NiSource(NI) - 2024 Q4 - Earnings Call Transcript

Financial Data and Key Metrics Changes - The adjusted EPS for 2024 was reported at $1.75 per share, reflecting a year-over-year increase of 9.4$1.85 to $1.89 per share, consistent with a 6$367 million in incremental revenue driven by higher rate base investments, partially offset by increased O&M, depreciation, and non-controlling interest [56][64] Business Line Data and Key Metrics Changes - The NIPSCO electric rate case is driven by nearly $2.5 billion of incremental investment for customers in Northern Indiana [32] - The average residential gas customer bill in Virginia declined by 11$0.49 per share for the fourth quarter, a decrease of $0.04 per share compared to the previous year [56] Market Data and Key Metrics Changes - The company has invested$6.9 billion in capital expenditures across six states over the last two years to support system reliability [12] - The base capital plan for 2025-2029 is set at $19.4 billion, with expected rate base growth of 8$36 million in revenues across electric and gas businesses for the year [57] Company Strategy and Development Direction - The company aims to deliver safe and reliable energy while maintaining affordable rates through efficient capital deployment and constructive regulatory recovery mechanisms [8][10] - The focus remains on economic development, particularly in Indiana, to attract data center operations, leveraging favorable infrastructure and regulatory conditions [21][24] - The company is actively pursuing a robust portfolio of investment opportunities, including data center strategies, to enhance value for customers and shareholders [53][74] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving long-term growth rates despite external market conditions, supported by a strong regulatory framework [61][70] - The company remains focused on minimizing the financial impact of safety, reliability, and compliance work on customers, projecting less than 5% average annual bill increases [62][66] - The management highlighted the importance of stakeholder engagement and regulatory processes in supporting their investment strategies [11][30] Other Important Information - NiSource Inc. was named to the 2024 Dow Jones Sustainability Indices, marking the eleventh consecutive year of recognition [41] - The company has implemented AI initiatives to enhance operational efficiency, resulting in a 16% increase in work productivity [27] - The company has a strong balance sheet, with FFO to debt for 2024 at 14.6%, up from 14.1% in 2023 [64][66] Q&A Session Summary Question: Can you speak to the Genco filing and risk-sharing considerations? - Management discussed the Genco filing as a regulated entity that allows for flexibility in serving large load customers while protecting existing customers [78][82] Question: What is the timing for commercial arrangements related to data centers? - Management indicated that 2025 is a key year for data center opportunities, with ongoing discussions progressing positively [80][90] Question: Do you need IURC approval for the Genco filing before announcing a deal? - It was clarified that while IURC approval is needed for the Genco entity, it is not required to announce deals with large load customers [110][112] Question: What is the status of the La Porte facility project? - Management confirmed that negotiations are ongoing, but no construction has begun yet [120] Question: How do you view the potential for serving data centers through the gas system? - Management sees significant opportunities to serve data centers through the gas infrastructure, which is robust and reliable [122][123]