NiSource Inc. (NYSE:NI) Q2 2019 Earnings Conference Call - Final Transcript

Jul 31, 2019 • 09:00 am ET


NiSource Inc. (NYSE:NI) Q2 2019 Earnings Conference Call - Final Transcript


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Good day, ladies and gentlemen, and welcome to the Q2 2019 NiSource Earnings Conference Call. [Operator Instructions] As a reminder, this conference call is being recorded.

I would now like to introduce your host for today's conference, Mr. Randy Hulen, Vice President of Investor Relations and Treasurer. Mr. Hulen, you may begin.

Randy Hulen

Thanks, Josh, and good morning, everyone. Welcome to the NiSource second quarter 2019 investor call. Joining me today are Joe Hamrock, Chief Executive Officer; and Donald Brown, Chief Financial Officer. The purpose of this presentation is to review NiSource' financial performance for the second quarter of 2019, as well as provide an update on our operations, growth drivers and financing plans. Following our prepared remarks, we'll open the call to your questions. Slides for today's call are available on

Before turning the call over to Joe and Donald, just a quick reminder. Some of the statements made during this presentation will be forward-looking. These statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the statements. Information concerning such risks and uncertainties is included in the MD&A and Risk Factors sections of our periodic SEC filings.

Additionally, some of the statements made on this recording relate to non-GAAP measures. For additional information on the most directly comparable GAAP measure and a reconciliation of these measures, please refer to the supplemental slides and segment information, including our full financial schedules available at

With all that out of the way, I'd like to turn the call over to Joe.

Joseph Hamrock

Thanks, Randy, and good morning, everyone and thank you for joining us. Our NiSource teams continued in the second quarter to execute on critical priorities across our business, driving results for investors and all our stakeholders. These priorities include our long-term utility infrastructure modernization programs, safety enhancements across our gas distribution system, our electric generation strategy in Indiana and completing the restoration in the Merrimack Valley. With the progress we've made in these areas through the first half of 2019, we remain confident that we'll deliver on our commitments for the year.

Let's turn to Slide three, which summarizes our key accomplishments through the second quarter and early third quarter. We delivered non-GAAP net operating earnings of $0.05 per share versus $0.07 in 2018, in line with expectations and positioning us to deliver net operating earnings per share within our $1.27 to $1.33 guidance range for 2019. We expect to complete $1.6 billion to $1.7 billion in capital investments in 2019, consistent with our forecast for the year. We remain confident in our long-term forecast of 5% to 7% annual growth of our non-GAAP earnings per share and dividend from 2019 through 2022 and expect to make capital investments of $1.6 billion to $2 billion annually from 2020 through 2022.

Gas system safety enhancements are advancing across our seven-state footprint, including accelerated implementation of a Safety Management System or SMS. Our SMS is aligned with the framework developed for pipeline operators