Get All Access for FREEMarket News & Research,
Live Transcripts & Audio,
and a whole lot more…
$NI 1Q15 10-Q: CapEx was $407.5MM vs. $386.3MM in 1Q14. This increased spending is mainly due to higher spending in Columbia Pipeline Group Operations segment on various growth projects, primarily in the Marcellus and Utica Shale areas and for expenditures under the modernization program. Ni projects 2015 CapEx to be approx. $2.4Bil.
$NI reaffirmed its 2017 non-GAAP operating EPS guidance of $1.17-1.20 and capital investments outlook of $1.6-1.7Bil. For 2018, the company reaffirmed its non-GAAP operating EPS estimate of $1.26-1.32 and capital investments forecast of $1.7-1.8Bil. $NI still expects to growth non-GAAP operating EPS and dividend at 5-7% each year through 2020.
$NI's finance subsidiary NiSource Finance Corp. has completed the sale of $750MM of 3.950% Notes due 2048 in an underwritten public offering. $NI will fully and unconditionally guarantee NiSource Finance's obligations under the notes. NiSource Finance plans to use proceeds to finance capital expenditures and for general corporate purposes.
Utility company $NI has appointed Eric L Butler to its BoD, effective July 10, 2017. Currently, Butler serves as EVP, chief administrative officer and corporate secretary at Union Pacific Corp. Earlier, he served Union Pacific as VP and general manager of Industrial Products for seven years.
$NI said the early tender results as of May 24, 2017 for the earlier cash tender offers made by its finance subsidiary NiSource Finance for its outstanding 6.125% notes due 2022, 6.40% notes due 2018, 6.80% notes due 2019 and 5.45% notes due 2020.
$NI's finance subsidiary NiSource Finance Corp. closed sale of $1Bil of 3.490% Notes due 2027 and $1Bil of 4.375% Notes due 2047 in an underwritten public offering. NiSource Finance plans to use a portion of the net proceeds to fund the purchase price for its tender offers to buy up to $1.095Bil of four series of outstanding notes.
$NI's shareholders elected its BoD for an annual term through the 2018 annual meeting. $NI's shareholders also ratified appointment of Deloitte & Touche LLP as independent registered public accountants for 2017, approved compensation of executive officers and approved to hold future advisory votes on executive compensation on an annual basis.
$NI established an "at-the-market" equity offering program under which it may sell shares of its common stock having an aggregate gross sales price of up to $500MM. $NI entered into separate equity distribution agreements with each of Morgan Stanley, BofA Merrill Lynch, RBC Capital Markets and BNP PARIBAS in their capacity as agents.
Energy holding company $NI reported 13.2% rise in 1Q17 net income to $211.3MM, or $0.65 per share, compared to $186.6MM, or $0.58 per share during 1Q16. Operating income during the quarter rose to $416.5MM compared to $381.4MM during 1Q16.
$NI said Jim Stanley, EVP and COO, will retire from the company effective June 1, after more than 40 years in the energy industry. $NI appointed Pablo Vegas as EVP, gas segment and chief customer officer, effective May 1. Concurrent with Vegas' enhanced role, Mike Finissi will become EVP, safety, capital execution and technical services.
$NI announced it will outline plans to grow the net operating non-GAAP EPS and dividend at 5-7% annually through 2020, up from its projected 4-6% annual growth first outlined in Sept. 2014. Business strategy is based on an expected $30Bil of identified long-term utility investments. NiSource projects to invest $1.6-1.8Bil annually through 2020.
$NI stated that most tax changes would be reflected in customer rates and have minimal to no impact on regulated earnings and only a modest potential impact on cash flow. Eliminating the deductibility of interest and or reducing the corporate tax rate below the current 35% would reduce the consolidated earnings modestly, the company said.
$NI said that in 2016, which is its first year of operation as a regulated utility company, it added about 33,000 new customers. The growth was driven by an increase in gas conversions from other fuels, recovery in the new housing market and low customer attrition.
For 2017, $NI expects to deliver non-GAAP net operating EPS of $1.12-1.18, and now expects to make approx. $1.6-1.7Bil in planned infrastructure investments, up from the previous estimate of $1.5Bil. The increase is driven mainly by investments in the electric business related to increasing reliability and repositioning NIPSCO's generation fleet.
Energy holding company $NI reported higher 4Q16 income from continuing operations. For 4Q16, income from continuing operations increased 37.88% to $88.8MM, or $0.28 per share from income from continuing operations of $64.4MM or $0.20 per share a year ago.