NiSource (NI) Updates on Long-Term Growth Strategy; Affirms FY12 Outlook

NiSource Inc. (NYSE: NI) executives today outlined an enhanced long-term growth strategy, centered around an inventory of more than $25 billion in infrastructure modernization and growth investment opportunities spanning the company's natural gas and electric operations.

At NiSource's 2012 Investor Day meeting in New York, President and Chief Executive Officer Robert C. Skaggs Jr. and other senior executives detailed the company's plans to leverage its broad array of growth and infrastructure modernization investment opportunities to meet customer needs, strengthen earnings and build shareholder value. Taken together, these opportunities are expected to result in capital investments totaling $1.5 to $1.8 billion per year, generating operating earnings growth (non-GAAP) of approximately 5 to 7 percent per year, and annual common stock dividend growth in the range of 3 to 5 percent.

"NiSource has a well-defined and substantial inventory of accretive infrastructure investment and growth opportunities spanning each of our core business units," Skaggs noted. "This broad array of opportunities, combined with our strong track record of disciplined financial management and project execution, has enabled us to enhance our annual capital investment, earnings and dividend growth outlook. This enhanced plan will enable us to meet our core financial commitments – including our commitment to maintaining investment-grade credit ratings – while providing significant benefits for our customers, and added value for our shareholders."

At the meeting, NiSource leaders outlined key growth strategies and more than $25 billion in investment opportunities spanning the next 20-plus years across each of the company's major business units, including:

• Approximately $8-10 billion in Gas Transmission and Storage infrastructure investment opportunities, including NiSource's recently announced long-term interstate pipeline modernization program, as well as market growth, midstream and minerals projects leveraging the company's strong asset base in the Utica and Marcellus Shale production areas.
  
  
• Approximately $10 billion in Gas Distribution infrastructure investments, with most centered in the company's well-established infrastructure programs to modernize its gas distribution systems, in tandem with development of new customer programs and regulatory initiatives.
  
  
• Approximately $6-8 billion in investments in Electric operations, including environmental enhancements, electric transmission and distribution system improvements, and generation facility upgrades.

"In support of these investments, NiSource remains focused on pursuing complementary stakeholder-focused customer and regulatory programs designed to improve customer services, reduce energy usage and save money," Skaggs noted.

2012 Guidance ReaffirmedAt today's meeting, NiSource also affirmed that it remains on track to deliver net operating earnings in line with its full-year outlook for 2012, which is $1.40 to $1.50 per share.

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