NiSource FY 2012 Earnings PowerPoint Presentation

Supplemental Slides

2012 Earnings

February 19, 2013

This document contains forward-looking statements within the meaning of federal securities laws. These forward-looking

statements are subject to various risks and uncertainties. Factors that could cause actual results to differ materially from

the projections, forecasts, estimates and expectations discussed herein include, among other things, weather; fluctuations in

supply and demand for energy commodities; growth opportunities for NiSource's businesses; increased competition in

deregulated energy markets; the success of regulatory and commercial initiatives; dealings with third parties over whom

NiSource has no control; actual operating experience of NiSource’s assets; the regulatory process; regulatory and legislative

changes; the impact of new environmental laws and regulations; the results of material litigation; changes in pension funding

requirements; changes in general economic, capital and commodity market conditions; counter-party credit risk; and the

matters set forth in the “Risk Factors” sections in NiSource’s most recent Form 10-K and subsequent Forms 10-Q, many of

which are beyond the control of NiSource. Readers are cautioned not to place undue reliance on these forward-looking

statements, which speak only as of the date of this presentation. NiSource expressly disclaims a duty to update any of the

forward-looking statements contained in this document.

With regard to Net Operating Earnings Guidance for 2013 – it should be noted that there will likely be differences between net

operating earnings and GAAP earnings for matters including, but not limited to, weather, and other factors. NiSource is not able

to estimate the impact of such items on GAAP earnings and, as such, is not providing earnings guidance on a GAAP basis.

2

Forward-Looking Statements

2

* Net Operating Earnings from Continuing Operations (non-GAAP); For a Reconciliation to GAAP, See Schedule 1 of the Company’s Feb. 19, 2013 Earnings Release

2012 Key Takeaways

• 2012 financial results squarely in line with earnings guidance

– 2012 EPS: $1.46 per share*

– 2012 total shareholder return: 8.5%

• Solid execution of infrastructure-focused capital investments

• Landmark pipeline modernization settlement achieved

• Deep infrastructure investment inventory identified

– $25B-$30B investment opportunity: $1.5B-$1.8B targeted annual capital spend

– 5-7% annual earnings growth

– 3-5% annual dividend growth

• Financial foundation, discipline to support enhanced growth plan

Building Long-Term, Sustainable Growth

3

Established Track Record of Execution & Performance

2012* 2011* Change*

Income from Continuing Operations $410.6 $294.8 $115.8

Earnings Per Share $1.41 $1.05 $0.36

Operating Income $1,042.7 $890.1 $152.6

GAAP

Non-GAAP

* All Results Listed In Millions, Except for EPS; For a Reconciliation to GAAP, See Schedule 1 of the Company’s Feb. 19, 2013 Earnings Release

2012* 2011* Change*

Net Operating Earnings

from Continuing Operations $427.2 $368.8 $58.4

Net Operating Earnings Per Share $1.46 $1.32 $0.14

Operating Earnings $1,071.4 $946.3 $125.1

2012 Financial Highlights

Total Shareholder Return Outperforms Utility Indices For Fourth Consecutive Year

4

Financial Results Squarely in Line with 2012 Earnings Guidance

• Operating earnings $398M in 2012 vs. $360M in 2011*

• Landmark customer modernization settlement achieved

• Several growth projects placed into service; many others advance

• Midstream’s ~$160M, 425 MMcf per day Big Pine Gathering System to be in service by April 2013

• 2013 capital investment projected at ~$700M – includes modernization investment

Project Key Components Status

Pipeline Modernization • 5-year initial settlement term

• $1.5B investment during initial settlement term

• $100M annual maintenance investment

• Part of $4B+ program

• Approved by FERC

• Projects initiated

Pennant Midstream, LLC

50/50 Joint Venture with Hilcorp

• Gathering and processing facilities serving Utica region

• 400 million cubic feet/day gathering; 200 million cubic feet/day

processing

• ~$300M initial joint venture investment (gross)

• Project on schedule and on budget

• Projected in-service 2H 2013

Hilcorp Utica Minerals Arrangement • ~100K combined acres

• Acreage dedicated to Pennant Midstream

• A working and overriding royalty interest in program

• Test wells drilled in 2012; liquids content

consistent with other area wells

Planned growth, modernization and

midstream investments

• Significant and growing inventory of projects outlined

• Primarily focused on capturing market- and supply-driven

growth opportunities

• Complete project update outlined in appendix

* Non-GAAP. For a Reconciliation to GAAP, See Schedule 2 of the Company’s Feb. 19, 2013 Earnings Release

Looking Ahead:

NiSource Gas Transmission & Storage – 2012

Highlights Continued Growth, Modernization, Midstream and Minerals Progress

5

Modernization Settlement Provides Long-Term Stakeholder Benefits


• Environmental investments continue to advance

• Electric transmission projects approved and moving forward

• 2013 capital investment projected at ~$435M, focused primarily on environmental and reliability investments

Highlight Key Components Status

Electric Generating Plant

Environmental Investments

• $800M+ in total environmental investments

• Schahfer Flue Gas Desulfurization (FGD) investments: Units 14 & 15

• Michigan City FGD: Unit 12

• Enhanced mercury and particulate controls

• Schahfer construction on

schedule, on budget

• Michigan City FGD approved;

planning and engineering in

progress

Electric Transmission System

Enhancement – Reynolds to

Topeka Project

• 100-mile, 345-KV transmission project

• $250M-$300M investment

• Projected in-service latter part of decade

• First public outreach meetings

completed in early February 2013

Electric Transmission System

Enhancement – Reynolds to

Greentown (Joint Project)

• 66-mile, 765-KV transmission project

• $300M-$400M investment (NIPSCO portion $150M - $200M)

• Projected in-service latter part of decade

• Preliminary planning in progress

Long-term Infrastructure

Investments

• Environmental investments to upgrade generation fleet: $700M -

$1.4B opportunity

• Electric transmission system improvements: $500M - $1B opportunity

• Modernize electric infrastructure: $3B - $4B opportunity

• Complete program update

outlined in appendix

* Non-GAAP. For a Reconciliation to GAAP, See Schedule 2 of the Company’s Feb. 19, 2013 Earnings Release

Electric Operations – 2012 Highlights

A Deep Inventory of Long-Term Investment Opportunities

Continuing to Deliver on Core Customer, Reliability and Environmental Initiatives

Looking Ahead:

6

Highlight Key Components Status

Columbia Gas of Pennsylvania

Base Rate Case

• Filed Sept. 28, 2012

• Settlement in principle reached with parties on Feb. 8, 2013

• Filed case reflects a fully projected test year and

infrastructure investment recovery mechanism for

investments through mid-2014

• Filed case requested an annual revenue increase of $77

million

• Settlement to be submitted for

approval to the PUC on or before

March 18, 2013

• Rates projected to be in effect in July

2013

Columbia Gas of Pennsylvania

Base DISC Filing

• Distribution System Improvement Charge (DSIC) filing to

capture infrastructure investments from the later part of

2012

• Decision expected Q1 2013

Infrastructure

Modernization

• Expanded ~$10B long-term program across service territory • Complete program update outlined in

appendix


• Revenues up $37M, reflecting regulatory and infrastructure programs**

• Columbia Gas of Massachusetts base rate case decision issued Nov. 30, 2012

• 2013 capital investment projected at ~$655M – includes ~$475M in growth and tracked investment

* Non-GAAP. For a Reconciliation to GAAP, See Schedule 2 of the Company’s Feb. 19, 2013 Earnings Release ** Revenues Exclude Trackers

NiSource Gas Distribution – 2012 Highlights

Long-Term Infrastructure Investments, Customer Programs & Regulatory Initiatives

A Growing Investment Inventory

Looking Ahead

7

* Net Operating Earnings Per Share from Continuing Operations (non-GAAP)

Key Takeaways for 2013

• Sustainable long-term growth

– 2013 EPS guidance: $1.50 to $1.60 per share*

– Mid-point represents 6% growth over 2012 EPS

• Enhanced $1.8B capital investment program

• Deep, balanced infrastructure investment inventory across all

business units

• Balanced, transparent approach to funding capital requirements

• Unwavering commitment to investment-grade credit, strong liquidity

NiSource: A Compelling Investment

8

Solid Long-Term Trajectory to Grow Earnings, Increase Shareholder Value

Appendix

2012 Earnings

February 19, 2013

2012 to 2013 Earnings Per Share (Non-GAAP)

$1.50-$1.60*

2013 EPS Guidance Range $1.50 - $1.60*

* Projected Net Operating Earnings from Continuing Operations (non-GAAP)

$1.46

$0.20

$0.15 ($0.11) ($0.08)

($0.05) ($0.02)

2012Actual

RegulatoryInitiatives

GrowthInitiatives

Interest/Taxes/Depreciation

2010 EquityForward

Administrative/Uncollectibles/

Other

Insurance 2013Guidance

10

Capital Expenditures ($M)

2012 Actual & 2013 Forecasted CapEx

2013 Growth & Tracker ~$1,325M (73%) and Age & Condition ~$490M (27%)

$649 $655

$423 $434

$490

$698

$23

$28

2012 2013

Gas Distribution Electric Gas Transmission and Storage Corporate

$1,815

$1,585

11

Capitalization ($M)

Debt Equity Total Debt Equity Total

Long-Term Debt $ 6,819.1 $ - $ 6,819.1 $ 6,267.1 $ - $ 6,267.1

Short-Term Debt 543.6 - 543.6 1,127.7 - 1,127.7

Sale of A/R 233.3 - 233.3 231.7 - 231.7

Current Maturities 507.2 - 507.2 327.3 - 327.3

Common Equity - 5,554.3 5,554.3 - 4,997.3 4,997.3

Total Capitalization

Per Balance Sheet $ 8,103.2 $ 5,554.3 $13,657.5 $ 7,953.8 $ 4,997.3 $12,951.1

% of Capitalization Per

Balance Sheet 59.3% 40.7% 100.0% 61.4% 38.6% 100.0%

Actual 12/31/2012 Actual 12/31/2011

Total Debt to Capitalization 59.3% as of 12/31/12

12

Current Liquidity ($M)

Actual 12/31/12 Maturity

Committed Credit Facility $ 1,500 May 2017

Less:

Drawn on Credit Facility (44)

Commercial Paper (500)

Letters of Credit (18)

Add:

Cash & Equivalents 36

Net Available Liquidity $ 974

13

2013 Sources & Uses ($M)*

$1,286

$1,815

$1,050

$488

$154 $304 $121

$69 $48 $17

2013 Sources 2013 Uses

FFO CapExLT Financing MaturitiesST Financing DividendsProceeds from Sale of Assets Working CapitalDRIP, 401(k) and ESPP Column3Restricted Cash

$2,676 $2,676

* Projected

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Complete

In Execution

In Development

In Evaluation

Columbia Gas of

Massachusetts

Completed 2012 rate case in November. Order resulted in $8M annual

Revenue increase and enhancement of Infrastructure Program.

Columbia Gas of

Pennsylvania – Rate Case

Requested

Increase: $77M

Filed: 9/2012

Effective: 2Q/2013

First rate case filed under the new Act 11 legislation, case supports ongoing

infrastructure program in PA with forward test year ending 2Q/2014. Reached

a unanimous settlement in principle in Feb. 2013 – expected to be filed with

the PUC in March 2013.

Columbia Gas of

Pennsylvania – DSIC Filing

Requested

Tracker: ~$1M/Qtr

Filed: 1/2013

Effective: 1Q/2013

Distribution System Improvement Charge (DSIC) filing to capture

infrastructure investments from the later part of 2012

NGD Infrastructure Investment Update

Annual Investment

Columbia Gas of

Ohio $150M - $200M 20+ Years

Tracked: Execution of established Infrastructure Replacement Program (IRP);

annual tracker filings with 5-year program renewal (next renewal 2017)

Columbia Gas of

Pennsylvania $100M - $150M 20+ Years

Rate Case/Tracked: Execution of established Infrastructure Replacement

Program; current recovery utilizes forward test year rate case filings

supplemented by periodic DSIC filings under Act 11

Columbia Gas of

Massachusetts $25M - $50M 20+ Years

Tracked: Execution of established Infrastructure Replacement Program; annual

tracker filings, program approved in 2009 and expanded in 2012 rate case

Columbia Gas of

Virginia $20M - $35M 20+ Years

Tracked: Execution of established Infrastructure Replacement Program; annual

tracker filings with 5-year program renewal (next renewal 2017)

Columbia Gas of

Kentucky $10M - $15M 20+ Years

Tracked: Execution of established Infrastructure Replacement Program with

annual tracker filings

Columbia Gas of

Maryland $5M - $10M 20+ Years

Rate Case/Tracked: Execution of established Infrastructure Replacement

Program; rate case filings with make whole filings for up to three subsequent

years

NIPSCO - Gas TBD TBD

Relatively modern gas system, with some opportunity for replacement of aging

infrastructure to improve reliability and system integrity (currently working to

establish DSIC type legislation under SB 560)

Modernize Infrastructure ($10B+ Opportunity)

4

4

3

3

2

2 1

1

5

6

5

6

Current Regulatory Activity

10

9

7

7

8

8

9 10

15

NIPSCO Electric

Distribution Modernization TBD TBD

Systematic replacement of aging infrastructure to improve reliability

and system integrity (currently working to establish DSIC type

legislation under SB 560)

Reynolds-Topeka $250M - $300M Later part of Decade

MISO MVP: FERC approved 345Kv transmission project from Reynolds

Substation to Hiple Substation (100 miles) – final route not determined

Transmission

Project II $300M - 400M

(NI: $150M – $200M) Later part of Decade

MISO MVP – partnership: FERC approved 765Kv transmission project

from Reynolds Substation to Greentown Substation (66 miles) – final

route not determined

U14/15 FGDs ~$500M YE’13/YE‘14

Environmental: ECRM (Environmental Cost Recovery

Mechanism)Tracked FGD (Flue Gas Desulfurization) facilities at Schahfer

Generating Station

U12 FGD ~$240M YE’15

Environmental: ECRM Tracked FGD facilities at Michigan City Generating

Station

NOx Upgrades ~$50M YE’15

Environmental: ECRM Tracked NOx upgrades and monitoring

MATS $30M - $65M YE’13/YE’14/YE’15

Environmental: ECRM Tracked projects enhancing mercury and

particulate controls at all coal plants

Water Treatment $25M - $100M YE’17/YE’18

Environmental: S.B. 251 Tracked projects enhancing wastewater

treatment at all coal plants and water intake modifications at Bailly Station

Fly Ash

Improvements $100M - $300M TBD

Environmental: S.B. 251 Tracked projects upgrading ash handling and

disposal at all coal plants

Electric Operations Infrastructure Investment Update

4

2

1

3,4

3,4

5

Upgrade Generation Fleet ($700M - $1.4B Opportunity)

6

Enhance Transmission System ($500M - $1.0B Opportunity) Modernize Infrastructure

($3B - $4B Opportunity)

8

7

8

7

Complete

In Execution

In Development

In Evaluation

5,6

3

5,6

5,6

1

2

3,4

16

NGT&S Regulated Pipeline & Storage Growth Update

Line WB $14M 2Q ’12

Marcellus: Compression – between Loudon, VA & Leach, KY (175 MMcf/Day)

Smithfield $14M 2Q ’12

Marcellus: Pipeline and compression modifications – near Smithfield, WV &

Waynesburg, PA (150 MMcf/Day)

Rimersburg $8M 2Q ’12

Marcellus: Pipeline expansion – North Central PA (19 MMcf/Day)

Millennium ~$85M (NI: $40M) 2Q ’13

Marcellus: Deliver Marcellus supplies to multiple markets with expanded

compression at Minisink (150 MMcf/Day) and Hancock(150 MMcf/Day)

Warren County $35M 2Q ’14

Gas Generation: Expansion to serve Virginia Power’s new 1,300 MW plant (250

MMcf/Day)

West Side $200M 4Q ’14

Marcellus: Transport supply to growing Southeast Markets (~500 MMcf/Day)

East Side ~$210M 3Q ’15

Marcellus: Connect northern Marcellus supplies to Northeast and Mid-Atlantic

Markets (~300 MMcf/Day)

Quick Link ~$300M 2Q ’16

Utica: ~90 Miles of processed gas transportation in East Ohio (~500 MMcf/Day)

LNG Exports $200M - +$1B 2017+

Marcellus/Utica: Aggregate and deliver supplies to LNG export terminals on

Atlantic and Gulf Coasts (400 MMcf/Day to 1.6 Bcf/Day)

Columbia Gas Modernization $300M/Yr Starting ‘13

FERC approved (1/2013) - 5 Year settlement agreement (with

potential extension provisions) to begin a systematic infrastructure

replacement program

$3B-$4B Opportunity

$4B-$5B Opportunity

1

2

3

4

5

6

8

7

1

2

3

4

5

6

7

8

Complete

In Execution

In Development

In Evaluation

9

9

9 17

NGT&S Midstream & Minerals Growth Update

Majorsville $85M 3Q ’10

Marcellus: Gather wet Marcellus gas to processing facility

and provide downstream pipeline market access with

additional pipeline and compression assets

(325 MMcf/Day)

Big Pine

Gathering $160M 2Q ’13

Marcellus: ~70 Miles of Pipeline with multiple interstate

connections (425 MMcf/Day)

Pennant JV

Phase I $300M (NI = $150M) 2H ’13

Utica: ~50 Miles of Pipeline (400 MMcf/Day) and an NGL

processing facility (200 MMcf/Day)

Pennant JV

Phase II $300M (NI = $150M) TBD

Utica: Pipeline Extension and Additional Processing

Utica Minerals

Arrangement

Drilling Started

2H ‘12

Utica: Joint development with Hilcorp to extract value

of ~100k acres of mineral rights – acreage dedicated to

Pennant

Potential Minerals

Opportunities Under Evaluation

Utica: Optimize minerals position in shale region to

leverage downstream infrastructure opportunities

$1B-$1.5B Opportunity

Self-Funded Investment

Complete

In Execution

In Development

In Evaluation

10

11

12

14

14

10

11

12

18

13

13

Key Path Forward Markers

2012 Completed

1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14

Liq

uid

ity

Equity Issuance: $400M (Issued 24M Shares)

LT Debt Issuances: $500M & $250M(6/2012)

Maturities: $420M(3/2013) & $500M(7/2014)

DRIP: ~$45M/year

Ga

s

Dis

tribu

tion

Columbia Gas of MA – Rate Case

Columbia Gas of PA – Rate Case (Settlement / Effective)

Infrastructure Replacement Programs (~$350M/year)

Ele

ctric

NIPSCO – FGD’s: U14, U15, U12 (Construction/FGD U14 In-Service )

Infrastructure Replacement Program (IN - SB560) (Introduction / Legislative Session Ends)

MISO Transmission Improvement Project (Engineering / Planning / Construction)

GT

&S

Line WB Expansion (In-Service)

Rimersburg Expansion (In-Service)

Smithfield Project (In-Service)

Utica Minerals Arrangement (Agreement / Execution)

Pennant JV – Phase I (Agreement / In-Service)

Big Pine Gathering (In-Service)

VEPCO Power Plant Transportation Project (In-Service)

Millennium Pipeline – Minisink & Hancock Expanded Compression (In-Service)

Columbia Gas Modernization (FERC Approval / Execution)

West Side Expansion (In-Service)

East Side Expansion (In-Service 3Q 2015)

NiSource FY 2012 Earnings PowerPoint Presentation

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