-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Gn3iAEveuiWW5epP0FrrOu6TMHioJwqdHhDX9d2uedeITInITNvdTeVlmoshvf5h sCkQvkr3rX7OPC+3kat7/w== /in/edgar/work/20000601/0000895813-00-000185/0000895813-00-000185.txt : 20000919 0000895813-00-000185.hdr.sgml : 20000919 ACCESSION NUMBER: 0000895813-00-000185 CONFORMED SUBMISSION TYPE: 425 PUBLIC DOCUMENT COUNT: 1 FILED AS OF DATE: 20000601 SUBJECT COMPANY: COMPANY DATA: COMPANY CONFORMED NAME: COLUMBIA ENERGY GROUP CENTRAL INDEX KEY: 0000022099 STANDARD INDUSTRIAL CLASSIFICATION: [4923 ] IRS NUMBER: 131594808 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 425 SEC ACT: SEC FILE NUMBER: 001-01098 FILM NUMBER: 647773 BUSINESS ADDRESS: STREET 1: 13880 DULLES CORNER LANE STREET 2: SUITE 300 CITY: HENDERON STATE: VA ZIP: 20171-4600 BUSINESS PHONE: 7035616000 MAIL ADDRESS: STREET 1: 13880 DULLES CORNER LANE STREET 2: SUITE 300 CITY: HERNDON STATE: VA ZIP: 20171-4600 FORMER COMPANY: FORMER CONFORMED NAME: COLUMBIA GAS SYSTEM INC DATE OF NAME CHANGE: 19920703 FILED BY: COMPANY DATA: COMPANY CONFORMED NAME: NISOURCE INC CENTRAL INDEX KEY: 0000823392 STANDARD INDUSTRIAL CLASSIFICATION: [4931 ] IRS NUMBER: 351719974 STATE OF INCORPORATION: IN FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 425 BUSINESS ADDRESS: STREET 1: 801 E 86TH AVENUE CITY: MERRILLVILLE STATE: IN ZIP: 46410 BUSINESS PHONE: 2198535200 MAIL ADDRESS: STREET 1: 5265 HOHMAN AVENUE CITY: HAMMOND STATE: IN ZIP: 46320-1775 FORMER COMPANY: FORMER CONFORMED NAME: NIPSCO INDUSTRIES INC DATE OF NAME CHANGE: 19920703 425 1 0001.txt Filed by: NiSource Inc. Pursuant to Rule 425 under the Securities Act of 1933 Subject Company: Columbia Energy Group Registration Statement File No: 333-33896 On June 1, 2000, NiSource made a slide presentation to its shareholders at the NiSource Annual Meeting of Shareholders. Copies of the slides were also made available to NiSource shareholders at the meeting. The text of the presentation is set forth below. TEXT OF SHAREHOLDER PRESENTATION JUNE 1, 2000 [NISOURCE{TM} LOGO] Delivering life's essential resources To view the complete video presentation as presented on June 1, 2000, visit our Web site beginning June 5 at www.nisource.com DELIVERING LIFE'S ESSENTIAL RESOURCES --------------------------------------------------------------------- Creating a new company . . . creating the future. Creating a strong platform for growth. [Photos of NiSource employees at work] [NiSource Logo] DELIVERING LIFE'S ESSENTIAL RESOURCES --------------------------------------------------------------------- --------------------------- BUILDING FOR TOMORROW . . . --------------------------- * BROAD PLATFORM TO MAXIMIZE OPPORTUNITIES - 4.1 million customers - gas distribution in 9 states - pipeline operations in 16 states
UPSTREAM - - - - - - - - - - - - - -COMMODITY DISTRIBUTION - - - - - - - - -DOWNSTREAM *19,000 Miles of Pipeline *Regulated Utilities *Cogeneration *700 Bcf of Gas Storage *Customer Growth *Distributed Generation *Marketing Services *Low Risk *Energy-Related Products *Gas Optionality *Good Returns *Commodity Conversion *Electric Optionality
[NiSource Logo] DELIVERING LIFE'S ESSENTIAL RESOURCES --------------------------------------------------------------------- ---------------- 1ST QUARTER 2000 ---------------- * Basic earnings per share = 64 cents, a 3.2% increase from 1st quarter '99 * 1st quarter earnings improved despite 15% warmer than normal and 11% warmer than same period in '99 * Gas operations EBIT increased $10.4 million to $98.9 million * Electric operations EBIT increased $9.1 million to $82.7 million * Water operation EBIT increased $1.5 million to $3.7 million * Gas marketing and storage EBIT increased $8.8 million to $9.7 million [NiSource Logo] DELIVERING LIFE'S ESSENTIAL RESOURCES --------------------------------------------------------------------- ------------------------------------------------------- CREATING VALUE . . . WITH LOWER RISK AND HIGHER RETURNS ------------------------------------------------------- * Regulated businesses - positive regulatory relationships - aggressive cost efficiencies - pursue incentive opportunities * Related diversification - leverage existing asset base into knowledge-based businesses with high returns - integrate existing businesses into growth markets * Creating new business opportunities in growth markets - asset optionality - distributed generation * Maintain strong financial profile, solid investment grade ratings [NiSource Logo] DELIVERING LIFE'S ESSENTIAL RESOURCES --------------------------------------------------------------------- ---------------------------- THE PREMIER COMPETITOR . . . ---------------------------- [GRAPHIC - MAP OF EASTERN UNITED STATES DEPICTING SERVICE TERRITORIES OF NISOURCE COMPANIES] [NiSource Logo] DELIVERING LIFE'S ESSENTIAL RESOURCES --------------------------------------------------------------------- ---------------------------- THE PREMIER COMPETITOR . . . ---------------------------- [GRAPHIC - MAP OF EASTERN UNITED STATES DEPICTING SERVICE TERRITORIES OF NISOURCE COMPANIES AND COLUMBIA COMPANIES] [NiSource Logo] DELIVERING LIFE'S ESSENTIAL RESOURCES --------------------------------------------------------------------- ------------------------------------ THE RIGHT ASSETS MAKE THE DIFFERENCE ------------------------------------ [GRAPHIC - CHART DEPICTING PROJECTED NET INCOME FROM DISTRIBUTED GENERATION, ELECTRIC OPTIONALITY, GAS OPTIONALITY AND BASE BUSINESS FOR THE YEARS 2001-2005] 15% CAGR [NiSource Logo] DELIVERING LIFE'S ESSENTIAL RESOURCES --------------------------------------------------------------------- -------------------- REALIZABLE SYNERGIES -------------------- (Dollars in Millions) 2001 2002 2003 2004 2005 ---- ---- ---- ---- ---- Distribution Revenue $1.5 $7.7 $11.5 $15.8 $18.1 Cost 15.3 19.1 22.6 27.8 29.5 Transmission Cost 8.7 13.9 15.3 17.3 17.8 Corporate 72.1 100.6 106.5 112.7 119.6 Total Synergies $97.6 $141.3 $155.9 $173.6 $185.0 Expect to Realize Incremental Savings [NiSource Logo] DELIVERING LIFE'S ESSENTIAL RESOURCES ---------------------------------------------------------------------
------------------------------------------------------ APPROVAL TIMETABLE -- ON TRACK PRIOR TO YEAR-END CLOSE ------------------------------------------------------ Year 2000 Mar Apr May Jun Jul Aug Sep 4th Qtr --------- ----- ----- ----- ----- ----- ----- ----- ------- Shareholder Proxy NiSource 6/1 Approval Filed Special 4/21 Mtg. C/G 6/2 State Filings PA VA Filed 4/3 KY Proceedings Filed ME Filed 4/10 Filing Approve 3/30 NH Filed 4/12 5/1 FERC Filed 4/10 Hart-Scott Filing Approve Rodino SEC 1935 Act Approve Filed 4/14
[NiSource Logo] DELIVERING LIFE'S ESSENTIAL RESOURCES --------------------------------------------------------------------- ---------------- SOURCES AND USES ---------------- Sources $MM % Uses $MM ------- --- --- ----- --- Debt Financing $3,118 52% Purchase Price ($72.07/Share) $5,966 SAILS{SM} 102 2% Transaction Costs 98 Asset Sales/Cash Total Uses $6,063 on Hand $1,023 16% Common Equity 1,820 30% Total Sources $6,063 100% Assumes 30% Stock Election [NiSource Logo] DELIVERING LIFE'S ESSENTIAL RESOURCES --------------------------------------------------------------------- ------------------------ NATURAL GAS DISTRIBUTION ------------------------ [GRAPHIC - MAP OF EASTERN UNITED STATES DEPICTING NIPSCO SERVICE TERRITORY] [NiSource Logo] DELIVERING LIFE'S ESSENTIAL RESOURCES --------------------------------------------------------------------- ------------------------ NATURAL GAS DISTRIBUTION ------------------------ [GRAPHIC - MAP OF EASTERN UNITED STATES DEPICTING LOGOS AND SERVICE TERRITORIES OF NIPSCO, NORTHERN UTILITIES AND BAY STATE GAS] [NiSource Logo] DELIVERING LIFE'S ESSENTIAL RESOURCES --------------------------------------------------------------------- ------------------------ NATURAL GAS DISTRIBUTION ------------------------ [GRAPHIC - MAP OF EASTERN UNITED STATES DEPICTING LOGOS AND NATURAL GAS DISTRIBUTION SERVICE TERRITORIES OF NIPSCO, NORTHERN UTILITIES, BAY STATE GAS AND COLUMBIA] [NiSource Logo] DELIVERING LIFE'S ESSENTIAL RESOURCES --------------------------------------------------------------------- --------------------- MILLENNIUM/CROSSROADS --------------------- [GRAPHIC - MAP OF EASTERN UNITED STATES DEPICTING MILLENNIUM AND CROSSROADS PIPELINES] [NiSource Logo] DELIVERING LIFE'S ESSENTIAL RESOURCES --------------------------------------------------------------------- ---------------------------- SUPPLY DRIVEN GROWTH IN GULF ---------------------------- [GRAPHIC - MAP OF EASTERN UNITED STATES DEPICTING, SUNSTAR/EAST LATERAL EXPANSION AND TARGET SUPPLY AREAS: WESTERN GARDEN BANKS, GREEN CANYON, MISSISSIPPI CANYON] SunStar * deepwater/liquids play * partnership with major producer * phased project-up to 600 Mdth/d * timeframe: late 2001, early 2002 [NiSource Logo] DELIVERING LIFE'S ESSENTIAL RESOURCES --------------------------------------------------------------------- --------------------------------- GROWTH IN OHIO VALLEY AND STORAGE CREATE SYNERGIES IN NEW NISOURCE --------------------------------- [GRAPHIC - MAP OF EASTERN UNITED STATES DEPICTING PIPELINES, DISTRIBUTION SERVICE TERRITORY, PEAKING PLANTS AND STORAGE FACILITIES] [NiSource Logo] DELIVERING LIFE'S ESSENTIAL RESOURCES --------------------------------------------------------------------- ------------------------ ELECTRIC STRATEGY ------------------------ [GRAPHIC - MAP OF EASTERN UNITED STATES DEPICTING ELECTRIC SERVICE TERRITORIES] Locational Edges [NiSource Logo] DELIVERING LIFE'S ESSENTIAL RESOURCES --------------------------------------------------------------------- ----------- OPTIONALITY ----------- [GRAPHIC DEPICTING OPTIONALITY RESULTING FROM INTERPLAY OF NATURAL GAS SUPPLY, MARKET AREA STORAGE AND COGENERATION] [NiSource Logo] DELIVERING LIFE'S ESSENTIAL RESOURCES --------------------------------------------------------------------- ---------------------------------- GAS - NATURALLY FUELING THE FUTURE ---------------------------------- Fuel Cell [Picture of Worker and Fuel Cell] [Picture of micro turbine on roof of Walgreens store] Natural Gas Microtrubine Combined Heat and Power [NiSource Logo] DELIVERING LIFE'S ESSENTIAL RESOURCES --------------------------------------------------------------------- --------------------------- ONE HOME, ONE ENERGY SOURCE --------------------------- [Graphic of House] [NiSource Logo] DELIVERING LIFE'S ESSENTIAL RESOURCES --------------------------------------------------------------------- --------------------------- ONE HOME, ONE ENERGY SOURCE --------------------------- [Graphic of House] [NiSource Logo] DELIVERING LIFE'S ESSENTIAL RESOURCES --------------------------------------------------------------------- ------------------------- DON'T BE LEFT IN THE DARK ------------------------- [Picture of lightning striking in background of city skyline] [NiSource Logo] DELIVERING LIFE'S ESSENTIAL RESOURCES --------------------------------------------------------------------- ------------------ GAS - NATURALLY FUELING THE FUTURE ------------------ * Electricity and thermal energy for heating, air conditioning and hot water [Picture of microturbine] * Around-the-clock operation, uninterruptible power supply The first microturbine installed has run without * Energy efficiency equivalent interruption for nearly a to cogeneration systems, year with a reduction in twice that of conventional energy costs of 10% generation [NiSource Logo] DELIVERING LIFE'S ESSENTIAL RESOURCES --------------------------------------------------------------------- BRICKS AND MORTAR STRATEGY AND STRUCTURE [IMAGE OF BRICKLAYING] [NiSource Logo] DELIVERING LIFE'S ESSENTIAL RESOURCES --------------------------------------------------------------------- ---------------------------- The Premier Competitor . . . ---------------------------- [GRAPHIC - MAP OF EASTERN UNITED STATES DEPICTING ASSETS AND SERVICE TERRITORIES OF NISOURCE AND COLUMBIA] [NiSource Logo] DELIVERING LIFE'S ESSENTIAL RESOURCES --------------------------------------------------------------------- THE "COMPASS" TEAM * EMPLOYEES WILL KNOW THEIR NEW JOB RESPONSIBILITIES, WHOM THEY REPORT TO AND THE ROLE THEY WILL PLAY IN ACHIEVING THE COMPANY'S STRATEGIC GOALS * MISSION WILL FOCUS ON: - reducing costs and delivering value to the bottom line - positioning and building organization of the future - supporting initial steps in a process of cultural change * THREE PHASES OF PROJECT - opportunity identification - conceptual design - detailed design [Compass Logo] Possibility Reach Reality Choice New Direction DELIVERING LIFE'S ESSENTIAL RESOURCES --------------------------------------------------------------------- -------------------------- BUILDING SHAREHOLDER VALUE --------------------------- SHAREHOLDER VALUE Maximize Focused Environmental Utilization Strategic Stewardship of Assets Investments Employee Customer Manage Expenses/ Effectiveness Driven Margins Technology F I N A N C I A L S T R E N G T H [NiSource Logo] [NISOURCE{TM} LOGO] Delivering life's essential resources This presentation contains certain forward-looking statements within the meaning of the federal securities laws; these forward-looking statements are subject to various risks and uncertainties. The factors that could cause actual results to differ materially from the projections, forecasts, estimates and expectations discussed herein may include factors that are beyond the companies' ability to control or estimate precisely, such as estimates of future market conditions, the behavior of other market participants and the actions of the federal and state regulators. Other factors include, but are not limited to, actions in the financial markets, weather conditions, economic conditions in the two companies' service territories, fluctuations in energy-related commodity prices, conversion activity, other marketing efforts and other uncertainties. Other risk factors are detailed from time to time in the two companies' SEC reports. Readers are cautioned not to place undue reliance on these forward- looking statements, which speak only as of the date of this presentation. The companies do not undertake any obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date of this presentation. In addition to other documents filed with the Securities and Exchange Commission by the two companies, NiSource and the new holding company have filed a registration statement, which contains a joint proxy statement/prospectus for NiSource and Columbia Energy Group. The final joint proxy statement/prospectus, dated April 24, 2000, is available and has been distributed to the companies' shareholders. Investors and security holders are urged to read the joint proxy statement/prospectus and any other relevant documents filed with the SEC when they become available because they will contain important information. Investors and security holders can receive the joint proxy statement/prospectus and other documents free of charge at the SEC's Web site, www.sec.gov, from NiSource Investor Relations at 801 East 86th Avenue, Merrillville, Indiana 46410 or at its Web site, www.nisource.com, or from Columbia Investor Relations at 13880 Dulles Corner Lane, Herndon, Virginia 20171 or at its Web site, www.columbiaenergygroup.com. -----END PRIVACY-ENHANCED MESSAGE-----