) posted net operating earnings of 69 cents per share in the
first quarter of 2013, 2 cents or 2.8% lower than the Zacks
Consensus Estimate. Earnings were also 9.2% lower than the
NiSource recorded GAAP earnings of 69 cents per share compared
with 68 cents per share in the prior year.
Gross revenue during the quarter increased 5.4% year over year
to $1.78 billion from $1.69 billion. The improvement was mainly
due to higher contribution from Gas Transportation and Storage
and Electric Operations. The Gas Distribution segment was a
partial offset with sales declining year over year.
Highlights of the Release
Total operating expenses increased 8% year over year to $684.6
million. The increase was mainly due to a 13% increase in
operating and maintenance expenses.
In the wake of higher operating expenses, operating income
inched down 1.4% to $427.9 million.
The company continues to work on its capital expenditure
programs, which are aimed at ensuring the safety and reliability
of its services. Besides using its cash flow, NiSource
issued long-term debts of $750 million at favorable rates to fund
its capital programs.
As of Mar 31, 2013, NiSource had cash and cash equivalents of
$101.4 million, up from $36.3 million as of Dec 31, 2012.
Long-term debts (excluding debts due within a year) as of Mar
31, 2013 were $6,803.9 million versus $6,819.1 million as of Dec
Cash flow from operating activities in the first quarter of
2013 decreased to $449.1 million from $480 million in the
prior-year quarter. The company distributed dividend worth $74.7
million in the reported quarter versus $65.1 million in the
NiSource reiterated its 2013 operating earnings per share
guidance in the range of $1.50 to $1.60. The company did not
provide GAAP figures but indicated that 2013 numbers would differ
from operating earnings due to unpredictable weather and other
factors affecting comparability.
Other Company Releases
CMS Energy Corp.
) reported earnings of 53 cents per share in the first quarter of
2013, surpassing the Zacks Consensus Estimate of 46 cents by
Empire District Electric Co.
) announced first-quarter 2013 operating earnings of 30 cents per
share, 11.11% above the Zacks Consensus Estimate of 27 cents.
) announced first-quarter 2013 operating earnings of $1.01 per
share, 8.6% above the Zacks Consensus Estimate of 93 cents.
Nisource continues to work on its growth objectives the
outcome of which will only be apparent in the forthcoming
We noticed an expansion in the gas and electric customer base,
which was primarily due to an increase in residential customers.
However, electric sales volume contracted primarily due to lower
sales to industrial customers.
Merrillville, Ind. based NiSource is an energy holding company
founded in 1912. Along with its subsidiaries, the company
provides natural gas, electricity and other products and services
in the U.S. The company currently has a Zacks Rank #3 (Hold).
CMS ENERGY (CMS): Free Stock Analysis Report
EMPIRE DISTRICT (EDE): Free Stock Analysis
NISOURCE INC (NI): Free Stock Analysis Report
NORTHWESTERN CP (NWE): Free Stock Analysis
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