Exhibit 99.1
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801 E. 86th Avenue
Merrillville, IN 46410 |
August 2, 2011
FOR ADDITIONAL INFORMATION
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Media
Mike Banas
Communications Manager
(219) 647-5581
mbanas@nisource.com
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Investors
Randy Hulen
Managing Director, Investor Relations
(219) 647-5688
rghulen@nisource.com |
NiSource Reports Second Quarter 2011 Results
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Earnings in line with 2011 guidance |
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Settlement filed in Indiana electric rate case |
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Infrastructure enhancements, growth investments on track |
MERRILLVILLE, Ind. — NiSource Inc. (NYSE: NI) today announced net operating earnings from
continuing operations (non-GAAP) of $45.6 million, or $0.17 per share for the three months ended
June 30, 2011, compared to $37.0 million, or $0.13 per share for the second quarter of 2010.
Operating earnings for the quarter (non-GAAP) were $162.2 million compared to $154.0 million for
the same period in 2010.
On a GAAP basis, NiSource reported income from continuing operations for the three months ended
June 30, 2011, of $39.5 million, or $0.14 per share, compared with $28.0 million, or $0.10 per
share in the same period a year ago. Operating income was $163.3 million for the second quarter of
2011 compared with $139.2 million in the year-ago period. Schedules 1 and 2 of this news release
contain a reconciliation of net operating earnings and operating earnings to GAAP.
“NiSource delivered another quarter of solid financial and operational performance, punctuated by
significant accomplishments involving nearly all aspects of our business plan,” NiSource President
and Chief Executive Officer Robert C. Skaggs Jr. said. “From the settlement of our electric rate
case in Indiana, to the achievement of key regulatory, commercial and infrastructure milestones
across each of our businesses, our team continues to create innovative energy solutions for our
customers and sustainable value for shareholders.”
Skaggs noted that NiSource remains on track to deliver net operating earnings from continuing
operations in line with its 2011 outlook of $1.25 to $1.35 per share (non-GAAP). He also
highlighted a series of recent business accomplishments across the company, including:
1
Indiana electric rate case settlement
On July 18, NiSource’s Northern Indiana Public Service Company (NIPSCO) filed a broad-based
settlement agreement which, if approved by the Indiana Utility Regulatory Commission (IURC), would
resolve the company’s Nov. 2010 electric base rate case. A product of months of extensive
discussions with its customers and key regulatory stakeholders, the settlement provides NIPSCO with
the foundation to make ongoing investments in northern Indiana’s energy infrastructure to help fuel
job creation and economic growth and to earn a reasonable return on its investment for shareholders
on a sustainable basis.
“Working collaboratively with stakeholders, the settlement represents a balanced agreement that
supports NIPSCO’s ability to provide Indiana families, businesses and industries with the
affordable, reliable and environmentally sustainable power they need now and for the future,”
Skaggs said.
Pending IURC approval, NIPSCO anticipates that new rates could be effective in late 2011 or early
2012.
NIPSCO’s electric operations also continue to make progress on a variety of new customer programs
and environmental initiatives.
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On July 13, the company received approval from the IURC to significantly improve
NIPSCO’s ability to purchase customer-generated electricity from renewable energy projects.
The program, supported by consumer and environmental groups, also allows customers to
generate more of their own electricity using renewable energy to reduce their utility
costs. |
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On July 27, the IURC also approved NIPSCO’s request for new electric energy efficiency
programs for its electric customers. Programs include appliance recycling, commercial and
industrial efficiency project incentives and expanded energy education. |
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Construction also remains on schedule for a Flue Gas Desulfurization unit at NIPSCO’s
Schahfer generating station. This clean-air project is part of the company’s significant
environmental improvements at its electric generating stations — an investment of between
$570 million and $840 million planned over the next eight years. |
Pipeline and storage growth initiatives
NiSource Gas Transmission & Storage (NGT&S) continues to leverage its strategic asset base and
geographic footprint in the natural gas-rich Marcellus Shale production area to position itself for
ongoing growth.
In the Marcellus region, NGT&S completed its Southern Appalachian and Clendenin projects during the
second quarter, providing more than 180,000 dekatherms per day of contracted firm transportation
capacity for its customers. Other Marcellus-related projects in progress include the Rimersburg
Expansion in central Pennsylvania, the Smithfield project in West Virginia and the Line WB
Expansion in Virginia and Kentucky. These producer-driven projects, of which a
significant portion are fully subscribed with long-term contracts or binding precedent
agreements, will add up to 525,000 dekatherms per day of firm transportation.
2
As part of its ongoing strategy to exploit its Marcellus area pipeline and storage asset
position, NGT&S recently announced the appointment of several key new leaders. They include veteran
energy leader Joe Blount who will serve as president of NiSource Energy Ventures. Blount’s
responsibilities will include all of NGT&S’ midstream activities, its partnership interests in
Millennium Pipeline and Hardy Storage Company, and a number of other related commercial activities.
Among those reporting to Blount will be John Bonn, recently appointed as president of NiSource
Midstream Services, which is focused on capitalizing on the company’s extensive opportunities in
the Marcellus supply region.
“We’ve deepened our leadership ranks at NGT&S to continue to meet our aggressive targets for
project origination, execution and earnings growth from investments across our system and, in
particular, in the Marcellus Shale production area,” Skaggs said. “The team is aggressively
developing and pursuing an inventory of low-risk, accretive infrastructure investments that meet
the needs of our customers and provide long-term value for our shareholders.”
In addition to its supply-driven Marcellus development activities, NGT&S continues to actively
develop infrastructure projects to serve new natural gas-fueled electric generation markets,
involving both new generation facilities as well as coal conversion opportunities. For example, in
May, Columbia Gas Transmission filed an application with the Federal Energy Regulatory Commission
(FERC) to construct the pipeline infrastructure to serve Virginia Electric and Power Company’s
planned 1,329 megawatt gas-fired generation facility in Warren County, Va. The project would
provide approximately 250,000 dekatherms per day of long-term, firm transportation with an
in-service date of mid-2014.
On the regulatory front, Columbia Gulf Transmission placed new rates into effect, subject to
refund, on May 1, 2011, as part of its Nov. 2010 rate case filing with the FERC. Columbia Gulf and
the parties to the case are actively engaged in settlement discussions to resolve the case.
Gas distribution infrastructure, regulatory programs
NiSource Gas Distribution (NGD) continues to advance its strategy of combining long-term
infrastructure replacement and customer programs with complementary regulatory initiatives.
On July 1, Columbia Gas of Pennsylvania filed a partial settlement in the company’s base rate case
filed on Jan. 14, 2011, with the Pennsylvania Public Utility Commission. Two items, including rate
design for residential customers, will be resolved through a formal hearing process, and a
recommendation is expected this month. If approved, the settlement will authorize a revenue
increase of $17 million annually. A decision is expected, with new rates in effect, during the
fourth quarter of this year.
NiSource’s gas distribution companies also remain on track with their extensive infrastructure
modernization and replacement programs designed to ensure safe and reliable service. These include
programs at Columbia Gas of Ohio, Columbia Gas of Pennsylvania, Columbia Gas of Massachusetts and
Columbia Gas of Kentucky. In addition, Columbia Gas of Virginia has filed an application with its
state commission to accelerate recovery of its infrastructure projects. All of these investments
are part of NGDs more than $4 billion replacement program scheduled over the next 20 to 25 years.
3
Liquidity and financial management
In June, NiSource issued $400 million in 30-year notes as part of the company’s ongoing focus on
enhancing its long-term financial strength and flexibility. The issuance takes advantage of the
attractive interest rate environment and will be used to repay short-term bank borrowings under the
company’s $1.5 billion revolving credit facility. Also in June, NiSource introduced a $500 million
commercial paper program, which further diversifies the company’s short-term funding sources and is
fully supported by the revolving credit facility.
“We remain committed to the principle of thoughtful and disciplined financial management,” Skaggs
said. “This strategy has enabled us to strengthen our financial foundation and increase our ongoing
capital expenditure levels to meet customer needs and deliver value to our shareholders.”
The company’s overall 2011 capital investment program amounts to approximately $1.1 billion, a
level it expects to maintain or increase in the years ahead.
Second Quarter 2011 Operating Earnings — Segment Results (non-GAAP)
NiSource’s consolidated operating earnings (non-GAAP) for the quarter ended June 30, 2011, were
$162.2 million, compared to $154.0 million in the second quarter of 2010. Refer to Schedule 2 for
the items included in 2011 and 2010 GAAP operating income but excluded from operating earnings.
Operating earnings for NiSource’s business segments for the quarter ended June 30, 2011 are
discussed below.
NiSource Gas Distribution reported operating earnings for the current quarter of $48.7 million
compared to $35.9 million in the second quarter of 2010. Net revenues, excluding the impact of
trackers, increased by $0.4 million, primarily attributable to increased residential and commercial
margins due to NIPSCO’s change from a volumetric-based rate design to one with a higher fixed
charge. The new rate design provides a greater proportion of recovery through the monthly fixed
customer charge for certain customer classes. Additionally, there was an increase in other
regulatory and service programs largely due to new rates under Columbia Gas of Ohio’s approved
infrastructure replacement program and rate cases at various other utilities. These increases in
net revenues were partially offset by a decrease in off-system sales.
Operating expenses, excluding trackers, were $12.4 million lower than the comparable 2010 period
primarily as a result of lower depreciation costs due to reduced depreciation rates. This decrease
was partially offset by increases in employee and administrative expenses.
NiSource Gas Transmission and Storage reported operating earnings for the current quarter of $84.7
million compared to $74.9 million in the second quarter of 2010. Net revenues, excluding the impact
of trackers, increased by $14.3 million, primarily attributable to an increase in demand margin
revenue as a result of growth projects placed into service in the second half of 2010 and the
impact of new Columbia Gulf rates, subject to refund, put into effect May 1, 2011.
Operating expenses, excluding the impact of trackers, increased $6.4 million from the comparable
2010 period due to increased employee and administrative expenses and depreciation.
4
Equity earnings increased $1.9 million primarily due to non-recurrence of 2010 hedge
ineffectiveness charges for Millennium Pipeline, partially offset by Millennium’s higher current
year interest costs resulting from its Aug. 2010 debt refinancing.
NiSource Electric reported operating earnings for the current quarter of $37.3 million compared to
$48.3 million in the second quarter of 2010. Net revenues, excluding the impact of trackers,
increased by $0.2 million primarily due to increased industrial usage and margins as a result of
improved economic conditions partially offset by decreased residential and commercial margins.
Operating expenses, excluding the impact of trackers, increased by $11.2 million primarily
attributable to higher electric generation costs due to an increase in outage durations and higher
employee and administrative expenses.
Corporate and Other reported an operating earnings loss of $8.5 million for the current quarter
compared to an operating earnings loss of $5.1 million in the second quarter of 2010.
Other Items
Interest expense decreased by $4.0 million due to the Nov. 2010 long-term debt maturity and the
Dec. 2010 tender offer repurchase of long-term debt. The benefits were partially offset by
incremental interest expense associated with the swap maturity in Nov. 2010, the issuance of
long-term debt in Dec. 2010 and higher average short-term borrowings and rates.
Other-net reflected income of $0.6 million in 2011 compared to income of $2.6 million in 2010. The
effective tax rate of net operating earnings was 33.3 percent compared to 36.4 percent for the same
period last year.
Six-Month Period 2011 Operating Earnings — Segment Results (non-GAAP)
NiSource’s consolidated operating earnings (non-GAAP) for the six months ended June 30, 2011, were
$557.1 million, compared to $559.1 million for the same period in 2010. Refer to Schedule 2 for the
items included in 2011 and 2010 GAAP operating income but excluded from operating earnings.
Operating earnings for NiSource’s business segments for the six months ended June 30, 2011 are
discussed below.
NiSource Gas Distribution reported operating earnings of $285.8 million compared to $270.6 million
reported for the first six months of 2010. Net revenues, excluding the impact of regulatory
trackers, decreased $8.0 million primarily attributable to a decrease in off-system sales and lower
residential and commercial margins due to NIPSCO’s change from a volumetric-based rate design to
one with a higher fixed charge. The new rate design provides a greater proportion of recovery
through the monthly fixed customer charge for certain customer classes. These decreases were
partially offset by an increase in other regulatory and service programs largely due to new rates
under Columbia Gas of Ohio’s approved infrastructure replacement program and rate cases at various
other utilities.
Operating expenses, excluding the impact of trackers, were $23.2 million lower than the comparable
period in the prior year primarily due to lower depreciation costs as a result of reduced
depreciation rates at NIPSCO and decreased uncollectible accounts. These decreases were partially
offset by an increase in employee and administrative costs.
5
NiSource Gas Transmission and Storage reported operating earnings of $203.2 million versus
operating earnings of $200.8 million in the first six months of 2010. Net revenues, excluding
trackers, increased $14.0 million primarily attributable to an increase in demand margin revenue as
a result of growth projects placed into service in the second half of 2010 and the impact of new
Columbia Gulf rates put into effect, subject to refund, on May 1, 2011. These increases were
partially offset by the recognition of revenue in the prior year related to a previously deferred
gain for native gas and fees received from a contract buyout.
Operating expenses, excluding trackers, increased by $9.1 million primarily due to higher employee
and administration expense, increased maintenance and outside service costs and higher
depreciation.
Equity earnings decreased by $2.5 million primarily from Millennium Pipeline’s higher interest
costs resulting from the Aug. 2010 debt refinancing partially offset by the non-recurrence of 2010
hedge ineffectiveness charges at Millennium.
NiSource Electric reported operating earnings of $79.2 million for the first six months of 2011,
compared with operating earnings of $94.5 million for the prior year period. Net revenues,
excluding trackers, increased by $9.1 million primarily due to increased industrial usage and
margins as a result of improved economic conditions partially offset by decreased residential and
commercial margins.
Operating expenses, excluding trackers, increased by $24.4 million due primarily to higher electric
generation costs as a result of an increase in outage duration, a regulatory adjustment and higher
employee and administrative expenses.
Corporate and Other reported an operating earnings loss of $11.1 million in the first six months of
2011, compared to an operating earnings loss of $6.8 million in the first six months of 2010.
Other Items
Interest expense decreased by $13.0 million due to the Nov. 2010 long-term debt maturity and the
Dec. 2010 tender offer repurchase of long-term debt. The benefits were partially offset by
incremental interest expense associated with the swap maturity in Nov. 2010, the issuance of
long-term debt in Dec. 2010 and higher average short-term borrowings and rates.
The effective tax rate of net operating earnings was 34.2 percent compared to 35.9 percent for the
same period last year.
Income from Continuing Operations (GAAP)
As noted above, on a GAAP basis, NiSource reported net income from continuing operations for the
three months ended June 30, 2011, of $39.5 million, or $0.14 per share, compared with $28.0
million, or $0.10 per share, in the same period a year ago. Operating income was $163.3 million for
the second quarter of 2011, compared with $139.2 million in the year-ago period.
On a GAAP basis, NiSource reported net income from continuing operations for the six months ended
June 30, 2011, of $244.3 million, or $0.87 per share, compared with $225.4 million, or $0.81 per
share last year. Operating income was $562.5 million for the first six months of 2011 versus $542.6
million in the year-ago period.
6
Refer to Schedule 1 for a complete list of the items included in 2011 and 2010 GAAP income from
Continuing Operations but excluded from net operating earnings.
About NiSource
NiSource Inc. (NYSE: NI), based in Merrillville, Ind., is a Fortune 500 company engaged in natural
gas transmission, storage and distribution, as well as electric generation, transmission and
distribution. NiSource operating companies deliver energy to 3.8 million customers located within
the high-demand energy corridor stretching from the Gulf Coast through the Midwest to New England.
Information about NiSource and its subsidiaries is available via the Internet at www.nisource.com.
NI-F
Forward-Looking Statements
This news release includes forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. Those statements include statements regarding the intent, belief or current expectations
of NiSource and its management. Although NiSource believes that its expectations are based on
reasonable assumptions, it can give no assurance that its goals will be achieved. Readers are
cautioned that the forward-looking statements in this news release are not guarantees of future
performance and involve a number of risks and uncertainties, and that actual results could differ
materially from those indicated by such forward-looking statements. Important factors that could
cause actual results to differ materially from those indicated by such forward-looking statements
include, but are not limited to, the following: weather; fluctuations in supply and demand for
energy commodities; growth opportunities for NiSource’s businesses; increased competition in
deregulated energy markets; the success of regulatory and commercial initiatives; dealings with
third parties over whom NiSource has no control; actual operating experience of NiSource’s assets;
the regulatory process; regulatory and legislative changes; the impact of potential new
environmental laws or regulations; the results of material litigation; changes in pension funding
requirements; changes in general economic, capital and commodity market conditions; and
counter-party credit risk, and the matters set forth in the “Risk Factors” section in NiSource’s
2010 Form 10-K and subsequent reports on Form 10-Q, many of which risks are beyond the control of
NiSource. NiSource expressly disclaims a duty to update any of the forward-looking statements
contained in this release.
7
NiSource Inc.
Consolidated Net Operating Earnings (Non GAAP)
(unaudited)
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Three Months |
|
|
Six Months |
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| |
|
Ended June 30, |
|
|
Ended June 30, |
|
| (in millions,except per share amounts) |
|
2011 |
|
|
2010 |
|
|
2011 |
|
|
2010 |
|
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|
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Net Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gas Distribution |
|
$ |
502.7 |
|
|
$ |
471.7 |
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|
$ |
1,870.3 |
|
|
$ |
1,812.0 |
|
Gas Transportation and Storage |
|
|
307.3 |
|
|
|
264.3 |
|
|
|
710.3 |
|
|
|
634.8 |
|
Electric |
|
|
346.6 |
|
|
|
339.3 |
|
|
|
692.4 |
|
|
|
657.6 |
|
Other |
|
|
24.4 |
|
|
|
19.8 |
|
|
|
48.2 |
|
|
|
41.7 |
|
| |
Gross Revenues |
|
|
1,181.0 |
|
|
|
1,095.1 |
|
|
|
3,321.2 |
|
|
|
3,146.1 |
|
Cost of Sales (excluding depreciation and amortization) |
|
|
417.7 |
|
|
|
349.8 |
|
|
|
1,503.5 |
|
|
|
1,330.8 |
|
| |
Total Net Revenues |
|
|
763.3 |
|
|
|
745.3 |
|
|
|
1,817.7 |
|
|
|
1,815.3 |
|
| |
Operating Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operation and maintenance |
|
|
366.5 |
|
|
|
338.9 |
|
|
|
712.1 |
|
|
|
668.7 |
|
Operation
and maintenance — trackers |
|
|
34.9 |
|
|
|
37.2 |
|
|
|
120.3 |
|
|
|
144.2 |
|
Depreciation and amortization |
|
|
131.0 |
|
|
|
148.5 |
|
|
|
266.5 |
|
|
|
295.9 |
|
Depreciation
and amortization — trackers |
|
|
3.5 |
|
|
|
3.1 |
|
|
|
6.9 |
|
|
|
5.5 |
|
Other taxes |
|
|
51.3 |
|
|
|
51.3 |
|
|
|
108.4 |
|
|
|
106.1 |
|
Other taxes
— trackers |
|
|
16.2 |
|
|
|
12.7 |
|
|
|
51.7 |
|
|
|
43.6 |
|
| |
Total Operating Expenses |
|
|
603.4 |
|
|
|
591.7 |
|
|
|
1,265.9 |
|
|
|
1,264.0 |
|
| |
Equity Earnings in Unconsolidated Affiliates |
|
|
2.3 |
|
|
|
0.4 |
|
|
|
5.3 |
|
|
|
7.8 |
|
| |
Operating Earnings |
|
|
162.2 |
|
|
|
154.0 |
|
|
|
557.1 |
|
|
|
559.1 |
|
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Other Income (Deductions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net |
|
|
(94.4 |
) |
|
|
(98.4 |
) |
|
|
(184.2 |
) |
|
|
(197.2 |
) |
Other, net |
|
|
0.6 |
|
|
|
2.6 |
|
|
|
3.9 |
|
|
|
5.2 |
|
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Total Other Deductions |
|
|
(93.8 |
) |
|
|
(95.8 |
) |
|
|
(180.3 |
) |
|
|
(192.0 |
) |
| |
Operating Earnings From Continuing Operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Before Income Taxes |
|
|
68.4 |
|
|
|
58.2 |
|
|
|
376.8 |
|
|
|
367.1 |
|
Income Taxes |
|
|
22.8 |
|
|
|
21.2 |
|
|
|
128.9 |
|
|
|
131.7 |
|
| |
Net Operating Earnings from Continuing Operations |
|
|
45.6 |
|
|
|
37.0 |
|
|
|
247.9 |
|
|
|
235.4 |
|
| |
GAAP Adjustment |
|
|
(6.1 |
) |
|
|
(9.0 |
) |
|
|
(3.6 |
) |
|
|
(10.0 |
) |
| |
GAAP Income from Continuing Operations |
|
$ |
39.5 |
|
|
$ |
28.0 |
|
|
$ |
244.3 |
|
|
$ |
225.4 |
|
| |
Basic Net Operating Earnings Per Share from Continuing Operations |
|
|
0.17 |
|
|
|
0.13 |
|
|
|
0.89 |
|
|
|
0.85 |
|
| |
GAAP Basic Earnings Per Share from Continuing Operations |
|
|
0.14 |
|
|
|
0.10 |
|
|
|
0.87 |
|
|
|
0.81 |
|
| |
Basic Average Common Shares Outstanding |
|
|
280.2 |
|
|
|
277.6 |
|
|
|
279.8 |
|
|
|
277.3 |
|
| |
8
NiSource Inc.
Segment Operating Earnings (Non GAAP)
(unaudited)
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three Months |
|
|
Six Months |
|
| Gas Distribution Operations |
|
Ended June 30, |
|
|
Ended June 30, |
|
| (in millions) |
|
2011 |
|
|
2010 |
|
|
2011 |
|
|
2010 |
|
| |
|
|
Net Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales Revenues |
|
$ |
632.2 |
|
|
$ |
572.1 |
|
|
$ |
2,213.3 |
|
|
$ |
2,122.5 |
|
Less: Cost of gas sold |
|
|
316.9 |
|
|
|
255.5 |
|
|
|
1,314.8 |
|
|
|
1,197.5 |
|
| |
|
|
Net Revenues |
|
|
315.3 |
|
|
|
316.6 |
|
|
|
898.5 |
|
|
|
925.0 |
|
| |
|
|
Operating Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operation and maintenance |
|
|
170.7 |
|
|
|
163.0 |
|
|
|
344.1 |
|
|
|
330.6 |
|
Operation
and maintenance — trackers |
|
|
16.7 |
|
|
|
21.8 |
|
|
|
85.5 |
|
|
|
112.0 |
|
Depreciation and amortization |
|
|
43.6 |
|
|
|
63.4 |
|
|
|
86.6 |
|
|
|
125.9 |
|
Other taxes |
|
|
19.4 |
|
|
|
19.7 |
|
|
|
44.8 |
|
|
|
42.2 |
|
Other taxes
— trackers |
|
|
16.2 |
|
|
|
12.8 |
|
|
|
51.7 |
|
|
|
43.7 |
|
| |
|
|
Total Operating Expenses |
|
|
266.6 |
|
|
|
280.7 |
|
|
|
612.7 |
|
|
|
654.4 |
|
| |
|
|
Operating Earnings |
|
$ |
48.7 |
|
|
$ |
35.9 |
|
|
$ |
285.8 |
|
|
$ |
270.6 |
|
| |
|
|
GAAP Adjustment |
|
|
(2.3 |
) |
|
|
(17.4 |
) |
|
|
2.2 |
|
|
|
(17.0 |
) |
| |
|
|
GAAP Operating Income |
|
$ |
46.4 |
|
|
$ |
18.5 |
|
|
$ |
288.0 |
|
|
$ |
253.6 |
|
| |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three Months |
|
|
Six Months |
|
| Gas Transmission and Storage Operations |
|
Ended June 30, |
|
|
Ended June 30, |
|
| (in millions) |
|
2011 |
|
|
2010 |
|
|
2011 |
|
|
2010 |
|
| |
|
|
Net Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transportation revenues |
|
$ |
174.7 |
|
|
$ |
161.7 |
|
|
$ |
374.4 |
|
|
$ |
358.9 |
|
Storage revenues |
|
|
49.4 |
|
|
|
49.7 |
|
|
|
99.9 |
|
|
|
99.1 |
|
Other revenues |
|
|
9.4 |
|
|
|
5.9 |
|
|
|
14.6 |
|
|
|
15.9 |
|
| |
|
|
Net Operating Revenues |
|
|
233.5 |
|
|
|
217.3 |
|
|
|
488.9 |
|
|
|
473.9 |
|
| |
|
|
Operating Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operation and maintenance |
|
|
88.1 |
|
|
|
83.2 |
|
|
|
168.5 |
|
|
|
159.9 |
|
Operation
and maintenance — trackers |
|
15.1 |
|
|
13.2 |
|
|
|
29.2 |
|
|
|
28.2 |
|
Depreciation and amortization |
|
32.8 |
|
|
31.5 |
|
|
|
65.5 |
|
|
|
63.0 |
|
Other taxes |
|
|
15.1 |
|
|
|
14.9 |
|
|
|
27.8 |
|
|
|
29.8 |
|
| |
|
|
Total Operating Expenses |
|
|
151.1 |
|
|
|
142.8 |
|
|
|
291.0 |
|
|
|
280.9 |
|
| |
|
|
Equity Earnings in Unconsolidated Affiliates |
|
|
2.3 |
|
|
|
0.4 |
|
|
|
5.3 |
|
|
|
7.8 |
|
| |
|
|
Operating Earnings |
|
$ |
84.7 |
|
|
$ |
74.9 |
|
|
$ |
203.2 |
|
|
$ |
200.8 |
|
| |
|
|
GAAP Adjustment |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| |
|
|
GAAP Operating Income |
|
$ |
84.7 |
|
|
$ |
74.9 |
|
|
$ |
203.2 |
|
|
$ |
200.8 |
|
| |
|
|
9
NiSource Inc.
Segment Operating Earnings (Non GAAP)
(unaudited)
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three Months |
|
|
Six Months |
|
| Electric Operations |
|
Ended June 30, |
|
|
Ended June 30, |
|
| (in millions) |
|
2011 |
|
|
2010 |
|
|
2011 |
|
|
2010 |
|
| |
|
|
Net Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales revenues |
|
$ |
348.6 |
|
|
$ |
341.3 |
|
|
$ |
696.2 |
|
|
$ |
661.7 |
|
Less: Cost of sales |
|
|
136.7 |
|
|
|
130.9 |
|
|
|
269.9 |
|
|
|
247.5 |
|
| |
|
|
Net Revenues |
|
|
211.9 |
|
|
|
210.4 |
|
|
|
426.3 |
|
|
|
414.2 |
|
| |
|
|
Operating Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operation and maintenance |
|
|
105.0 |
|
|
|
92.6 |
|
|
|
199.7 |
|
|
|
181.4 |
|
Operation
and maintenance — trackers |
|
|
3.1 |
|
|
|
2.2 |
|
|
|
5.6 |
|
|
|
4.0 |
|
Depreciation and amortization |
|
|
49.9 |
|
|
|
49.8 |
|
|
|
105.5 |
|
|
|
99.7 |
|
Depreciation
and amortization — trackers |
|
|
3.5 |
|
|
|
3.1 |
|
|
|
6.9 |
|
|
|
5.5 |
|
Other taxes |
|
|
13.1 |
|
|
|
14.4 |
|
|
|
29.4 |
|
|
|
29.1 |
|
| |
|
|
Total Operating Expenses |
|
|
174.6 |
|
|
|
162.1 |
|
|
|
347.1 |
|
|
|
319.7 |
|
| |
|
|
Operating Earnings |
|
$ |
37.3 |
|
|
$ |
48.3 |
|
|
$ |
79.2 |
|
|
$ |
94.5 |
|
| |
|
|
GAAP Adjustment |
|
|
2.5 |
|
|
|
1.3 |
|
|
|
3.8 |
|
|
|
0.2 |
|
| |
|
|
GAAP Operating Income |
|
$ |
39.8 |
|
|
$ |
49.6 |
|
|
$ |
83.0 |
|
|
$ |
94.7 |
|
| |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three Months |
|
|
Six Months |
|
| Corporate and Other Operations |
|
Ended June 30, |
|
|
Ended June 30, |
|
| (in millions) |
|
2011 |
|
|
2010 |
|
|
2011 |
|
|
2010 |
|
| |
|
|
Operating Loss |
|
$ |
(8.5 |
) |
|
$ |
(5.1 |
) |
|
$ |
(11.1 |
) |
|
$ |
(6.8 |
) |
| |
|
|
GAAP Adjustment |
|
|
0.9 |
|
|
|
1.3 |
|
|
|
(0.6 |
) |
|
|
0.3 |
|
| |
|
|
GAAP Operating Loss |
|
$ |
(7.6 |
) |
|
$ |
(3.8 |
) |
|
$ |
(11.7 |
) |
|
$ |
(6.5 |
) |
| |
|
|
10
NiSource Inc.
Segment Volumes and Statistical Data
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three Months |
|
Six Months |
| Gas Distribution Operations |
|
Ended June 30, |
|
Ended June 30, |
| |
|
2011 |
|
2010 |
|
2011 |
|
2010 |
| |
|
|
Sales and Transportation (MMDth) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential
|
|
|
33.6 |
|
|
|
25.9 |
|
|
|
168.1 |
|
|
|
155.2 |
|
Commercial
|
|
|
26.7 |
|
|
|
23.2 |
|
|
|
104.3 |
|
|
|
96.0 |
|
Industrial
|
|
|
100.8 |
|
|
|
85.1 |
|
|
|
219.7 |
|
|
|
186.0 |
|
Off System
|
|
|
20.4 |
|
|
|
27.2 |
|
|
|
37.9 |
|
|
|
43.1 |
|
Other
|
|
|
0.2 |
|
|
|
0.2 |
|
|
|
0.5 |
|
|
|
0.7 |
|
| |
|
|
Total
|
|
|
181.7 |
|
|
|
161.6 |
|
|
|
530.5 |
|
|
|
481.0 |
|
| |
|
|
Weather Adjustment
|
|
|
2.3 |
|
|
|
13.2 |
|
|
|
(5.0 |
) |
|
|
13.5 |
|
| |
|
|
Sales and Transportation Volumes — Excluding Weather
|
|
|
184.0 |
|
|
|
174.8 |
|
|
|
525.5 |
|
|
|
494.5 |
|
| |
|
|
Heating Degree Days
|
|
|
566 |
|
|
|
408 |
|
|
|
3,580 |
|
|
|
3,298 |
|
Normal Heating Degree Days
|
|
|
608 |
|
|
|
608 |
|
|
|
3,508 |
|
|
|
3,508 |
|
% Colder (Warmer) than Normal
|
|
|
(7 |
%) |
|
|
(33 |
%) |
|
|
2 |
% |
|
|
(6 |
%) |
| |
Customers |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential
|
|
|
|
|
|
|
|
|
|
|
3,005,423 |
|
|
|
3,003,035 |
|
Commercial
|
|
|
|
|
|
|
|
|
|
|
277,508 |
|
|
|
275,246 |
|
Industrial
|
|
|
|
|
|
|
|
|
|
|
7,648 |
|
|
|
7,707 |
|
Other
|
|
|
|
|
|
|
|
|
|
|
64 |
|
|
|
81 |
|
| |
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
3,290,643 |
|
|
|
3,286,069 |
|
| |
|
|
| |
| |
|
Three Months |
|
Six Months |
| Gas Transmission and Storage Operations |
|
Ended June 30, |
|
Ended June 30, |
| |
|
2011 |
|
2010 |
|
2011 |
|
2010 |
| |
Throughput (MMDth) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Columbia Transmission
|
|
|
204.9 |
|
|
|
171.5 |
|
|
|
631.5 |
|
|
|
559.0 |
|
Columbia Gulf
|
|
|
263.1 |
|
|
|
197.1 |
|
|
|
507.1 |
|
|
|
400.0 |
|
Crossroads Gas Pipeline
|
|
|
5.6 |
|
|
|
5.6 |
|
|
|
10.7 |
|
|
|
13.7 |
|
Intrasegment eliminations
|
|
|
(147.7 |
) |
|
|
(142.6 |
) |
|
|
(300.3 |
) |
|
|
(281.6 |
) |
| |
Total
|
|
|
325.9 |
|
|
|
231.6 |
|
|
|
849.0 |
|
|
|
691.1 |
|
| |
11
NiSource Inc.
Segment Volumes and Statistical Data (continued)
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three Months |
|
Six Months |
| Electric Operations |
|
Ended June 30, |
|
Ended June 30, |
| |
|
2011 |
|
2010 |
|
2011 |
|
2010 |
| |
Sales (Gigawatt Hours) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential
|
|
|
784.4 |
|
|
|
810.5 |
|
|
|
1,640.2 |
|
|
|
1,657.5 |
|
Commercial
|
|
|
946.6 |
|
|
|
952.0 |
|
|
|
1,871.5 |
|
|
|
1,887.3 |
|
Industrial
|
|
|
2,325.7 |
|
|
|
2,111.0 |
|
|
|
4,768.1 |
|
|
|
4,141.8 |
|
Wholesale
|
|
|
200.2 |
|
|
|
172.3 |
|
|
|
267.3 |
|
|
|
305.7 |
|
Other
|
|
|
37.1 |
|
|
|
39.8 |
|
|
|
81.6 |
|
|
|
81.2 |
|
| |
Total
|
|
|
4,294.0 |
|
|
|
4,085.6 |
|
|
|
8,628.7 |
|
|
|
8,073.5 |
|
| |
Weather Adjustment
|
|
|
(33.5 |
) |
|
|
(19.8 |
) |
|
|
(51.0 |
) |
|
|
(14.3 |
) |
| |
Sales — Volumes Excluding Weather impacts
|
|
|
4,260.5 |
|
|
|
4,065.8 |
|
|
|
8,577.7 |
|
|
|
8,059.2 |
|
| |
Cooling Degree Days
|
|
|
258 |
|
|
|
277 |
|
|
|
258 |
|
|
|
277 |
|
Normal Cooling Degree Days
|
|
|
230 |
|
|
|
230 |
|
|
|
230 |
|
|
|
230 |
|
% Warmer (Colder) than Normal
|
|
|
12 |
% |
|
|
20 |
% |
|
|
12 |
% |
|
|
20 |
% |
| |
Electric Customers |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential
|
|
|
|
|
|
|
|
|
|
|
399,473 |
|
|
|
399,856 |
|
Commercial
|
|
|
|
|
|
|
|
|
|
|
53,861 |
|
|
|
53,656 |
|
Industrial
|
|
|
|
|
|
|
|
|
|
|
2,425 |
|
|
|
2,426 |
|
Wholesale
|
|
|
|
|
|
|
|
|
|
|
15 |
|
|
|
15 |
|
Other
|
|
|
|
|
|
|
|
|
|
|
737 |
|
|
|
742 |
|
| |
Total
|
|
|
|
|
|
|
|
|
|
|
456,511 |
|
|
|
456,695 |
|
| |
12
NiSource Inc.
Schedule 1 — Reconciliation of Net Operating Earnings to GAAP
(unaudited)
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three Months |
|
|
Six Months |
|
| |
|
Ended June 30, |
|
|
Ended June 30, |
|
| (in millions,except per share amounts) |
|
2011 |
|
|
2010 |
|
|
2011 |
|
|
2010 |
|
| |
Net Operating Earnings from Continuing Operations (Non-GAAP) |
|
$ |
45.6 |
|
|
$ |
37.0 |
|
|
$ |
247.9 |
|
|
$ |
235.4 |
|
| |
Items excluded from operating earnings: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weather — compared to normal |
|
|
0.2 |
|
|
|
(10.5 |
) |
|
|
6.0 |
|
|
|
(10.1 |
) |
Revenue adjustment |
|
|
— |
|
|
|
(5.7 |
) |
|
|
— |
|
|
|
(5.7 |
) |
Unregulated natural gas marketing business |
|
|
2.3 |
|
|
|
2.9 |
|
|
|
3.4 |
|
|
|
4.9 |
|
Operating Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring |
|
|
— |
|
|
|
0.1 |
|
|
|
— |
|
|
|
(0.9 |
) |
Unregulated natural gas marketing business |
|
|
(1.4 |
) |
|
|
(1.6 |
) |
|
|
(3.4 |
) |
|
|
(4.6 |
) |
Gain/Loss on sale of assets and asset impairments |
|
|
— |
|
|
|
— |
|
|
|
(0.6 |
) |
|
|
(0.1 |
) |
| |
Total items excluded from operating earnings |
|
|
1.1 |
|
|
|
(14.8 |
) |
|
|
5.4 |
|
|
|
(16.5 |
) |
| |
Tax effect of above items |
|
|
(0.4 |
) |
|
|
5.8 |
|
|
|
(2.2 |
) |
|
|
6.5 |
|
| |
Other income tax adjustments — Indiana House Bill 1004 |
|
|
(6.8 |
) |
|
|
— |
|
|
|
(6.8 |
) |
|
|
— |
|
| |
Total items excluded from net operating earnings |
|
|
(6.1 |
) |
|
|
(9.0 |
) |
|
|
(3.6 |
) |
|
|
(10.0 |
) |
| |
Reported Income from Continuing Operations — GAAP |
|
$ |
39.5 |
|
|
$ |
28.0 |
|
|
$ |
244.3 |
|
|
$ |
225.4 |
|
| |
Basic Average Common Shares Outstanding |
|
|
280.2 |
|
|
|
277.6 |
|
|
|
279.8 |
|
|
|
277.3 |
|
| |
Basic Net Operating Earnings Per Share from Continuing Operations |
|
$ |
0.17 |
|
|
$ |
0.13 |
|
|
$ |
0.89 |
|
|
$ |
0.85 |
|
| |
Items excluded from net operating earnings (after-tax) |
|
|
(0.03 |
) |
|
|
(0.03 |
) |
|
|
(0.02 |
) |
|
|
(0.04 |
) |
| |
GAAP Basic Earnings Per Share from Continuing Operations |
|
$ |
0.14 |
|
|
$ |
0.10 |
|
|
$ |
0.87 |
|
|
$ |
0.81 |
|
| |
13
NiSource Inc.
Schedule 2 — Adjustments by Segment from Operating Earnings to GAAP
For Quarter ended June 30,
(unaudited)
2011 (in millions)
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
Gas |
|
|
|
|
|
|
|
|
|
|
|
| |
|
Gas |
|
|
Transmission |
|
|
|
|
|
|
Corporate |
|
|
|
|
| |
|
Distribution |
|
|
and Storage |
|
|
Electric |
|
|
& Other |
|
|
Total |
|
| |
|
|
Operating Earnings (Loss) |
|
$ |
48.7 |
|
|
$ |
84.7 |
|
|
$ |
37.3 |
|
|
$ |
(8.5 |
) |
|
$ |
162.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weather (compared to normal) |
|
|
(2.3 |
) |
|
|
— |
|
|
|
2.5 |
|
|
|
— |
|
|
|
0.2 |
|
Unregulated natural gas marketing
business |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2.3 |
|
|
|
2.3 |
|
| |
|
|
Total Impact — Net Revenues |
|
|
(2.3 |
) |
|
|
— |
|
|
|
2.5 |
|
|
|
2.3 |
|
|
|
2.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unregulated natural gas marketing
business |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1.4 |
) |
|
|
(1.4 |
) |
| |
|
|
Total Impact — Operating Expenses |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1.4 |
) |
|
|
(1.4 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Total Impact — Operating Income (Loss) |
|
$ |
(2.3 |
) |
|
$ |
— |
|
|
$ |
2.5 |
|
|
$ |
0.9 |
|
|
$ |
1.1 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income (Loss) — GAAP |
|
$ |
46.4 |
|
|
$ |
84.7 |
|
|
$ |
39.8 |
|
|
$ |
(7.6 |
) |
|
$ |
163.3 |
|
| |
|
|
2010 (in millions)
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
Gas |
|
|
|
|
|
|
|
|
|
|
| |
|
Gas |
|
|
Transmission |
|
|
|
|
|
|
|
|
|
|
| |
|
Distribution |
|
|
and Storage |
|
|
Electric |
|
|
Corporate |
|
|
Total |
|
| |
|
|
Operating Earnings (Loss) |
|
$ |
35.9 |
|
|
$ |
74.9 |
|
|
$ |
48.3 |
|
|
$ |
(5.1 |
) |
|
$ |
154.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weather (compared to normal) |
|
|
(11.7 |
) |
|
|
— |
|
|
|
1.2 |
|
|
|
— |
|
|
|
(10.5 |
) |
Revenue adjustment |
|
|
(5.7 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(5.7 |
) |
Unregulated natural gas marketing
business |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2.9 |
|
|
|
2.9 |
|
| |
|
|
Total Impact — Net Revenues |
|
|
(17.4 |
) |
|
|
— |
|
|
|
1.2 |
|
|
|
2.9 |
|
|
|
(13.3 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring |
|
|
— |
|
|
|
— |
|
|
|
0.1 |
|
|
|
— |
|
|
|
0.1 |
|
Unregulated natural gas marketing
business |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1.6 |
) |
|
|
(1.6 |
) |
| |
|
|
Total Impact — Operating Income (Loss) |
|
|
— |
|
|
|
— |
|
|
|
0.1 |
|
|
|
(1.6 |
) |
|
|
(1.5 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Impact — Operating Income (Loss) |
|
$ |
(17.4 |
) |
|
$ |
— |
|
|
$ |
1.3 |
|
|
$ |
1.3 |
|
|
$ |
(14.8 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income (Loss) — GAAP |
|
$ |
18.5 |
|
|
$ |
74.9 |
|
|
$ |
49.6 |
|
|
$ |
(3.8 |
) |
|
$ |
139.2 |
|
| |
|
|
14
NiSource Inc.
Schedule 2 — Adjustments by Segment from Operating Earnings to GAAP
For Six Months ended June 30,
(unaudited)
2011 (in millions)
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
Gas |
|
|
|
|
|
|
|
|
|
|
|
| |
|
Gas |
|
|
Transmission |
|
|
|
|
|
|
Corporate |
|
|
|
|
| |
|
Distribution |
|
|
and Storage |
|
|
Electric |
|
|
and Other |
|
|
Total |
|
| |
|
|
Operating Earnings (Loss) |
|
$ |
285.8 |
|
|
$ |
203.2 |
|
|
$ |
79.2 |
|
|
$ |
(11.1 |
) |
|
$ |
557.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weather (compared to normal) |
|
|
2.2 |
|
|
|
— |
|
|
|
3.8 |
|
|
|
— |
|
|
|
6.0 |
|
Unregulated natural gas marketing business |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
3.4 |
|
|
|
3.4 |
|
| |
|
|
Total Impact — Net Revenues |
|
|
2.2 |
|
|
|
— |
|
|
|
3.8 |
|
|
|
3.4 |
|
|
|
9.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unregulated natural gas marketing business |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(3.4 |
) |
|
|
(3.4 |
) |
Gain/(Loss) on sale of assets and asset
impairments |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(0.6 |
) |
|
|
(0.6 |
) |
| |
|
|
Total Impact — Operating Expenses |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(4.0 |
) |
|
|
(4.0 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Impact — Operating Income (Loss) |
|
$ |
2.2 |
|
|
$ |
— |
|
|
$ |
3.8 |
|
|
$ |
(0.6 |
) |
|
$ |
5.4 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income (Loss) — GAAP |
|
$ |
288.0 |
|
|
$ |
203.2 |
|
|
$ |
83.0 |
|
|
$ |
(11.7 |
) |
|
$ |
562.5 |
|
| |
|
|
2010 (in millions)
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
Gas |
|
|
|
|
|
|
|
|
|
|
| |
|
Gas |
|
|
Transmission |
|
|
|
|
|
|
|
|
|
|
| |
|
Distribution |
|
|
and Storage |
|
|
Electric |
|
|
Corporate |
|
|
Total |
|
| |
|
|
Operating Earnings (Loss) |
|
$ |
270.6 |
|
|
$ |
200.8 |
|
|
$ |
94.5 |
|
|
$ |
(6.8 |
) |
|
$ |
559.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weather (compared to normal) |
|
|
(10.9 |
) |
|
|
— |
|
|
|
0.8 |
|
|
|
— |
|
|
|
(10.1 |
) |
Revenue adjustment |
|
|
(5.7 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(5.7 |
) |
Unregulated natural gas marketing business |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
4.9 |
|
|
|
4.9 |
|
| |
|
|
Total Impact — Net Revenues |
|
|
(16.6 |
) |
|
|
— |
|
|
|
0.8 |
|
|
|
4.9 |
|
|
|
(10.9 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring |
|
|
(0.3 |
) |
|
|
— |
|
|
|
(0.6 |
) |
|
|
— |
|
|
|
(0.9 |
) |
Unregulated natural gas marketing business |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(4.6 |
) |
|
|
(4.6 |
) |
Gain/(Loss) on sale of assets and asset
impairments |
|
|
(0.1 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(0.1 |
) |
| |
|
|
Total Impact — Operating Expenses |
|
|
(0.4 |
) |
|
|
— |
|
|
|
(0.6 |
) |
|
|
(4.6 |
) |
|
|
(5.6 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Impact — Operating Income (Loss) |
|
$ |
(17.0 |
) |
|
$ |
— |
|
|
$ |
0.2 |
|
|
$ |
0.3 |
|
|
$ |
(16.5 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income (Loss) — GAAP |
|
$ |
253.6 |
|
|
$ |
200.8 |
|
|
$ |
94.7 |
|
|
$ |
(6.5 |
) |
|
$ |
542.6 |
|
| |
|
|
15
NiSource Inc.
Consolidated Income Statement (GAAP)
(unaudited)
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended |
|
|
Six Months Ended |
|
| |
|
June 30, |
|
|
June 30, |
|
| (in millions, except per share amounts) |
|
2011 |
|
|
2010 |
|
|
2011 |
|
|
2010 |
|
| |
Net Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gas Distribution |
|
$ |
500.4 |
|
|
$ |
454.3 |
|
|
$ |
1,872.4 |
|
|
$ |
1,795.4 |
|
Gas Transportation and Storage |
|
|
307.3 |
|
|
|
264.3 |
|
|
|
710.3 |
|
|
|
634.8 |
|
Electric |
|
|
349.2 |
|
|
|
340.5 |
|
|
|
696.3 |
|
|
|
658.4 |
|
Other |
|
|
71.4 |
|
|
|
112.0 |
|
|
|
181.5 |
|
|
|
441.2 |
|
| |
Gross Revenues |
|
|
1,228.3 |
|
|
|
1,171.1 |
|
|
|
3,460.5 |
|
|
|
3,529.8 |
|
Cost of Sales (excluding depreciation and amortization) |
|
|
462.5 |
|
|
|
439.1 |
|
|
|
1,633.4 |
|
|
|
1,725.4 |
|
| |
Total Net Revenues |
|
|
765.8 |
|
|
|
732.0 |
|
|
|
1,827.1 |
|
|
|
1,804.4 |
|
| |
Operating Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operation and maintenance |
|
|
402.5 |
|
|
|
377.1 |
|
|
|
835.0 |
|
|
|
816.7 |
|
Depreciation and amortization |
|
|
134.5 |
|
|
|
151.6 |
|
|
|
273.4 |
|
|
|
301.4 |
|
Impairment and loss on sale of assets, net |
|
|
— |
|
|
|
— |
|
|
|
0.7 |
|
|
|
0.1 |
|
Other taxes |
|
|
67.8 |
|
|
|
64.5 |
|
|
|
160.8 |
|
|
|
151.4 |
|
| |
Total Operating Expenses |
|
|
604.8 |
|
|
|
593.2 |
|
|
|
1,269.9 |
|
|
|
1,269.6 |
|
| |
Equity Earnings in Unconsolidated Affiliates |
|
|
2.3 |
|
|
|
0.4 |
|
|
|
5.3 |
|
|
|
7.8 |
|
| |
Operating Income |
|
|
163.3 |
|
|
|
139.2 |
|
|
|
562.5 |
|
|
|
542.6 |
|
| |
Other Income (Deductions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net |
|
|
(94.4 |
) |
|
|
(98.4 |
) |
|
|
(184.2 |
) |
|
|
(197.2 |
) |
Other, net |
|
|
0.6 |
|
|
|
2.6 |
|
|
|
3.9 |
|
|
|
5.2 |
|
| |
Total Other Deductions |
|
|
(93.8 |
) |
|
|
(95.8 |
) |
|
|
(180.3 |
) |
|
|
(192.0 |
) |
| |
Income from Continuing Operations before Income Taxes |
|
|
69.5 |
|
|
|
43.4 |
|
|
|
382.2 |
|
|
|
350.6 |
|
Income Tax Expense |
|
|
30.0 |
|
|
|
15.4 |
|
|
|
137.9 |
|
|
|
125.2 |
|
| |
Income from Continuing Operations |
|
|
39.5 |
|
|
|
28.0 |
|
|
|
244.3 |
|
|
|
225.4 |
|
| |
(Loss)/Income from Discontinued Operations — net of taxes |
|
|
(0.6 |
) |
|
|
0.1 |
|
|
|
(0.2 |
) |
|
|
(0.1 |
) |
Gain on Disposition of Discontinued Operations — net of taxes |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.1 |
|
| |
Net Income |
|
$ |
38.9 |
|
|
$ |
28.1 |
|
|
$ |
244.1 |
|
|
$ |
225.4 |
|
| |
Basic Earnings Per Share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations |
|
$ |
0.14 |
|
|
$ |
0.10 |
|
|
$ |
0.87 |
|
|
$ |
0.81 |
|
Discontinued operations |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| |
Basic Earnings Per Share |
|
$ |
0.14 |
|
|
$ |
0.10 |
|
|
$ |
0.87 |
|
|
$ |
0.81 |
|
| |
Diluted Earnings Per Share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations |
|
$ |
0.14 |
|
|
$ |
0.10 |
|
|
$ |
0.85 |
|
|
$ |
0.81 |
|
Discontinued operations |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| |
Diluted Earnings Per Share |
|
$ |
0.14 |
|
|
$ |
0.10 |
|
|
$ |
0.85 |
|
|
$ |
0.81 |
|
| |
Dividends Declared Per Common Share |
|
$ |
0.23 |
|
|
$ |
0.23 |
|
|
$ |
0.69 |
|
|
$ |
0.69 |
|
| |
Basic Average Common Shares Outstanding |
|
|
280.2 |
|
|
|
277.6 |
|
|
|
279.8 |
|
|
|
277.3 |
|
Diluted Average Common Shares |
|
|
287.1 |
|
|
|
278.4 |
|
|
|
286.2 |
|
|
|
278.0 |
|
| |
16
NiSource Inc.
Consolidated Balance Sheets (GAAP)
(unaudited)
| |
|
|
|
|
|
|
|
|
| |
|
June 30, |
|
|
December 31, |
|
| (in millions) |
|
2011 |
|
|
2010 |
|
| |
ASSETS |
|
|
|
|
|
|
|
|
Property, Plant and Equipment |
|
|
|
|
|
|
|
|
Utility Plant |
|
$ |
19,783.8 |
|
|
$ |
19,494.9 |
|
Accumulated depreciation and amortization |
|
|
(8,602.9 |
) |
|
|
(8,492.6 |
) |
| |
Net utility plant |
|
|
11,180.9 |
|
|
|
11,002.3 |
|
| |
Other property, at cost, less accumulated depreciation |
|
|
114.1 |
|
|
|
94.7 |
|
| |
Net Property, Plant and Equipment |
|
|
11,295.0 |
|
|
|
11,097.0 |
|
| |
|
|
|
|
|
|
|
|
|
Investments and Other Assets |
|
|
|
|
|
|
|
|
Assets of discontinued operations and assets held for sale |
|
|
2.3 |
|
|
|
7.9 |
|
Unconsolidated affiliates |
|
|
197.2 |
|
|
|
200.9 |
|
Total Investments and Other Assets |
|
|
150.8 |
|
|
|
139.7 |
|
| |
Total Investments and Other Assets |
|
|
350.3 |
|
|
|
348.5 |
|
| |
|
|
|
|
|
|
|
|
|
Current Assets |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
|
59.9 |
|
|
|
9.2 |
|
Restricted cash |
|
|
154.6 |
|
|
|
202.9 |
|
Accounts receivable (less reserve of $42 and $37.4, respectively) |
|
|
638.3 |
|
|
|
1,079.3 |
|
Income tax receivable |
|
|
1.2 |
|
|
|
99.0 |
|
Gas inventory |
|
|
278.0 |
|
|
|
298.2 |
|
Underrecovered gas and fuel costs |
|
|
24.7 |
|
|
|
135.7 |
|
Materials and supplies, at average cost |
|
|
87.0 |
|
|
|
83.8 |
|
Electric production fuel, at average cost |
|
|
44.9 |
|
|
|
46.0 |
|
Price risk management assets |
|
|
116.0 |
|
|
|
159.5 |
|
Exchange gas receivable |
|
|
118.2 |
|
|
|
62.7 |
|
Regulatory assets |
|
|
121.9 |
|
|
|
151.8 |
|
Prepayments and other |
|
|
100.4 |
|
|
|
120.8 |
|
| |
Total Current Assets |
|
|
1,745.1 |
|
|
|
2,448.9 |
|
| |
|
|
|
|
|
|
|
|
|
Other Assets |
|
|
|
|
|
|
|
|
Price risk management assets |
|
|
190.6 |
|
|
|
240.3 |
|
Regulatory assets |
|
|
1,622.2 |
|
|
|
1,650.4 |
|
Goodwill |
|
|
3,677.3 |
|
|
|
3,677.3 |
|
Intangible assets |
|
|
303.1 |
|
|
|
308.6 |
|
Postretirement and postemployment benefits assets |
|
|
42.0 |
|
|
|
35.1 |
|
Deferred charges and other |
|
|
120.7 |
|
|
|
132.7 |
|
| |
Total Other Assets |
|
|
5,955.9 |
|
|
|
6,044.4 |
|
| |
Total Assets |
|
$ |
19,346.3 |
|
|
$ |
19,938.8 |
|
| |
17
NiSource Inc.
Consolidated Balance Sheets (continued) (GAAP)
(unaudited)
| |
|
|
|
|
|
|
|
|
| |
|
June 30, |
|
|
December 31, |
|
| (in millions, except share amounts) |
|
2011 |
|
|
2010 |
|
| |
CAPITALIZATION AND LIABILITIES |
|
|
|
|
|
|
|
|
Capitalization |
|
|
|
|
|
|
|
|
Common Stockholders’ Equity |
|
|
|
|
|
|
|
|
Common stock — $0.01 par value, 400,000,000 shares authorized;
280,472,662 and 278,855,291 shares issued and outstanding,
respectively |
|
$ |
2.8 |
|
|
$ |
2.8 |
|
Additional paid-in capital |
|
|
4,132.9 |
|
|
|
4,103.9 |
|
Retained earnings |
|
|
952.6 |
|
|
|
901.8 |
|
Accumulated other comprehensive loss |
|
|
(54.5 |
) |
|
|
(57.9 |
) |
Treasury stock |
|
|
(30.4 |
) |
|
|
(27.4 |
) |
| |
Total Common Stockholders’ Equity |
|
|
5,003.4 |
|
|
|
4,923.2 |
|
Long-term debt, excluding amounts due within one year |
|
|
6,340.0 |
|
|
|
5,936.1 |
|
| |
Total Capitalization |
|
|
11,343.4 |
|
|
|
10,859.3 |
|
| |
|
|
|
|
|
|
|
|
|
Current Liabilities |
|
|
|
|
|
|
|
|
Current portion of long-term debt |
|
|
30.0 |
|
|
|
34.2 |
|
Short-term borrowings |
|
|
870.4 |
|
|
|
1,382.5 |
|
Accounts payable |
|
|
316.2 |
|
|
|
581.8 |
|
Dividends payable |
|
|
64.6 |
|
|
|
0.1 |
|
Customer deposits and credits |
|
|
183.1 |
|
|
|
318.1 |
|
Taxes accrued |
|
|
179.5 |
|
|
|
221.1 |
|
Interest accrued |
|
|
114.4 |
|
|
|
114.4 |
|
Overrecovered gas and fuel costs |
|
|
121.4 |
|
|
|
11.8 |
|
Price risk management liabilities |
|
|
135.0 |
|
|
|
173.9 |
|
Exchange gas payable |
|
|
155.4 |
|
|
|
266.1 |
|
Deferred revenue |
|
|
5.0 |
|
|
|
6.8 |
|
Regulatory liabilities |
|
|
83.5 |
|
|
|
92.9 |
|
Accrued liability for postretirement and postemployment benefits |
|
|
23.3 |
|
|
|
23.3 |
|
Temporary LIFO liquidation credit |
|
|
0.3 |
|
|
|
— |
|
Legal and environmental reserves |
|
|
46.0 |
|
|
|
86.0 |
|
Other accruals |
|
|
230.0 |
|
|
|
336.4 |
|
| |
Total Current Liabilities |
|
|
2,558.1 |
|
|
|
3,649.4 |
|
| |
|
|
|
|
|
|
|
|
|
Other Liabilities and Deferred Credits |
|
|
|
|
|
|
|
|
Price risk management liabilities |
|
|
127.8 |
|
|
|
181.6 |
|
Deferred income taxes |
|
|
2,369.1 |
|
|
|
2,209.7 |
|
Deferred investment tax credits |
|
|
31.3 |
|
|
|
33.7 |
|
Deferred credits |
|
|
75.5 |
|
|
|
68.6 |
|
Deferred revenue |
|
|
— |
|
|
|
0.3 |
|
Accrued liability for postretirement and postemployment benefits |
|
|
919.6 |
|
|
|
1,039.6 |
|
Regulatory liabilities and other removal costs |
|
|
1,624.8 |
|
|
|
1,595.8 |
|
Asset retirement obligations |
|
|
138.9 |
|
|
|
138.8 |
|
Other noncurrent liabilities |
|
|
157.8 |
|
|
|
162.0 |
|
| |
Total Other Liabilities and Deferred Credits |
|
|
5,444.8 |
|
|
|
5,430.1 |
|
| |
Total Capitalization and Liabilities |
|
$ |
19,346.3 |
|
|
$ |
19,938.8 |
|
| |
18
NiSource Inc.
Statements of Consolidated Cash Flows (GAAP)
(unaudited)
| |
|
|
|
|
|
|
|
|
| Six Months Ended June 30, (in millions) |
|
2011 |
|
|
2010 |
|
| |
Operating Activities |
|
|
|
|
|
|
|
|
Net Income |
|
$ |
244.1 |
|
|
$ |
225.4 |
|
Adjustments to Reconcile Net Income to Net Cash from Continuing Operations: |
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
273.4 |
|
|
|
301.4 |
|
Net changes in price risk management assets and liabilities |
|
|
15.3 |
|
|
|
4.4 |
|
Deferred income taxes and investment tax credits |
|
|
132.1 |
|
|
|
38.6 |
|
Deferred revenue |
|
|
(2.6 |
) |
|
|
(17.2 |
) |
Stock compensation expense and 401(k) profit sharing contribution |
|
|
17.2 |
|
|
|
6.0 |
|
Loss on sale of assets |
|
|
— |
|
|
|
0.1 |
|
Loss on impairment of assets |
|
|
0.7 |
|
|
|
— |
|
Income from unconsolidated affiliates |
|
|
(4.4 |
) |
|
|
(7.8 |
) |
Gain on disposition of discontinued operations — net of taxes |
|
|
— |
|
|
|
(0.1 |
) |
Loss from discontinued operations — net of taxes |
|
|
0.2 |
|
|
|
0.1 |
|
Amortization of debt related costs |
|
|
4.2 |
|
|
|
5.4 |
|
AFUDC equity |
|
|
(1.9 |
) |
|
|
(3.7 |
) |
Distributions of earnings received from equity investee |
|
|
9.9 |
|
|
|
7.9 |
|
Changes in Assets and Liabilities: |
|
|
|
|
|
|
|
|
Accounts receivable |
|
|
434.6 |
|
|
|
245.1 |
|
Income tax receivable |
|
|
97.8 |
|
|
|
24.8 |
|
Inventories |
|
|
13.7 |
|
|
|
147.6 |
|
Accounts payable |
|
|
(250.4 |
) |
|
|
(235.4 |
) |
Customer deposits and credits |
|
|
(134.9 |
) |
|
|
(104.7 |
) |
Taxes accrued |
|
|
(40.7 |
) |
|
|
6.2 |
|
Interest accrued |
|
|
— |
|
|
|
5.3 |
|
Over (Under) recovered gas and fuel costs |
|
|
220.7 |
|
|
|
(252.3 |
) |
Exchange gas receivable/payable |
|
|
(166.2 |
) |
|
|
(51.3 |
) |
Other accruals |
|
|
(26.3 |
) |
|
|
(30.5 |
) |
Prepayments and other current assets |
|
|
20.6 |
|
|
|
28.1 |
|
Regulatory assets/liabilities |
|
|
28.3 |
|
|
|
98.3 |
|
Postretirement and postemployment benefits |
|
|
(118.9 |
) |
|
|
1.7 |
|
Deferred credits |
|
|
6.3 |
|
|
|
(3.6 |
) |
Deferred charges and other non-current assets |
|
|
12.1 |
|
|
|
4.6 |
|
Other non-current liabilities |
|
|
(4.84 |
) |
|
|
2.9 |
|
| |
Net Operating Activities from Continuing Operations |
|
|
780.1 |
|
|
|
447.3 |
|
Net Operating Activities used for Discontinued Operations |
|
|
(44.1 |
) |
|
|
(44.8 |
) |
| |
Net Cash Flows from Operating Activities |
|
|
736.0 |
|
|
|
402.5 |
|
| |
|
|
|
|
|
|
|
|
|
Investing Activities |
|
|
|
|
|
|
|
|
Capital expenditures |
|
|
(445.0 |
) |
|
|
(336.9 |
) |
Insurance recoveries |
|
|
— |
|
|
|
0.5 |
|
Proceeds from disposition of assets |
|
|
9.4 |
|
|
|
0.3 |
|
Restricted cash withdrawals (deposits) |
|
|
48.3 |
|
|
|
(38.0 |
) |
Contributions to equity investees |
|
|
(0.1 |
) |
|
|
(0.3 |
) |
Other investing activities |
|
|
(36.0 |
) |
|
|
(19.9 |
) |
| |
Net Investing Activities used for Continuing Operations |
|
|
(423.4 |
) |
|
|
(394.3 |
) |
Net Investing Activities from Discontinued Operations |
|
|
— |
|
|
|
0.4 |
|
| |
Net Cash Flow used for Investing Activities |
|
|
(423.4 |
) |
|
|
(393.9 |
) |
| |
|
|
|
|
|
|
|
|
|
Financing Activities |
|
|
|
|
|
|
|
|
Issuance of long-term debt |
|
|
395.3 |
|
|
|
— |
|
Retirement of long-term debt |
|
|
(13.0 |
) |
|
|
(5.2 |
) |
Premiums and other debt related costs |
|
|
(8.2 |
) |
|
|
— |
|
Change in short-term borrowings, net |
|
|
(512.2 |
) |
|
|
109.8 |
|
Issuance of common stock |
|
|
7.9 |
|
|
|
6.8 |
|
Acquisition of treasury stock |
|
|
(3.0 |
) |
|
|
(1.4 |
) |
Dividends paid — common stock |
|
|
(128.7 |
) |
|
|
(127.6 |
) |
| |
Net Cash Flow used for Financing Activities |
|
|
(261.9 |
) |
|
|
(17.6 |
) |
| |
Change in cash and cash equivalents from continuing operations |
|
|
94.8 |
|
|
|
35.4 |
|
Cash contributions to discontinued operations |
|
|
(44.1 |
) |
|
|
(44.4 |
) |
Cash and cash equivalents at beginning of period |
|
|
9.2 |
|
|
|
16.4 |
|
| |
Cash and Cash Equivalents at End of Period |
|
$ |
59.9 |
|
|
$ |
7.4 |
|
| |
19