NiSource 10-Q 2024-06-30

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2024

or

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number 001-16189

NiSource Inc.

(Exact name of registrant as specified in its charter)

DE									35-2108964
(State or other jurisdiction of incorporation or organization)									(I.R.S. Employer Identification No.)
801 East 86th Avenue
Merrillville,			IN						46410
(Address of principal executive offices)									(Zip Code)

(877) 647-5990

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class			Trading Symbol(s)			Name of Each Exchange on Which Registered
Common Stock, par value $0.01 per share			NI			NYSE

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes þ No ¨

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files.)

Yes þ No ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer þ Accelerated filer ¨ Emerging growth company ☐ Non-accelerated filer ¨ Smaller reporting company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ☐ No ☑

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date: Common Stock, $0.01 Par Value: 448,509,837 shares outstanding at July 31, 2024.

NISOURCE INC.

FORM 10-Q QUARTERLY REPORT

FOR THE QUARTER ENDED JUNE 30, 2024

Table of Contents

									Page
			Defined Terms						3
PART I			FINANCIAL INFORMATION
			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)			14
						Notes to Condensed Consolidated Financial Statements (unaudited)			17
			Item 2.			Management’s Discussion and Analysis of Financial Condition and Results of Operations			39
			Item 3.			Quantitative and Qualitative Disclosures About Market Risk			62
			Item 4.			Controls and Procedures			62
PART II			OTHER INFORMATION
			Item 1.			Legal Proceedings			63
			Item 1A.			Risk Factors			63
			Item 2.			Unregistered Sales of Equity Securities and Use of Proceeds			63
			Item 3.			Defaults Upon Senior Securities			63
			Item 4.			Mine Safety Disclosures			63
			Item 5.			Other Information			63
			Item 6.			Exhibits			64
			Signature						65

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
BIP Blue Buyer VCOC L.L.C			BIP Blue Buyer VCOC L.L.C., a Delaware limited liability company and also an affiliate of Blackstone
Blackstone			Blackstone Infrastructure Partners L.P
BTA			Build-transfer agreement
CCRs			Coal Combustion Residuals
CEP			Ohio Capital Expenditure Program
CERCLA			Comprehensive Environmental Response Compensation and Liability Act (also known as Superfund)
CODM			Chief Operating Decision Maker
Columbia Operations			Reportable segment comprised of the results of NiSource Gas Distribution company, including all of its Columbia Gas distribution companies and related subsidiaries
Corporate Units			Series A Corporate Units
DSIC			Distribution System Improvement Charge
DSM			Demand Side Management
EPA			United States Environmental Protection Agency

DEFINED TERMS
EPS			Earnings per share
Equity Units			Series A Equity Units
FAC			Fuel adjustment clause
FASB			Financial Accounting Standards Board
FMCA			Indiana Federally Mandated Cost Adjustment mechanism
GAAP			Generally Accepted Accounting Principles
GCA			Gas cost adjustment
GHG			Greenhouse gases
GWh			Gigawatt hours
IRA			Inflation Reduction Act of 2022
IRP			Ohio Infrastructure Replacement Program
IURC			Indiana Utility Regulatory Commission
JV			Joint Venture
LIFO			Last In, First Out
LIHEAP			Low Income Heating Energy Assistance Program
MGP			Manufactured Gas Plant
MISO			Midcontinent Independent System Operator
MMDth			Million dekatherms
MW			Megawatts
MWh			Megawatt hours
NIPSCO Electric			The electric generation and transmission activities of the NIPSCO Operations reportable segment
NIPSCO Gas			The gas distribution activities of the NIPSCO Operations reportable segment
NIPSCO Minority Interest Transaction			A transaction between NiSource, NIPSCO Holdings II (sole owner of NIPSCO) and an affiliate of Blackstone pursuant to a purchase and sale agreement entered into on June 17, 2023, that offered equity interests in NIPSCO Holdings II in exchange for capital contributions by the parties.
NIPSCO Operations			Reportable segment comprised of the results of NIPSCO Holdings I, NIPSCO Holdings II, and NIPSCO and all related subsidiaries
NYMEX			New York Mercantile Exchange
OPEB			Other Postemployment Benefits
PHMSA			Pipeline and Hazardous Materials Safety Administration
PPA			Power Purchase Agreement
RNG			Renewable Natural Gas
SAVE			Steps to Advance Virginia's Energy Plan
Scope 1 GHG Emissions			Direct emissions from sources owned or controlled by us (e.g., emissions from our combustion of fuel, vehicles, and process emissions and fugitive emissions)
Scope 2 GHG Emissions			Indirect emissions from sources owned or controlled by us
SEC			Securities and Exchange Commission
SMRP			Kentucky Safety Modification and Replacement Program
SMS			Safety Management System
TCJA			An Act to provide for reconciliation pursuant to titles II and V of the concurrent resolution on the budget for fiscal year 2018 (commonly known as the Tax Cuts and Jobs Act of 2017)
TDSIC			Indiana Transmission, Distribution and Storage System Improvement Charge

DEFINED TERMS
VIE			Variable Interest Entity
WAM			Work and Asset Management enterprise resourcing system

Note regarding forward-looking statements

This Quarterly Report on Form 10-Q contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). Forward-looking statements in this Quarterly Report on Form 10-Q include, but are not limited to,

statements concerning our plans, strategies, objectives, expected performance, expenditures, recovery of expenditures through rates, stated on either a consolidated or segment basis, and any and all underlying assumptions and other statements that are other than statements of historical fact. Expressions of future goals and expectations and similar expressions, including "may," "will," "should," "could," "would," "aims," "seeks," "expects," "plans," "anticipates," "intends," "believes," "estimates," "predicts," "potential," "targets," "forecast," and "continue," reflecting something other than historical fact are intended to identify forward-looking statements. All forward-looking statements are based on assumptions that management believes to be reasonable; however, there can be no assurance that actual results will not differ materially.

Factors that could cause actual results to differ materially from the projections, forecasts, estimates and expectations discussed in this Quarterly Report on Form 10-Q include, among other things:

• our ability to execute our business plan or growth strategy, including utility infrastructure investments;

• potential incidents and other operating risks associated with our business;

• our ability to work successfully with our third-party investors;

• our ability to adapt to, and manage costs related to, advances in technology, including alternative energy sources and changes in laws and regulations;

• our increased dependency on technology;

• impacts related to our aging infrastructure;

• our ability to obtain sufficient insurance coverage and whether such coverage will protect us against significant losses;

• the success of our electric generation strategy;

• construction risks and supply risks;

• fluctuations in demand from residential and commercial customers;

• fluctuations in the price of energy commodities and related transportation costs or an inability to obtain an adequate, reliable and cost-effective fuel supply to meet customer demand;

• our ability to attract, retain or re-skill a qualified, diverse workforce and maintain good labor relations;

• our ability to manage new initiatives and organizational changes;

• the actions of activist stockholders;

• the performance and quality of third-party suppliers and service providers;

• potential cybersecurity attacks or security breaches;

• increased requirements and costs related to cybersecurity;

• any damage to our reputation;

• the impacts of natural disasters, potential terrorist attacks or other catastrophic events;

• the physical impacts of climate change and the transition to a lower carbon future;

• our ability to manage the financial and operational risks related to achieving our carbon emission reduction goals, including our Net Zero Goal (as defined below);

• our debt obligations;

• any changes to our credit rating or the credit rating of certain of our subsidiaries;

• adverse economic and capital market conditions, including increases in inflation or interest rates, recession, or changes in investor sentiment;

• economic regulation and the impact of regulatory rate reviews;

• our ability to obtain expected financial or regulatory outcomes;

• economic conditions in certain industries;

• the reliability of customers and suppliers to fulfill their payment and contractual obligations;

• the ability of our subsidiaries to generate cash;

• pension funding obligations;

• potential impairments of goodwill;

• the outcome of legal and regulatory proceedings, investigations, incidents, claims and litigation;

• compliance with changes in, or new interpretations of applicable laws, regulations and tariffs;

• the cost of compliance with environmental laws and regulations and the costs of associated liabilities;

• changes in tax laws or the interpretation thereof;

• and other matters set forth in Item 1, "Business," Item 1A, "Risk Factors" section of our Annual Report on Form 10-K for the fiscal year ended December 31, 2023, and Part I, Item 2, "Management’s Discussion and Analysis of Financial Condition and Results of Operations," of this report, some of which risks are beyond our control.

In addition, the relative contributions to profitability by each business segment, and the assumptions underlying the forward-looking statements relating thereto, may change over time.

All forward-looking statements are expressly qualified in their entirety by the foregoing cautionary statements. We undertake no obligation to, and expressly disclaim any such obligation to, update or revise any forward-looking statements to reflect changed assumptions, the occurrence of anticipated or unanticipated events or changes to the future results over time or otherwise, except as required by law.

Index			Page
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)			14
Notes to Condensed Consolidated Financial Statements (unaudited)			17
1. Basis of Accounting Presentation			17
2. Recent Accounting Pronouncements			17
3. Revenue Recognition			17
4. Noncontrolling Interests			21
5. Earnings Per Share			22
6. Equity			23
7. Short-Term Borrowings			24
8. Long-Term Debt			25
9. Gas in Storage			25
10. Regulatory Matters			26
11. Risk Management Activities			26
12. Fair Value			28
13. Goodwill			31
14. Income Taxes			31
15. Pension and Other Postemployment Benefits			31
16. Other Commitments and Contingencies			32
17. Accumulated Other Comprehensive Loss			35
18. Business Segment Information			36
19. Other, Net			38

Table of Contents

PART I

ITEM 1. FINANCIAL STATEMENTS

NiSource Inc.

Condensed Statements of Consolidated Income (unaudited)

			Three Months Ended June 30,												Six Months Ended June 30,
(in millions, except per share amounts)			2024						2023						2024						2023
Operating Revenues
Customer revenues			$	1,054.1					$	1,067.2					$	2,697.1					$	2,963.3
Other revenues			30.6						22.8						93.9						92.7
Total Operating Revenues			1,084.7						1,090.0						2,791.0						3,056.0
Operating Expenses
Cost of energy			164.7						251.9						589.7						1,017.0
Operation and maintenance			357.7						369.5						736.1						760.7
Depreciation and amortization			253.5						233.1						495.6						440.0
Loss on impairment of assets			2.9						—						2.9						—
Loss (gain) on sale of assets, net			1.6						(0.3)						1.6						(0.3)
Other taxes			67.3						66.9						144.7						138.7
Total Operating Expenses			847.7						921.1						1,970.6						2,356.1
Operating Income			237.0						168.9						820.4						699.9
Other Income (Deductions)
Interest expense, net			(129.3)						(110.5)						(245.6)						(219.4)
Other, net			13.0						2.0						22.2						3.5
Total Other Deductions, Net			(116.3)						(108.5)						(223.4)						(215.9)
Income before Income Taxes			120.7						60.4						597.0						484.0
Income Taxes			17.6						14.1						93.6						99.9
Net Income			103.1						46.3						503.4						384.1
Net income (loss) attributable to noncontrolling interest			17.3						(12.5)						52.6						(7.7)
Net Income Attributable to NiSource			85.8						58.8						450.8						391.8
Preferred dividends			—						(12.7)						(6.7)						(26.5)
Preferred redemption premium			—						(6.2)						(14.0)						(6.2)
Net Income Available to Common Shareholders			$	85.8					$	39.9					$	430.1					$	359.1
Earnings Per Share
Basic Earnings Per Share			$	0.19					$	0.10					$	0.96					$	0.87
Diluted Earnings Per Share			$	0.19					$	0.09					$	0.95					$	0.80
Basic Average Common Shares Outstanding			448.5						413.3						448.2						413.1
Diluted Average Common Shares			450.2						446.8						449.8						446.9

The accompanying Notes to Condensed Consolidated Financial Statements (unaudited) are an integral part of these statements.

Table of Contents

ITEM 1. FINANCIAL STATEMENTS (continued)

NiSource Inc.

Condensed Statements of Consolidated Comprehensive Income (unaudited)

			Three Months Ended June 30,												Six Months Ended June 30,
(in millions, net of taxes)			2024						2023						2024						2023
Net Income			$	103.1					$	46.3					$	503.4					$	384.1
Other comprehensive income:
Net unrealized gain (loss) on available-for-sale debt securities(1)			—						(1.2)						(0.3)						0.8
Reclassification adjustment for cash flow hedges(2)			(0.1)						(0.2)						(0.2)						(0.1)
Unrecognized pension and OPEB benefit(3)			0.3						0.3						0.5						0.6
Total other comprehensive income (loss)			0.2						(1.1)						—						1.3
Comprehensive Income			$	103.3					$	45.2					$	503.4					$	385.4

(1)Net unrealized gain (loss) on available-for-sale debt securities, net of $0.0 million tax expense and $0.3 million tax benefit in the second quarter of 2024 and 2023, respectively, and $0.1 million of tax benefit and $0.2 million tax expense for the six months ended 2024 and 2023, respectively.

(2)Reclassification adjustment for cash flow hedges, net of $0.0 million tax benefit and $0.0 million tax expense in the second quarter of 2024 and 2023, respectively, and $0.0 million of tax benefit and $0.1 million tax benefit for the six months ended 2024 and 2023, respectively.

(3)Unrecognized pension and OPEB benefit, net of $0.1 million of tax expense and $0.1 million tax expense in the second quarter of 2024 and 2023, respectively, and $0.2 million of tax expense and $0.2 million tax expense for the six months ended 2024 and 2023, respectively.

The accompanying Notes to Condensed Consolidated Financial Statements (unaudited) are an integral part of these statements.

Table of Contents

ITEM 1. FINANCIAL STATEMENTS (continued)

NiSource Inc.

Condensed Consolidated Balance Sheets (unaudited)

(in millions)			June 30, 2024						December 31, 2023
ASSETS
Property, Plant and Equipment
Plant			$	32,031.1					$	30,482.1
Accumulated depreciation and amortization			(8,418.5)						(8,207.2)
Net Property, Plant and Equipment(1)			23,612.6						22,274.9
Investments and Other Assets
Unconsolidated affiliates			5.4						5.3
Available-for-sale debt securities (amortized cost of $155.5 and $169.0, allowance for credit losses of $0.3 and $0.6, respectively)			145.5						159.1
Other investments			84.9						82.7
Total Investments and Other Assets			235.8						247.1
Current Assets
Cash and cash equivalents			101.2						2,245.4
Restricted cash			34.7						35.7
Accounts receivable			650.2						884.9
Allowance for credit losses			(26.2)						(22.9)
Accounts receivable, net			624.0						862.0
Gas storage			133.1						265.8
Materials and supplies, at average cost			180.8						172.1
Electric production fuel, at average cost			59.3						65.3
Exchange gas receivable			13.0						66.0
Regulatory assets			278.4						214.3
Deposits to renewable generation asset developer			381.1						454.2
Prepayments and other			138.2						118.6
Total Current Assets(1)			1,943.8						4,499.4
Other Assets
Regulatory assets			2,221.7						2,245.9
Goodwill			1,485.9						1,485.9
Deferred charges and other			397.8						324.0
Total Other Assets			4,105.4						4,055.8
Total Assets			$	29,897.6					$	31,077.2

(1)Includes $1,346.8 million and $1,369.8 million at June 30, 2024 and December 31, 2023, respectively, of net property, plant and equipment assets and $62.8 million and $63.6 million at June 30, 2024 and December 31, 2023, respectively, of current assets of consolidated VIEs that may be used only to settle obligations of the consolidated VIEs. Refer to Note 4, "Noncontrolling Interests," for additional information.

The accompanying Notes to Condensed Consolidated Financial Statements (unaudited) are an integral part of these statements.

Table of Contents

ITEM 1. FINANCIAL STATEMENTS (continued)

NiSource Inc.

Condensed Consolidated Balance Sheets (unaudited) (continued)

(in millions, except share amounts)			June 30, 2024						December 31, 2023
CAPITALIZATION AND LIABILITIES
Capitalization
Stockholders’ Equity
Common stock - $0.01 par value,750,000,000 shares authorized; 448,398,632 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			8,894.2						8,879.5
Retained deficit			(896.2)						(967.0)
Accumulated other comprehensive loss			(33.6)						(33.6)
Total NiSource Stockholders’ Equity			7,869.0						8,269.6
Noncontrolling interest in consolidated subsidiaries			1,950.6						1,866.7
Total Stockholders' Equity			9,819.6						10,136.3
Long-term debt, excluding amounts due within one year			12,809.6						11,055.5
Total Capitalization			22,629.2						21,191.8
Current Liabilities
Current portion of long-term debt			23.4						23.8
Short-term borrowings			644.0						3,048.6
Accounts payable			584.0						749.4
Dividends payable - common stock			120.0						—
Customer deposits and credits			187.7						294.4
Taxes accrued			163.7						166.2
Interest accrued			146.4						136.1
Exchange gas payable			34.7						50.5
Regulatory liabilities			193.4						278.6
Asset retirement obligations			69.6						72.5
Accrued compensation and employee benefits			174.0						227.6
Other accruals			167.1						217.4
Total Current Liabilities(1)			2,508.0						5,265.1
Other Liabilities
Deferred income taxes			2,198.2						2,080.4
Accrued liability for postretirement and postemployment benefits			241.8						250.1
Regulatory liabilities			1,456.5						1,510.7
Asset retirement obligations			555.6						480.5
Other noncurrent liabilities and deferred credits			308.3						298.6
Total Other Liabilities(1)			4,760.4						4,620.3
Commitments and Contingencies (Refer to Note 16, "Other Commitments and Contingencies")
Total Capitalization and Liabilities			$	29,897.6					$	31,077.2

(1)Includes $55.3 million and $68.3 million at June 30, 2024 and December 31, 2023, respectively, of current liabilities and $57.0 million and $55.7 million at June 30, 2024 and December 31, 2023, respectively, of other liabilities of consolidated VIEs that creditors do not have recourse to our general credit. Refer to Note 4, "Noncontrolling Interests," for additional information.

The accompanying Notes to Condensed Consolidated Financial Statements (unaudited) are an integral part of these statements.

Table of Contents

ITEM 1. FINANCIAL STATEMENTS (continued)

NiSource Inc.

Condensed Statements of Consolidated Cash Flows (unaudited)

Six Months Ended June 30, (in millions)			2024						2023
Operating Activities
Net Income			$	503.4					$	384.1
Adjustments to Reconcile Net Income to Net Cash from Operating Activities:
Depreciation and amortization			495.6						440.0
Deferred income taxes and investment tax credits			85.1						93.0
Loss (Gain) on sale of assets			1.6						(0.3)
Payments for asset retirement obligations			(35.0)						(15.0)
Other adjustments			2.5						6.6
Changes in Assets and Liabilities:
Components of working capital			(116.2)						300.6
Regulatory assets/liabilities			(5.9)						12.6
Deferred charges and other noncurrent assets			(32.7)						(18.4)
Other noncurrent liabilities and deferred credits			3.3						(12.2)
Net Cash Flows from Operating Activities			901.7						1,191.0
Investing Activities
Capital expenditures			(1,219.3)						(1,161.9)
Milestone payments to renewable generation asset developer			(320.8)						(137.4)
Other investing activities			(53.9)						(76.3)
Net Cash Flows used for Investing Activities			(1,594.0)						(1,375.6)
Financing Activities
Proceeds from issuance of long-term debt			1,734.5						1,488.7
Repayments of finance lease obligations			(13.5)						(16.1)
Repayment of short term credit agreements			(1,650.0)						—
Net change in commercial paper and other short-term borrowings			(754.6)						(172.2)
Issuance of common stock, net of issuance costs			5.6						6.3
Redemption of preferred stock			(486.1)						(393.9)
Preferred stock redemption premium			(14.0)						(6.2)
Equity costs, premiums and other debt related costs			(60.0)						(16.7)
Contributions from NIPSCO minority interest holders			59.7						—
Contributions from equity tax partners			—						35.0
Distributions to tax equity partners			(8.2)						(10.0)
Distribution to NIPSCO minority interest holders			(20.2)						—
Dividends paid - common stock			(237.9)						(206.6)
Dividends paid - preferred stock			(8.2)						(27.6)
Contract liability payment			—						(33.2)
Payment of obligation to renewable generation asset developer			—						(347.2)
Net Cash Flows from Financing Activities			(1,452.9)						300.3
Change in cash, cash equivalents and restricted cash			(2,145.2)						115.7
Cash, cash equivalents and restricted cash at beginning of period			2,281.1						75.4
Cash, Cash Equivalents and Restricted Cash at End of Period			$	135.9					$	191.1

Reconciliation to Balance Sheet

Six Months Ended June 30, (in millions)			2024
Cash and cash equivalents			101.2
Restricted Cash			34.7
Total Cash, Cash Equivalents and Restricted Cash			135.9

Table of Contents

ITEM 1. FINANCIAL STATEMENTS (continued)

Supplemental Disclosures of Cash Flow Information

Six Months Ended June 30, (in millions)			2024						2023
Non-cash transactions:
Capital expenditures included in current liabilities			$	283.6					$	410.2
Dividends declared but not paid			120.0						111.6
Purchase contract liability			—						32.6

The accompanying Notes to Condensed Consolidated Financial Statements (unaudited) are an integral part of these statements.

Table of Contents

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 April 1, 2024			$	4.5					$	—					$	(99.9)					$	8,886.8					$	(861.7)					$	(33.8)					$	1,899.0					$	9,794.9
Comprehensive Income:
Net income			—						—						—						—						85.8						—						17.3						103.1
Other comprehensive loss, net of tax			—						—						—						—						—						0.2						—						0.2
Dividends:
Common stock ($0.27 per share)			—						—						—						—						(120.3)						—						—						(120.3)
Noncontrolling Interests:
Contributions from noncontrolling interests			—						—						—						—						—						—						59.7						59.7
Distributions to noncontrolling interests			—						—						—						—						—						—						(25.4)						(25.4)
Stock issuances:
Employee stock purchase plan			—						—						—						1.6						—						—						—						1.6
Long-term incentive plan			—						—						—						3.6						—						—						—						3.6
401(k) and profit sharing			—						—						—						2.2						—						—						—						2.2
Balance as of June 30, 2024			$	4.5					$	—					$	(99.9)					$	8,894.2					$	(896.2)					$	(33.6)					$	1,950.6					$	9,819.6
(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			—						—						—						—						450.8						—						52.6						503.4
Dividends:
Common stock ($0.80 per share)			—						—						—						—						(357.9)						—						—						(357.9)
Preferred stock (See Note 6)			—						—						—						—						(8.1)						—						—						(8.1)
Noncontrolling Interests:
Contributions from noncontrolling interests			—						—						—						—						—						—						59.7						59.7
Distributions to noncontrolling interests			—						—						—						—						—						—						(28.4)						(28.4)
Stock issuances (redemptions):

Showing the first 8K of 161K characters. Open the full section

NiSource Inc.

NIPSCO Operations

Financial and operational data for the NIPSCO Operations segment, which services both gas and electric customers, for the three and six months ended June 30, 2024 and 2023 are presented below.

			Three Months Ended June 30,																		Six Months Ended June 30,
(in millions)			2024						2023						Favorable (Unfavorable)						2024						2023						Favorable (Unfavorable)
NIPSCO Operations
Operating Revenues			$	597.4					$	568.3					$	29.1					$	1,350.1					$	1,485.5					$	(135.4)
Operating Expenses
Cost of energy			108.4						157.7						49.3						304.6						584.5						279.9
Operation and maintenance			187.5						203.0						15.5						378.8						393.5						14.7
Depreciation and amortization			143.0						130.1						(12.9)						275.7						238.4						(37.3)
Gain on sale of assets			(0.1)						(0.1)						—						(0.1)						(0.1)						—
Other taxes			16.3						13.8						(2.5)						32.4						28.4						(4.0)
Total Operating Expenses			455.1						504.5						49.4						991.4						1,244.7						253.3
Operating Income			$	142.3					$	63.8					$	78.5					$	358.7					$	240.8					$	117.9
			Three Months Ended June 30,																		Six Months Ended June 30,
(in millions)			2024						2023						Favorable (Unfavorable)						2024						2023						Favorable (Unfavorable)
NIPSCO Electric
Revenues
Residential			$	156.9					$	122.8					$	34.1					$	300.7					$	273.2					$	27.5
Commercial			154.4						130.1						24.3						297.3						281.0						16.3
Industrial			119.9						112.9						7.0						236.0						247.3						(11.3)
Wholesale			11.1						7.5						3.6						17.5						10.1						7.4
Other			26.9						23.8						3.1						51.7						50.2						1.5
Total			$	469.2					$	397.1					$	72.1					$	903.2					$	861.8					$	41.4
Sales (GWh)
Residential			828.8						739.8						89.0						1,593.7						1,505.9						87.8
Commercial			926.9						876.5						50.4						1,805.6						1,732.7						72.9
Industrial			1,945.1						1,993.9						(48.8)						3,777.8						3,931.6						(153.8)
Wholesale			298.1						142.7						155.4						447.3						142.7						304.6
Other			19.7						17.8						1.9						43.1						40.6						2.5
Total			4,018.6						3,770.7						247.9						7,667.5						7,353.5						314.0
Cooling Degree Days			326						206						120						326						206						120
Normal Cooling Degree Days			248						247						1						248						247						1
% Warmer (Colder) than Normal			31		%				(17)		%										31		%				(17)		%
% Warmer than prior year			58		%																58		%
NIPSCO Electric Customers
Residential																					428,348						425,404						2,944
Commercial																					58,979						58,490						489
Industrial																					2,118						2,129						(11)
Wholesale																					707						708						(1)
Other																					3						3						—
Total																					490,155						486,734						3,421

Table of Contents

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (continued)

NiSource Inc.

**NIPSCO Operation

Showing the first 8K of 66K characters. Open the full section