We estimate NiSource can earn 15% returns on capital with its additions to gathering and other nonregulated pipelines connecting to its main transmission system.
NiSource has leases for up to 200,000 acres in the Utica shale-gas formation, a portion of which NiSource will contribute to the HilCorp JV, reducing the development cash needs and risk.
FERC regulation tends to be less influenced by political agendas versus state regulatory bodies. This usually provides more constructive regulatory decisions and higher allowed returns on equity for interstate natural gas transmission lines. Read more
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.
Although NiSource reports weather-normalized operating earnings, mild weather negatively affects GAAP earnings and cash flow. Read more
We assign NiSource a standard stewardship rating. We think management has done a good job managing state and federal regulatory relations. In addition, although one could argue it was luck that located NiSource's Columbia Pipeline in the middle of the Read more
NiSource distributes natural gas to more than 3.3 million customers with more than 58,000 miles of pipelines in Indiana, Kentucky, Maryland, Massachusetts, Ohio, Pennsylvania, Read more
Morningstar Minute: Rails Are Just the Ticket for Wide Moats Watch more