NI - Earnings call transcript Q4 2024

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Thank you for standing by. My name is Jeannie. I will be your conference operator for today. At this time, I would like to welcome everyone to the Q4 2024 NiSource Earnings Conference Call. [Operator Instructions]

the to turn of Turnure, now Relations. Investor will call Chris over Head I ahead. go please Sir,

Christopher Turnure

Good to and morning, welcome investor quarter call. XXXX the NiSource fourth

Lloyd Officer, and President Melody today Executive of Anderson; and Strategy me are Group and and of and President Executive Joining Birmingham. Chief Executive Risk Commercial President President Executive Vice Utilities, Vice Luhrs; Financial Chief Officer, President aand Officer; Michael Shawn NiSource Chief Yates; Vice

for review The on quarter the purpose drivers. performance this of as our update growth fourth to XXXX, an NiSource's well is and as of financial presentation provide operations

Following are remarks, open available your of to call Investor our the prepared section Relations the Slides call in our today's we'll for website. questions.

statements are this These filings. MD&A in concerning actual those would our and be forward-looking. the to will subject results and made from Information of during the risk that We remind to of to like could SEC statements presentation expressed periodic factors statements. sections and you uncertainties in risks uncertainties that materially cause is included risks differ the such some

of to some segment of supplemental statements Additionally, most the and relate this GAAP information measures. and directly these information for financial on the full schedules slides, Please measures. comparable made to non-GAAP reconciliation call measure the refer on a

to I'd now turn like the call Lloyd. over to

Lloyd Yates

our mechanisms. delivering position. generate our Affordable deployment, by constructive on returns, The value. recovery These NiSource X. efficient customers capital Slide and investment adding and sheet enhancing begin simple. competitive operations Chris, safe I'll you, is We everyone. fundamentals and requires while Thank serve morning, good reliable regulatory balance energy thesis asset affordable safe energy

to offering the compelling the regulated across continues to jurisdictions, steel are across and constructive which X value plan, NiSource diversification these location. business driven of operations utility by type regulatory offer highly foundation stakeholders, Importantly,

talk executing constructive regulatory growing on business for wanted foundation, in operating financial the about with this communities. NiSource team. our updates, cover jurisdictions, we for to capital successful often year and call We by expenditures, building Before value excellence principles commitments our success, a to the proposition a investing our recapping investment and I delivering tremendously standard namely begin X the which we key enhance our by our across make,

As and proud the I we XXXX, look team across with principles its value share top delivered I'm shareholders of that business back on focus NiSource our alike. to for on these customers as proposition mind enhancing has plan

and We partner trusted build differentiates stakeholder-focused engaged case with we by services safe approach region. we mindset of stakeholders to reliable and Being energy deployed recover through a processes. credibility costs with to from associated remain priority, a our believe utilizing and regulated deliver We filings as tracker to these us our peer the expenditures communities utilities. energy rate our capital

months, NiSource of X-state to $X.X XX and last reliability of expectations invested regulators. support CapEx compliance the maintain team has region systems with the the billion in alignment Over across our the its

to with the investments. Our in regulatory recovery of in million processes return $XXX capital revenue associated these XXXX approved

prior, recovery for developed plans some energy the changes on teams the the and revenues match Melody quarter. of were But key investment the landscape to the fourth critically, these these investment underpin being the touch capital through highlights as with outreach active made years detail to stakeholder thesis from will plans. with stakeholders are our these to

never delivering team relentless reliable NiSource, our our pursuit customers. safe this to and our at stops and However, energy for of

focused mission excellence we by Speaking reduction of value-enhancing across reliability, operational advanced our intentionally activities risk and XXXX, the organization. on throughout

our data intelligence, and enhance efficiency new to our way is stakeholder way launch initiative the communities, and drive our regulatory to shareholders. have Our our Supporting utilizing for and our NiSource customers. deliver to on excellence the our safety management we financial for support metrics paves committed system continue by the wins reducing and the results a with to to improve safety team we work relationships team industry-recognized analytics artificial early operating through framework,

EPS versus exceeding our report for original each per annual I XXXX a the of share our flow of year years business to X% the of am a guideline results for both year-over-year plan our XXXX, all X.X% we returns in growth end XXXX. nature result Further, these adjusted of adjusted base top subsequent through and X% This $X.XX to ranges. increase EPS proud of to enables rate. as in updated

with our consistent if This to on results to focused $X.XX I of X% raise of But are into $X.XX EPS achieved. growth we are the well a to -- $X.XX results business sustainable development outlook actual as results the adjusted said, X% in future. per off not not XXXX to these share, guidance the

Our to for work customers energy our greater teams are developing hard at at the prospects consume. for new to value investment deliver they

increased fuels economic and development Virginia highlight in Our plan investments Melody gas nominally our increasing XXXX base billion, to moment. Indiana, XXXX across to is capital will in due a per period, businesses drive by continue These $XX.X X% which growth to our to share the over XX% rate to rate base X% X% to increase to which ability our XXXX annually. growth XXXX adjusted earnings

not with does work the Our capital stop plan.

of later. extend will portfolio fortunate plan horizon, and detail have are added beyond We customer to X-year be far a investments, valuable to could our Shawn which real which

to teams our portfolio of Our necessary our meet developing plan. included in projects active this to in remain base standards be

in in by the team the ] economic billion includes now since operations center development to million which work important our support plan, plans call. $XXX and $X.X include development to engaged third locate quarter But data investments the of Indiana our pond efforts upside none is [ of state these is our visible in near-term of the increase region. This

factors attractive Access potential to to I've Indiana, fiber and a previously state critical tax climate favorable business connections. system Northern transmission including in the region. supportive critical highlighted development structures, in robust and weather customers. of and advancing centers compelling climate, available of with the data fundamentals which favorable are and infrastructure, center a risk, land data Predictable a catastrophe all including low are to proximity natural constructive government

develop in through one, actively with customers three, potential preserve four, solutions, working in existing engaged by and remains is Our guided thoughtful our return data main with maintain business. which new NIPSCO financial protect serve allocation capital customers integrity speed to and two, proposition; team system a flexibility; principles: customers; X center and reasonable flexibility

customers. a instead to filing as but ownership operation to GENCO and retail and the low a decline up customers. energy because into NIPSCO In to January, to the regulated is NIPSCO as set This provide the framework energy in NIPSCO, and a NIPSCO will directly will effort load and with application set GENCO requests serve will serve to large a will related regulated filed a NIPSCO's energy step IURC jurisdiction of declination GENCO petition to of administrative utility, facilities. exercise capacity to to the customers contracts The entity enter have establish NIPSCO then not some IURC IURC's who large

could working tax teams benefits communities this enhance system buildout, shareholders. customers, existing investment our provide for which to Our to our provide are opportunities compelling local space evaluate our and and

premier all to centers value creation and put, for the substantial potential these is all checking data Simply NiSource. Indiana for stakeholders to for locate. is Northern location boxes there's important

vision. operational on detail more excellence our provides X Slide

and analytics data the early insights XXXX organization. democratized data Our team throughout implementing began use in actionable cases and and transparency have improved

one advanced process schedule. models work predictive ensemble a is intelligence work shift include more availability example. that schedule AI job model weekly It volume, to automatically forecasting Our is duration generate and of an and management optimizer accurate

hours productivity Ohio, middle process Since an better the the in in work less achieved, less period same overall the in through time, schedule. of implementing work rework has plan measured year in idle XX% versus this increased and XXXX,

year Continuous its in Apollo expectations and exceeded constraints. O&M with $XX closed along waste many initiatives The strong results. to team internal really The workforce Improvement program savings with second reduce out efficiency with million

risk standardized unnecessary $X locating field by originally reduced and marking model initiative and process initiative enhancing rolls scheduling XXXX. eliminated and With million For truck efficiency, of processes. safety million in $XX example, across [indiscernible] improve allowing work spend implemented scattering XXXX for additional model an and XXXX in field risk through turnback both the the

In nearly rate in recordable XXXX, collision with in preventable vehicle occupational we an OSHA once X% a reduction performance incident significantly year-over-year improved safety again XX% and rate. year-over-year reduction

was transmission and XX replacement underground of poor-performing the over of XX replacements, Our substation or through cable, electric miles rebuilds. and over extensions distribution hardened XX,XXX system structural life

stability teams derisk have and impact been Our and and to control here consistency our has NiSource. differentiator outside continuously are working operations many of our has policy key through a our impactful been been -- State factors regulation business.

from low-cost mandates. for our NiSource allow thrived we evolving and reliable At have electric at that energy many and from is gas through the advocated plan businesses. to AGA our insulated retail customers benefit X-year federal and policies policy leadership and EEI cycles, have both and level,

call to the the I over, less dedication turn all our NiSource things more doing want thank safer, better, their cost. values, employees I for efficient contractors and to for Before and

Our every you rely customers on and day. alike shareholders

I'll now Melody. things turn over to

Melody Birmingham

in the both communities gas rate in a of active The case state settlement right. marking across All $X.X remain customers electric nearly last rider regulatory pleased you, both file seventh Indiana. years settlement our in to XX We we incremental and for NIPSCO agreement begin in Northern front week, on Last on our driven Slide investment and the businesses. is the I'll X. and the by were case electric with Thank rate Lloyd. billion general filings. case

investments incorporates case continued regulators of projects. state Station solar partnership Major as examples XXXX the The the of XX planned and the Shafer at Generating our as and our X XX customers. these new of well Unit and are addition storage as such retirements with policymakers,

from in last Utility the since investment rate quarter, these cases. Service with in During case these terms. Kentucky $XXX received Public the in we incremental Commission Together, states Commission, settlement requests our the million Pennsylvania supported and Public over both the approvals original settlement line rate fourth

our in are In settlement with and universal December reached order. awaiting a Virginia, final parties to a case we

be compliance as we reliability and critical safe a work us deliver about trailing basis. energy and this the our customers. to customer on gas safety, period for our thoughtful family Affordability to declined December, NIPSCO and companies, key XX-month During we priority the and bill that's both advance XX% average a of Columbia for remains continue necessary bill to ending total reliable the residential

costs of quarter, communities NIPSCO will over announced to Helping Early service the square to XXX,XXX continue in larger developed fixed just Crown level. in be at be a Indiana, new base. existing to service cold storage last facility electric expected XX-acre, Our foot site state efforts was food a Chicago. spread to XXXX. from product Point, provide outside development economic in the benefit

in-service projects and will year dates require aggregate producer and concrete NIPSCO new NIPSCO gas this other A both new X infrastructure. with well. serve electric will in various as investment

will Indiana, additional Carlisle, Additionally, new NIPSCO gas require investment. battery a new EV plant in

gas the the project significant on facility. one is energy our Also, business, coal. cost savings provide industrial for on-site from their our customers customers to natural largest Virginia gas boilers in converting the of This side of emissions carbon remaining reduce and from will

These enhances and remains projects develop Economic job serve. well a priority are of we for of all communities and the as of offers tax supportive examples local engaged the teams. our our opportunities base, and existing new we to cost as remain how base prosper mitigate development our customer

from satisfaction Customer vision X million benefit our and priority. our plan. capital a investment nearly operational remains excellence And customers

and factors, businesses both and surveys. of communications in Columbia scores their their including Contributing customer billing customer to price, December, our were of care. corporate Gas a satisfaction In regional were service and safety #X and combination payment, citizenship, Virginia NIPSCO reliability, named Electric

very very, results. are proud these We of

in has NiSource company the this consecutive Also, XXth was recognition. earned the XXXX to Marking Dow Sustainability Indices. the named year December, Jones

includes and beyond to privileged purposefully serve. As we are framework also a delivering economic company, energy. inclusion strategy happy extends opportunities the that drive communities and NiSource our very a development allows in business It sustainability that to help

turn things to Shawn. over now I'll

Shawn Anderson

Melody. you, Thank

have our as II Let's Bridge begin operations Slide on renewable to are path at units supporting The lines. Meanwhile, with assets solar development I'll and transition Gibson progress transition service down is Already an this the time reached the Fairbanks X. the overall substantial online no with achieved completion. generation are system come later year far in to be start new on project to Dunns the to advancing January, NIPSCO. achieved, reliability. and are changes generation coal implementing in update expected retire and

customers execution of providing wind X region. continues record generating power XXXX track to and stations steady This Northern solar with Indiana now NIPSCO's the since renewable in

quarter, plan Leveraging public we NIPSCO The the the X submitted and months the generating process. the extensive the ahead through update X look product power in collaboration the X fourth the Late stakeholder and progress plan aggrated to of fleet, resource of over energy provides changing XXXX IURC. this Slide its made an meetings. in on was triennial landscape, IRP

capacity It by with the is load in required requirements the and the requirements. It analysis accreditation forward generation to assessments. generation, MISO now market and solar, sources demand greatest a region availability details federal construct under requirements its on evaluation and impact resource risk in battery laws substantial historical a risk nuclear. gas new based new including updates MISO's and projects reliability the wind, shift storage were forward-looking generation of revises and will and X-season to design. direct footprint. regulatory in technology meet These have of on transmission organization's XX-year generation to utilizing were period a both modular when All Included considered. small maintain compliance the and long-duration Including

new to generation fleet data of new A mix by considering portfolio the NIPSCO growth. likely center capacity requirements. all reliability capacity generation needs to energy potential is and megawatts preferred of approximately to in the required scenarios of incremental meet highlights before and additions developed meet required existing accreditation The XXX maintain resources XXXX

Our of customers. and evaluation our team procuring for is solutions in the commercialization underway

team CapEx to need likely to in works size as million process, this the new capacity the remain through by with shown regulations generation $XXX upside our about our X. we've Slide increased these While of compliance reliability on regional reflect for plan

for and development, these will the and We project provide approvals assets. through the commercial work of development regulatory updates details

billion. X-year our $XX.X increased base plan, Melody one in utilities our manufacturing detailed is and projects our and plan. example why just also new and CapEx our moves our in Onshoring have This CapEx driving of plans businesses. to continues expansion Midwest CapEx gas reflect region, to Virginia we development base economic over of earlier, are this XX% our As Indiana X-year up

technology. modernization NIPSCO gas on work operations, new This advanced our to metering and years. continue to XXXX install investments leak continues $XX reliability We pipeline system of teams and in with focus safety detection in of Our million making replacement, in infrastructure investment. future began work

businesses capital of recovery expect inside prudent X-year as to top our and Meanwhile, is months made have capital begin XX% our minimize aligned charges. regulated to with mechanisms reduce in and of we investments recovery mind allocation recovery of XX plan, help in the base investments carrying base lag our investment.

XXXXs and progress development investment here long-range transmission to projects opportunities teams approval Board of of to incremental the transmission Slide planning in portfolio and on development Beyond its tranche to base ensure our last X,XXX the The system recently awarded to in mile package the of in upside CapEx by recent develop MISO The projects XX. seeks December. shared Directors future released details plans, X backbone continue most reliability beyond. a related NIPSCO. of the and month, MISO's developments relate process, to following

plan scope and once As work base CapEx Lloyd necessary are to projects. projects these will completed and we've estimation these our we into those results launch mentioned, incorporate evaluating the

upside states not investment in the development the investment is base reflected yet expenditures in or particular, support across center capital and at opportunity our data to incremental plan necessary NIPSCO. X Another

continue excellent We our opportunity center data which to advancing strategies a represent region, for progress make NiSource. across compelling

of CapEx base these development meet include upside in plan. our threshold the is to the Additional or required either to strategies

advance once plans. those to hit flow company that milestones, is we've we will these the positioned these our strongly With said, strategies, and through

in to of its decisions. execution company, NiSource strengthened sheet be financial which balance allocation commitments Continued including the our financial on has positioning, profile capital opportunistic enables the

regulatory flexibility complexity cash and around business supports regulators, of minimizes model flow compact, backdrop for integration the providing Indiana in regulatory utility-centric and while recovery. constructive the customers The a vertical

deep to markets steel center has opportunities. large for has maintains develop the customers capital NiSource to load also large supporting data finance of and access NiSource a a efficiently history industry stakeholders. flexibility has working value with experience long-standing and to all in customers

on shared XX. the Slide Let's results financial move into

partly by for $X.XX depreciation incremental XXXX was share, share. of rate an increase highlighted, As base year drove O&M, Lloyd strong This investments increased in NiSource, Higher $XXX was noncontrolling per interest. already offset and financial revenue. $X.XX a million per achieving

per adjusted $X.XX per for rate offset increased the other partly of customer decline quarter, base $XX $X.XX was interest, revenues fourth The decrease businesses last depreciation contributed in million the investment. Increased taxes, we and customer by our year. a year. share, In and reported EPS versus driven by of gas share and increased additions expanded and noncontrolling usage electric across

our X% $X.XX, of a versus in our an commitments. earnings. actual XXXX. of increase consistent prior XX, after This quarter practice is to growth third of to quarter third row you'll in annual results announced adjusted see call. XXXX is off to achieved guidance EPS on Today, quarter on $X.XX On reflects the establishing we Slide $X.XX our This EPS third to fourth X% with and adjusted introduced are a guidance have guiding our we guidance up call, summary financial the guidance initial at $X.XX of year raising achieved our earnings

X%. Our financial or which upside $XX.X rate X% CapEx CapEx growth incremental EPS growth base a XXXX through an base any annual include billion of XXXX fueled investment adjusted the and from XX% delivers plan across does to to plan, impacts commitments This not opportunities. X% X-year are by drives of

continue Assumptions to be around key externalities plan in our derisked.

customer example, For strong. be continues to growth

all X.X% However, to plan per customer year our classes. X% across growth only assumes

to to despite the the plan interest rise Additionally, rate Fed our XXXX, and previous assume rates through cut rates. activity realistic recent continues in assumptions short-term

with activities substantively in based rate the in long-term visibility settled years on or regulatory has all XXXX. all and particular, rates our of front increases the XXXX on regulated execution into revenue results, achieving in growth confident in remain plan. continued In We increased XXXX our

are capital use our what and outcomes. we on all trackers nearly regulatory forecasts based of Our believe long-established are in jurisdictions incorporate realistic continued

we Cost Project our note, initiatives financial detailed the safety, efficiencies base. focused like our and on Lloyd, the across reliability remain and savings compliance resulting on Apollo capital moderate I'd has that customers. investments impact minimizing from impact customer work by

less plan than across revised Our average NiSource. increases projects bill annual X%

to XX. Slide Moving

the Let's positioning guided we company. notes executed billion junior program, balance focus year. the on we of forward subordinated with execution Along the business. of of $XXX the million strengthen balance fourth strength XXXX, the full our and the $XXX million quarter, completing the during the sheet ATM of last sheet for $X of the In issuance continued to the of pricing

for was XX.X% years is results up XXXX these weather from debt XX Reflected to from FFO points XXXX. for XX.X%, versus both reduction in basis in unfavorable approximately normal.

balance Our our within direction right since moved range. we debt in sheet rated XXXX, well has FFO steadily are to the

to in through million to continue annual balanced $XXX our of long-term We target operations, our XX% a equity capital to maintain program. at-the-market using of and the debt to XX% cash years new of structure our plan, $XXX million use from all maintenance mix of

continues has which separation ratio ratio Group, increased January, payout of $X.XX with since that dividend is payout approximately annualized our Columbia the XX% of increased represents was target XX%, and the year In per $X.XX at to NiSource from to low Pipeline a the each dividend share. end This XX% the guidance.

allocation environment. continue high be about thoughtful will to of cost and We capital the capital

customers. also for While prioritizing investments our infrastructure

actual this, This results. executed accomplished differentiated we've plan, we've the now guidance on upper a for the upwards NiSource's achieved our off represents execution X future results. or financial time value share In XX, each growth range and in row. business adjusted shareholders. half year of we guidance the rebased We've drive plan, creation these this As better. of sustainable Slide Each years of consistent EPS

as achieved. grow of the outperformance this future reflect The years value compounds and

of our This originally For delivered the forecasted XXXX earnings to XXXX. full X is fiscal X.X% the XXXX, business our median differentiated and implied XXXX in since achieved X% X.X% power year increased in since now is which strategic in midpoint by at compared EPS NiSource. sector, reflecting adjusted than review example, has higher

in NiSource annual this the a strong enable range regulatory coupled the growth with jurisdictions, plan. and programs, supported plan, confidence constructs enables return our by execute business we of supports regulatory investment responsible The investments in rate, on these higher underlying investments reasonable and which EPS of over rebasing adjusted as The identifiable plan.

conclude track record our I'll Slide XX. with highlights on growing of

for on conditions assumptions. control, guidance and have XXXX. and are commitments track based confident XXXX are and remain and executable financial been remains near-term other We achieved long-term market realistic resilient our our Our on and forces to for outside

necessary last execute We our capital recovery financial of allocation shareholders. Kentucky, foundation service to capital continue to Pennsylvania, progress our and ensure investments results at quarter to reliability of critical predictable to safety customers across Regulatory Virginia enhance a thoughtful deliver our and systems. NIPSCO the the provide to and return over for and made

completed in be with sheet and subordinated demonstrate financing diversification the balance reasonable balance also executable. activity while The as our junior was continues to coupled ATM and flexibility, sheet XXXX our plan highly projected fortifying positioning. debt utilized marketplace, execution, the

investments center and which plans and programmatic regulatory to upside investment Finally, or not data as known our base such we've guidance base reiterate, both socialized plans CapEx since opportunities and rate and include To EPS for growth customers investment demonstrate built do adjusted the our rate upside XXXX. are the opportunities upon contributed and X.X% or CapEx load programs, investors. executed adjusted and investment accelerated incremental EPS have growth,

support investors but diversified value many programmatic gas elements economic have differentiate development business. new with development, long-term to a in core is opportunity some the center our today. the infrastructure been to proposition The assets proposition These transition story energy to offer onshoring to of electric for to and regulated NiSource integrated emerging alternatives time, data regulated and utility the and in our market opportunity continues fully both and the story truly value relative invest

to call the turn Q&A. the for to over I'd now like operator call --

Operator

Our line the Jefferies. Dumoulin-Smith from comes of question [Operator from Julien Instructions] first

Julien Dumoulin-Smith

successes your continued on Congratulations here.

potentially of risk-sharing you this a attention these considerations filing off, here? speak So mean, GENCO you as good degree to imagine negotiated has I a how things of of sort maybe gotten just to some with sector. concept the Can and here novel kick in

base do otherwise to potentially of this commercial you think you concept adjacent that most effectively in about foresee investments? somewhat about as you arrangements? the how As implicit think replicated those rate Are are NIPSCO, traditional these being

we're just then which all of at form, I the of timing commercial for on in you working it, speak these diligently maybe while good the know can to you And some interim? arrangements, are

Lloyd Yates

start over turn of for I've making this respect XXXX mentioned in some times data files data I'm details. to we're and optimistic for all methodical I'll our terms to and centers So our I'll us. event path Michael of I a several centers about of -- And this that pursuit with and think me let is the opportunity. path in terms use

if you we because to thought our speed us. to business. if And NIPSCO's protect in advantage our for financial will sister We customers be integrity the flexibility agility to be the with our new want pillars, and we preserve we speed, existing maintain customers, want our market an existing and flexibility said remember, these able serve you to to customers, back X to go we want

upside. sure to think that a want we we continue and have great this make mean I we and total business, business be on base that base have focus we to

say, the So this GENCO, step with turn important to this about terms that. declination filing and with the of I'll of it details Michael pursue opportunity, was, how in to talk that, this IURC we I'd over an

Michael Luhrs

Julien.

that regulated doing protect within but utility, declination maintain points, filing of the entity. what to like on to it as hit protect and it we're cost to. base Think a with a is it. to us really the you us the what primary It existing Lloyd allows it would regulated load So customer customers for truly large encapsulate to customers these existing allows segregate just

benefits would say, those that provide the I to fashion. need provisions to very negotiate to in those able needs benefit and And a agreements the at the and meet time, same their and maintain protect in our in to timely expeditious flexibility shareholders, be the customers, the customers order we

financial in plan So and maintains that it us It to by Lloyd's our not the base It protects it integrity, load existing flexibility. a speed and those ability is point, we new it plan, the customers customers. bring have helps strong that is mechanism the impacted serve us helps to system is base NIPSCO's with customers. ensure that simply large

speak want a may to financial to bit Shawn little aspects of that. And the

Shawn Anderson

of Yes. coming And of couple traditional the whether its was, the are advantages development for one, the think generation from think part you your about Number we Julien, what as potential think things these I making serve this? question I'd highlight. as about And rate are customers, solutions the or potentially other power otherwise, that a to flows when are filing we're start making through the there cash speed the deployed, at or to start capital based declination customer us to allow that on for power generalize as projects shareholders. serve and necessary ratemaking move when progress going the to can projects to create back those being coming and they're in those to our

has year been filing They been every horizon. may rate case has just inherently following, other had case. rate NIPSCO that a which a time model traditional different be That the about

that reasonable construction. advance allows through well to a So return, flows this period as a us cash those as return to to to we up continue get afford a the can better line time

to point that's highlight. So key I one think

growing I my in net I piece, to billion prepared over lot done second $X relative But progress the with operations financing positioning outperformance plan. remarks. in balance billion cash of of that balance base covered just The lot a in sheet strength. to producing that sheet coupled over XXXX, from we've the $X are XXXX, improvement, think, equity a

have to sheer be a to from and consumers. able to construction potential to ability much more finance flexibility these NiSource support address positioned afford that's standpoint, larger Just

Julien Dumoulin-Smith

months today the have stand are load obviously, you forecast sort of around of you've center the last front I that of filings updated, in that made phases initially in opportunity Awesome. the scope these that's prospects, And you just over total on a but mean latest whether I speak basis. course a data folks quick terms about. your follow-up you? you of to there. where right, expansion been the do of protracted Can talking of to regulatory that's updated X Obviously, incrementally understand

Lloyd Yates

that? take to want you do Mike,

Julien Dumoulin-Smith

the Might be second over period?

Michael Luhrs

Sure.

So we IRP discussions would we X,XXX very at been point they the then haven't had we the say as case, reference an of I beyond include that what discussions will those IRP, through be that and continue that X,XXX megawatts. to anything certain definitely in the megawatts, updated negotiations was it and will I and accretive our positive and beneficial, have But case plans positive. this upside extremely time, we mentioned have as updates are. objectives the pass comment the in And as as the been was our include proceed and thresholds -- we give earlier. they to

Operator

comes question of Partners. the Pourreza from line Shar next from Guggenheim Our

Shahriar Pourreza

Just Julien's you sort sense data let Is have opportunity. the a of prepared talked mean, governor discussions as is just several coming follow-up remarks, how we question about a timing soon Can I fine-tune Lloyd, XH 'XX just on can this obviously, still on me well an a signed? you're there, media in them Northern deal X your opportunity reports opportunity? at, about Indiana. of get be stuff. the where to it as about coming talked center XH in on talked

Lloyd Yates

as What to signed, to you my -- optimistic. get is conversations that And going guys, we're before to narrow not progressing down we hear I stick are but I'll soon I'm that 'XX -- So, and to it's something And it as a well. out going will opportunity not very issue. willing The to that. timing. you we're say have about

Shahriar Pourreza

to a get if That's reiterated still sense, Lloyd, 'XX, feel I comfortable. just it. wanted you helpful. you Got

can lean you opportunity financing, an just a especially CapEx, talk fund transpire. bucket, these incremental there's about fairly you plan potential on the centers place. as especially in you the obviously upside opportunity into can of ATM CapEx be material, more which data from avenues obviously, higher with bit other a little spending on Just at can to discussions base the But owe

really minority kind did CapEx or guys of incremental You well with that fund update? today's enough beyond ATM to sale, the is

Lloyd Yates

Shawn?

Shawn Anderson

And we'll look where the most we'll Yes. without issue move outperformance That's that's having operations, Well, that's I CapEx fuel financing do to to first. so. of where and into from is on first. cash incremental for ability form think the equity new efficient go to helped us

allocation from lag and to inherently capital that operations. shorten try the around thoughtfully look also that and does We'll that cash increase regulatory

that's kind A. position So of

note believe, we junior successful, we're XXXX. marketplace again, in the in then And subordinated

in need for us plan or notes not XX% another well. Therefore, XX% on to count achieve years of the as the that's Our does to subordinated all avenue junior plan.

lot So achieve be the of the plan financing options plan. we've to the access equity without need to incremental able upside for a got directly in to

Shahriar Pourreza

Got it.

current even disclosed comes beyond you're program into cash CapEx internal ATM this higher comfortable just the subordinated junior plan if what today? with notes So scenario, the you in flow,

Shawn Anderson

Absolutely.

Operator

comes Richard from line question JPMorgan. next Our from of the Sunderland

Richard Sunderland

couple data questions these a hit of more maybe center And first. to

I'm interest a curious amid you changes? that then You've generation this large all guess think the the side I the Do a you also coal need on laid both behind you out in drivers GENCO IURC of MISO announce generation, deal? And how lot filing. before load about can approval and of the the on

Lloyd Yates

Michael?

Michael Luhrs

do entity. speaking working concurrent announce GENCO deal, need benefits speed it. So through entity that to a of your up in do point that be key we able the but is flexibility, But answer setting one of that's declination approval IURC able order and we being to question, the though, to of IURC a with in to and need to this of not the path approval as do

with when For that that's time lines. opportunities on large benefits they those well. we included talking customers framework. and that give us their progress would that opportunities, at look being about load within the what And able do of And be continue the associated them, to to

Richard Sunderland

it. apologies, And XQ walk the of of plan the NIPSCO Can versus I script, missed through and current your housekeeping like and Understood. looked if in some shifted plan? what question, in a those Columbia base you spend but the drivers were? the across buckets Got then this it just changes

Shawn Anderson

no were Rick There Rich those were there. can allocations. no material set and and but in you'd like, things up, walk through, there shifts material you if changes -- We

Operator

the Our Travis next question from of comes line from Miller Morningstar.

Travis Miller

kind the facility, there Microsoft negotiations give still project. wondering what I update is the of Or I could on some to the if wonder going the financing? you in was an is speak? LaPorte or are of ground, you status still so that contract on

Michael Luhrs

have specific necessary all going that activities continue into not LaPorte steel to lines work ground with right to now. in and do objectives. would the it's through customers, time We as their -- the the we be meet LaPorte So

the we've fishing multiple But counterparties well. framework that we're with to out. up the negotiations mentioned, and construct progress laid we the discussions the and As continue

Travis Miller

see from we've through electric generation And or do centers U.S. data to the developers gas taking on then midstream seen in more, your in than an necessarily your through one not and system serve opportunity But companies. Great. Okay. system? gas a there you of the rather couple particularly the meter behind announcements, but directly places region, about flight other

Michael Luhrs

seen in those We benefited to gas to being market beneficial energy do reliable benefit is very Yes. them across system and companies. our in our customers customers. is system have in system, able and the and all a whatever to -- be that of serving the robust see we our can. access there that, for to our gas of absolutely way need it is mechanism increased demand from multiple a gas And able has a the they benefited Columbia serve and

Lloyd Yates

an We center of in Ohio, infrastructure. data some see serving mostly our upside opportunities of our possibly and Virginia gas off capital in Yes. customers and

for opportunity company. the another As

also. that excited we're So about

Travis Miller

the And you Okay. mentioned CapEx.

just So involved there CapEx right? as flow that's demand, well -- as is but

Unknown Executive

That's correct.

Operator

line Our Evercore the next Chopra Durgesh comes from from ISI. question of

Durgesh Chopra

can commentary to I to your I you guys GENCO want pretty I think One mentioned clear go I thing to clarify, flow regulated a you're you back entity, think shareholders. the mean, entity. cash

this returns, look regulated high about returns. think like right? we Or this should As returns, would be

question. First

is is that? do X timing earnings, Or that from -- the that this XXXX second, of in to you flow And cash period? just expect questions. beyond benefit my are it Those cash the flow, XXXX entity maybe

Lloyd Yates

Yes.

we I that So think I than a have GENCO, other we this would about about talk -- returns. way we we NIPSCO regulated the maybe think, as you would think -- in

get negotiate our operate and in regulated potential returns beyond I allows what areas are. to above counterparties we returns think this to with our us

Durgesh Chopra

it. Got

Okay.

Like beyond and 'XX of Is it Or and then end through should see the kind above So financial opportunities period? go in clear. relates timing? And when decade then it could these we plan. earnings of accumulating beyond? 'XX the what it about to really from as start the the

Lloyd Yates

when as will Well, possible. and get have this the with soon a event. will I definitive we And as we at that as have earlier information, guys beginning, said counterparties signed out be contracts XXXX to you

Operator

Instructions] of [Operator comes last the question Steve Fleishman from Wolfe Our Research. line from

Steven Fleishman

Congrats the Yes. on results.

hitting know the of had topics on But do that that? there do any apologizing we do the So on filing, we just any you know color parties -- same some -- other this of declination where schedule on here. is for just Is kind yet? are --

Michael Luhrs

thinking some questions additional happy different and perspective what do have provide Yes, that. as information asking that. parties We on on to are to about

We to make would those sure QX expect through declination. that we're are ruling that process that have now working answering be would QX we questions. feedback the We providing that, that in with the by in associated would

developing to to have only fashion. load not existing in in to is, to remembering to large we enabling The regulated only and and key can projects a customer continue that is do this NIPSCO, only base, us see but in, that allows also to not component I'll timely our we do, that not beneficial add a what which done customers, is it again, work entity, bring it and we as it in is

for projects, customer with So for we're NIPSCO. base see as what it we for communities, our existing of good developers and doing associated for the

Steven Fleishman

bit case? settlement going Okay. there the are parties? a of like -- I'm is this trying or And kind understand recommendation process? Like to a unique like to a a it's since just is in you be talks of Or of there talks by are process just you filing, like just

Michael Luhrs

go answering what intervening standard process. the will of we're It questions with people to do on our filings. to it Yes, different proceed being associated individuals us the with work what process. the IURC declination, not from through and groups other through and be those reviewed getting would will perceive the is that working we normal materially than IURC then able through in It with process normal

Melody Birmingham

just procedural would I what to a Michael standard filing. add It's on Yes. said.

at But QX our GENCO. standard in with expect just we an make you was filing could the order so it in a understood who sure individuals our stakeholders what working work upfront did of intervene. of order around or to to like And of socializing time ruling standard other benefit lot team they any any have XXXX. choose the

that are confident declination feel we the Indiana fairly with application and So strategy the consistent law.

Steven Fleishman

can to clarify, if anything Or state needed up, did there just is -- this with be the to wanted done would approve kind all And just Okay. you this? FERC be set of structure from just approvals? it I

Michael Luhrs

we through need the So on application right associated first. future, some need process. with beginning now different the we're IURC point some The the approval approvals but doing approval what FERC sought approvals in is the at the the IURC. primary request need will that with the don't we And be on likely to or then we FERC, of

Steven Fleishman

actually Okay. do a sign FERC? and it to contract, set But up you need

Lloyd Yates

not. do You

Michael Luhrs

don't filings of more want ensure we to of all to up progress that we to need able You It be the that more do to are I do Is filings, -- is forward not. Ts, necessary all be be is use in not it word able centers it able to crossing but administrative sign with work. data to and entity set but to is the move order dotting to to contracts

Steven Fleishman

lastly, that? the customers. with in desire seen changes the it. to on then specifically, Got been of the of move active customers And kind event weeks, forward this, answered more [indiscernible] just change few any since you've or in to DeepSeek you have kind from maybe like but there you very Subsequent tone last these

Michael Luhrs

-- space -- increased continue seen any change change from say in any just I yes, to, I would has I not And it all any We within see aspects, that opportunity. customers increased say, are anything, do sorry. customers. demand we in this all but and to opportunities not for would we have way. seen beneficial not in the demand We think, have impacted efficiency if tone in

Operator

That for you. CEO, Yates Q&A turn session. will call Lloyd to concludes the I now closing our remarks. Thank our back

Lloyd Yates

great a NiSource. for Have your day. and you in interest your Thank investment questions. Thank you for

Operator

That conference call for our concludes today.

disconnect. You may now

NiSource (NI) 12 Feb 252024 Q4 Earnings call transcript