Delaware | 001-16189 | 35-2108964 | ||
(State or other jurisdiction of incorporation or organization) | Commission file number | (I.R.S. Employer Identification No.) |
801 East 86th Avenue Merrillville, Indiana | 46410 | ||||||
(Address of principal executive offices) | (Zip Code) |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2 (b)) |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4 (c)) |
ITEM 2.02. | RESULTS OF OPERATIONS AND FINANCIAL CONDITION |
ITEM 9.01. | FINANCIAL STATEMENTS AND EXHIBITS |
(d) | Exhibits |
Exhibit Number | Description | |
99.1 | Press Release, dated August 3, 2015, issued by NiSource Inc. |
NiSource Inc. | ||||
(Registrant) | ||||
Date: August 3, 2015 | By: | /s/ Joseph W. Mulpas | ||
Joseph W. Mulpas | ||||
Vice President and Chief Accounting Officer |
Exhibit Number | Description | |
99.1 | Press Release, dated August 3, 2015, issued by NiSource Inc. |
Media | Investors |
Ken Stammen | Randy Hulen |
Communications Manager | Vice President, Investor Relations |
(614) 460-5544 | (219) 647-5688 |
kstammen@nisource.com | rghulen@nisource.com |
• | Financial results in line with expectations |
• | Credit rating upgraded by Standard & Poor’s, outlook raised by Fitch Ratings |
• | Successfully completed the separation of Columbia Pipeline Group on July 1, 2015 |
• | Dividend, earnings growth outlook reaffirmed |
• | Columbia Gas of Massachusetts (CMA) has reached a settlement agreement in principle with the Massachusetts Attorney General in its base rate case. The settlement agreement is expected to be finalized and filed for approval with the Massachusetts Department of Public Utilities (DPU) in August 2015. The case seeks to recover costs to support CMA’s multi-year modernization plan to maintain the safety and reliability of natural gas service for customers. |
• | Columbia Gas of Pennsylvania’s (CPA) base rate case is progressing on schedule and remains pending before the Pennsylvania Public Utility Commission. Filed in March, the case supports the continuation of CPA’s infrastructure modernization and safety programs. If approved as filed, the case would increase annual revenues by approximately $46 million. A decision is expected by the end of this year. |
• | On June 30, the hearing examiner in Columbia Gas of Virginia's pending base rate case recommended specific fixed customer charges for each rate class, addressing the final outstanding issue in the case. The commission had previously found that the stipulated annual revenue increase of $25.2 million is reasonable. A final order in the case is expected later this year. |
• | As announced previously, CMA received DPU approval of its 2015 Gas System Enhancement Plan on April 30. Cost recovery associated with the 2015 investments outlined in the plan began on May 1, and is projected to increase annual revenues by approximately $2.6 million. |
• | On May 26, Northern Indiana Public Service Company (NIPSCO), the Indiana Office of Utility Consumer Counselor and some of NIPSCO’s largest industrial customers reached a settlement agreement that resolved all concerns raised by the parties in an Indiana Court of Appeals proceeding surrounding the company’s long-term Electric Infrastructure Modernization Plan. As part of the agreement, NIPSCO will file a base rate case, followed by a new seven-year plan in the fourth quarter. |
• | NIPSCO remains on schedule and on budget with its flue gas desulfurization (FGD) unit at its Michigan City Generating Station. The approximately $265 million project is expected to be placed in service by the end of this year. This investment, supported with cost recovery, improves air quality and helps ensure NIPSCO’s generation fleet remains in compliance with current environmental regulations. It also helps ensure that NIPSCO can continue offering low-cost, reliable and efficient generating capacity for its customers. |
• | Progress also continued on two major electric transmission projects designed to enhance region-wide system flexibility and reliability. The Greentown-Reynolds project is an approximately 65-mile, 765-kilovolt line being constructed in a joint development agreement with Pioneer Transmission, and the Reynolds-Topeka project is a 100-mile, 345-kilovolt line. Right-of-way acquisition and permitting are under way for both projects and substation construction has begun on both projects. These projects involve an investment of approximately $500 million for NIPSCO and are anticipated to be in service by the end of 2018. |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
(in millions, except per share amounts) | 2015 | 2014 | 2015 | 2014 | |||||||||||
Net Revenues | |||||||||||||||
Gas Distribution | $ | 311.8 | $ | 426.4 | $ | 1,373.1 | $ | 1,619.7 | |||||||
Gas Transportation and Storage | 427.4 | 390.1 | 1,055.4 | 968.6 | |||||||||||
Electric | 376.5 | 401.8 | 768.4 | 847.1 | |||||||||||
Other | 60.1 | 116.7 | 106.4 | 193.7 | |||||||||||
Gross Revenues | 1,175.8 | 1,335.0 | 3,303.3 | 3,629.1 | |||||||||||
Cost of Sales (excluding depreciation and amortization) | 218.6 | 371.7 | 1,024.6 | 1,433.0 | |||||||||||
Total Net Revenues | 957.2 | 963.3 | 2,278.7 | 2,196.1 | |||||||||||
Operating Expenses | |||||||||||||||
Operation and maintenance | 432.9 | 401.0 | 837.5 | 777.9 | |||||||||||
Operation and maintenance - trackers | 87.7 | 132.1 | 236.7 | 256.4 | |||||||||||
Depreciation and amortization | 163.2 | 148.4 | 319.6 | 297.1 | |||||||||||
Depreciation and amortization - trackers | 4.2 | 0.7 | 5.3 | 0.7 | |||||||||||
Gain on sale of assets | (8.3 | ) | (0.3 | ) | (13.6 | ) | (17.8 | ) | |||||||
Other taxes | 64.3 | 58.7 | 136.6 | 129.3 | |||||||||||
Other taxes - trackers | 14.8 | 14.7 | 44.9 | 45.2 | |||||||||||
Total Operating Expenses | 758.8 | 755.3 | 1,567.0 | 1,488.8 | |||||||||||
Equity Earnings in Unconsolidated Affiliates | 13.7 | 11.1 | 29.1 | 20.9 | |||||||||||
Operating Earnings | 212.1 | 219.1 | 740.8 | 728.2 | |||||||||||
Other Income (Deductions) | |||||||||||||||
Interest expense, net | (117.1 | ) | (109.1 | ) | (228.1 | ) | (218.2 | ) | |||||||
Other, net | 6.5 | 7.5 | 13.6 | 12.0 | |||||||||||
Total Other Deductions | (110.6 | ) | (101.6 | ) | (214.5 | ) | (206.2 | ) | |||||||
Operating Earnings From Continuing Operations | |||||||||||||||
Before Income Taxes | 101.5 | 117.5 | 526.3 | 522.0 | |||||||||||
Income Taxes | 36.0 | 39.6 | 185.6 | 185.7 | |||||||||||
Net Operating Earnings from Continuing Operations | 65.5 | 77.9 | 340.7 | 336.3 | |||||||||||
Net Operating Earnings from Continuing Operations - Noncontrolling Interest | (8.7 | ) | — | (15.6 | ) | — | |||||||||
Net Operating Earnings from Continuing Operations - Controlling Interest | 56.8 | 77.9 | 325.1 | 336.3 | |||||||||||
GAAP Adjustment | (92.9 | ) | 0.6 | (92.8 | ) | 8.6 | |||||||||
GAAP (Loss) Income from Continuing Operations - Controlling Interest | $ | (36.1 | ) | $ | 78.5 | $ | 232.3 | $ | 344.9 | ||||||
Basic Net Operating Earnings Per Share from Continuing Operations | $ | 0.18 | $ | 0.25 | $ | 1.03 | $ | 1.07 | |||||||
GAAP Basic (Loss) Earnings Per Share from Continuing Operations | $ | (0.11 | ) | $ | 0.25 | $ | 0.73 | $ | 1.10 | ||||||
Basic Average Common Shares Outstanding | 317.5 | 315.0 | 317.0 | 314.6 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
Gas Distribution Operations | |||||||||||||||
(in millions) | 2015 | 2014 | 2015 | 2014 | |||||||||||
Net Revenues | |||||||||||||||
Sales revenues | $ | 514.6 | $ | 619.5 | $ | 1,951.5 | $ | 2,163.4 | |||||||
Less: Cost of gas sold | 133.4 | 257.2 | 856.0 | 1,180.2 | |||||||||||
Net Revenues | 381.2 | 362.3 | 1,095.5 | 983.2 | |||||||||||
Operating Expenses | |||||||||||||||
Operation and maintenance | 207.4 | 189.7 | 400.8 | 371.1 | |||||||||||
Operation and maintenance - trackers | 18.6 | 17.1 | 117.0 | 64.5 | |||||||||||
Depreciation and amortization | 58.2 | 54.1 | 114.3 | 106.3 | |||||||||||
Other taxes | 26.6 | 24.2 | 57.1 | 53.5 | |||||||||||
Other taxes - trackers | 14.8 | 14.7 | 44.9 | 45.2 | |||||||||||
Total Operating Expenses | 325.6 | 299.8 | 734.1 | 640.6 | |||||||||||
Operating Earnings | $ | 55.6 | $ | 62.5 | $ | 361.4 | $ | 342.6 | |||||||
GAAP Adjustment | (5.9 | ) | (2.7 | ) | 13.5 | 19.0 | |||||||||
GAAP Operating Income | $ | 49.7 | $ | 59.8 | $ | 374.9 | $ | 361.6 | |||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
Electric Operations | |||||||||||||||
(in millions) | 2015 | 2014 | 2015 | 2014 | |||||||||||
Net Revenues | |||||||||||||||
Sales revenues | $ | 376.6 | $ | 402.4 | $ | 769.6 | $ | 848.1 | |||||||
Less: Cost of sales | 116.6 | 146.3 | 242.3 | 326.7 | |||||||||||
Net Revenues | 260.0 | 256.1 | 527.3 | 521.4 | |||||||||||
Operating Expenses | |||||||||||||||
Operation and maintenance | 111.4 | 116.5 | 224.6 | 223.1 | |||||||||||
Operation and maintenance - trackers | 7.9 | 5.7 | 14.9 | 11.6 | |||||||||||
Depreciation and amortization | 64.3 | 59.4 | 125.4 | 119.8 | |||||||||||
Depreciation and amortization - trackers | 4.2 | 0.7 | 5.3 | 0.7 | |||||||||||
Other taxes | 15.6 | 14.0 | 33.3 | 32.2 | |||||||||||
Total Operating Expenses | 203.4 | 196.3 | 403.5 | 387.4 | |||||||||||
Operating Earnings | $ | 56.6 | $ | 59.8 | $ | 123.8 | $ | 134.0 | |||||||
GAAP Adjustment | (10.9 | ) | 3.1 | (8.1 | ) | 7.8 | |||||||||
GAAP Operating Income | $ | 45.7 | $ | 62.9 | $ | 115.7 | $ | 141.8 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
Columbia Pipeline Group Operations | |||||||||||||||
(in millions) | 2015 | 2014 | 2015 | 2014 | |||||||||||
Net Revenues | |||||||||||||||
Transportation revenues | $ | 211.3 | $ | 181.5 | $ | 462.4 | $ | 403.8 | |||||||
Storage revenues | 49.0 | 49.3 | 99.0 | 99.2 | |||||||||||
Other revenues | 55.6 | 112.7 | 94.3 | 186.1 | |||||||||||
Total Operating Revenues | 315.9 | 343.5 | 655.7 | 689.1 | |||||||||||
Less: Cost of sales | 0.1 | 0.1 | 0.2 | 0.2 | |||||||||||
Net Revenues | 315.8 | 343.4 | 655.5 | 688.9 | |||||||||||
Operating Expenses | |||||||||||||||
Operation and maintenance | 115.2 | 95.8 | 217.4 | 190.5 | |||||||||||
Operation and maintenance - trackers | 61.2 | 109.3 | 104.8 | 180.3 | |||||||||||
Depreciation and amortization | 33.9 | 28.8 | 66.4 | 58.5 | |||||||||||
Gain on sale of assets | (8.3 | ) | (0.3 | ) | (13.6 | ) | (17.8 | ) | |||||||
Other taxes | 18.9 | 17.2 | 38.0 | 35.7 | |||||||||||
Total Operating Expenses | 220.9 | 250.8 | 413.0 | 447.2 | |||||||||||
Equity Earnings in Unconsolidated Affiliates | 13.7 | 11.1 | 29.1 | 20.9 | |||||||||||
Operating Earnings | $ | 108.6 | $ | 103.7 | $ | 271.6 | $ | 262.6 | |||||||
GAAP Adjustment | — | — | — | — | |||||||||||
GAAP Operating Income | $ | 108.6 | $ | 103.7 | $ | 271.6 | $ | 262.6 | |||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
Corporate and Other Operations | |||||||||||||||
(in millions) | 2015 | 2014 | 2015 | 2014 | |||||||||||
Operating Earnings Loss | $ | (8.7 | ) | $ | (6.9 | ) | $ | (16.0 | ) | $ | (11.0 | ) | |||
GAAP Adjustment | (30.2 | ) | 0.1 | (51.0 | ) | (1.7 | ) | ||||||||
GAAP Operating Loss | $ | (38.9 | ) | $ | (6.8 | ) | $ | (67.0 | ) | $ | (12.7 | ) |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||
Gas Distribution Operations | 2015 | 2014 | 2015 | 2014 | |||||||
Sales and Transportation (MMDth) | |||||||||||
Residential | 30.4 | 35.0 | 183.5 | 191.5 | |||||||
Commercial | 25.1 | 27.4 | 113.8 | 117.5 | |||||||
Industrial | 123.6 | 121.7 | 270.4 | 258.5 | |||||||
Off System | 6.0 | 14.2 | 19.5 | 28.5 | |||||||
Other | (2.0 | ) | (0.3 | ) | (2.0 | ) | (0.1 | ) | |||
Total | 183.1 | 198.0 | 585.2 | 595.9 | |||||||
Weather Adjustment | 6.3 | 2.3 | (29.2 | ) | (33.8) | ||||||
Sales and Transportation Volumes - Excluding Weather | 189.4 | 200.3 | 556.0 | 562.1 | |||||||
Heating Degree Days | 489 | 555 | 3,893 | 3,992 | |||||||
Normal Heating Degree Days | 599 | 599 | 3,491 | 3,491 | |||||||
% (Warmer) Colder than Normal | (18 | )% | (7 | )% | 12 | % | 14 | % | |||
Customers | |||||||||||
Residential | 3,070,555 | 3,051,277 | |||||||||
Commercial | 280,329 | 278,776 | |||||||||
Industrial | 7,717 | 7,546 | |||||||||
Other | 938 | 14 | |||||||||
Total | 3,359,539 | 3,337,613 | |||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||
Electric Operations | 2015 | 2014 | 2015 | 2014 | |||||||
Sales (Gigawatt Hours) | |||||||||||
Residential | 716.9 | 793.2 | 1,582.7 | 1,689.4 | |||||||
Commercial | 929.1 | 964.9 | 1,869.1 | 1,900.4 | |||||||
Industrial | 2,295.0 | 2,455.8 | 4,720.4 | 5,062.9 | |||||||
Wholesale | 1.0 | 12.1 | 117.9 | 323.9 | |||||||
Other | 34.5 | 34.9 | 69.1 | 68.3 | |||||||
Total | 3,976.5 | 4,260.9 | 8,359.2 | 9,044.9 | |||||||
Weather Adjustment | 13.3 | (44.4) | (28.9) | (114.4) | |||||||
Sales Volumes - Excluding Weather | 3,989.8 | 4,216.5 | 8,330.3 | 8,930.5 | |||||||
Cooling Degree Days | 229 | 276 | 229 | 276 | |||||||
Normal Cooling Degree Days | 229 | 229 | 229 | 229 | |||||||
% Colder than Normal | — | % | 21 | % | — | % | 21 | % | |||
Electric Customers | |||||||||||
Residential | 402,955 | 401,671 | |||||||||
Commercial | 54,762 | 54,303 | |||||||||
Industrial | 2,357 | 2,370 | |||||||||
Wholesale | 747 | 767 | |||||||||
Other | 4 | 6 | |||||||||
Total | 460,825 | 459,117 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||
Columbia Pipeline Group Operations | 2015 | 2014 | 2015 | 2014 | |||
Throughput (MMDth) | |||||||
Columbia Transmission | 215.3 | 194.2 | 706.3 | 653.7 | |||
Columbia Gulf | 137.3 | 145.4 | 283.0 | 330.3 | |||
Crossroads Pipeline | 3.5 | 3.5 | 8.6 | 9.2 | |||
Intrasegment eliminations | (11.4) | (21.6) | (40.1) | (83.2) | |||
Total | 344.7 | 321.5 | 957.8 | 910.0 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
(in millions, except per share amounts) | 2015 | 2014 | 2015 | 2014 | |||||||||||
Net Operating Earnings from Continuing Operations - Controlling Interest | $ | 56.8 | $ | 77.9 | $ | 325.1 | $ | 336.3 | |||||||
Items excluded from operating earnings | |||||||||||||||
Net Revenues: | |||||||||||||||
Weather - compared to normal | (6.8 | ) | 0.1 | 15.4 | 26.5 | ||||||||||
Operating Expenses: | |||||||||||||||
Environmental costs | (10.0 | ) | — | (10.0 | ) | — | |||||||||
Transaction costs | (30.4 | ) | — | (50.9 | ) | — | |||||||||
Gain (Loss) on sale of assets | 0.2 | 0.4 | (0.1 | ) | (1.4 | ) | |||||||||
Total items excluded from operating earnings | (47.0 | ) | 0.5 | (45.6 | ) | 25.1 | |||||||||
Other Deductions: | |||||||||||||||
Loss on early extinguishment of long-term debt | (97.2 | ) | — | (97.2 | ) | — | |||||||||
Income taxes - discrete items | (3.9 | ) | — | (4.5 | ) | (7.0 | ) | ||||||||
Tax effect of above items | 55.2 | 0.1 | 54.5 | (9.5 | ) | ||||||||||
Total items excluded from net operating earnings | (92.9 | ) | 0.6 | (92.8 | ) | 8.6 | |||||||||
GAAP (Loss) Income from Continuing Operations - Controlling Interest | $ | (36.1 | ) | $ | 78.5 | $ | 232.3 | $ | 344.9 | ||||||
Basic Average Common Shares Outstanding | 317.5 | 315.0 | 317.0 | 314.6 | |||||||||||
Basic Net Operating Earnings Per Share from Continuing Operations | $ | 0.18 | $ | 0.25 | $ | 1.03 | $ | 1.07 | |||||||
Items excluded from net operating earnings (after-tax) | (0.29 | ) | — | (0.30 | ) | 0.03 | |||||||||
GAAP Basic (Loss) Earnings Per Share from Continuing Operations | $ | (0.11 | ) | $ | 0.25 | $ | 0.73 | $ | 1.10 |
2015 (in millions) | Gas Distribution | Electric | Columbia Pipeline Group | Corporate & Other | Total | |||||||||||||||
Operating Earnings (Loss) | $ | 55.6 | $ | 56.6 | $ | 108.6 | $ | (8.7 | ) | $ | 212.1 | |||||||||
Net Revenues: | ||||||||||||||||||||
Weather - compared to normal | (5.9 | ) | (0.9 | ) | — | — | (6.8 | ) | ||||||||||||
Total Impact - Net Revenues | (5.9 | ) | (0.9 | ) | — | — | (6.8 | ) | ||||||||||||
Operating Expenses: | ||||||||||||||||||||
Environmental costs | — | (10.0 | ) | — | — | (10.0 | ) | |||||||||||||
Transaction costs | — | — | — | (30.4 | ) | (30.4 | ) | |||||||||||||
Gain on sale of assets | — | — | — | 0.2 | 0.2 | |||||||||||||||
Total Impact - Operating Expenses | — | (10.0 | ) | — | (30.2 | ) | (40.2 | ) | ||||||||||||
Total Impact - Operating Loss | $ | (5.9 | ) | $ | (10.9 | ) | $ | — | $ | (30.2 | ) | $ | (47.0 | ) | ||||||
Operating Income (Loss) - GAAP | $ | 49.7 | $ | 45.7 | $ | 108.6 | $ | (38.9 | ) | $ | 165.1 | |||||||||
2014 (in millions) | Gas Distribution | Electric | Columbia Pipeline Group | Corporate & Other | Total | |||||||||||||||
Operating Earnings (Loss) | $ | 62.5 | $ | 59.8 | $ | 103.7 | $ | (6.9 | ) | $ | 219.1 | |||||||||
Net Revenues: | ||||||||||||||||||||
Weather - compared to normal | (2.9 | ) | 3.0 | — | — | 0.1 | ||||||||||||||
Total Impact - Net Revenues | (2.9 | ) | 3.0 | — | — | 0.1 | ||||||||||||||
Operating Expenses: | ||||||||||||||||||||
Gain on sale of assets | 0.2 | 0.1 | — | 0.1 | 0.4 | |||||||||||||||
Total Impact - Operating Expenses | 0.2 | 0.1 | — | 0.1 | 0.4 | |||||||||||||||
Total Impact - Operating (Loss) Income | $ | (2.7 | ) | $ | 3.1 | $ | — | $ | 0.1 | $ | 0.5 | |||||||||
Operating Income (Loss) - GAAP | $ | 59.8 | $ | 62.9 | $ | 103.7 | $ | (6.8 | ) | $ | 219.6 |
2015 (in millions) | Gas Distribution | Electric | Columbia Pipeline Group | Corporate & Other | Total | |||||||||||||||
Operating Earnings (Loss) | $ | 361.4 | $ | 123.8 | $ | 271.6 | $ | (16.0 | ) | $ | 740.8 | |||||||||
Net Revenues: | ||||||||||||||||||||
Weather - compared to normal | 13.5 | 1.9 | — | — | 15.4 | |||||||||||||||
Total Impact - Net Revenues | 13.5 | 1.9 | — | — | 15.4 | |||||||||||||||
Operating Expenses: | ||||||||||||||||||||
Environmental costs | — | (10.0 | ) | — | — | (10.0 | ) | |||||||||||||
Transaction costs | — | — | — | (50.9 | ) | (50.9 | ) | |||||||||||||
Loss on sale of assets | — | — | — | (0.1 | ) | (0.1 | ) | |||||||||||||
Total Impact - Operating Expenses | — | (10.0 | ) | — | (51.0 | ) | (61.0 | ) | ||||||||||||
Total Impact - Operating Income (Loss) | $ | 13.5 | $ | (8.1 | ) | $ | — | $ | (51.0 | ) | $ | (45.6 | ) | |||||||
Operating Income (Loss) - GAAP | $ | 374.9 | $ | 115.7 | $ | 271.6 | $ | (67.0 | ) | $ | 695.2 | |||||||||
2014 (in millions) | Gas Distribution | Electric | Columbia Pipeline Group | Corporate & Other | Total | |||||||||||||||
Operating Earnings (Loss) | $ | 342.6 | $ | 134.0 | $ | 262.6 | $ | (11.0 | ) | $ | 728.2 | |||||||||
Net Revenues: | ||||||||||||||||||||
Weather - compared to normal | 18.8 | 7.7 | — | — | 26.5 | |||||||||||||||
Settlement agreement | — | — | — | — | — | |||||||||||||||
Total Impact - Net Revenues | 18.8 | 7.7 | — | — | 26.5 | |||||||||||||||
Operating Expenses: | ||||||||||||||||||||
Gain (Loss) on sale of assets | 0.2 | 0.1 | — | (1.7 | ) | (1.4 | ) | |||||||||||||
Total Impact - Operating Expenses | 0.2 | 0.1 | — | (1.7 | ) | (1.4 | ) | |||||||||||||
Total Impact - Operating (Loss) Income | $ | 19.0 | $ | 7.8 | $ | — | $ | (1.7 | ) | $ | 25.1 | |||||||||
Operating Income (Loss) - GAAP | $ | 361.6 | $ | 141.8 | $ | 262.6 | $ | (12.7 | ) | $ | 753.3 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
(in millions, except per share amounts) | 2015 | 2014 | 2015 | 2014 | |||||||||||
Net Revenues | |||||||||||||||
Gas Distribution | $ | 305.9 | $ | 423.5 | $ | 1,386.6 | $ | 1,638.5 | |||||||
Gas Transportation and Storage | 427.4 | 390.1 | 1,055.4 | 968.6 | |||||||||||
Electric | 375.6 | 404.8 | 770.3 | 854.8 | |||||||||||
Other | 60.1 | 116.7 | 106.4 | 193.7 | |||||||||||
Gross Revenues | 1,169.0 | 1,335.1 | 3,318.7 | 3,655.6 | |||||||||||
Cost of Sales (excluding depreciation and amortization) | 218.6 | 371.7 | 1,024.6 | 1,433.0 | |||||||||||
Total Net Revenues | 950.4 | 963.4 | 2,294.1 | 2,222.6 | |||||||||||
Operating Expenses | |||||||||||||||
Operation and maintenance | 561.0 | 533.1 | 1,135.1 | 1,034.3 | |||||||||||
Depreciation and amortization | 167.4 | 149.1 | 324.9 | 297.8 | |||||||||||
Gain on sale of assets | (8.5 | ) | (0.7 | ) | (13.5 | ) | (16.4 | ) | |||||||
Other taxes | 79.1 | 73.4 | 181.5 | 174.5 | |||||||||||
Total Operating Expenses | 799.0 | 754.9 | 1,628.0 | 1,490.2 | |||||||||||
Equity Earnings in Unconsolidated Affiliates | 13.7 | 11.1 | 29.1 | 20.9 | |||||||||||
Operating Income | 165.1 | 219.6 | 695.2 | 753.3 | |||||||||||
Other Income (Deductions) | |||||||||||||||
Interest expense, net | (117.1 | ) | (109.1 | ) | (228.1 | ) | (218.2 | ) | |||||||
Other, net | 6.5 | 7.5 | 13.6 | 12.0 | |||||||||||
Loss on early extinguishment of long-term debt | (97.2 | ) | — | (97.2 | ) | — | |||||||||
Total Other Deductions | (207.8 | ) | (101.6 | ) | (311.7 | ) | (206.2 | ) | |||||||
(Loss) Income from Continuing Operations before Income Taxes | (42.7 | ) | 118.0 | 383.5 | 547.1 | ||||||||||
Income Taxes | (15.3 | ) | 39.5 | 135.6 | 202.2 | ||||||||||
(Loss) Income from Continuing Operations | (27.4 | ) | 78.5 | 247.9 | 344.9 | ||||||||||
Loss from Discontinued Operations - net of taxes | (0.3 | ) | (0.3 | ) | (0.3 | ) | (0.5 | ) | |||||||
Net (Loss) Income | (27.7 | ) | 78.2 | 247.6 | 344.4 | ||||||||||
Less: Net income attributable to noncontrolling interest | 8.7 | — | 15.6 | — | |||||||||||
Net (Loss) Income attributable to NiSource | $ | (36.4 | ) | $ | 78.2 | $ | 232.0 | $ | 344.4 | ||||||
Amounts attributable to NiSource: | |||||||||||||||
(Loss) Income from continuing operations | $ | (36.1 | ) | $ | 78.5 | $ | 232.3 | $ | 344.9 | ||||||
Loss from discontinued operations | (0.3 | ) | (0.3 | ) | (0.3 | ) | (0.5 | ) | |||||||
Net (Loss) Income attributable to NiSource | $ | (36.4 | ) | $ | 78.2 | $ | 232.0 | $ | 344.4 | ||||||
Basic (Loss) Earnings Per Share | |||||||||||||||
Continuing operations | $ | (0.11 | ) | $ | 0.25 | $ | 0.73 | $ | 1.10 | ||||||
Discontinued operations | — | — | — | — | |||||||||||
Basic (Loss) Earnings Per Share | $ | (0.11 | ) | $ | 0.25 | $ | 0.73 | $ | 1.10 | ||||||
Diluted (Loss) Earnings Per Share | |||||||||||||||
Continuing operations | $ | (0.11 | ) | $ | 0.25 | $ | 0.73 | $ | 1.09 | ||||||
Discontinued operations | — | — | — | — | |||||||||||
Diluted (Loss) Earnings Per Share | $ | (0.11 | ) | $ | 0.25 | $ | 0.73 | $ | 1.09 | ||||||
Dividends Declared Per Common Share | $ | — | $ | 0.26 | $ | 0.52 | $ | 0.76 | |||||||
Basic Average Common Shares Outstanding | 317.5 | 315.0 | 317.0 | 314.6 | |||||||||||
Diluted Average Common Shares | 317.5 | 316.1 | 318.0 | 315.7 |
(in millions) | June 30, 2015 | December 31, 2014 | |||||
ASSETS | |||||||
Property, Plant and Equipment | |||||||
Utility plant | $ | 26,225.2 | $ | 25,234.8 | |||
Accumulated depreciation and amortization | (9,718.8 | ) | (9,578.6 | ) | |||
Net utility plant | 16,506.4 | 15,656.2 | |||||
Other property, at cost, less accumulated depreciation | 401.9 | 360.9 | |||||
Net Property, Plant and Equipment | 16,908.3 | 16,017.1 | |||||
Investments and Other Assets | |||||||
Unconsolidated affiliates | 452.3 | 452.6 | |||||
Other investments | 200.7 | 210.4 | |||||
Total Investments and Other Assets | 653.0 | 663.0 | |||||
Current Assets | |||||||
Cash and cash equivalents | 496.6 | 25.4 | |||||
Restricted cash | 25.2 | 24.9 | |||||
Accounts receivable (less reserve of $38.1 and $25.2, respectively) | 672.7 | 1,070.1 | |||||
Gas inventory | 259.2 | 445.1 | |||||
Underrecovered gas costs | 3.5 | 32.0 | |||||
Materials and supplies, at average cost | 112.4 | 106.0 | |||||
Electric production fuel, at average cost | 96.5 | 64.8 | |||||
Exchange gas receivable | 57.1 | 63.1 | |||||
Regulatory assets | 175.5 | 193.5 | |||||
Deferred income taxes | 303.8 | 272.1 | |||||
Prepayments and other | 133.2 | 169.5 | |||||
Total Current Assets | 2,335.7 | 2,466.5 | |||||
Other Assets | |||||||
Regulatory assets | 1,673.7 | 1,696.4 | |||||
Goodwill | 3,666.2 | 3,666.2 | |||||
Intangible assets | 258.4 | 264.7 | |||||
Deferred charges and other | 111.6 | 92.4 | |||||
Total Other Assets | 5,709.9 | 5,719.7 | |||||
Total Assets | $ | 25,606.9 | $ | 24,866.3 |
(in millions, except share amounts) | June 30, 2015 | December 31, 2014 | |||||
CAPITALIZATION AND LIABILITIES | |||||||
Capitalization | |||||||
NiSource Common Stockholders’ Equity | |||||||
Common stock - $0.01 par value, 400,000,000 shares authorized; 317,668,149 and 316,037,421 shares outstanding, respectively | $ | 3.2 | $ | 3.2 | |||
Additional paid-in capital | 5,065.1 | 4,787.6 | |||||
Retained earnings | 1,561.1 | 1,494.0 | |||||
Accumulated other comprehensive loss | (44.4 | ) | (50.6 | ) | |||
Treasury stock | (79.1 | ) | (58.9 | ) | |||
Total NiSource Common Stockholders’ Equity | 6,505.9 | 6,175.3 | |||||
Noncontrolling interest in consolidated subsidiaries | 950.0 | — | |||||
Total Equity | 7,455.9 | 6,175.3 | |||||
Long-term debt, excluding amounts due within one year | 8,881.1 | 8,155.9 | |||||
Total Capitalization | 16,337.0 | 14,331.2 | |||||
Current Liabilities | |||||||
Current portion of long-term debt | 442.6 | 266.6 | |||||
Short-term borrowings | 161.8 | 1,576.9 | |||||
Accounts payable | 429.2 | 670.6 | |||||
Customer deposits and credits | 206.9 | 294.3 | |||||
Taxes accrued | 221.5 | 266.7 | |||||
Interest accrued | 141.6 | 140.7 | |||||
Overrecovered gas and fuel costs | 198.6 | 45.6 | |||||
Exchange gas payable | 63.9 | 136.2 | |||||
Deferred revenue | 21.6 | 25.6 | |||||
Regulatory liabilities | 136.1 | 62.4 | |||||
Accrued capital expenditures | 146.3 | 61.1 | |||||
Accrued liability for postretirement and postemployment benefits | 5.9 | 5.9 | |||||
Legal and environmental | 34.5 | 24.2 | |||||
Other accruals | 313.8 | 378.1 | |||||
Total Current Liabilities | 2,524.3 | 3,954.9 | |||||
Other Liabilities and Deferred Credits | |||||||
Deferred income taxes | 3,822.6 | 3,661.6 | |||||
Deferred investment tax credits | 16.1 | 17.3 | |||||
Deferred credits | 105.1 | 101.1 | |||||
Accrued liability for postretirement and postemployment benefits | 633.9 | 675.9 | |||||
Regulatory liabilities | 1,692.6 | 1,673.8 | |||||
Asset retirement obligations | 204.7 | 159.4 | |||||
Other noncurrent liabilities | 270.6 | 291.1 | |||||
Total Other Liabilities and Deferred Credits | 6,745.6 | 6,580.2 | |||||
Commitments and Contingencies | — | — | |||||
Total Capitalization and Liabilities | $ | 25,606.9 | $ | 24,866.3 |
Six Months Ended June 30, (in millions) | 2015 | 2014 | |||||
Operating Activities | |||||||
Net Income | $ | 247.6 | $ | 344.4 | |||
Adjustments to Reconcile Net Income to Net Cash from Continuing Operations: | |||||||
Loss on early extinguishment of debt | 97.2 | — | |||||
Depreciation and amortization | 324.9 | 297.8 | |||||
Net changes in price risk management assets and liabilities | 0.1 | 1.4 | |||||
Deferred income taxes and investment tax credits | 119.2 | 186.8 | |||||
Deferred revenue | 6.8 | 1.6 | |||||
Stock compensation expense and 401(k) profit sharing contribution | 33.4 | 27.9 | |||||
Gain on sale of assets | (13.5 | ) | (16.4 | ) | |||
Income from unconsolidated affiliates | (28.4 | ) | (20.6 | ) | |||
Loss from discontinued operations - net of taxes | 0.3 | 0.5 | |||||
Amortization of debt related costs | 5.4 | 5.1 | |||||
AFUDC equity | (13.3 | ) | (9.2 | ) | |||
Distributions of earnings received from equity investees | 27.9 | 12.9 | |||||
Changes in Assets and Liabilities | |||||||
Accounts receivable | 385.6 | 176.4 | |||||
Income tax receivable | (0.2 | ) | 1.0 | ||||
Inventories | 146.8 | 28.2 | |||||
Accounts payable | (249.6 | ) | (170.3 | ) | |||
Customer deposits and credits | (114.8 | ) | (20.9 | ) | |||
Taxes accrued | (44.7 | ) | (43.2 | ) | |||
Interest accrued | 0.9 | 5.5 | |||||
Over (Under) recovered gas and fuel costs | 181.5 | (11.6 | ) | ||||
Exchange gas receivable/payable | (66.2 | ) | (112.3 | ) | |||
Other accruals | (69.8 | ) | (47.6 | ) | |||
Prepayments and other current assets | 36.7 | 43.0 | |||||
Regulatory assets/liabilities | 125.4 | 14.8 | |||||
Postretirement and postemployment benefits | (41.5 | ) | (61.8 | ) | |||
Deferred credits | 3.7 | 11.1 | |||||
Deferred charges and other noncurrent assets | 2.3 | (0.3 | ) | ||||
Other noncurrent liabilities | 12.0 | 7.8 | |||||
Net Operating Activities from Continuing Operations | 1,115.7 | 652.0 | |||||
Net Operating Activities used for Discontinued Operations | (0.1 | ) | (1.0 | ) | |||
Net Cash Flows from Operating Activities | 1,115.6 | 651.0 | |||||
Investing Activities | |||||||
Capital expenditures | (991.1 | ) | (852.9 | ) | |||
Insurance recoveries | 2.1 | 6.8 | |||||
Proceeds from disposition of assets | 16.7 | 6.2 | |||||
Restricted cash deposits | (0.3 | ) | (1.8 | ) | |||
Distributions from (contributions to) equity investees | 2.2 | (54.8 | ) | ||||
Other investing activities | (23.4 | ) | (1.1 | ) | |||
Net Cash Flows used for Investing Activities | (993.8 | ) | (897.6 | ) | |||
Financing Activities | |||||||
Issuance of common units of CPPL, net of issuance costs | 1,168.4 | — | |||||
Issuance of long-term debt | 2,745.9 | — | |||||
Repayments of long-term debt and capital lease obligations | (1,856.4 | ) | (13.3 | ) | |||
Premiums and other debt related costs | (116.0 | ) | — | ||||
Change in short-term borrowings, net | (1,415.1 | ) | 402.4 | ||||
Issuance of common stock | 12.4 | 16.1 | |||||
Acquisition of treasury stock | (20.2 | ) | (10.2 | ) | |||
Distributions to noncontrolling interest | (4.9 | ) | — | ||||
Dividends paid - common stock | (164.7 | ) | (157.2 | ) | |||
Net Cash Flows from Financing Activities | 349.4 | 237.8 | |||||
Change in cash and cash equivalents from (used for) continuing operations | 471.3 | (7.8 | ) | ||||
Change in cash and cash equivalents used for discontinued operations | (0.1 | ) | (1.0 | ) | |||
Cash and cash equivalents at beginning of period | 25.4 | 26.8 | |||||
Cash and Cash Equivalents at End of Period | $ | 496.6 | $ | 18.0 |
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