NiSource (NYSE: NI) reported Q2 EPS of $0.13, $0.05 better than the analyst estimate of $0.08.

"2020 is a transitional year for NiSource," said NiSource President and CEO Joe Hamrock. "As we mitigate the impacts of the COVID-19 pandemic, and complete the sale of Columbia Gas of Massachusetts, we continue to execute on our strong core growth plan while repositioning for enhanced execution in our key focus areas. We continue to invest in our asset modernization and safety enhancement programs while advancing our transition to renewable generation. To build on these transformational efforts, we have accelerated the initiative to realign our capabilities and cost structure designed to ensure optimal performance as we execute on the significant opportunities in the NiSource business plan."

GUIDANCE:

NiSource sees FY2020 EPS of $1.28-$1.36, versus the consensus of $1.30.

NiSource today is initiating 2021 non-GAAP net operating earnings guidance in the range of $1.28 to $1.36 per share. The company's 2021 guidance reflects management's expectations about initial cost savings to be achieved through the strategic initiative and includes the base case scenario impacts of COVID-19. This guidance establishes the starting point for the long-term plan that will extend through 2024 with an expected rate base compound annual growth rate (CAGR) of 10% to 12%. This rate base growth is expected to drive earnings per share growth in excess of the previous 5 to 7% annual growth commitment, with a shift to a CAGR due to the timing of investments in our renewable generation portfolio.

NiSource is also announcing that it plans to host a virtual Investor Day on September 29, 2020, at which it intends to discuss details of this long-term growth strategy, including:

• Continuation of the approximately $1.8 to $1.9 billion annual capital investment into ongoing utility safety and infrastructure programs.
• Anticipated incremental capital investment opportunities related to its electric generation strategy of approximately $1.8 to $2.0 billion, primarily in 2022 and 2023.
  • This investment is currently expected to represent ownership of at least 50% of the replacement capacity, in the form of joint ventures that will include NIPSCO and tax-equity partners as the members.
  • Driving a renewable portfolio that retires 80% of coal-fired generation by 2023, and retires all coal-fired generation by 2028.
  • The replacement plan is expected to provide an industry leading 90% reduction in greenhouse gas emissions by 2030 compared to 2005 levels.
• Additional aspects and progress on the corporate strategic initiative highlighted above.
• Full details of its balanced financing plan. The plan will be focused on maintaining current investment-grade credit ratings.

"We look forward to discussing in further detail at our Investor Day in late September how these initiatives are designed to drive value creation over the next several years," Hamrock said. "Building on the strength and momentum of the core growth drivers in the NiSource business, the plan we will outline is focused on enhanced execution and growth to deliver long-term value for all stakeholders. As we move through the balance of 2020, completing the CMA asset sale, accelerating restructuring of our capabilities and cost structure, and finalizing our financing plan, we are well-positioned for the significant opportunities in our long-range business plan."

For earnings history and earnings-related data on NiSource (NI) click here.