NiSource Inc Reports Mixed 2023 Financial Results and Raises 2024 Guidance
Net Income: GAAP net income available to common shareholders was $661.7 million in 2023, down from $749.0 million in 2022.
Earnings Per Share: 2023 GAAP diluted earnings per share (EPS) decreased to $1.48, compared to $1.70 in 2022.
Non-GAAP Performance: Non-GAAP net operating earnings were $716.3 million, or $1.60 diluted EPS, up from $648.2 million, or $1.47 diluted EPS in 2022.
2024 Guidance: NiSource raises its 2024 non-GAAP NOEPS guidance to $1.70-1.74, from the previous $1.68-1.72 range.
Long-term Growth: Reaffirms 6-8% annual non-GAAP NOEPS growth from 2023 to 2028.
Capital Expenditure Plan: A 5-year $16 billion base capital expenditure plan is set to drive 8-10% annual rate base growth.
On February 21, 2024, NiSource Inc (NYSE:NI) released its 8-K filing, detailing the financial outcomes for the fourth quarter and full year of 2023. Despite a decrease in GAAP net income available to common shareholders from the previous year, the company achieved non-GAAP net operating earnings at the top end of its guidance range and is raising its non-GAAP NOEPS guidance for 2024.
NiSource, a leading fully-regulated utility company, serves approximately 3.3 million natural gas customers and 500,000 electric customers across six states. The company's strategic investments and commitment to delivering safe, reliable energy have positioned it as a key player in the Utilities - Regulated industry.
Financial Highlights and Challenges
The year 2023 saw NiSource's GAAP net income available to common shareholders fall to $661.7 million, or $1.48 diluted EPS, from $749.0 million, or $1.70 diluted EPS in 2022. However, non-GAAP net operating earnings rose to $716.3 million, or $1.60 diluted EPS, compared to $648.2 million, or $1.47 diluted EPS in the prior year. This performance reflects the company's ability to navigate operational challenges and underscores the importance of non-GAAP measures in assessing the underlying business strength.
Despite the dip in GAAP net income, NiSource's financial achievements, particularly in non-GAAP earnings, are significant. These results demonstrate the company's resilience and the effectiveness of its regulatory strategy and stakeholder engagement. The raised guidance for 2024 suggests confidence in continued growth and operational efficiency.
Key Financial Metrics
Important metrics from NiSource's financial statements include:
"Todays 2023 earnings achievement and increased 2024 NOEPS guidance range are a testament to the resiliency of our financial commitments and our superior regulatory and stakeholder foundation. - Lloyd Yates, NiSource President and CEO.
The company's balance sheet has been strengthened following the successful completion of the NIPSCO minority interest transaction in December, providing more financial flexibility. The 5-year $16 billion base capital expenditure plan is expected to drive significant rate base growth and support the company's long-term earnings growth target.
Investors should note that NiSource's non-GAAP financial measures are used to provide a clearer picture of the company's performance, as they exclude the impact of certain items that are considered non-recurring or not indicative of ongoing operations.
Analysis of Performance
NiSource's 2023 performance, particularly the non-GAAP results, reflects a solid operational execution and a strong regulatory environment. The company's ability to raise its 2024 earnings guidance despite a challenging economic landscape indicates a robust business model and effective cost management strategies. The reaffirmed long-term growth rate of 6-8% for non-GAAP NOEPS suggests that NiSource is well-positioned for sustainable growth.
For more detailed information, investors are encouraged to review the full earnings release and financial statements available on the NiSource website and to consider the company's forward-looking statements with an understanding of the inherent risks and uncertainties involved.
Stay tuned to GuruFocus.com for further analysis and insights into NiSource Inc (NYSE:NI) and other key players in the Utilities - Regulated industry.
Explore the complete 8-K earnings release (here) from NiSource Inc for further details.
This article first appeared on GuruFocus.
