of 9% to 11% annually. Already approved investments are the foundation of the plan that enhance the safety, reliability and sustainability of our systems to support new and existing customers."
Yates continued, "We have also officially launched our sale process for a minority interest in NIPSCO, which is expected to de-risk our financing plan and result in a strong balance sheet that positions us for long-term success. As we look ahead, we remain focused on creating additional value for our shareholders and other stakeholders by continuing to optimize our cost profile and enhance operational excellence. I'd like to commend the strong execution of our talented and dedicated employees throughout 2022."
2022 Operational and Financial Highlights
- Completed comprehensive business review, resulting in top tier plan to drive shareholder value with an expected 9-11% total shareholder return
- Maintained strong regulatory execution throughout the NiSource footprint
- Continued focus on operational excellence, efficiency and enhanced safety
- Built long-term plan to invest up to $1 billion in new technologies to change how the Company plans, schedules and executes work in the field and engages and provides service to customers
Fourth Quarter 2022 and Recent Business Highlights
Northern Indiana Public Service Company (NIPSCO)is actively working with stakeholders toward a settlement in the electric rate case filed on September 19. The case requests for a net incremental revenue increase of $279.2 million to support renewable generation and associated transmission projects, grid modernization and customer-centric improvements.
Construction of the Indiana Crossroads Solar and Dunns Bridge Solar I projects is nearing completion, with both projects expected to be in service in the first half of 2023. Construction continues on the Indiana Crossroads II Wind project toward a projected start of commercial operations by the end of 2023. Initial construction work has begun on Dunns Bridge II and Cavalry Solar projects.
Gas distribution continues its regulatory execution with rate case settlements approved in Ohio, Pennsylvania and Maryland. Also, a proposed stipulation and recommendation was filed in Virginia and is awaiting a final order.
NiSource reminds investors that it does not provide a GAAP equivalent of its earnings guidance due to the impact of unpredictable factors such as fluctuations in weather and other unusual and infrequent items included in GAAP results.
Additional information for the quarter ended December31, 2022, is available on the Investors section of www.nisource.com, including segment and financial information and a presentation.
Schedule 1 - Reconciliation of Consolidated Net Income Available to Common Shareholders to | |||||||
Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||
(in millions, except per share amounts) | 2022 | 2021 | 2022 | 2021 | |||
GAAP Net Income Available to Common Shareholders | $ 230.8 | $ 152.2 | $ 749.0 | $ 529.8 | |||
Adjustments to Operating Income: | |||||||
Operating Revenues: | |||||||
Weather - compared to normal | (3.2) | 13.7 | (24.9) | 1.2 | |||
FAC adjustment(1) | 8.0 | ||||||
Operating Expenses: | |||||||
Greater Lawrence Incident | 1.2 | 9.2 | |||||
Plant retirement costs | 1.9 | 14.1 | |||||
NiSource Next initiative(2) | 2.6 | 3.3 | 24.7 | ||||
Massachusetts Business related amounts(3) | (105.0) | 6.8 | |||||
Total adjustments to operating income | (3.2) | 19.4 | (118.6) | 56.0 | |||
Other Income (Deductions): | |||||||
Interest rate swap settlement gain | (10.0) | (10.0) | |||||
Income Taxes: | |||||||
Tax effect of above items(4) | 3.4 | (4.9) | 27.8 | (14.6) | |||
Total adjustments to net income | (9.8) | 14.5 | (100.8) | 41.4 | |||
Net Operating Earnings Available to Common Shareholders (Non-GAAP) | $ 221.0 | $ 166.7 | $ 648.2 | $ 571.2 | |||
Diluted Average Common Shares | 445.9 | 428.8 | 442.7 | 417.3 | |||
GAAP Diluted Earnings Per Share | $ 0.52 | $ 0.36 | $ 1.70 | $ 1.27 | |||
Adjustments to diluted earnings per share | (0.02) | 0.03 | (0.23) | 0.10 | |||
Non-GAAP Diluted Net Operating Earnings Per Share(5) | $ 0.50 | $ 0.39 | $ 1.47 | $ 1.37 | |||
(1)Represents fuel costs deemed over-collected from customers through the FAC mechanism and ordered to be refunded to customers. |
(2)Represents incremental severance and third-party consulting costs incurred in connection with the NiSource Next initiative. |
(3)2022 represents proceeds from a property insurance settlement related to the Greater Lawrence Incident.2021 primarily represents final net working capital adjustments to the purchase price for the loss incurred on the sale of the Massachusetts Business. |
(4)Represents income tax expense calculated using the statutory tax rates by legal entity. |
(5)The Non-GAAP diluted NOEPS numerator is equal to net operating earnings available to common shareholders adjusted for add-backs for interest expense incurred, net of tax, related to Series A Equity Unit purchase contracts. The add-backs for the three months ended December31, 2022and 2021 were $0.5M and $0.6M, respectively. The add-back for the twelve months ended December31, 2022 and 2021 were $2.0M and $1.6M, respectively. |