MERRILLVILLE, Ind., Feb. 1 /PRNewswire-FirstCall/ -- -- Earnings
results in line with guidance -- Liquidity position strengthened --
Financing needs addressed through 2011 -- Core business initiatives
advance -- 2010 earnings guidance of $1.10-$1.20 per share NiSource
Inc. (NYSE:NI) today announced net operating earnings (non-GAAP) of
$295.3 million, or $1.07 per share, for the twelve months ended
Dec. 31, 2009, compared to net operating earnings of $349.4
million, or $1.28 per share for 2008. NiSource's consolidated
operating earnings (non-GAAP) for the twelve months ended Dec. 31,
2009 were $881.0 million, compared to $918.6 million in 2008. On a
GAAP basis, NiSource reported income from continuing operations for
the twelve months ended Dec. 31, 2009, of $231.2 million, or $0.84
per share, compared with $370.6 million, or $1.35 per share in
2008. Operating income was $801.9 million for 2009 versus $918.7
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. For the three months ended Dec. 31,
2009, net operating earnings were $98.9 million (non-GAAP), or
$0.35 per share, compared with $126.2 million, or $0.46 per share,
for the same period in 2008. On a GAAP basis, income from
continuing operations for the three months ended Dec. 31, 2009 was
$88.5 million, or $0.32 per share, compared with $127.5 million, or
$0.46 per share for the fourth quarter of 2008. Notably, as
reflected in the attached financial statements, year-over-year cash
flows from operating activities increased by more than $1 billion.
In addition, short-term borrowings at year end 2009 were more than
$1 billion lower than at year end 2008. "Our team's exceptional
execution enabled NiSource to not only weather the storm during
2009, but to emerge as a stronger, more robust company," NiSource
President and Chief Executive Officer Robert C. Skaggs, Jr. said.
"Despite unprecedented dislocations in the financial markets and a
very challenging economic environment - particularly in our
Northern Indiana markets - our company's underlying business
performance remained strong, our liquidity position improved
significantly, and we produced tangible results from our core
strategy to build shareholder value and deliver long-term,
sustainable earnings growth. The company noted that its net
operating earnings for 2009 (non-GAAP) were solidly in line with
the company's guidance range of $1.00 to $1.10 per share announced
early last year. The results reflect increased net revenues in
NiSource's Gas Distribution and Gas Transmission & Storage
businesses, as well as the effects of open market debt repurchases
and lower short-term interest rates. As anticipated, these
improvements were more than offset by previously disclosed
increased pension expense, reduced electric demand resulting from
the economic downturn, and incremental interest expense related to
the issuance of long-term debt under the company's liquidity plan.
Revenue improvements help offset economic impacts Compared with
2008, NiSource's 2009 results reflected approximately $69.9 million
in additional net revenues (excluding regulatory trackers) at
NiSource's Gas Distribution unit, primarily attributable to
regulatory initiatives. NiSource's Gas Transmission & Storage
unit also delivered $56.2 million in increased net revenues
(excluding regulatory trackers) resulting from growth projects,
short-term transportation and storage services, and mineral rights
leasing. These improvements helped to lessen impacts from the
economic recession, which resulted in reduced industrial electric
demand of approximately 17 percent compared to 2008 levels.
"Through our revenue growth initiatives, as well as aggressive cost
management efforts across all our businesses, we mitigated a
significant portion of the impacts of the economic recession,"
Skaggs said. "Our ability to deliver on our financial commitments
in the face of a tough economy underscores the resilience of our
core regulated businesses and is a testament to the team's
disciplined execution of their business plans." Financing needs
addressed through 2011, investment-grade ratings affirmed
NiSource's financing and liquidity position continued to improve
during the fourth quarter of 2009, as the company's finance
subsidiary, NiSource Finance Corp., issued $500 million of senior
unsecured notes on Dec. 4, 2009. Proceeds from the issuance will be
used by NiSource to complete the refinancing of outstanding
long-term debt scheduled to mature in 2010 and 2011. The company
continues to maintain its $1.5 billion revolving credit facility
that extends to July 2011. NiSource's December debt issuance
followed a decision by Moody's Investors Service to affirm the
company's investment grade credit rating of Baa3 and raise its
outlook to stable. Moody's cited the successful resolution of a
variety of rate proceedings by NiSource's gas utilities and the
management of the company's liquidity position as major influencing
factors for raising NiSource's outlook to stable. "We are pleased
Moody's recognized the progress we have made in strengthening our
liquidity position and advancing an aggressive business agenda,"
Skaggs said. "As we entered 2009, we emphasized that maintaining
adequate liquidity and managing our upcoming debt maturities were
key near-term priorities for NiSource, and we outlined an
aggressive and comprehensive plan to effectively address those
challenges. Throughout the year, our business units and our finance
team did an outstanding job of executing the plan - capital
expenditure levels were recalibrated, operating expenses and
working capital were managed aggressively, and debt refinancings of
approximately $2 billion were completed. As a result of those and
other efforts, NiSource entered 2010 with a significantly stronger
liquidity profile, and with its long-term financing needs addressed
through 2011." Core business initiatives advance During the fourth
quarter, NiSource continued to advance core elements of its
long-term business strategy, centering on expansion and commercial
growth in its Gas Transmission and Storage business, regulatory and
commercial initiatives at its utilities, and strong financial
process and expense management across the corporation. As noted
above, NiSource's Gas Distribution Operations continued to deliver
strong results during 2009 from a strategy of aligning
infrastructure replacement and enhancement programs with a variety
of regulatory and rate design initiatives. Highlights include: --
Bay State Gas Co. received a favorable base rate case order from
the Massachusetts Department of Public Utilities (DPU) on Oct. 30,
2009, authorizing an increase in annual base revenues of
approximately $19 million, or 3.7 percent. The DPU also approved
Bay State's revenue decoupling mechanism - the first of its kind in
Massachusetts - as well as its proposed tracking mechanism to
recover costs associated with the company's infrastructure
replacement program. -- Columbia Gas of Kentucky received Public
Service Commission approval of a unanimous rate case settlement.
The settlement provided for an overall annual increase in revenues
of approximately $6 million, or 3.7 percent, while authorizing an
increase to the monthly customer charge, the implementation of an
accelerated main replacement program tracker, and the introduction
of a residential energy efficiency program. -- Columbia Gas of
Virginia received Virginia State Corporation Commission approval of
its Conservation and Ratemaking Efficiency (CARE) Plan for a
three-year period (2010-2012). In addition to providing incentives
for residential and small general services customers to actively
pursue energy conservation measures, the CARE Plan establishes a
decoupled rate mechanism. The plan became effective in January of
this year. -- Looking into 2010, Columbia Gas of Pennsylvania filed
a base rate increase request on Jan. 28, with the Pennsylvania
Public Utility Commission. In addition to proposing a new set of
residential home energy efficiency programs and the implementation
of a more progressive rate design, the company is seeking an
increase in its base rates of approximately $32 million annually.
New rates are expected to be placed into effect in the fourth
quarter of 2010. -- Northern Indiana Public Service Company
(NIPSCO) also plans to file a natural gas rate case - the company's
first since 1987 - as early as March of this year, with new rates
anticipated to be effective in late 2010. "Our gas distribution
teams continue to build on their excellent track record of
execution," Skaggs noted. "This ongoing progress is a testament to
our commitment to building creative and collaborative regulatory
and infrastructure investment solutions that benefit customers and
ensure a safe and reliable distribution system." NiSource's Gas
Transmission & Storage (NGT&S) Operations continue to
capture growth opportunities leveraging NiSource's strategically
positioned pipeline and storage assets. A number of NGT&S' new
growth projects are designed to support increasing Marcellus Shale
production, while the company also has continued to grow and adapt
its system to provide critical transportation and storage services
to markets across its high-demand service territory. Some examples
include: -- In April, storage gas injections began for the Ohio
Storage Expansion Project, which increases NGT&S market-area
storage capacity by 6.7 billion cubic feet and enhances delivery
from two Ohio storage fields. In March, the Federal Energy
Regulatory Commission (FERC) issued a certificate authorizing
market-based rates for the project - the first time Columbia Gas
Transmission has received such authority in connection with the
expansion of an existing, traditionally cost-based, storage
facility. -- In August, NGT&S placed in service its Appalachian
Expansion Project, which leverages the company's existing
infrastructure to provide approximately 100,000 dekatherms per day
of new transportation to three key Appalachian producers. --
Including the Appalachian Expansion Project, NGT&S advanced
growth projects representing more than $155 million in investment
in the Marcellus Shale region during 2009, with potential to
provide market access for approximately 700,000 dekatherms per day
of new natural gas supplies. "With our strategic NGT&S
footprint, our system capabilities and our disciplined expansion
investment strategy, NiSource is capitalizing on the unprecedented
producer investment in the Marcellus region, as well as additional
new storage and transportation business opportunities across our
system," Skaggs said. NiSource's Electric Operations also continued
to make progress on an aggressive regulatory and business agenda,
despite pressures caused by the economic downturn. -- NIPSCO took
steps during 2009 to advance a number of key initiatives designed
to improve operating reliability and customer service, and to
establish a platform for long-term earnings growth. -- During 2009,
NIPSCO teams continued to advance the company's 2008 electric rate
case. Parties to the case completed the briefing process last
month, and the Indiana Utility Regulatory Commission (IURC) is
expected to issue an order in the case during the first half of
this year. -- As previously announced, NIPSCO intends to file a
subsequent electric base rate case during 2010. The filing will
include the effect of increased pension expense, as well as demand
levels based on more recent operating experience, among other
items. New rates from this case are expected to be effective in
2011. "Without question, 2009 was a challenging year for NIPSCO,"
Skaggs noted. "The company's earnings were impacted by a
significant increase in pension expense, as well as materially
lower industrial demand as a result of the economic recession.
Looking forward, we have a solid regulatory and business plan for
2010 to restore NIPSCO's earnings base and position it to grow in
the future. Executing that plan is a key priority for NiSource this
year." Strategic focus continues in 2010 Looking forward to 2010,
Skaggs said NiSource will continue to aggressively focus on its
core business strategy of synchronizing infrastructure investment
with appropriate regulatory and commercial activities. "Our key
business priorities for this year are to advance the next wave of
Marcellus Shale growth projects in our NGT&S business, continue
to execute our infrastructure replacement programs and related
regulatory initiatives in the Gas Distribution segment, and
complete the NIPSCO repositioning process," Skaggs said. In terms
of financial performance, Skaggs said NiSource expects its earnings
to grow by 3 to 5 percent on a long-term basis. For 2010, net
operating earnings (non-GAAP) are projected to fall within a range
of $1.10 to $1.20 per share. There will likely be differences
between net operating earnings and GAAP earnings for matters
including, but not limited to, weather, restructuring costs and
accounting changes. NiSource is not able to estimate the impact of
such items on GAAP earnings and, as such, is not providing earnings
guidance on a GAAP basis. Skaggs said that the company's outlook
assumes a gradual and modest pace of economic recovery across the
markets served by its utilities, continuing the trend experienced
during the latter half of 2009. He also indicated that, in light of
NiSource's improved liquidity position and its deep inventory of
investment opportunities, the company is projecting a capital
expenditure level of approximately $900 million for 2010, an
increase of approximately $100 million, or 12.5 percent, over its
2009 program. "Although the landscape we face today is much more
stable, and less treacherous, than the one we encountered a year
ago, 2010 will present its share of challenges," Skaggs said. "As
we face those challenges and continue the basic work of building
and growing NiSource, I am convinced we do so as a stronger company
- one with a business plan that is compelling, balanced and
tested." Full Year 2009 Operating Earnings - Segment Results
(non-GAAP) NiSource's consolidated operating earnings (non-GAAP)
for the year ended Dec. 31, 2009, were $881.0 million, compared to
$918.6 million in 2008. Refer to Schedule 2 for the items included
in 2009 and 2008 GAAP operating income but excluded from operating
earnings. Operating earnings for NiSource's business segments for
the full year ended Dec. 31, 2009 are discussed below. Gas
Distribution Operations reported operating earnings of $329.3
million, slightly above $328.2 million of operating earnings in
2008. As noted above, net revenues, excluding the impact of
regulatory and tax trackers, increased $69.9 million, primarily
attributable to regulatory and service programs including impacts
from rate cases at various utilities, partially offset by decreased
customer usage and lower off-system sales revenues. Operating
expenses, excluding trackers, were $68.8 million higher than the
comparable period, reflecting higher employee and administrative
costs, depreciation costs and uncollectible accounts. The higher
employee and administrative costs were primarily due to increases
in pension expense of $31.8 million, net of the deferral of pension
costs for Columbia Gas of Ohio. Gas Transmission and Storage
Operations reported operating earnings of $408.8 million versus
operating earnings of $376.7 million in 2008. The increase resulted
primarily from increased net revenues of $56.2 million, excluding
regulatory trackers, primarily attributable to increases in firm
capacity reservation fees from growth projects such as the Eastern
Market Expansion and the Ohio Storage Expansion, as well as for new
Appalachian supply contracts, increases in shorter term
transportation and storage services, and mineral rights leasing
revenues. Equity earnings increased by $3.7 million primarily
resulting from increased earnings from Millennium Pipeline in its
first full year of service, despite an $8.1 million reduction in
equity earnings resulting from interest rate hedges related to
Millennium's decision to delay permanent financing until 2010.
Operating expenses increased by $27.8 million, excluding trackers,
due to higher capacity lease costs, employee and administrative
costs, outside services, maintenance costs, and environmental
expenses. In addition, 2008 operating expenses were favorably
impacted by the reduction of legal reserves. Electric Operations
reported operating earnings of $162.4 million for 2009, compared
with $220.2 million in 2008. Lower net revenues and higher
operating expenses both contributed to the lower operating
earnings. Excluding regulatory trackers, net revenue decreased by
$17.1 million primarily from lower industrial usage, off-system
sales, emission allowance sales and Sugar Creek revenues from
capacity sales into the PJM Interconnection, partially offset by
lower non-recoverable purchased power costs. Operating expenses
increased by $40.7 million, excluding trackers, due primarily to
higher pension expense of $42.6 million, other employee and
administrative costs, and higher electric generation and
maintenance expenses, partially offset by lower property taxes,
environmental expenses and depreciation. The decrease in
depreciation expense is due primarily to the impact of an $8.3
million adjustment recorded by NIPSCO during the second quarter of
2008. Other Operations reported an operating earnings loss of $4.6
million for 2009 compared to operating earnings of $1.6 million for
2008. Last year's operating earnings results include earnings from
the unregulated natural gas marketing business. Operating earnings
this year no longer include results from that business. See
discussion below under Discontinued Operations (GAAP). Other
Operation's operating earnings for 2009 include results from the
NiSource Development companies such as low income housing
properties and Lake Erie Land, NiSource Energy Technology, Primary
Energy, and Columbia Network Services. Other Items Interest expense
increased by $24.1 million due to incremental interest expense
associated with the issuance of $700 million of long-term debt in
May of 2008, $600 million of long-term debt in March of 2009 and
the $385 million two-year term loan issued in April of 2009,
partially offset by the open market debt repurchase of $100 million
in January 2009, the $250.6 million tender offer debt repurchase in
April 2009 and lower short-term interest rates. Other-net was a
loss of $1.4 million in 2009 compared to income of $0.9 million for
2008 as a result of lower interest income. The effective tax rate
of net operating earnings was 38.6 percent compared to 35.8 percent
for the same period last year. The tax rate is higher in 2009
versus last year due to deferred income tax adjustments related
primarily to state income tax apportionment changes and an increase
in tax expense related to AFUDC equity. Fourth Quarter 2009
Operating Earnings - Segment Results (non-GAAP) NiSource's
consolidated fourth-quarter 2009 operating earnings (non-GAAP) were
$258.5 million, compared to $297.9 million for the same period in
2008. Refer to Schedule 2 for the items included in 2009 and 2008
GAAP operating income but excluded from operating earnings.
Operating earnings for NiSource's business segments for the fourth
quarter ended Dec. 31, 2009, are discussed below. Gas Distribution
Operations reported operating earnings of $114.5 million versus
operating earnings of $134.6 million in the fourth quarter of 2008.
Net revenues, excluding the impact of regulatory and tax trackers,
increased $3.9 million, primarily attributable to regulatory and
service programs including impacts from rate cases at various
utilities, partially offset by lower customer usage. Operating
expenses, excluding trackers, were $24.0 million higher than the
comparable period, reflecting an increase in employee and
administrative costs, which includes higher pension expense, along
with higher uncollectible receivables and higher depreciation
costs. After deferring pension costs for Columbia Gas of Ohio,
pension expense increased $7.9 million for Gas Distribution
Operations for the quarter. Gas Transmission and Storage Operations
reported operating earnings of $116.6 million, essentially flat
with operating earnings of $116.5 million in the fourth quarter of
2008. Net revenues, excluding the impact of regulatory and tax
trackers, increased $19.2 million, primarily attributable to
increases in firm capacity reservation fees for growth projects
including the Eastern Market Expansion and the Ohio Storage
Expansion, as well as for new Appalachian supply contracts, and
increased shorter term transportation and storage services. Equity
earnings increased by $1.1 million due to increased earnings from
Millennium. Operating expenses increased $20.2 million, excluding
trackers, due primarily to higher maintenance costs, including
expenditures for the Integrity Management Program. In addition,
2008 operating expenses were favorably impacted by the reduction of
legal reserves. Electric Operations reported operating earnings of
$35.6 million versus operating earnings of $47.9 million from the
same quarter last year. Net revenues, excluding regulatory
trackers, were $0.3 million lower than last year. Increased
commercial and industrial usage was more than offset by lower Sugar
Creek revenues from capacity sales into the PJM Interconnection and
lower sales of emission allowances. Operating expenses increased by
$12.0 million, excluding trackers, due primarily to higher pension
expense of $10.8 million and other employee and administrative
expenses. Other Operations reported an operating earnings loss of
$1.7 million in the fourth quarter of 2009, compared with operating
earnings of $0.8 million in the prior year. Last year's operating
results include earnings from the unregulated natural gas marketing
business. Operating earnings this year no longer include results
from that business. See discussion below under Discontinued
Operations (GAAP). Other Operation's operating earnings for 2009
include results from the NiSource Development companies such as low
income housing properties and Lake Erie Land, NiSource Energy
Technology, Primary Energy, and Columbia Network Services. Other
Items Interest expense decreased by $2.7 million in the fourth
quarter of 2009 compared to the same period last year due to lower
short-term borrowings and short-term interest rates coupled with
the debt repurchases during 2009, partially offset by the new debt
issuances during 2009. Other-net was $0.8 million compared to a
loss of $2.9 million last year due to increased AFUDC equity
earnings, partially offset by lower interest income. The effective
tax rate of net operating earnings for the fourth quarter of 2009
was 38.5 percent compared to 34.8 percent for the same period last
year. The tax rate is higher in 2009 versus last year due to
deferred income tax adjustments related primarily to state income
tax apportionment changes. Income from Continuing Operations (GAAP)
On a GAAP basis, NiSource reported income from continuing
operations for the twelve months ended Dec. 31, 2009, of $231.2
million, or $0.84 per share, compared with $370.6 million, or $1.35
per share in 2008. On a GAAP basis, income from continuing
operations for the three months ended Dec. 31, 2009 was $88.5
million, or $0.32 per share, compared with $127.5 million, or $0.46
per share for the fourth quarter of 2008. Discontinued Operations
During the second and third quarters of 2009, NiSource was pursuing
the sale of its unregulated natural gas marketing business. In both
periods, net assets for the business were accounted for as assets
and liabilities held for sale and discontinued operations, and as
such, the results of operations and cash flows were classified as
discontinued operations for all periods presented. In the fourth
quarter, it was determined the sale of NiSource's unregulated
natural gas marketing business was no longer probable. As such, the
assets and liabilities were reclassified to assets held and used at
Dec. 31, 2009, and the results of the business are now included
within continuing operations (GAAP). In the first quarter of 2008,
NiSource began accounting for the operations of Northern Utilities,
Granite State Gas and Whiting Clean Energy as discontinued
operations. All three businesses were disposed of during 2008. For
the twelve months ended Dec. 31, 2008, NiSource recorded an
after-tax loss of $108.1 million ($0.39 per share) for the
disposition of these operations. All results of operations for
these businesses are classified as net income from discontinued
operations. In addition, NiSource recorded an accrual related to
the Tawney lawsuit in West Virginia which was settled during the
fourth quarter of 2008. 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 3.7 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
http://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 presentation 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; the effectiveness of NiSource's
restructured outsourcing agreement; 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 counterparty credit risk, many
of which are risks beyond the control of NiSource. In addition, the
relative contributions to profitability by each segment, and the
assumptions underlying the forward-looking statements relating
thereto, may change over time. NiSource expressly disclaims a duty
to update any of the forward-looking statements contained in this
release. NiSource Inc. Consolidated Net Operating Earnings (Non -
GAAP) (unaudited) Three Months Twelve Months Ended December 31,
Ended December 31, ------------------ ------------------ (in
millions, except per share amounts) 2009 2008 2009 2008
-------------------------------------------------------------------------
Net Revenues Gas Distribution $841.1 $1,460.6 $3,296.2 $5,163.2 Gas
Transportation and Storage 340.8 322.3 1,239.5 1,132.4 Electric
309.9 305.1 1,244.6 1,362.3 Other 9.7 285.0 54.4 1,218.3
-------------------------------------------------------------------------
Gross Revenues 1,501.5 2,373.0 5,834.7 8,876.2 Cost of Sales
(excluding depreciation and amortization) 585.1 1,469.9 2,495.1
5,633.3
-------------------------------------------------------------------------
Total Net Revenues 916.4 903.1 3,339.6 3,242.9
-------------------------------------------------------------------------
Operating Expenses Operation and maintenance 371.5 319.1 1,358.2
1,245.2 Operation and maintenance - trackers 72.2 66.1 247.2 216.9
Depreciation and amortization 146.3 141.4 580.3 560.9 Depreciation
and amortization -trackers 2.4 1.4 8.6 6.1 Other taxes 49.6 50.3
199.1 209.8 Other taxes - trackers 22.3 32.2 81.2 97.7
-------------------------------------------------------------------------
Total Operating Expenses 664.3 610.5 2,474.6 2,336.6
-------------------------------------------------------------------------
Equity Earnings in Unconsolidated Affiliates 6.4 5.3 16.0 12.3
-------------------------------------------------------------------------
Operating Earnings 258.5 297.9 881.0 918.6
-------------------------------------------------------------------------
Other Income (Deductions) Interest expense, net (98.6) (101.3)
(399.0) (374.9) Other, net 0.8 (2.9) (1.4) 0.9
-------------------------------------------------------------------------
Total Other Income (Deductions) (97.8) (104.2) (400.4) (374.0)
-------------------------------------------------------------------------
Operating Earnings From Continuing Operations Before Income Taxes
160.7 193.7 480.6 544.6 Income Taxes 61.8 67.5 185.3 195.2
-------------------------------------------------------------------------
Net Operating Earnings from Continuing Operations 98.9 126.2 295.3
349.4
-------------------------------------------------------------------------
GAAP Adjustment (10.4) 1.3 (64.1) 21.2
-------------------------------------------------------------------------
GAAP Income from Continuing Operations $88.5 $127.5 $231.2 $370.6
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Basic Net Operating Earnings Per Share from Continuing Operations
0.35 0.46 1.07 1.28
-------------------------------------------------------------------------
-------------------------------------------------------------------------
GAAP Basic Earnings Per Share from Continuing Operations 0.32 0.46
0.84 1.35
-------------------------------------------------------------------------
Basic Average Common Shares Outstanding 276.0 274.0 275.1 274.0
-------------------------------------------------------------------------
NiSource Inc. Segment Operating Earnings (Non-GAAP)
------------------------------------------------------------------------
Three Months Twelve Months Ended Ended December 31, December 31,
Gas Distribution Operations -------------- -------------- (in
millions) 2009 2008 2009 2008
------------------------------------------------------------------------
Net Revenues Sales Revenues $1,006.4 $1,627.7 $3,902.4 $5,732.5
Less: Cost of gas sold 548.1 1,167.4 2,293.0 4,197.9
------------------------------------------------------------------------
Net Revenues 458.3 460.3 1,609.4 1,534.6
------------------------------------------------------------------------
Operating Expenses Operation and maintenance 182.9 162.2 680.7
629.9 Operation and maintenance - trackers 56.3 52.3 187.3 165.9
Depreciation and amortization 61.9 57.6 248.1 228.8 Other taxes
20.4 21.4 82.8 84.1 Other taxes - trackers 22.3 32.2 81.2 97.7
----------------- Total Operating Expenses 343.8 325.7 1,280.1
1,206.4
------------------------------------------------------------------------
Operating Earnings $114.5 $134.6 $329.3 $328.2
------------------------------------------------------------------------
GAAP Adjustment 0.1 12.6 (1.5) 7.9
------------------------------------------------------------------------
GAAP Operating Income $114.6 $147.2 $327.8 $336.1
========================================================================
------------------------------------------------------------------------
Three Months Twelve Months Gas Transmission and Ended Ended Storage
Operations December 31, December 31, ---------------
--------------- (in millions) 2009 2008 2009 2008
------------------------------------------------------------------------
Net Revenues Transportation revenues $207.3 $191.1 $724.6 $682.5
Storage revenues 48.4 44.2 190.8 178.9 Other revenues 1.9 1.4 15.3
3.9
------------------------------------------------------------------------
Net Operating Revenues 257.6 236.7 930.7 865.3
------------------------------------------------------------------------
Operating Expenses Operation and maintenance 88.2 69.5 306.2 281.7
Operation and maintenance - trackers 14.2 12.5 54.3 45.1
Depreciation and amortization 31.4 29.8 121.5 117.6 Other taxes
13.6 13.7 55.9 56.5
------------------------------------------------------------------------
Total Operating Expenses 147.4 125.5 537.9 500.9 Equity Earnings in
Unconsolidated Affiliates 6.4 5.3 16.0 12.3 Operating Earnings
$116.6 $116.5 $408.8 $376.7
========================================================================
GAAP Adjustment (0.5) (11.8) (20.3) (7.0)
------------------------------------------------------------------------
GAAP Operating Income $116.1 $104.7 $388.5 $369.7
========================================================================
NiSource Inc. Segment Operating Earnings (Non-GAAP)
------------------------------------------------------------------------
Three Months Twelve Months Electric Operations Ended December 31,
Ended December 31, ------------------ ------------------ (in
millions) 2009 2008 2009 2008
------------------------------------------------------------------------
Net Revenues Sales revenues $313.2 $306.7 $1,252.8 $1,368.0 Less:
Cost of sales 112.7 107.3 456.5 556.8 Net Revenues 200.5 199.4
796.3 811.2 Operating Expenses Operation and maintenance 98.4 85.8
371.9 318.8 Operation and maintenance - trackers 1.7 1.3 5.6 5.9
Depreciation and amortization 49.6 50.7 197.0 203.5 Depreciation
and amortization - trackers 2.4 1.4 8.6 6.1 Other taxes 12.8 12.3
50.8 56.7 Total Operating Expenses 164.9 151.5 633.9 591.0
------------------------------------------------------------------------
Operating Earnings $35.6 $47.9 $162.4 $220.2
========================================================================
GAAP Adjustment (2.7) 0.8 (45.7) (1.0)
------------------------------------------------------------------------
GAAP Operating Income $32.9 $48.7 $116.7 $219.2
========================================================================
------------------------------------------------------------------------
Three Months Twelve Months Other Operations Ended December 31,
Ended December 31, ------------------ ------------------- (in
millions) 2009 2008 2009 2008
------------------------------------------------------------------------
Net Revenues Products and services revenue $2.0 $271.1 $8.2
$1,171.7 Less: Cost of products purchased - 265.2 - 1,144.2 Net
Revenues 2.0 5.9 8.2 27.5 Operating Expenses Operation and
maintenance 3.0 3.3 10.0 18.2 Depreciation and amortization 0.5 0.6
2.0 2.4 Other taxes 0.2 1.2 0.8 5.3
------------------------------------------------------------------------
Total Operating Expenses 3.7 5.1 12.8 25.9
------------------------------------------------------------------------
Operating Earnings (Loss) $(1.7) $0.8 $(4.6) $1.6
========================================================================
GAAP Adjustment (6.9) (0.1) (9.9) 0.4
------------------------------------------------------------------------
GAAP Operating Income (Loss) $(8.6) $0.7 $(14.5) $2.0
========================================================================
------------------------------------------------------------------------
Three Months Twelve Months Corporate Ended December 31, Ended
December 31, ------------------ ------------------ (in millions)
2009 2008 2009 2008
------------------------------------------------------------------------
Operating Earnings (Loss) $(6.5) $(1.9) $(14.9) $(8.1)
========================================================================
GAAP Adjustment (1.0) (0.1) (1.7) (0.2)
------------------------------------------------------------------------
GAAP Operating Income (Loss) $(7.5) $(2.0) $(16.6) $(8.3)
========================================================================
NiSource Inc. Segment Volumes and Statistical Data Three Months
Twelve Months Ended December 31, Ended December 31, Gas
Distribution ------------------ ------------------ Operations 2009
2008 2009 2008
----------------------------------------------------------------
Sales and Transportation (MMDth) Residential 83.5 91.6 265.2 278.0
Commercial 51.1 53.0 169.4 174.2 Industrial 89.7 88.4 335.9 373.2
Off System 15.0 19.8 59.7 96.8 Other 0.2 0.2 0.8 1.0
---------------------------------------------------------------
Total 239.5 253.0 831.0 923.2
---------------------------------------------------------------
Weather Adjustment 1.1 (9.8) 1.4 (7.6)
---------------------------------------------------------------
Sales and Transportation Volumes - Excluding Weather 240.6 243.2
832.4 915.6
===============================================================
Heating Degree Days 2,031 2,184 5,624 5,771 Normal Heating Degree
Days 2,037 2,037 5,633 5,664 % Colder (Warmer) than Normal 0% 7% 0%
2% Customers Residential 3,032,597 3,037,504 Commercial 279,144
280,195 Industrial 7,895 8,003 Other 79 76
----------------------------------------------------------------
Total 3,319,715 3,325,778
----------------------------------------------------------------
Gas Transmission and Three Months Twelve Months Storage Operations
Ended December 31, Ended December 31, ------------------
------------------- 2009 2008 2009 2008
----------------------------------------------------------------
Throughput (MMDth) Columbia Transmission 292.9 292.6 1,029.8
1,000.0 Columbia Gulf 185.7 230.9 894.1 989.3 Columbia Pipeline
Deep Water - - - 0.9 Crossroads Gas Pipeline 7.9 8.8 33.9 36.3
Intrasegment eliminations (122.8) (140.0) (566.4) (538.0)
----------------------------------------------------------------
Total 363.7 392.3 1,391.4 1,488.5
----------------------------------------------------------------
NiSource Inc. Segment Volumes and Statistical Data (continued)
------------------------------------------------------------------------
Three Months Twelve Months Electric Operations Ended December 31,
Ended December 31, ------------------ ------------------- 2009 2008
2009 2008
------------------------------------------------------------------------
Sales (Gigawatt Hours) Residential 795.9 813.2 3,241.4 3,345.9
Commercial 926.3 936.1 3,833.9 3,915.8 Industrial 1,967.5 2,011.4
7,690.9 9,305.4 Wholesale 215.4 186.4 600.6 737.2 Other 46.5 36.1
158.9 138.2
------------------------------------------------------------------------
Total 3,951.6 3,983.2 15,525.7 17,442.5
------------------------------------------------------------------------
Weather Adjustment (3.1) (16.1) 343.4 81.8
------------------------------------------------------------------------
Sales Volumes Excluding Weather impacts 3,948.5 3,967.1 15,869.1
17,524.3
========================================================================
Cooling Degree Days 515 716 Normal Cooling Degree Days 814 814 %
Warmer (Colder) than Normal (37%) (12%) Electric Customers
Residential 400,016 400,640 Commercial 53,617 53,438 Industrial
2,441 2,484 Wholesale 15 9 Other 746 754
------------------------------------------------------------------------
Total 456,835 457,325
------------------------------------------------------------------------
NiSource Inc. Schedule 1 - Reconciliation of Net Operating Earnings
to GAAP
---------------------------------------------------------------------
Three Months Twelve Months Ended December 31, Ended December 31,
(in millions, except per ------------------ ----------------- share
amounts) 2009 2008 2009 2008
---------------------------------------------------------------------
Net Operating Earnings from Continuing Operations (Non-GAAP) $98.9
$126.2 $295.3 $349.4
---------------------------------------------------------------------
Items excluded from operating earnings: Net Revenues: Weather -
compared to normal (0.7) 13.9 (23.2) 2.8 Revenue adjustment 0.8 -
(8.2) - Unregulated natural gas marketing business 10.5 - 23.2 -
Operating Expenses: Restructuring (0.6) - (25.2) - Transition
charges (IBM Agreement) (0.1) (2.2) (3.5) (7.8) Legal reserve (3.0)
- (10.0) - Unregulated natural gas marketing business (4.6) -
(13.0) - Medical expense adjustment out of period - - - 12.7
Gain/Loss on sale of assets and asset impairments (13.3) (10.3)
(19.2) (7.6)
---------------------------------------------------------------------
Total items excluded from operating earnings (11.0) 1.4 (79.1) 0.1
---------------------------------------------------------------------
Loss on early extinguishment of debt (6.9) - (4.5) -
---------------------------------------------------------------------
Other Income -Gain on sale of JOF - - - 16.7 Interest Expense
-Reserve for Interest Rate Swaps - 0.7 - (4.8) Income Taxes
-Massachusetts Tax Law change - 1.4 - 14.9 Income Taxes - Tax
Method change 1.7 - (6.1) -
---------------------------------------------------------------------
Tax effect of above items and other income tax adjustments 5.8
(2.2) 25.6 (5.7)
---------------------------------------------------------------------
---------------------------------------------------------------------
Total items excluded from net operating earnings (10.4) 1.3 (64.1)
21.2
---------------------------------------------------------------------
---------------------------------------------------------------------
Reported Income from Continuing Operations - GAAP $88.5 $127.5
$231.2 $370.6
=====================================================================
---------------------------------------------------------------------
Basic Average Common Shares Outstanding 276.0 274.0 275.1 274.0
---------------------------------------------------------------------
Basic Net Operating Earnings Per Share from Continuing Operations
($) 0.35 0.46 1.07 1.28
---------------------------------------------------------------------
Items excluded from net operating earnings (after-tax) (0.03) -
(0.23) 0.07
---------------------------------------------------------------------
GAAP Basic Earnings Per Share from Continuing Operations 0.32 0.46
0.84 1.35
---------------------------------------------------------------------
NiSource Inc. Schedule 2 - Adjustments by Segment from Operating
Earnings to GAAP For Quarter ended December 31, 2009 (in millions)
---------------------------------------------------------------------
Gas Transmission Gas and Distribution Storage Electric Other
Corporate Total --------------------------------------------------
----- Operating Earnings (Loss) $114.5 $116.6 $35.6 $(1.7) $(6.5)
$258.5 Net Revenues: Weather (compared to normal) (1.0) - 0.3 - -
(0.7) Unregulated natural gas marketing business - - - 11.5 (1.0)
10.5 Revenue adjustment - - 0.8 - - 0.8
-------------------------------------------------- Total Impact -
Net Revenues (1.0) - 1.1 11.5 (1.0) 10.6 Operating Expenses
Restructuring (0.2) 0.1 (0.5) - - (0.6) Transition charges (0.1) -
- - - (0.1) Legal reserve - - (3.0) - - (3.0) Unregulated natural
gas marketing business - - - (4.6) - (4.6) Gain/Loss on sale of
assets and asset impairments 1.4 (0.6) (0.3) (13.8) - (13.3)
--------------------------------------------------- Total Impact -
Operating Expenses 1.1 (0.5) (3.8) (18.4) - (21.6)
--------------------------------------------------- Total Impact -
Operating Income (Loss) $0.1 $(0.5) $(2.7) $(6.9) $(1.0) $(11.0)
--------------------------------------------------- Operating
Income (Loss) -GAAP $114.6 $116.1 $32.9 $(8.6) $(7.5) $247.5
--------------------------------------------------- 2008 (in
millions)
---------------------------------------------------------------------
Gas Transmission Gas and Distribution Storage Electric Other
Corporate Total --------------------------------------------------
----- Operating Earnings (Loss) $134.6 $116.5 $47.9 $0.8 $(1.9)
$297.9 Net Revenues: Weather (compared to normal) 12.8 - 1.1 - -
13.9 --------------------------------------------------- Total
Impact -Net Revenues 12.8 - 1.1 - - 13.9 Operating Expenses
Transition charges (IBM Agreement) (1.4) (0.4) (0.4) - - (2.2)
Gain/(Loss) on sale of assets and asset impairments 1.2 (11.4) 0.1
(0.1) (0.1) (10.3)
--------------------------------------------------- Total Impact -O
& M Expenses (0.2) (11.8) (0.3) (0.1) (0.1) (12.5)
--------------------------------------------------- Total Impact -
Operating Income (Loss) $12.6 $(11.8) $0.8 $(0.1) $(0.1) $1.4
--------------------------------------------------- Operating
Income (Loss) -GAAP $147.2 $104.7 $48.7 $0.7 $(2.0) $299.3
--------------------------------------------------- NiSource Inc.
Schedule 2 - Adjustments by Segment from Operating Earnings to GAAP
For Twelve Months ended December 31, 2009 (in millions)
----------------------------------------------------------------------
Gas Transmission Gas and Distribution Storage Electric Other
Corporate Total --------------------------------------------------
----- Operating Earnings (Loss) $329.3 $408.8 $162.4 $(4.6) $(14.9)
$881.0 Net Revenues: Weather (compared to normal) - - (23.2) - -
(23.2) Revenue sales adjustment - - (8.2) - - (8.2) Unregulated
natural gas marketing business - - - 24.8 (1.6) 23.2
--------------------------------------------------- Total Impact
-Net Revenues - - (31.4) 24.8 (1.6) (8.2) Operating Expenses
Restructuring (1.6) (19.9) (3.7) - - (25.2) Transition charges (IBM
Agreement) (1.3) (1.8) (0.3) - (0.1) (3.5) Legal reserve - - (10.0)
- - (10.0) Unregulated natural gas marketing business - - - (13.0)
- (13.0) Gain/Loss on sale of assets and asset impairments 1.4 1.4
(0.3) (21.7) - (19.2)
--------------------------------------------------- Total Impact -
Operating Expenses (1.5) (20.3) (14.3) (34.7) (0.1) (70.9)
--------------------------------------------------- Total Impact -
Operating Income (Loss) $(1.5) $(20.3) $(45.7) $(9.9) $(1.7)
$(79.1) ---------------------------------------------------
Operating Income (Loss) - GAAP $327.8 $388.5 $116.7 $(14.5) $(16.6)
$801.9 --------------------------------------------------- 2008 (in
millions)
----------------------------------------------------------------------
Gas Transmission Gas and Distribution Storage Electric Other
Corporate Total --------------------------------------------------
----- Operating Earnings (Loss) $328.2 $376.7 $220.2 $1.6 $(8.1)
$918.6 Net Revenues: Weather (compared to normal) 8.1 - (5.3) - -
2.8 -------------------------------------------------------- Total
Impact -Net Revenues 8.1 - (5.3) - - 2.8 Operating Expenses
Transition charges (IBM Agreement) (4.8) (1.5) (1.2) (0.1) (0.2)
(7.8) Medical expense adjustment out of period 4.4 2.5 5.5 0.1 0.2
12.7 Gain/(Loss) on sale of assets and asset impairments 0.2 (8.0)
- 0.4 (0.2) (7.6)
-------------------------------------------------------- Total
Impact - O & M Expenses (0.2) (7.0) 4.3 0.4 (0.2) (2.7)
-------------------------------------------------------- Total
Impact - Operating Income (Loss) $7.9 $(7.0) $(1.0) $0.4 $(0.2)
$0.1 --------------------------------------------------------
Operating Income (Loss) -GAAP $336.1 $369.7 $219.2 $2.0 $(8.3)
$918.7 --------------------------------------------------------
NiSource Inc. Consolidated Income Statements (GAAP) (unaudited)
Three Months Twelve Months Ended December 31, Ended December 31,
(in millions, except
----------------------------------------------- per share amounts)
2009 2008 2009 2008
-----------------------------------------------------------------------
Net Revenues Gas Distribution $840.1 $1,473.4 $3,296.2 $5,171.3 Gas
Transportation and Storage 340.8 322.3 1,239.5 1,132.4 Electric
311.0 306.2 1,213.2 1,357.0 Other 192.8 285.0 900.5 1,218.3
-----------------------------------------------------------------------
Gross Revenues 1,684.7 2,386.9 6,649.4 8,879.0 Cost of Sales
(excluding depreciation and amortization) 757.7 1,469.9 3,318.0
5,633.3
-----------------------------------------------------------------------
Total Net Revenues 927.0 917.0 3,331.4 3,245.7
-----------------------------------------------------------------------
Operating Expenses Operation and maintenance 451.1 387.3 1,653.4
1,457.2 Depreciation and amortization 148.6 142.8 589.0 567.0
Impairment and (gain)/loss on sale of assets, net 13.3 10.4 19.2
7.6 Other taxes 72.9 82.5 283.9 307.5
-----------------------------------------------------------------------
Total Operating Expenses 685.9 623.0 2,545.5 2,339.3
-----------------------------------------------------------------------
Equity Earnings in Unconsolidated Affiliates 6.4 5.3 16.0 12.3
-----------------------------------------------------------------------
Operating Income 247.5 299.3 801.9 918.7
-----------------------------------------------------------------------
Other Income (Deductions) Interest expense, net (98.6) (100.6)
(399.0) (379.7) Loss on early extinguishment of long-term debt
(6.9) - (4.5) - Other, net 0.8 (2.9) (1.4) 17.6
-----------------------------------------------------------------------
Total Other Income (Deductions) (104.7) (103.5) (404.9) (362.1)
-----------------------------------------------------------------------
Income From Continuing Operations Before Income Taxes 142.8 195.8
397.0 556.6 Income Taxes 54.3 68.3 165.8 186.0
-----------------------------------------------------------------------
Income from Continuing Operations 88.5 127.5 231.2 370.6
-----------------------------------------------------------------------
Income (Loss) from Discontinued Operations -net of taxes 1.0 38.4
(10.7) (183.4) Loss on Disposition of Discontinued Operations -net
of taxes - (3.9) (2.8) (108.2)
-----------------------------------------------------------------------
Net Income $89.5 $162.0 $217.7 $79.0
=======================================================================
Basic Earnings Per Share Continuing operations $0.32 $0.46 $0.84
$1.35 Discontinued operations - 0.13 (0.05) (1.06)
-----------------------------------------------------------------------
Basic Earnings Per Share $0.32 $0.59 $0.79 $0.29
-----------------------------------------------------------------------
Diluted Earnings Per Share Continuing operations $0.32 $0.46 $0.84
$1.35 Discontinued operations - 0.13 (0.05) (1.06) Diluted Earnings
Per Share $0.32 $0.59 $0.79 $0.29
-----------------------------------------------------------------------
Dividends Declared Per Common Share $0.23 $0.23 $0.92 $0.92
-----------------------------------------------------------------------
Basic Average Common Shares Outstanding 276.0 274.0 275.1 274.0
Diluted Average Common Shares 276.8 275.5 275.8 275.4
-----------------------------------------------------------------------
NiSource Inc. Consolidated Balance Sheets (unaudited) December 31,
December 31, (in millions) 2009 2008 ------------- ---- ---- ASSETS
Property, Plant and Equipment Utility Plant $18,946.1 $18,356.8
Accumulated depreciation and amortization (8,353.7) (8,080.8)
----------------------------------- -------- -------- Net utility
plant 10,592.4 10,276.0 -----------------------------------
-------- -------- Other property, at cost, less accumulated
depreciation 91.5 112.7 -----------------------------------
-------- -------- Net Property, Plant and Equipment 10,683.9
10,388.7 ----------------------------------- -------- --------
Investments and Other Assets Assets of discontinued operations and
assets held for sale 18.7 45.5 Unconsolidated affiliates 165.8 86.8
Other investments 129.2 117.9 -----------------------------------
-------- -------- Total Investments and Other Assets 313.7 250.2
---------------------------------- ----- ----- Current Assets Cash
and cash equivalents 16.4 20.6 Restricted cash 174.7 286.6 Accounts
receivable (less reserve of $39.6 and $43.9, respectively) 808.6
1,143.2 Income tax receivable 24.9 - Gas inventory 384.8 511.8
Underrecovered gas and fuel costs 40.2 180.2 Materials and
supplies, at average cost 102.3 95.1 Electric production fuel, at
average cost 59.9 63.8 Price risk management assets 173.3 150.4
Exchange gas receivable 72.5 393.8 Regulatory assets 238.3 314.9
Assets of discontinued operations and assets held for sale 2.2 1.0
Prepayments and other 125.5 249.1
----------------------------------- -------- -------- Total Current
Assets 2,223.6 3,410.5 ----------------------------------- --------
-------- Other Assets Price risk management assets 237.6 200.7
Regulatory assets 1,644.1 1,640.4 Goodwill 3,677.3 3,677.3
Intangible assets 319.6 330.6 Postretirement and postemployment
benefits assets 19.8 10.3 Deferred charges and other 152.1 123.5
----------------------------------- -------- -------- Total Other
Assets 6,050.5 5,982.8 ----------------------------------- --------
-------- Total Assets $19,271.7 $20,032.2
=================================== ========= ========= NiSource
Inc. Consolidated Balance Sheets (continued) (unaudited) December
31, December 31, (in millions, except share amounts) 2009 2008
---------------------------------- ---- ---- CAPITALIZATION AND
LIABILITIES Capitalization Common Stockholders' Equity Common stock
- $0.01 par value, 400,000,000 shares authorized; 276,638,021 and
274,261,799 shares issued and outstanding, respectively $2.8 $2.7
Additional paid-in capital 4,057.6 4,020.3 Retained earnings 865.5
901.1 Accumulated other comprehensive Loss (45.9) (172.0) Treasury
stock (25.9) (23.3) ----------------------------------- --------
-------- Total Common Stockholders' Equity 4,854.1 4,728.8
Long-term debt, excluding amounts due within one year 5,987.5
5,943.9 ----------------------------------- -------- -------- Total
Capitalization 10,841.6 10,672.7
----------------------------------- -------- -------- Current
Liabilities Current portion of long-term debt 696.9 469.3
Short-term borrowings 103.0 1,163.5 Accounts payable 502.1 693.9
Dividends declared 0.2 - Customer deposits and accounts receivable
credit balances 301.2 275.9 Taxes accrued 212.9 206.5 Interest
accrued 125.4 120.1 Overrecovered gas and fuel costs 220.4 35.9
Price risk management liabilities 190.1 286.5 Exchange gas payable
222.2 555.5 Deferred revenue 27.3 14.7 Regulatory liabilities 43.8
40.4 Accrued liability for postretirement and postemployment
benefits 7.6 6.4 Liabilities of discontinued operations and
liabilities held for sale 1.7 0.9 Legal and environmental reserves
146.1 375.1 Other accruals 310.3 338.8
----------------------------------- -------- -------- Total Current
Liabilities 3,111.2 4,583.4 -----------------------------------
-------- -------- Other Liabilities and Deferred Credits Price risk
management liabilities 170.2 188.5 Deferred income taxes 2,018.2
1,549.8 Deferred investment tax credits 39.6 46.1 Deferred credits
72.4 76.7 Deferred revenue 8.5 6.2 Accrued liability for
postretirement and postemployment benefits 1,150.2 1,238.5
Liabilities of discontinued operations and liabilities held for
sale 10.2 4.4 Regulatory liabilities and other removal costs
1,558.8 1,386.1 Asset retirement obligations 138.2 126.0 Other
noncurrent liabilities 152.6 153.8
----------------------------------- -------- -------- Total Other
Liabilities and Deferred Credits 5,318.9 4,776.1
------------------------------------ -------- -------- Commitments
and Contingencies - - ------------------------------------ --------
-------- Total Capitalization and Liabilities $19,271.7 $20,032.2
==================================== ========= ========= NiSource
Inc. Statements of Consolidated Cash Flows (unaudited) Twelve
Months Ended December 31, (in millions) 2009 2008
------------------------------------------------------------------------
Operating Activities Net Income 217.7 79.0 Adjustments to Reconcile
Net Income to Net Cash from Continuing Operations: Loss on Early
Extinguishment of Debt 4.5 - Depreciation and Amortization 589.0
567.0 Net Changes in Price Risk Management Assets and Liabilities
(9.1) 25.7 Deferred Income Taxes and Investment Tax Credits 378.2
137.8 Deferred Revenue 4.3 (24.0) Stock Compensation Expense 9.6
9.5 Gain (Loss) on Sale of Assets (3.6) 4.3 Loss on Impairment of
Assets 22.8 3.3 Income from Unconsolidated Affiliates (15.1) (25.3)
Loss on Disposition of Discontinued Operations -Net of Taxes 2.8
108.2 Loss from Discontinued Operations - Net of Taxes 10.7 183.4
Amortization of Discount/Premium on Debt 13.0 7.7 AFUDC Equity
(5.4) (5.4) Changes in Assets and Liabilities: Accounts Receivable
258.9 (202.4) Income tax receivable (24.9) - Inventories 128.7
(82.4) Accounts Payable (191.5) (30.0) Customer Deposits and
Accounts Receivable Credit Balances 25.3 42.3 Taxes Accrued 116.2
(89.7) Interest Accrued 5.3 20.8 Overrecovered Gas and Fuel Costs
324.4 3.6 Exchange Gas Receivable/Payable (10.0) (71.9) Other
Accruals (3.6) 16.3 Prepayments and Other Current Assets 24.2
(27.5) Regulatory Assets/Liabilities 105.2 (91.8) Postretirement
and Postemployment Benefits (49.1) (9.2) Deferred Credits 6.2 36.3
Deferred Charges and Other NonCurrent Assets (21.9) 38.7 Other Non
Current Liabilities (7.6) (36.5)
----------------------------------------------------------------------
Net Operating Activities from Continuing Operations 1,905.2 587.8
Net Operating Activities used for Discontinued Operations (254.5)
(2.5)
----------------------------------------------------------------------
Net Cash Flows from Operating Activities 1,650.7 585.3
----------------------------------------------------------------------
Investing Activities -------------------- Capital Expenditures
(777.2) (970.2) Sugar Creek Purchase - (329.7) Insurance Recoveries
62.7 46.7 Proceeds from Disposition of Assets 5.7 47.8 Restricted
Cash 111.9 (228.8) Distributions from or (contributions to) equity
investments (23.5) (39.2) Other Investing Activities (42.0) (38.1)
--------------------------------------------------------------------
Net Investing Activities used for Continuing Operations (662.4)
(1,511.5) Net Investing Activities from Discontinued Operations 7.6
397.2
----------------------------------------------------------------------
Net Cash Flows used for Investing Activities (654.8) (1,114.3)
----------------------------------------------------------------------
Financing Activities -------------------- Issuance of Long-Term
Debt 1,460.0 959.3 Retirement of Long-Term Debt (1,169.8) (40.6)
Repurchase of Long-Term Debt - (254.0) Change in Short-Term Debt -
Net (1,060.5) 102.5 Issuance of Common Stock 26.1 1.3 Acquisition
of Treasury Stock (2.6) - Dividends Paid - Common Stock (253.3)
(252.4)
----------------------------------------------------------------------
Net Cash Flows used for Financing Activities (1,000.1) 516.1
----------------------------------------------------------------------
Change in cash and cash equivalents from continuing operations
242.7 (407.6) Cash (contributions to) receipts from discontinued
operations (246.9) 393.6 Cash and cash equivalents at beginning of
period 20.6 34.6
----------------------------------------------------------------------
Cash and Cash Equivalents at End of Period 16.4 20.6
======================================================================
DATASOURCE: NiSource Inc. CONTACT: Media: Mike Banas,
Communications Manager, +1-219-647-5581, ; Investors: Randy Hulen,
Director, Investor Relations, +1-219-647-5688, , both of NiSource
Inc. Web Site: http://www.nisource.com/
Copyright