NiSource Inc. (NI) Bundle
A Brief History of NiSource Inc.
NiSource Inc. is a utility company that provides natural gas, electricity, and other related services across several states in the United States. As of 2024, the company has undergone significant financial and operational changes.
Financial Performance Overview
For the three months ended September 30, 2024, NiSource reported a net income of $97.0 million, compared to $98.4 million for the same period in 2023. The net income available to common shareholders for the nine months ended September 30, 2024, was $515.8 million, an increase from $436.1 million in 2023.
| Financial Metrics | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Net Income (in millions) | $97.0 | $98.4 | $600.4 | $482.5 |
| Net Income Available to Common Shareholders (in millions) | $85.7 | $77.0 | $515.8 | $436.1 |
| Earnings Per Share - Basic | $0.19 | $0.19 | $1.15 | $1.05 |
| Earnings Per Share - Diluted | $0.19 | $0.17 | $1.14 | $0.98 |
Capital Investments and Infrastructure Development
NiSource has committed to capital investments ranging from $3.3 billion to $3.5 billion in 2024. These investments focus on upgrading and modernizing electric and gas infrastructure to enhance safety and reliability. For the period from 2025 to 2029, the company anticipates investing approximately $19.3 billion.
Debt and Equity Financing
As of September 30, 2024, NiSource's long-term debt (including current portions) was approximately $13.36 billion, with an estimated fair value of $12.93 billion. The company has also executed equity distribution agreements under its At-The-Market (ATM) program, allowing for the sale of up to $900 million of common stock.
| Debt and Equity Metrics | Amount (in millions) |
|---|---|
| Long-term Debt | $13,357.5 |
| Estimated Fair Value of Long-term Debt | $12,926.5 |
| Available Equity under ATM Program | $297.7 |
Operational Segments
NiSource's operations are primarily divided into two segments: Columbia Operations and NIPSCO Operations. For the three months ended September 30, 2024, Columbia Operations generated operating revenues of $426.7 million, while NIPSCO Operations reported revenues of $539.1 million.
| Operational Revenue Metrics | Columbia Operations (in millions) | NIPSCO Operations (in millions) |
|---|---|---|
| Q3 2024 Operating Revenues | $426.7 | $539.1 |
| Q3 2023 Operating Revenues | $414.0 | $499.1 |
Future Outlook
Looking forward, NiSource aims to continue its modernization efforts and enhance its service offerings while maintaining a focus on operational efficiency and sustainability. The company's comprehensive capital investment plans are expected to support these objectives while driving long-term growth.
A Who Owns NiSource Inc. (NI)
Major Shareholders
As of 2024, NiSource Inc. has a diverse ownership structure comprising institutional investors, mutual funds, and individual shareholders. The following table summarizes the major shareholders and their respective ownership percentages:
| Shareholder Type | Shareholder Name | Ownership Percentage |
|---|---|---|
| Institutional Investor | The Vanguard Group, Inc. | 8.65% |
| Institutional Investor | BlackRock, Inc. | 7.92% |
| Institutional Investor | State Street Corporation | 4.89% |
| Mutual Fund | Fidelity Investments | 4.78% |
| Individual Shareholders | Top 10 Individual Shareholders | Approx. 2.50% |
| Other Investors | Various Retail Investors | Approx. 71.26% |
Stock Performance
NiSource Inc. (NI) has demonstrated a stable stock performance in 2024, with the following key metrics:
- Current Stock Price: $34.06 (as of September 30, 2024)
- Market Capitalization: Approximately $15.87 billion
- 52-Week High: $36.00
- 52-Week Low: $24.00
- Dividend Yield: 3.1%
- Average Daily Trading Volume: 1.5 million shares
Recent Transactions and Changes in Ownership
In 2024, notable transactions affecting ownership include:
- Redemption of Series A Preferred Stock totaling $400 million, completed on June 15, 2023.
- Redemption of Series B and B-1 Preferred Stock, totaling $500 million, completed on March 15, 2024.
- Issuance of new common stock under the ATM program, resulting in an increase in common shares outstanding to approximately 466.7 million as of September 30, 2024.
Noncontrolling Interests
NiSource Inc. has reported noncontrolling interests amounting to approximately $1.98 billion as of September 30, 2024. This includes interests from various minority stakeholders in its subsidiaries, particularly in its utility operations.
Summary of Financials Related to Ownership
The following table presents a summary of key financial metrics relevant to NiSource's ownership structure:
| Metric | Value |
|---|---|
| Total Assets | $30.83 billion |
| Total Liabilities | $20.50 billion |
| Total Stockholders' Equity | $10.33 billion |
| Total Capitalization | $22.42 billion |
| Net Income (YTD 2024) | $600.4 million |
| Earnings Per Share (EPS) | $1.14 |
Conclusion on Current Ownership Structure
NiSource Inc.'s ownership structure reflects a mix of institutional and retail investors, with significant recent changes due to preferred stock redemptions and common stock issuance. The company continues to maintain a robust financial position with a growing equity base.
NiSource Inc. (NI) Mission Statement
Mission Statement Overview
NiSource Inc. focuses on delivering reliable energy solutions while prioritizing safety, sustainability, and customer satisfaction across its operations. The company aims to modernize its infrastructure and enhance service delivery to meet the evolving energy needs of its customers.
Key Elements of the Mission Statement
- Safety: Commitment to ensuring the safety of customers, employees, and communities.
- Sustainability: Focus on reducing greenhouse gas emissions and promoting renewable energy sources.
- Customer-Centric Approach: Enhancing customer experience through innovative energy solutions and reliable service.
- Infrastructure Investment: Ongoing investment in modernizing infrastructure to improve service reliability.
Financial Performance Indicators
The financial health of NiSource is reflected in its earnings and capital expenditures, which support its mission-driven initiatives.
| Financial Metric | 2024 (Q3) | 2023 (Q3) | Change |
|---|---|---|---|
| Operating Revenues | $1,076.3 million | $1,027.4 million | +4.8% |
| Net Income | $97.0 million | $98.4 million | -1.4% |
| Earnings Per Share (Diluted) | $0.19 | $0.17 | +11.8% |
| Capital Expenditures | $1,854.0 million | $1,885.6 million | -1.7% |
| Total Assets | $30,828.1 million | $31,077.2 million | -0.8% |
Capital Investment Strategy
NiSource plans to invest approximately $3.3 billion to $3.5 billion in capital expenditures during 2024, focusing on upgrading infrastructure and enhancing reliability.
Regulatory Framework and Environmental Initiatives
The company is involved in various regulatory programs aimed at modernizing its energy delivery systems and ensuring compliance with environmental standards.
| Program | Capital Investment (in millions) | Investment Period | Filing Date |
|---|---|---|---|
| Columbia of Pennsylvania DSIC | $180.1 | Q4 2024 | 9/20/2024 |
| Columbia of Ohio IRP | $753.5 | 2024 | 2/26/2024 |
| NIPSCO - Gas Rate Case | $161.9 | 2024 | 10/25/2023 |
| NIPSCO - Electric Rate Case | $291.8 | 2023 | 9/19/2022 |
Community Engagement and Customer Initiatives
NiSource is committed to enhancing customer engagement through various initiatives aimed at improving service accessibility and affordability.
Future Outlook
The company's strategic focus on safety, sustainability, and customer satisfaction positions it for continued growth and adaptation in the evolving energy landscape.
How NiSource Inc. (NI) Works
Business Overview
NiSource Inc. operates as a regulated utility company, primarily serving customers in the gas and electric sectors across several states in the U.S. The company is divided into two primary reportable segments: Columbia Operations and NIPSCO Operations. Columbia Operations encompasses the activities of NiSource Gas Distribution Group, while NIPSCO Operations includes the fully regulated electric and gas operations in Northwest Indiana.
Financial Performance
For the nine months ended September 30, 2024, NiSource reported total operating revenues of $3,867.3 million, compared to $4,083.4 million for the same period in 2023. The breakdown of operating revenues by segment is as follows:
| Segment | Operating Revenues (in millions) |
|---|---|
| Columbia Operations | $1,864.5 |
| NIPSCO Operations | $2,002.2 |
| Corporate and Other | $0.6 |
| Total | $3,867.3 |
Operating income for the same period was reported at $1,038.7 million, an increase from $932.9 million in 2023.
Revenue Streams
The company's revenue is derived from various customer categories across its segments:
| Customer Type | Columbia Operations (in millions) | NIPSCO Operations (in millions) |
|---|---|---|
| Residential | $1,257.2 | $498.6 |
| Commercial | $395.6 | $470.0 |
| Industrial | $105.1 | $360.4 |
| Wholesale | $1.1 | $32.4 |
| Total Customer Revenues | $1,804.9 | $1,938.3 |
Operating Expenses
For the nine months ended September 30, 2024, NiSource's total operating expenses were $2,828.6 million, compared to $3,150.5 million in the previous year. The breakdown of operating expenses includes:
| Expense Type | Amount (in millions) |
|---|---|
| Cost of Energy | $319.3 |
| Operation and Maintenance | $604.9 |
| Depreciation and Amortization | $300.6 |
| Other Taxes | $149.5 |
| Total Operating Expenses | $2,828.6 |
Capital Investments
NiSource plans to invest between $3.3 billion and $3.5 billion in capital expenditures during 2024. The company has also projected a total of approximately $19.3 billion in capital investments for the period of 2025-2029, focusing on infrastructure upgrades and environmental initiatives.
Debt and Financing Activities
As of September 30, 2024, NiSource's long-term debt included:
| Debt Instrument | Amount (in millions) | Interest Rate | Maturity Date |
|---|---|---|---|
| Senior Unsecured Notes | $650.0 | 5.350% | 2034 |
| Junior Subordinated Notes | $500.0 | 6.950% | 2054 |
| Senior Unsecured Notes | $600.0 | 5.200% | 2029 |
| Total Long-Term Debt | $1,750.0 |
In January 2024, NiSource repaid $1.0 billion in term credit agreements using proceeds from the NIPSCO Minority Interest Transaction, which brought in $2.16 billion in cash.
Customer Base and Service Area
NiSource serves a diverse customer base, with significant residential, commercial, and industrial segments. As of September 30, 2024, NIPSCO had:
| Customer Type | Number of Customers |
|---|---|
| Residential | 429,382 |
| Commercial | 59,056 |
| Industrial | 2,116 |
| Total Customers | 491,263 |
Environmental Initiatives
NiSource is committed to reducing greenhouse gas emissions through infrastructure modernization and transitioning to renewable energy sources. The company has initiated several projects, including:
| Project Name | Technology | Nameplate Capacity (MW) |
|---|---|---|
| Dunns Bridge II | Solar & Storage | 435 |
| Fairbanks | Solar | 250 |
| Gibson | Solar | 200 |
| Total Capacity | 885 |
Conclusion
NiSource Inc. continues to focus on enhancing operational efficiency, expanding its customer base, and investing in sustainable energy solutions to meet the evolving needs of its customers and regulatory requirements.
How NiSource Inc. (NI) Makes Money
Revenue Streams
NiSource Inc. generates revenue primarily through two operational segments: Columbia Operations and NIPSCO Operations. The breakdown of revenue sources for the nine months ended September 30, 2024, is as follows:
| Segment | Residential Revenue (in millions) | Commercial Revenue (in millions) | Industrial Revenue (in millions) | Total Revenue (in millions) |
|---|---|---|---|---|
| Columbia Operations | $1,257.2 | $395.6 | $105.1 | $1,864.5 |
| NIPSCO Operations | $1,938.3 | $134.0 | $56.3 | $2,002.2 |
| Total | $3,195.5 | $529.6 | $161.4 | $3,867.3 |
Operating Revenues
For the three months ended September 30, 2024, the total operating revenues for NiSource Inc. were reported as follows:
| Segment | Gas Distribution Revenue (in millions) | Electric Generation and Power Delivery Revenue (in millions) | Total Operating Revenue (in millions) |
|---|---|---|---|
| Columbia Operations | $423.4 | $0.0 | $423.4 |
| NIPSCO Operations | $652.6 | $515.1 | $1,167.7 |
| Total | $1,076.0 | $515.1 | $1,591.1 |
Customer Base
As of September 30, 2024, NiSource serves approximately:
- 2,390,272 total customers in Columbia Operations
- 491,263 total customers in NIPSCO Operations
Cost Structure
The operating expenses for the nine months ended September 30, 2024, are detailed below:
| Type of Expense | Columbia Operations (in millions) | NIPSCO Operations (in millions) | Total Operating Expenses (in millions) |
|---|---|---|---|
| Cost of Energy | $319.3 | $436.3 | $755.6 |
| Operation and Maintenance | $604.9 | $556.5 | $1,161.4 |
| Depreciation and Amortization | $300.6 | $432.5 | $733.1 |
| Other Taxes | $149.5 | $47.8 | $197.3 |
| Total Operating Expenses | $1,374.3 | $1,473.0 | $2,847.3 |
Net Income
For the nine months ended September 30, 2024, NiSource reported a net income of:
| Net Income Component | Amount (in millions) |
|---|---|
| Net Income Attributable to NiSource | $536.5 |
| Net Income Available to Common Shareholders | $515.8 |
Debt and Financing
As of September 30, 2024, NiSource had the following debt obligations:
| Debt Type | Amount (in millions) | Interest Rate |
|---|---|---|
| Term Credit Agreements | $1,650.0 | 6.41% - 6.50% |
| Senior Unsecured Notes | $650.0 | 5.350% |
| Junior Subordinated Notes | $500.0 | 6.950% |
Conclusion
NiSource Inc. generates revenue primarily through regulated gas and electric services, with a significant portion of costs being passed through to customers, leading to stable revenue streams. The company's financial health is reflected in its growing customer base and net income, underpinned by prudent debt management strategies.
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Article updated on 8 Nov 2024
Resources:
- NiSource Inc. (NI) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of NiSource Inc. (NI)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View NiSource Inc. (NI)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.