Exhibit 99.2
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Exhibit 99.2
Creating Two Premier Energy Infrastructure Companies
NiSource Inc. Investor Day
Millennium Broadway
New York, NY | 09.29.14
Forward Looking Statements
This presentation contains forward-looking statements within the meaning of federal securities laws. These forward-looking statements are subject to various risks and uncertainties. Examples of forward-looking statements in this presentation include statements and expectations regarding future dividends, operating earnings growth, EBITDA growth, earnings per share growth, capital investments, net investment/rate base growth, financing needs and plans, and investment opportunities. Factors that could cause actual results to differ materially from the projections, forecasts, estimates and expectations discussed in these presentations include, among other things, the timing to consummate the transactions described herein; the risk that a condition to consummation is not satisfied; disruption to operations as a result of the proposed transactions; the inability of one or more of the businesses to operate independently following the completion of the proposed transactions; 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; changes in general economic, capital and commodity market conditions; and counter-party credit risk, and the matters described in the “Risk Factors” section of the Form S-1 filed by Columbia Pipeline Partners LP and the matters described in the “Risk Factors” section in NiSource’s 2013 Form 10-K, and subsequent NiSource filings on Form 10-Q, many of which are beyond the control of NiSource. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this presentation. Future earnings and other financial projections are illustrative only and do not constitute guidance by the Company. NiSource expressly disclaims a duty to update any of the forward-looking statements contained in these presentations.
The potential distribution of CPG shares is subject to the satisfaction of a number of conditions, including the final approval of NiSource’s Board of Directors. There is no assurance that such distribution will in fact occur.
2
Speaker Bios
Bob Skaggs
President &
Chief Executive Officer
Bob is President and Chief Executive Officer of NiSource Inc. He is responsible for the strategic direction of the company, as well as for overseeing its day-to-day operations. Bob was named President in October 2004 and added the CEO responsibilities effective July 2005.
He earned a bachelor’s degree in economics from Davidson College, a law degree from West Virginia University and a master’s degree in business administration from Tulane University.
Steve Smith
Executive VP & Chief Financial Officer
Steve is Executive Vice President and Chief Financial Officer of NiSource Inc. He is responsible for the company’s corporate finance functions, information technology, supply chain services, and real estate and facilities management.
He earned a bachelor’s degree in petroleum engineering from the Colorado School of Mines and a master’s degree in business administration from the University of Chicago Graduate School of Business.
Joe Hamrock
Executive VP & Group CEO, NiSource Gas Distribution
Joe oversees NiSource’s gas distribution companies in Kentucky, Maryland, Massachusetts, Ohio, Pennsylvania and Virginia. He joined NiSource in May 2012.
He earned a bachelor’s degree in electrical engineering from Youngstown State University and a master’s degree in business administration from the Massachusetts Institute of Technology in Cambridge, where he was a Sloan fellow.
Jim Stanley
Executive VP & Group CEO, NIPSCO
Jim oversees NiSource’s Indiana gas and electric utility, including all regulatory, operations and project management. He joined NiSource in October 2012.
He earned his bachelor’s degree in accounting from Ball State University.
3
Speaker Bios
Glen Kettering
Executive VP & Group CEO, Columbia Pipeline Group
Glen oversees all regulatory, commercial, operations and capital investment programs at Columbia Pipeline Group.
He earned a bachelor’s degree in business administration from West Virginia University and a law degree from the West Virginia University College of Law
Stan Chapman III
Chief Commercial Officer, Columbia Pipeline Group
Stan is responsible for all of Columbia Pipeline Group’s regulated commercial operations, which includes marketing, business development, gas control, customer service, rates and regulatory affairs.
He earned a bachelor’s degree in economics from Texas A&M University and a master’s degree in business administration from the University of St. Thomas.
Brett Stovern
Chief Operating Officer, Midstream Services
Brett is responsible for all Columbia Pipeline Group’s midstream and minerals activities. Prior to his role, he served as Chief Financial Officer for Columbia Pipeline Group.
He earned his bachelor’s degree in accounting from California State Polytechnic University and is a Certified Public Accountant.
Shawn Patterson
President, Operations & Project Delivery, Columbia Pipeline Group
Shawn is responsible for operations, engineering and project management across Columbia Pipeline Group. He also oversees the execution of CPG’s modernization and growth programs.
He earned a bachelor’s degree in civil engineering from Rose-Hulman Institute of Technology and a master’s degree in business administration from University of Notre Dame.
4
Today’s Agenda
NiSource Investor Day 2014
8:00 – 8:30 AM 8:30 – 9:30 AM 9:30 – 9:45 AM 9:45 – 10:30 AM 10:30 – 11:30 AM
11:30 AM – 12:00 PM
12:00 – 12:30 PM
12:30 – 12:35 PM
Registration and Welcome Separation Overview Break NiSource Utility Company Columbia Pipeline Group Financial Profile Q&A
Closing Remarks
Bob Skaggs, Steve Smith
Jim Stanley, Joe Hamrock Glen Kettering, CPG Leadership Steve Smith Team Bob Skaggs
5
Separation Overview
Bob Skaggs
President & Chief Executive Officer
Strategic Separation Expected to Deliver Significant Value
Plan to Separate Columbia Pipeline Group Into a Stand-Alone, Publicly Traded Company
Creates two pure-play, premier energy infrastructure companies
Enhances overall long-term earnings and dividend growth potential
Provides strategic clarity, significant scale, unique assets and customer bases
Permits disciplined execution of two distinct, growth investment strategies
Results in two well-capitalized entities, expected to maintain investment-grade ratings
Opportunity to Create Immediate and Long-Term Value for Shareholders
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Creating Two Premier Energy Infrastructure Companies
Logical Step in Successful, Long-Term Growth Strategy
Expected to Unlock Full Potential for Both Companies
Pure-Play Businesses
Focused on Distinct
Investment Opportunities,
Assets and Customers
Execution Capability
Experienced Teams and Proven Track Records at Both Companies
Investor Alignment
Investors Attracted to Unique Investment and Risk Profiles
Independent Companies Better Able to Realize Growth Opportunities
Opportunity to Create Immediate and Long-Term Value for Shareholders
8 |
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Separation Snapshot
Total Employees ~8,800
Headquarters: Merrillville, IN Headquarters: Houston, TX
NYSE: NI NYSE: COLP
Columbia Pipeline
Group Operating Columbia Pipeline Partners
Gas Distribution Company (MLP) NYSE: CPPL Electric Operations
Columbia Gas Columbia Gulf Midstream Transmission Transmission Operations NIPSCO NIPSCO Columbia Gas Columbia Gas Electric Gas of Kentucky of Maryland
Pennant Millennium Hardy Storage Other Midstream Pipeline Transmission (partner) (partner) (partner) Holdings Columbia Gas Columbia Gas Columbia Gas Columbia Gas of Massachusetts of Ohio of Pennsylvania of Virginia
Maintaining Commitments to Customers, Employees and Communities
9
Creating Two Premier Energy Infrastructure Companies
Pure-Play Natural Gas & Electric Utilities
Proven operators, focused on safety, reliability and customer service
Significant long-term infrastructure investment opportunity expected to sustain strong earnings and dividend growth
Constructive regulatory policies and stakeholder support across jurisdictions
Expected to maintain investment-grade credit rating
Pure-Play Pipeline, Midstream & Storage Company
Significant scale and footprint in Marcellus/Utica, Midwest, Mid-Atlantic and Gulf Coast markets
Significant modernization and organic growth opportunities expected to support robust EBITDA and dividend growth
Expected to maintain investment-grade credit rating
MLP expected to provide access to capital to fund CapEx needs
Two Well-Capitalized Energy Infrastructure Companies With Compelling Investment Propositions
10
Two Premier Pure-Play Companies With Significant Scale
LDCs, Producers, Marketers, Electric ~4M Gas/Electric Distribution Customers Generators and Other Large End Users
~15K Miles of Transmission ~58K Miles Distribution Pipe ~1.3 Tcf of Throughput Per Year 3,300 MW Generation Operations
35 Storage Fields, ~300 Bcf Working ~2,800 Circuit Miles Transmission Capacity
~$7.4B; Expected to Grow on Rate Base*/Net ~$4B; Expected to Grow Average by ~8% per year Investment Growth to ~$12.5B+ by 2020
~$30B Over Investment $12-15B Over 20+ Years Opportunity Next 10 Years Marcellus, Utica;
7 States Footprint Midwest, Mid-Atlantic and Gulf Coast Markets
Significant Growth Potential With Stable Financial Profiles
*As of 12/31/2013
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Financial Overview of Separation
Steve Smith
Chief Financial Officer
Two Premier Companies with Significant Growth Potential
Pure-Play Natural Gas & Electric Strategic Focus Pure-play Pipeline, Midstream & Utilities Company & Clarity Storage Company
Utility System Modernization & Long-Term Pipeline/Midstream Growth & Organic Growth Investment Modernization
(~$30B Over 20+ Years; ($12-15B Over Next 10 Years; ~75% Revenue-Producing) Opportunity ~90% Fixed Fee)
~$7.4B; Expected to Grow on Rate Base*/Net ~$4B; Expected Average by ~8% Per Year Investment Growth to Grow to ~$12.5B by 2020
Expected Net Earnings Growth Long-Term Growth Expected EBITDA Growth 4-6% Per Year Driven By Net Investment Growth
Expected to Average Long-Term Dividend Expected to be Driven By 4-6% Per Year Growth Net Investment Growth
Expected to Maintain Investment-Grade Investment-Grade Expected to Maintain Investment-Grade Credit Rating with Strong Liquidity Credit Credit Rating with Strong Liquidity
Strong Financial Profiles, Compelling Investment Opportunities
*As of 12/31/2013
13
Significant Inventory of Projected Growth & Modernization Projects
NiSource
Columbia Pipeline Group
~$30B of expected infrastructure investment opportunities over next 20+ years should provide visible organic growth
$12-15B of expected infrastructure investment opportunities over next 10 years should provide sustainable growth
$30 Generation Investment
(~$1.7B)
Electric Transmission
Investment (~$1.0B)
$20
Electric Environmental
Investment (~$0.5B)
$10 Electric System
Modernization (~$6.8B)
Gas System
Modernization (~$20B)
$0
NiSource Utilities
Investment Inventory
$12-15B of expected infrastructure investment opportunities over next 10 years should provide sustainable growth
$15 Midstream (Gathering &
Processing) Projects
(~$2B)
$10 FERC-Regulated
Transmission Expansion
(~$7-9B)
$5 Pipeline Modernization
(~$3-4B)
$0 CPG
Investment Inventory
Long-Term Investments Drive Growth for Each Company
14
Establishing Columbia Pipeline Group (CPG)
MLP 1Q/2015
Columbia Pipeline Partners (NYSE: CPPL)
Forming MLP
MLP will be primary funding source for CPG growth capital
Expected IPO during 1Q 2015
Separation Mid-2015
Debt Recapitalization (~$3B)
NiSource Utility Company plans to reduce its net debt prior to separation
CPG plans to fund a one-time cash distribution to NiSource by issuing its own long-term debt
NiSource Utility Company debt financing will remain at NiSource Finance Corp.
Anticipated Tax-Free Separation for NiSource and Shareholders
NiSource shareholders would receive a pro-rata dividend of shares of CPG (NYSE: COLP)
Dividend expected to be maintained in total at separation and grow thereafter
Two Well-Capitalized Companies, Poised to Deliver Enhanced Long-Term Value
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Transparent Approach to Future CPG Funding
Columbia Pipeline Partners (CPPL) S-1 Filed September 29, 2014
Columbia Pipeline Group (CPG)
NYSE: COLP
~100% of CPG assets and growth projects will reside in CPG Op Co
MLP will hold ~15% initial interest in CPG Op Co
General Partner will be 100% owned by CPG
Investment-grade credit rating expected at CPG
~85%
>50%
CPG Op Co
~15%
CPP MLP
NYSE: CPPL
<50%
Public
~$700-800M Equity
MLP Formed Prior To CPG Separation
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Separation Timeline
3Q 4Q 1Q 2Q 3Q
2014 2014 2015 2015 2015
MLP
S-1 Filed
Anticipated IPO
Debt Recapitalization
NiSource Debt Reduction
(Term Loans, Short-Term Debt, Tender Offer)
Columbia Pipeline Group Debt Issuance
Separation (Expected Mid-2015)
Form 10 Filing/Path to Separation
Expected tax-free dividend of CPG
shares to NI shareholders
Straightforward Approach to Delivering Enhanced Value
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Summary: Creating Two Premier Energy Infrastructure Companies
Two Companies Positioned to Realize Enhanced Growth Opportunities
Expected to Unlock Full Potential for Both Companies Focused on Distinct Investment Opportunities, Assets and Customers Experienced Teams, Proven Track Records Unique Investment and Risk Profiles
Opportunity to Create Immediate and Long-Term Value for Shareholders
18
NiSource:
Premier, Pure-Play Natural Gas
& Electric Utilities
Joe Hamrock
EVP and Group CEO, NiSource Gas Distribution
Jim Stanley
EVP and Group CEO, NIPSCO
NiSource: Premier, Pure-Play Natural Gas & Electric Utilities
Industry-leading regulated natural gas and electric utilities company
Expected to maintain investment-grade credit rating
~$30B infrastructure investment inventory – driving earnings and dividend growth
~75% of CapEx expected to be revenue-producing
Complementary customer programs, rate structures and tracker mechanisms established in all jurisdictions
Proven performance in providing safe, reliable, affordable service
100 Percent Regulated + Significant Scale Supports Long-Term Growth
20
NiSource: 100% Regulated Natural Gas & Electric Utilities
Indiana Natural Gas Distribution
Indiana Electric Generation, Transmission & Distribution
Gas Distribution Companies
Kentucky
Maryland
Massachusetts
Ohio
Pennsylvania
Virginia
Large Scale Footprint Across 7 States
~3.5M Gas LDC Customers
~500K Electric Customers
Strong Performance and Execution Track Record
Extensive System Modernization and Organic Growth Inventory
Constructive Regulatory Environments
Strong Customer Service
A Strong, Well Established Platform for Growth
21
NiSource Natural Gas & Electric Utilities: Significant Size and Scale
NIPSCO Electric
Fully Integrated Electric Utility in Indiana
~500,000 Customers
3,300 MW of Environmentally Compliant Generation
Rate Base ~$3.0B
NIPSCO Gas • ~800,000 Customers • ~17,000 Miles of Pipe • Fair Value Rate Base ~$800M
Columbia Gas of Kentucky
~140,000 Customers
~2,600 Miles of Pipe
Rate Base ~$200M
Columbia Gas of Ohio • ~1.4 Million Customers • ~20,000 Miles of Pipe • Rate Base ~$1.4B
Columbia Gas of Virginia • ~250,000 Customers • ~5,000 Miles of Pipe • Rate Base ~$500M
Columbia Gas of Massachusetts • ~300,000 Customers • ~4,800 Miles of Pipe • Rate Base ~$500M
Columbia Gas of Pennsylvania ~400,000 Customers • ~7,400 Miles of Pipe • Rate Base ~$950M
Columbia Gas of Maryland
Complementary to PA Operations
~33,000 Customers
~750 Miles of Pipe
Rate Base ~$60M
Growing Rate Base, Earning Allowed Returns
*Rate Base as of 12/31/2013
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NiSource Natural Gas & Electric Utilities: Strong Execution Track Record
Substantial, growing rate base, earning allowed returns
Stable and affordable rate design, ~75% of CapEx expected to be revenue-producing Constructive environment for modernization investment and timely recovery Industry-leading safety and reliability performance Robust customer programs and solid satisfaction levels Collaborative, constructive stakeholder relationships
23
NiSource Natural Gas & Electric Utilities: Business Profile
Pure-Play Utility With Large Footprint Across Seven States
Gas Distribution Utilities
Total Rate Base of
~$4.4B*
Constructive Regulatory Environments
Significant Modernization Investment Programs
Operating Earnings
Fully Integrated Electric Utility
Total Rate Base of ~$3.0B*
Constructive Regulatory Environment
Significant Modernization, Enhancement and Environmental Investment Programs
Gas Distribution 65%
Electric Operations 35%
Expected Rate Base Growth Averages ~8% / Year
*Rate Base as of 12/31/2013
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NiSource Natural Gas & Electric Utilities: Investment-Driven Growth Strategy
~$30B / 20+ Year Infrastructure Investment Inventory
~$1.2B
Expected
Annual
Capital
Investment
Expand Programs and Grow Customer Base
Enhance Electric Transmission System
Modernize Gas & Electric Infrastructure
4-6%
Expected EPS & Dividend Growth
Disciplined Capital Management, Timely Investment Recovery
25
NiSource Natural Gas Utilities: Attractive Regulatory Construct
Aligning Revenue, Costs and Investments
LDC Fixed Rate Design Decoupling/Weather
(% of Distribution Charge) Normalization
Columbia Gas of Ohio 100% N/A
Columbia Gas of Pennsylvania ~50%
Columbia Gas of Massachusetts ~30%
Columbia Gas of Virginia ~55%
Columbia Gas of Kentucky ~60%
Columbia Gas of Maryland ~35%
NIPSCO Gas ~60% -
Stable Rate Structures: >80% Non-Volumetric Revenue Stream
26
NiSource Natural Gas Utilities:
Industry-Leading Modernization Programs
~$20B / 20+ Year Infrastructure Program Investment Opportunity
Expected Total
LDC Annual Recovery Investment
Investment Opportunity
($ in Millions)
Columbia Gas of Ohio $175 – $200 Tracked ~$5.4B
Forward Test
Columbia Gas of Pennsylvania $125 – $175 ~$5.7B
Year/Tracked
Columbia Gas of Massachusetts $40 – $60 Tracked ~$2.0B
Columbia Gas of Virginia $20 – $30 Tracked ~$0.8B
Columbia Gas of Kentucky ~$10 Tracked ~$1.0B
Columbia Gas of Maryland ~$10 Tracked ~$0.4B
NIPSCO Gas $80 – $120 Tracked ~$4.5B
Total Annual Investment: ~$460 – $605 ~$20B
Stakeholder-Aligned, Transparent Recovery Mechanisms
27
NiSource Electric Utility:
NIPSCO Infrastructure Investment
~$10B / 20+ Year Electric Infrastructure Investment Opportunity
Expected Total
NIPSCO Electric Tracked Annual Investment
Investments Recovery Investment Opportunity
($ in millions)
Electric System $70 – $250 ~$ 6.8B
Modernization Program
Environmental Compliance $25 – $100 ~$ 0.5B
Transmission
Enhancements/Growth N/A $80 – $150 ~$ 1.0B
Generation Upgrades N/A TBD ~$ 1.7B
Total Annual ~$175 – $500 ~$10B
Investment:
Current Transmission Projects
Stakeholder-Aligned, Transparent Recovery Mechanisms
28
NiSource Natural Gas & Electric Utilities: Summary
~$30B / 20+ Year Infrastructure Investment Inventory
Industry-leading regulated natural gas and electric utilities company
Track record of collaborative execution and safe, reliable service
Complementary rate structures and tracker mechanisms; ~75% of CapEx expected to be revenue-producing
Disciplined capital management; solid, investment-grade credit rating
~$1.2B
Expected
Annual
Capital
Investment
Expand Programs and Grow Customer Base
Enhance Electric Transmission System
Modernize Gas & Electric Infrastructure
4-6%
Expected EPS & Dividend Growth
Driving Long-Term Earnings and Dividend Growth
29
Columbia Pipeline Group (CPG):
A Premier Pipeline, Midstream
& Storage Company
Glen Kettering
EVP and Group CEO, Columbia Pipeline Group
Stan Chapman
EVP and Chief Commercial Officer
Brett Stovern
Chief Operating Officer, Midstream
Shawn Patterson
President, Operations and Project Delivery
30
CPG: A Premier Pipeline, Midstream & Storage Company
Highly focused, pure-play pipeline, midstream and storage company
Strategically located infrastructure links Marcellus and Utica supply regions to the Midwest, Mid-Atlantic and Gulf Coast markets
Transformational growth project inventory potential: $12-15B over 10 years
Net investment growth expected to drive EBITDA and dividend growth
Expected to maintain investment-grade credit profile and strong liquidity
Significant Scale + Unparalleled Footprint + Substantial Investment Inventory
31
CPG: A Premier Pipeline, Midstream & Storage Company
Significant Scale,
Unparalleled
Footprint
Columbia Gas Transmission (TCO) Columbia Gulf Transmission (Gulf) Millennium Pipeline Crossroads Pipeline Midstream Franchises Shale Areas
Serving Attractive Midwest, Mid-Atlantic and Gulf Coast Markets Strategically Positioned Overlaying Marcellus and Utica Shale Regions 15,000+ Pipeline Miles 1.3 Tcf Annual Throughput; ~10 Bcf/Day of Transportation Capacity ~300 Bcf of Working Storage Capacity; 4.5 Bcf/Day of Peak Day Storage Deliverability Diversified Customer Base: LDCs, Gas-Fired Electric Generators, Producers and Marketers Anchored by Long-Term Contracts
32
CPG: Investment-Driven Growth Strategy
$12-15B Expected Organic Growth and Modernization Projects
~$1B+
Expected
Annual
Capital
Investment
Core System Expansion
Infrastructure Modernization
Complementary Gathering
& Processing
Long-Term EBITDA & Dividend Growth
Highly Visible, Attractive Investment Profile
33
CPG: A Premier Pipeline, Midstream & Storage Company
Stable Revenue Streams
Strategic Footprint
Significant Scale
Disciplined Financial Model
~90% Demand Based
Underpinned with Long-Term Firm Contracts Minimal Commodity/Volumetric Exposure
Customer Supported Modernization Program in Place
Strategically Situated in Marcellus and Utica Shale Regions Serving Attractive Midwest, Mid-Atlantic and Gulf Coast Markets
~$4B Net Investment (Expected to grow to ~$12.5B by 2020) $12-15B of Expected Investment Opportunity Over 10 Years
Rigorous Capital Management and MLP Disciplined Project Management and Execution
Transformational Investment-Driven Growth
34
CPG: System
Modernization Program
$4-5B of Long-Term Investment Over 10-15 Years
Groundbreaking FERC-Approved Settlement
~$300M/Year Investment to Modernize Columbia Gas Transmission
Upgrading Compression
Replacing Aging Infrastructure
Increasing In-Line Inspection
Timely Recovery on Investment
February 1 recovery for facilities placed in-service by October 31 of the prior year
2014 Program Areas
Customer Benefits: Enhancing… Flexibility, Reliability, Safety
35
CPG Growth: Unique Opportunity Created by Strategic Footprint
CPG Well Positioned in Rapidly Changing Landscape
Past – Gas Flows from Gulf Coast to Appalachia, Mid-Atlantic and Northeast Markets
Current – Production Growth and New Pipelines
Future – Expected Production Growth Makes Appalachia Low Cost Supply Base; Gas Flows to the Northeast and Gulf Coast
Marcellus/Utica Production (~Bcf/D)*
30
20
10
0
2008 2014 2020E
Transformational Growth Opportunities
* Source: Wood Mackenzie
36
CPG: FERC-Regulated Growth Projects
~$3.6B in Current Growth Projects
Expected Expected
($MM) Project CapEx In-Service
($ in millions)
1 Millennium—Hancock $20 1Q 2014
2 Warren County $35 2Q 2014
3 West Side $200 4Q 2014
4 Giles County $25 4Q 2014
5 Line 1570 Upgrade $20 4Q 2014
6 Chesapeake LNG $35 2015
7 East Side $275 3Q 2015
8 AEP Big Sandy $25 2Q 2016
9 Utica Access $50 4Q 2016
10 Leach XPress $1,420 4Q 2017
11 Rayne XPress $330 4Q 2017
12 Cameron Access $310 1Q 2018
13 WB Expansion ~$875 4Q 2018
In Service In Execution In Development
1 2 3 4 5 6 7 8 9 10 11 12 13
System Modernization: $4-5B over 10-15 Years
37
CPG Growth: East Side Expansion
~$275M Investment, Supported by East Coast LDCs and Marcellus Producers
Expands facilities to transport Northeast Marcellus supplies to Mid-Atlantic markets
~315 MMcf/D of additional capacity
Key Customers: South Jersey Gas, South Jersey Resources, New Jersey Natural Gas, Cabot, Southwest Energy
Planned In-Service: 3Q 2015
Columbia Transmission Expansion
Linking New Supplies to Growing Markets
38
CPG Growth:
Leach and Rayne XPress Projects
Combined ~$1.75B Investment, Supported by Long-Term Firm Contracts
Adding capacity to transport 1.5 Bcf/D of Marcellus and Utica supplies from constrained production areas to liquid transaction locations/markets
~160 miles of new gas transmission pipeline
~165,000 HP of additional compression across multiple sites
Key Customers: Range Resources, Kaiser Francis, Noble and American Energy Partners
Planned In-Service: 4Q 2017
Utica Receipts
- Clarington, Seneca, Berne, Cadiz
Marcellus Receipts
- Majorsville, Mobley, Sherwood
Leach/ TCO Pool Greenfield Corridor Existing Corridor
Transformational Growth Opportunities
39
CPG Growth:
Cameron Access Project
~$310M Investment, Linking Shale Supplies to LNG Export Market
Transports supplies from numerous basins to Cameron LNG facility
New pipeline to the Cameron LNG Facility providing 800 MMcf/D of capacity from Rayne, Louisiana compressor station
Key Customers: GDF Suez SA and MMGS, Inc.
Planned In-Service: 1Q 2018
Leach, KY (TCO)
(Hackberry, LA Cameron LNG)
Delhi, LA
Rayne, LA
Transformational Growth Opportunities
40
CPG Growth: WB XPress Project*
~$875M Investment, Linking Marcellus Supplies to Gulf and East Coast Markets
Additional capacity providing market access for Marcellus supplies
– 500 MMcf/D east toward Loudon
– 800 MMcf/D west toward Broad Run
Looping and compression
Key Customers: Antero and Noble Energy
Planned In-Service: 4Q 2018
Cleveland Station Loudoun (DTI Cove Point) Dranesville (Transco Z5) Broad Run (TGP) Looping and HP
Transformational Growth Opportunities
* In Advanced Development
41
CPG: Growing Midstream Franchise
Majorsville Gathering System
Northern West Virginia and Southwest Pennsylvania
350 MMcfd wet gas gathering pipeline system
Big Pine Gathering System
Western Pennsylvania
20” and 24” high pressure gathering pipeline system
Hickory Bend Gathering System Pennant Midstream Services, LLC
Northeast Ohio and Western Pennsylvania
50/50 partnership with Hilcorp affiliate
Wet gas gathering pipeline facilities, cryogenic processing plant and NGL pipeline
An Established Midstream Player
42
CPG Growth:
Current Midstream Projects
In Service In Execution In Development
Expected Expected
($MM) Project CapEx In-Service
($ in millions)
1 Big Pine $165 2Q 2013
2 Pennant $165 4Q 2013-
Gathering/Processing 2Q 2014
3 Pennant NGL Pipeline $30 3Q 2014
4 Big Pine Expansion $65 2Q 2015
5 Washington County $120 2015-2018
Gathering
6 Pennant II $250 2015-2018
Appalachia $500 2016-2018
7 Gathering/Processing
~$1.3B in Current Midstream Growth Projects
43
CPG Investments Expected to Build Significant Scale
Executing on a Robust Investment Opportunity
$1.0B ~$12.5B
$2.0B
$0.9B
$1.75B
$0.8B $0.3B
$1.8B
~$4.0B
Current *
Modernization
(In Service Projects 2014-2016)
Cameron Access
Rayne/Leach XPress
WB XPress
Add’l Regulated FERC-Projects**
Midstream Add’l Projects**
2020
Significant Net Investment Growth Through 2020
As of 12/31/2013
In Development
44
CPG: A Premier Pipeline, Midstream & Storage Company
$12-15B of Expected Organic Growth and Modernization Projects Over 10 Years
Stable, ~90% fixed revenue stream, underpinned with long-term contracts Strategic footprint, well situated in Marcellus/Utica shale region
Significant scale, with ~$4B in net investment, expected to grow to ~$12.5B by 2020 Disciplined financial model, with rigorous capital management and MLP
~$1B+
Expected
Annual
Capital
Investment
Core System Expansion
Infrastructure Modernization
Complementary Gathering & Processing
Long-Term EBITDA and Dividend Growth
Positioned for Transformational, Investment-Driven Growth
45
Investment Proposition
Steve Smith
Chief Financial Officer
NiSource Has Historically Delivered Significant Shareholder Value
Established Track Record and Commitment to Creating Shareholder Value
Cumulative Total Shareholder Return = ~185%*
$39.33
$32.88
$23.81 $24.89 $12.4
$10.3
$17.62
$15.38 $7.7
$6.7
$4.3 $4.9
YE2009 YE2010 YE2011 YE2012 YE2013 2014YTD
Market Cap ($ in Billions) Stock Price
Separation is a Logical Step in Continuing a Long-Term Value-Creation Strategy
* Includes common stock price appreciation + dividends paid from 1/1/2010 to 9/23/2014
47
Potential to Deliver
Enhanced Shareholder Value
Separation would create two well-positioned energy companies, each with high quality assets, focused investment plans and opportunities
Unique strengths should lead to enhanced valuations
Other expected key shareholder/stakeholder benefits:
Highlights and unlocks the value of two unique businesses Both businesses positioned to deliver enhanced earnings growth driven by clear, identified investment-based growth plans Track record of sustained execution for both businesses
Increased transparency for each business Improved investor alignment Robust capital investment portfolios for both companies
Strong credit profile Manageable cost to achieve
Efficient capital funding for each business Dividend expected to be maintained in total at separation and grow thereafter
48
NiSource Utility Company: Key Investment Considerations
Premier Pure-Play Natural Gas
& Electric Utilities Company
Focused Business Strategy
100% Regulated Companies Operating in Constructive Regulatory Environments
Significant Scale with ~4.0M Customers Across 7 States
~$30B of Expected Infrastructure Investment Over 20+ years Expected to Maintain Current Investment Grade Credit Ratings Expected Earnings and Dividend Growth of 4-6% Annually
A Compelling Investment Proposition
49
Columbia Pipeline Group: Key Investment Considerations
Pure-Play Pipeline, Midstream
& Storage Company
Focused Business Strategy Strategically Located Assets
In rapidly growing Marcellus/Utica production regions with significant investment opportunities
Physically linked to major demand centers
Long-Term Modernization Opportunity Significant Scale:
$12-15B of expected investment over next 10 years
Net Investment expected to grow from ~$4B to ~$12.5B by 2020
Expected to Maintain Current Investment Grade Credit Ratings MLP Funding Vehicle
Expected EBITDA and Dividend Growth Driven by Net Investment Growth
A Compelling Investment Proposition
50
Closing Remarks
Bob Skaggs
President & Chief Executive Officer
Summary: Creating Two Premier Energy Infrastructure Companies
Two Companies Positioned to Realize Enhanced Growth Opportunities
Expected to Unlock Full Potential for Both Companies Focused on Distinct Investment Opportunities, Assets and Customers Experienced Teams, Proven Track Records Unique Investment and Risk Profiles
Opportunity to Create Immediate and Long-Term Value for Shareholders
52