Morningstar Rating

Stock Research and Analysis

by Charles Fishman, CFA

Bulls Say

We expect NiSource's annual dividend growth for its legacy utility business to average approximately 5% during the next five years.
The tax-free shares in CPG following the separation from NiSource should be at an attractive valuation since its primary asset is ownership of an MLP.
New legislation has improved the regulatory framework in Indiana for NiSource's electric and natural gas distribution utilities. Read more 

Bears Say

Almost 50% of NiSource's electric sales are to industrial customers, higher than most utilities. Industrial sales are more sensitive to the economy than residential and commercial sales.
Low natural gas prices could reduce shale-gas drilling activity in the Marcellus region, reducing opportunities for new gas gathering and transportation projects at CPG.
Although NiSource reports weather-normalized operating earnings, mild weather negatively affects GAAP earnings and cash flow. Read more 

Management

We assign NiSource a Standard Stewardship Rating. We think management has done a good job managing state and federal regulatory relations. In addition, management has taken advantage of being in the right spot at the right time in the Marcellus and   Read more 

Profile

NiSource is one of the nation's largest natural gas distribution companies with 3.4 million customers in Indiana, Kentucky, Maryland, Massachusetts, Ohio, Pennsylvania,   Read more 

An All-in-One Utilities Investment for Your Watchlist 
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