The operator introduces the NiSource Company Conference Call and informs participants that the call is being recorded. Chris Turnure, Head of Investor Relations, welcomes everyone and introduces the other executives joining the call. The purpose of the call is to review the company's financial performance for the fourth quarter of 2023 and provide updates on operations and growth drivers. The executives remind listeners that some statements made may be forward-looking and subject to risks and uncertainties. They also mention that some statements may relate to non-GAAP measures and provide information on how to find the comparable GAAP measures. Lloyd Yates, President and CEO, thanks everyone for joining the call.

The speaker is pleased to announce exceptional financial results and discuss key business initiatives that were successfully executed by the dedicated workforce. These initiatives include exceeding rate-based investment goals, achieving a 9% increase in NOEPS growth, and implementing cost-saving measures through Project Apollo. These efforts have resulted in a 10.1% compound annual growth rate in total shareholder return, surpassing that of other utility peers. The company remains focused on responsible and efficient capital deployment to drive future growth.

The company is confident in their ability to withstand changing business conditions and has a track record of growth and execution. They have delivered strong financial results and are committed to their investors, customers, and employees. They have raised their guidance for 2024 and expect continued growth in the coming years. Their regulatory and stakeholder foundation sets them apart from their peers, and they have recently closed a transaction to diversify their capital fundraising.

The company is currently in a period of high investment, driven by various factors such as safety, reliability, regulation, decarbonization, and modernization. The company's $16 billion five-year plan, introduced in November 2023, includes investments in electric generation, transmission, gas modernization, and economic development. The company has a diverse capital plan to minimize project risks and is also implementing projects from their $2 billion upside capital program. The company has had success in working with regulators and stakeholders to efficiently deploy capital investments and recover costs. Their operational excellence model has resulted in a significant reduction in safety incidents and the company is on track to achieve top decile performance.

The article discusses the success of Project Apollo, which has led to a 16% reduction in Preventable Vehicle Collisions and enhanced productivity. The company has seen cultural changes and a continuous improvement mindset, leading to value for stakeholders. The CEO expresses pride in the team and their dedication to customers, especially during extreme weather conditions. The company's strategy has been executed successfully and sets the foundation for continued growth. The NIPSCO generation transition is also on track, with plans to retire coal-fired generation units by 2028.

NIPSCO has completed construction on a wind PPA and is now producing sustainable zero fuel cost generation for customers. They have also received approval to convert another project from a PPA to a build-transfer agreement. Progress is being made on two solar facilities and NIPSCO has received approval to own them 100%. This will benefit customers by leveraging tax credits and lowering energy costs. NIPSCO is also evaluating similar approaches for other projects in development. They are focused on advancing their generation portfolio in reliability, resiliency, customer benefits, and towards their goal of net zero by 2040. The 2024 IRP will inform future generation investment decisions.

The 2024 IRP will incorporate new scenarios and updates since the 2021 IRP, and will involve stakeholder meetings in the spring to develop an integrated resource plan to be submitted to the IURC in November. The company looks forward to working with stakeholders to continue serving and strengthening communities. The IRP will build on the current generation portfolio and include a gas peaker project expected to be in service in 2027. The company is also considering additional investment opportunities that benefit customers and stakeholders. The PHMSA rulemaking process may take longer than expected, but the company does not anticipate a significant impact on its base capital plan. The company will continue to evaluate how the rules apply to its systems and engage with stakeholders. The speaker concludes with an update on the company's ESG performance.

The company achieved its net zero and diverse supplier spend goals for 2023 and reported an increase in non-GAAP net operating earnings for the fourth quarter and full year. This was driven by regulatory mechanisms, capital investments, and a growing customer base. The gas, electric, and corporate segments all saw increases in non-GAAP operating income, and the company invested $3.6 billion in infrastructure projects to improve safety and reliability.

The demand for NiSource's fuel is strong and their operations in Ohio have contributed to the state's economic development. There are many active opportunities for future development in various industries, which could create thousands of jobs and bring in billions of dollars. The growth in population and economic development prospects in central Ohio is expected to continue, and support from stakeholders and policies is important for success.

The community benefits from regulatory mechanisms that encourage energy infrastructure investment, which creates jobs and enhances the local tax base. The company has increased its non-GAAP net operating earnings per share guidance for 2024, driven by regulatory activity, customer demand, and lower financing costs. They expect to continue delivering annual growth in non-GAAP NOEPS and rate-based growth over the next few years, with $16 billion in capital expenditures. The company also plans to acquire full ownership of several solar projects and has a financing plan in place.

The company plans to issue equity and maintain a certain FFO to debt ratio in the coming years. They also plan to increase their dividend and prioritize safety and cost optimization. The company has a track record of successful execution and growth, and has invested a significant amount to support customers and ensure safety. They are confident in their ability to execute in the future.

The company has achieved strong financial growth in the last three years and has consistently exceeded its guidance range. This has allowed them to increase their future guidance and achieve a higher non-GAAP NOEPS CAGR compared to other companies in the sector. The company's strong regulatory construct and responsible investments have enabled a reasonable return on investment and support the higher NOEPS range. The company is confident in its future prospects and remains resilient to changing business conditions.

The company is being disciplined and methodical in their approach to incorporating renewables into their plan. They have already made changes to the Gibson and Fairbanks projects and plan to update their analysis in Q2. They will evaluate the cash flow profile of the projects and may use PTC monetization and higher depreciation rates to help with financing.

The speaker explains that various factors such as construction timelines, regulatory recovery, and IURC approval will influence the financing of projects. They mention a potential modest increase associated with the ATM and the possibility of using a bilateral strategy. They also discuss the advantages of the ATM, such as low cost and dollar cost averaging. They are open to exploring other options but emphasize the need for efficiency and timing in their financing.

Shar Pourreza from Guggenheim Partners asks Lloyd Yates and Shawn Anderson about their confidence in the 6% to 8% growth range and the $2 billion of identified upside CapEx. Shawn Anderson explains that their guidance for 2024 was based on strong performance in 2023, and they are comfortable with the current guidance ranges. Lloyd Yates adds that they will provide updates if needed, but for now, the plan is to stay within the 6% to 8% range. Shar then asks about the status of the next NIPSCO case and how much renewable spending will be included.

In this paragraph, Lloyd Yates asks Shar Pourreza and Melody Birmingham about the NIPSCO Gas case. Melody clarifies that there is no current electric case, but they have filed a gas case last year and are currently working with interveners to negotiate a successful outcome. Lloyd explains that they plan to file the next electric case after finishing renewable projects, which are currently on schedule. Durgesh Chopra then asks about equity and private placements, to which Shawn Anderson responds that they have not executed anything under the ATM program and may do some small private placements.

The company plans to file a new ATM equity program to access up to $600 million and will update investors on its progress. They are also open to potential agreements with investors at an efficient pricing. The company is focused on its organic plan but is always looking for opportunities to enhance shareholder value.

The speaker discusses the company's business review in 2022 and highlights the value of their scale and diversification. They also mention their recent efficient capital raising through the NIPSCO transaction and state their focus on enhancing shareholder value. The speaker then addresses a question about the CapEx plan, stating that most of the planned gas CapEx is for safety, reliability, and compliance work, with a small portion allocated for new expansion opportunities.

The company does not include future expansion costs in its CapEx guidance, as these costs can usually be supported by incoming revenues. They work with local stakeholders and mechanisms to incorporate incremental projects into the capital plan. Most of the company's CapEx is driven by safety, compliance, and reliability upgrades. They also have mechanisms in place to recover costs for economic development projects. These projects have not been a drag on earnings and have often contributed to upside in the company's performance.

The speaker thanks a member of their team for their service and announces their departure. They also thank the audience for their support and look forward to updating them in the future. The call is then concluded.

This summary was generated with AI and may contain some inaccuracies.