NiSource Inc. Files 10-Q for Period Ending March 31, 2024

TL;DR

<b>NiSource Inc. has filed its Q1 2024 10-Q report, detailing financial performance and operational data.</b>

AI Summary

NISOURCE INC. (NI) filed a Quarterly Report (10-Q) with the SEC on May 8, 2024. NiSource Inc. filed its quarterly report on Form 10-Q for the period ended March 31, 2024. The filing covers the first quarter of the fiscal year 2024. The company's principal business is electric and other services. The filing includes financial data for the periods ending March 31, 2024, December 31, 2023, and March 31, 2023. NiSource Inc. is incorporated in Delaware and has its principal executive offices in Merrillville, Indiana.

Why It Matters

For investors and stakeholders tracking NISOURCE INC., this filing contains several important signals. This 10-Q filing provides investors with the latest financial statements and management discussion for NiSource Inc., crucial for understanding the company's performance and outlook in the utility sector. The detailed financial information allows stakeholders to assess the company's profitability, liquidity, and solvency as of the first quarter of 2024, compared to prior periods.

Risk Assessment

Risk Level: — NISOURCE INC. shows moderate risk based on this filing. The filing is a standard quarterly report (10-Q) and does not contain unusual or high-risk disclosures, indicating a routine update on the company's financial status.

Analyst Insight

Review the detailed financial statements and management's discussion and analysis within the 10-Q to understand NiSource Inc.'s performance trends and any forward-looking statements.

Key Numbers

• 2024-03-31 — Period of Report (The end date for the reporting period.)
• 2024-05-08 — Filing Date (The date the report was submitted to the SEC.)
• 2023-03-31 — Prior Period End Date (Comparison period for financial data.)
• 2023-12-31 — Prior Year End Date (Comparison period for financial data.)

Key Players & Entities

• NiSource Inc. (company) — Filer and subject of the report
• 2024-03-31 (date) — Period of report
• 2024-05-08 (date) — Filing date
• Merrillville, Indiana (location) — Business and mailing address
• 4931 (industry_code) — Standard Industrial Classification for Electric & Other Services Combined

FAQ

Industry Context

NiSource Inc. operates in the Electric & Other Services Combined industry, providing essential utility services.

Regulatory Implications

The filing is a standard 10-Q, adhering to SEC regulations for quarterly financial reporting by public companies.

What Investors Should Do

1. Analyze the consolidated balance sheets for changes in assets, liabilities, and equity between Q1 2024 and prior periods.
2. Examine the consolidated statements of operations to understand revenue trends, cost of goods sold, and net income for the quarter.
3. Review the management's discussion and analysis for insights into the company's financial condition and results of operations.

Key Dates

• 2024-03-31: Quarter End — End of the reporting period for the 10-Q filing.
• 2024-05-08: Filing Date — Date the 10-Q was officially submitted.

Year-Over-Year Comparison

This filing represents the first quarterly report for NiSource Inc. in fiscal year 2024, providing updated financial information compared to the previous quarter and the same quarter in the prior year.

Key Financial Figures

• $0.01 — ich Registered Common Stock, par value $0.01 per share NI NYSE Indicate by check m

Filing Documents

• nix-20240331.htm (10-Q) — 1782KB
• ni-ex311x20240331.htm (EX-31.1) — 11KB
• ni-ex312x20240331.htm (EX-31.2) — 11KB
• ni-ex321x20240331.htm (EX-32.1) — 5KB
• ni-ex322x20240331.htm (EX-32.2) — 5KB
• 0001111711-24-000021.txt (&nbsp;) — 8487KB
• nix-20240331.xsd (EX-101.SCH) — 61KB
• nix-20240331_cal.xml (EX-101.CAL) — 80KB
• nix-20240331_def.xml (EX-101.DEF) — 431KB
• nix-20240331_lab.xml (EX-101.LAB) — 641KB
• nix-20240331_pre.xml (EX-101.PRE) — 518KB
• nix-20240331_htm.xml (XML) — 1172KB

FINANCIAL INFORMATION

PART I FINANCIAL INFORMATION

Financial Statements - unaudited

Item 1. Financial Statements - unaudited Condensed Statements of Consolidated Income (unaudited) 8 Condensed Statements of Consolidated Comprehensive Income (unaudited) 9 Condensed Consolidated Balance Sheets (unaudited) 10 Condensed Statements of Consolidated Cash Flows (unaudited) 12 Condensed Statements of Consolidated Equity (unaudited) 13 Notes to Condensed Consolidated Financial Statements (unaudited) 15

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 34

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 57

Controls and Procedures

Item 4. Controls and Procedures 57

OTHER INFORMATION

PART II OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 58

Risk Factors

Item 1A. Risk Factors 58

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 58

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 58

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 58

Other Information

Item 5. Other Information 58

Exhibits

Item 6. Exhibits 59 Signature 60 2 DEFINED TERMS The following is a list of frequently used abbreviations or acronyms that are found in this report: NiSource Subsidiaries and Affiliates (not exhaustive) Columbia of Kentucky Columbia Gas of Kentucky, Inc. Columbia of Maryland Columbia Gas of Maryland, Inc. Columbia of Ohio Columbia Gas of Ohio, Inc. Columbia of Pennsylvania Columbia Gas of Pennsylvania, Inc. Columbia of Virginia Columbia Gas of Virginia, Inc. NIPSCO Northern Indiana Public Service Company LLC NIPSCO Holdings I NIPSCO Holdings I LLC NIPSCO Holdings II NIPSCO Holdings II LLC NiSource ("we," "us" or "our") NiSource Inc. Rosewater Rosewater Wind Generation LLC and its wholly owned subsidiary, Rosewater Wind Farm LLC Indiana Crossroads Wind Indiana Crossroads Wind Generation LLC and its wholly owned subsidiary, Indiana Crossroads Wind Farm LLC Indiana Crossroads Solar Indiana Crossroads Solar Generation LLC and its wholly owned subsidiary, Meadow Lake Solar Park LLC Dunns Bridge I Dunn's Bridge I Solar Generation LLC and its wholly owned subsidiary, Dunns Bridge Solar Center, LLC Dunns Bridge II Dunn's Bridge II Solar Generation LLC Gibson Gibson Solar Generation LLC Fairbanks Fairbanks Solar Generation LLC Cavalry Cavalry Solar Generation LLC Abbreviations and Other AFUDC Allowance for funds used during construction AOCI Accumulated Other Comprehensive Income (Loss) ASC Accounting Standards Codification ASU Accounting Standards Update ATM At-the-market BIP BIP Blue Buyer L.L.C Blackstone Blackstone Infrastructure Partners L.P BTA Build-transfer agreement CCRs Coal Combustion Residuals CEP Capital Expenditure Program CERCLA Comprehensive Environmental Response Compensation and Liability Act (also known as Superfund) Columbia Operations Reportable segment comprised of the results of Columbia Gas distribution companies and all related subsidiaries Corporate Units Series A Corporate Units DSM Dema

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS NiSource Inc. Condensed Statements of Consolidated Income (unaudited) Three Months Ended March 31, (in millions, except per share amounts) 2024 2023 Operating Revenues Customer revenues $ 1,643.0 $ 1,896.1 Other revenues 63.3 69.9 Total Operating Revenues 1,706.3 1,966.0 Operating Expenses Cost of energy 425.0 765.1 Operation and maintenance 378.4 391.2 Depreciation and amortization 242.1 206.9 Other taxes 77.4 71.8 Total Operating Expenses 1,122.9 1,435.0 Operating Income 583.4 531.0 Other Income (Deductions) Interest expense, net ( 116.3 ) ( 108.9 ) Other, net 9.2 1.5 Total Other Deductions, Net ( 107.1 ) ( 107.4 ) Income before Income Taxes 476.3 423.6 Income Taxes 76.0 85.8 Net Income 400.3 337.8 Net income (loss) attributable to noncontrolling interest 35.3 4.8 Net Income Attributable to NiSource 365.0 333.0 Preferred dividends ( 6.7 ) ( 13.8 ) Preferred redemption premium ( 14.0 ) — Net Income Available to Common Shareholders 344.3 319.2 Earnings Per Share Basic Earnings Per Share $ 0.77 $ 0.77 Diluted Earnings Per Share $ 0.77 $ 0.71 Basic Average Common Shares Outstanding 447.9 412.8 Diluted Average Common Shares 449.4 447.1 The accompanying Notes to Condensed Consolidated Financial Statements (unaudited) are an integral part of these statements. 8 Table of Contents

FINANCIAL STATEMENTS (continued)

ITEM 1. FINANCIAL STATEMENTS (continued) NiSource Inc. Condensed Statements of Consolidated Comprehensive Income (unaudited) Three Months Ended March 31, (in millions, net of taxes) 2024 2023 Net Income $ 400.3 $ 337.8 Other comprehensive income: Net unrealized loss on available-for-sale debt securities (1) ( 0.3 ) 2.0 Reclassification adjustment for cash flow hedges (2) ( 0.1 ) 0.1 Unrecognized pension and OPEB benefit (costs) (3) 0.2 0.3 Total other comprehensive income (loss) ( 0.2 ) 2.4 Comprehensive Income $ 400.1 $ 340.2 (1) Net unrealized loss on available-for-sale debt securities, net of $ 0.1 million tax benefit and $ 0.5 million tax expense in the first quarter of 2024 and 2023, respectively. (2) Reclassification adjustment for cash flow hedges, net of $ 0.0 million tax benefit and $ 0.1 million tax benefit in the first quarter of 2024 and 2023, respectively. (3) Unrecognized pension and OPEB benefit (costs), net of $ 0.1 million of tax expense and $ 0.1 million tax expense in the first quarter of 2024 and 2023, respectively. The accompanying Notes to Condensed Consolidated Financial Statements (unaudited) are an integral part of these statements. 9 Table of Contents

FINANCIAL STATEMENTS (continued)

ITEM 1. FINANCIAL STATEMENTS (continued) NiSource Inc. Condensed Consolidated Balance Sheets (unaudited) (in millions) March 31, 2024 December 31, 2023 ASSETS Property, Plant and Equipment Plant $ 31,300.6 $ 30,482.1 Accumulated depreciation and amortization ( 8,354.5 ) ( 8,207.2 ) Net Property, Plant and Equipment (1) 22,946.1 22,274.9 Investments and Other Assets Unconsolidated affiliates 5.4 5.3 Available-for-sale debt securities (amortized cost of $ 160.2 and $ 169.0 , allowance for credit losses of $ 0.4 and $ 0.6 , respectively) 150.1 159.1 Other investments 86.8 82.7 Total Investments and Other Assets 242.3 247.1 Current Assets Cash and cash equivalents 102.2 2,245.4 Restricted cash 38.3 35.7 Accounts receivable 877.2 884.9 Allowance for credit losses ( 31.6 ) ( 22.9 ) Accounts receivable, net 845.6 862.0 Gas storage 70.1 265.8 Materials and supplies, at average cost 187.2 172.1 Electric production fuel, at average cost 66.3 65.3 Exchange gas receivable 43.2 66.0 Regulatory assets 260.4 214.3 Deposits to renewable generation asset developer 285.8 454.2 Prepayments and other 161.1 118.6 Total Current Assets (1) 2,060.2 4,499.4 Other Assets Regulatory assets 2,231.7 2,245.9 Goodwill 1,485.9 1,485.9 Deferred charges and other 371.9 324.0 Total Other Assets 4,089.5 4,055.8 Total Assets $ 29,338.1 $ 31,077.2 (1) Includes $ 1,358.2 million and $ 1,369.8 million at March 31, 2024 and December 31, 2023, respectively, of net property, plant and equipment assets and $ 60.8 million and $ 63.6 million at March 31, 2024 and December 31, 2023, respectively, of current assets of consolidated VIEs that may be used only to settle obligations of the consolidated VIEs. Note 4, "Noncontrolling Interests," for additional information. The accompanying Notes to Condensed Consolidated Financial Statements (unaudited) are an integral part of these statements. 10 Table of Contents

FINANCIAL STATEMENTS (continued)

ITEM 1. FINANCIAL STATEMENTS (continued) NiSource Inc. Condensed Consolidated Balance Sheets (unaudited) (continued) (in millions, except share amounts) March 31, 2024 December 31, 2023 CAPITALIZATION AND LIABILITIES Capitalization Stockholders' Equity Common stock - $ 0.01 par value, 750,000,000 shares authorized; 448,197,604 and 447,381,671 shares outstanding, respectively $ 4.5 $ 4.5 Preferred stock - $ 0.01 par value, 20,000,000 shares authorized; 0 and 40,000 shares outstanding, respectively — 486.1 Treasury stock ( 99.9 ) ( 99.9 ) Additional paid-in capital 8,886.8 8,879.5 Retained deficit ( 861.7 ) ( 967.0 ) Accumulated other comprehensive loss ( 33.8 ) ( 33.6 ) Total NiSource Stockholders' Equity 7,895.9 8,269.6 Noncontrolling interest in consolidated subsidiaries 1,899.0 1,866.7 Total Stockholders' Equity 9,794.9 10,136.3 Long-term debt, excluding amounts due within one year 11,724.6 11,055.5 Total Capitalization 21,519.5 21,191.8 Current Liabilities Current portion of long-term debt 24.0 23.8 Short-term borrowings 1,222.3 3,048.6 Accounts payable 612.5 749.4 Dividends payable - common stock 119.0 — Customer deposits and credits 189.5 294.4 Taxes accrued 169.5 166.2 Interest accrued 148.6 136.1 Exchange gas payable 17.1 50.5 Regulatory liabilities 237.6 278.6 Asset retirement obligations 78.0 72.5 Accrued compensation and employee benefits 136.0 227.6 Other accruals 170.9 217.4 Total Current Liabilities (1) 3,125.0 5,265.1 Other Liabilities Deferred income taxes 2,159.5 2,080.4 Accrued liability for postretirement and postemployment benefits 244.8 250.1 Regulatory liabilities 1,482.0 1,510.7 Asset retirement obligations 509.6 480.5 Other noncurrent liabilities and deferred credits 297.7 298.6 Total Other Liabilities (1) 4,693.6 4,620.3 Commitments and Contingencies (Refer to Note 15, "Other Commitments and Contingencies") Total Capitalization and Liabilities $ 29,338.1 $ 31,077.2 (1) Includes $ 60.9 mi

FINANCIAL STATEMENTS (continued)

ITEM 1. FINANCIAL STATEMENTS (continued) NiSource Inc. Condensed Statements of Consolidated Cash Flows (unaudited) Three Months Ended March 31, (in millions) 2024 2023 Operating Activities Net Income $ 400.3 $ 337.8 Adjustments to Reconcile Net Income to Net Cash from Operating Activities: Depreciation and amortization 242.1 206.9 Deferred income taxes and investment tax credits 61.6 75.5 Payments for asset retirement obligations ( 12.0 ) ( 5.5 ) Other adjustments 7.8 1.1 Changes in Assets and Liabilities: Components of working capital ( 235.2 ) 71.1 Regulatory assets/liabilities 18.4 11.0 Deferred charges and other noncurrent assets ( 18.0 ) ( 12.0 ) Other noncurrent liabilities and deferred credits ( 8.8 ) ( 2.5 ) Net Cash Flows from Operating Activities 456.2 683.4 Investing Activities Capital expenditures ( 589.5 ) ( 557.1 ) Milestone payments to renewable generation asset developer ( 110.6 ) ( 137.3 ) Other investing activities ( 22.9 ) ( 33.4 ) Net Cash Flows used for Investing Activities ( 723.0 ) ( 727.8 ) Financing Activities Proceeds from issuance of long-term debt 644.4 744.2 Repayments of finance lease obligations ( 7.2 ) ( 8.1 ) Repayment of short term credit agreements ( 1,650.0 ) — Net change in commercial paper and other short-term borrowings ( 176.3 ) ( 480.4 ) Issuance of common stock, net of issuance costs 2.7 3.0 Redemption of preferred stock ( 486.1 ) — Preferred stock redemption premium ( 14.0 ) — Equity costs, premiums and other debt related costs ( 57.6 ) ( 11.8 ) Contributions from noncontrolling interests — 3.6 Distributions to noncontrolling interests ( 3.0 ) ( 5.3 ) Dividends paid - common stock ( 118.6 ) ( 103.2 ) Dividends paid - preferred stock ( 8.1 ) ( 8.1 ) Contract liability payment — ( 16.6 ) Net Cash Flows from Financing Activities ( 1,873.8 ) 117.3 Change in cash, cash equivalents and restricted cash ( 2,140.6 ) 72.9 Cash, cash equivalents and restricted cash at beginn

FINANCIAL STATEMENTS (continued)

ITEM 1. FINANCIAL STATEMENTS (continued) NiSource Inc. Condensed Statements of Consolidated Equity (unaudited) (in millions) Common Stock Preferred Stock Treasury Stock Additional Paid-In Capital Retained Deficit Accumulated Other Comprehensive Loss Noncontrolling Interest in Consolidated Subsidiaries Total Balance as of January 1, 2024 $ 4.5 $ 486.1 $ ( 99.9 ) $ 8,879.5 $ ( 967.0 ) $ ( 33.6 ) $ 1,866.7 $ 10,136.3 Comprehensive Income: Net income — — — — 365.0 — 35.3 400.3 Other comprehensive loss, net of tax — — — — — ( 0.2 ) — ( 0.2 ) Dividends: Common stock ($ 0.53 per share) — — — — ( 237.6 ) — — ( 237.6 ) Preferred stock (See Note 6) — — — — ( 8.1 ) — — ( 8.1 ) Noncontrolling Interests: Distributions to noncontrolling interests — — — — — — ( 3.0 ) ( 3.0 ) Stock issuances (redemptions): Series B and B-1 Preferred Stock Redemption — ( 486.1 ) — — — — — ( 486.1 ) Series B and B-1 Preferred stock redemption premium — — — — ( 14.0 ) — — ( 14.0 ) Employee stock purchase plan — — — 1.4 — — — 1.4 Long-term incentive plan — — — 3.3 — — — 3.3 401(k) and profit sharing — — — 2.6 — — — 2.6 Balance as of March 31, 2024 $ 4.5 $ — $ ( 99.9 ) $ 8,886.8 $ ( 861.7 ) $ ( 33.8 ) $ 1,899.0 $ 9,794.9 (in millions) Common Stock Preferred Stock Treasury Stock Additional Paid-In Capital Retained Deficit Accumulated Other Comprehensive Loss Noncontrolling Interest in Consolidated Subsidiaries Total Balance as of January 1, 2023 $ 4.2 $ 1,546.5 $ ( 99.9 ) $ 7,375.3 $ ( 1,213.6 ) $ ( 37.1 ) $ 326.4 $ 7,901.8 Comprehensive Income: Net income — — — — 333.0 — 4.8 337.8 Other comprehensive income, net of tax — — — — — 2.4 — 2.4 Dividends: Common stock ($ 0.50 per share) — — — — ( 206.7 ) — — ( 206.7 ) Preferred stock (See Note 6) — — — — ( 27.5 ) — — ( 27.5 ) Noncontrolling Interests: Contributions from noncontrolling interest — — — — — — 3.6 3.6 Distributions to noncontrolling interest — — — — — — ( 5.3 ) ( 5.3 ) Stock issuances: Employ

FINANCIAL STATEMENTS (continued)

ITEM 1. FINANCIAL STATEMENTS (continued) NiSource Inc. Condensed Statements of Consolidated Equity (unaudited) (continued) Preferred Common Shares (in thousands) Shares Shares Treasury Outstanding Balance as of January 1, 2024 40 451,345 ( 3,963 ) 447,382 Issued (Redeemed): Employee stock purchase plan — 53 — 53 Long-term incentive plan — 663 — 663 401(k) and profit sharing — 100 — 100 Series B and B-1 Preferred Stock ( 40 ) — — — Balance as of March 31, 2024 — 452,161 ( 3,963 ) 448,198 Preferred Common Shares (in thousands) Shares Shares Treasury Outstanding Balance as of January 1, 2023 1,303 416,106 ( 3,963 ) 412,143 Issued: Employee stock purchase plan — 48 — 48 Long-term incentive plan — 695 — 695 401(k) and profit sharing — 97 — 97 Balance as of March 31, 2023 1,303 416,946 ( 3,963 ) 412,983 The accompanying Notes to Condensed Consolidated Financial Statements (unaudited) are an integral part of these statements. 14 Table of Contents `

FINANCIAL STATEMENTS (continued)

ITEM 1. FINANCIAL STATEMENTS (continued) NiSource Inc. Notes to Condensed Consolidated Financial Statements (unaudited) (continued) 1. Basis of Accounting Presentation Our accompanying Condensed Consolidated Financial Statements (unaudited) reflect all normal recurring adjustments that are necessary, in the opinion of management, to present fairly the results of operations in accordance with GAAP in the United States of America. The accompanying financial statements include the accounts of us, our majority-owned subsidiaries, and VIEs of which we are the primary beneficiary after the elimination of all intercompany accounts and transactions. The accompanying financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023. Income for interim periods may not be indicative of results for the calendar year due to weather variations and other factors. The Condensed Consolidated Financial Statements (unaudited) have been prepared pursuant to the rules and regulations of the SEC. Certain information and note disclosures normally included in annual financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to those rules and regulations, although we believe that the disclosures made in this Quarterly Report on Form 10-Q are adequate to make the information herein not misleading. 2. Recent Accounting Pronouncements Recently Issued Accounting Pronouncements In August 2023, the Financial Accounting Standards Board ("FASB") issued ASU 2023-05, Business Combinations- Joint Venture Formations. This pronouncement codifies ASU 805-60 to provide guidance for the recognition and initial measurement of joint venture formations. This guidance requires that the initial assets contributed and liabilities assumed be recognized and measured at fair value, with additional disclosure requirements during the period

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