NiSource Inc

At this time, I would like to welcome you to the third quarter of NYSOR's earnings conference call. All lines have been placed on mute to prevent background noise. After the speaker's remarks, there will be a question and answer session. So if you'd like to ask a question at that time, please press star and the number one on your telephone keypad. If you would like to withdraw your question or your question has been answered, please press star one again. Thank you. I would now like to turn the conference over to Durgas Chopra, Vice President of Investment Relations. Please go ahead, sir.

All right. Thanks, Dustin. Good morning and welcome to Nice Horses Third Quarter 2025 Investor Call. Joining me today are President and Chief Executive Officer Lloyd Yates, Executive Vice President and Chief Financial Officer Sean Anderson, Executive Vice President of Technology, Customer, and Chief Commercial Officer Michael Lewis, and Executive Vice President and Group President of Nisource Utilities, Melody Birmingham. Today we'll review Nisource's financial performance for the third quarter and share updates on operations, strategy, and growth drivers. We'll open the call for your questions after our prepared remarks. Slides for today's call are available in the investor relations section of our website. Some statements made during this presentation will be forward looking. These statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the statements. Information concerning such risks and uncertainties is included in the risk factors and MDA sections of our periodic SEC filings. Additionally, some statements made on this call relate to non-GAAP earnings measures. Please refer to the supplemental slides segment information, and full financial schedules for information on the most directly comparable gap measure and a reconciliation of these measures. With that, I'll turn the call over to Lloyd.

Thank you, Degres, and good morning, everyone. Let's begin on slide three. At NYSource, our mission remains clear and consistent. Deliver safe, reliable energy that drives value to our customers. The NYSource team has been focused on executing our premier business plan. We have advanced the work to develop data centers in Indiana, and we've refreshed the long-term outlook for our business. As a result of this, we've strengthened our financial commitments, demonstrated a disciplined and well-defined base business plan, and have capitalized on emerging data center opportunities. Through approximately $7 billion of Genco Investments, generating approximately $1 billion in savings to be flowed back to our existing customers. This business model serves as a scalable platform for growth. These commitments are backed by our efficient capital deployment and safe and reliable operations within our robust regulatory framework. The refresh of our strategic plan outlook enables updated financial guidance while reaffirming our confidence in delivering sustainable value and extends the company's growth targets. This supports a 6% to 8% annual adjusted EPS growth rate in the base business through 2030. We are now introducing an 8% to 9% adjusted EPS compound annual growth rate for the consolidated business through 2033. This transparent approach drives predictability and aligns our financial plan with long-term stakeholder value. Turning to our key priorities on slide four, this quarter we secured approval of the GenCo model in Indiana in full ownership of the Templeton wind asset, reinforcing the strength of our constructive regulatory foundation. Our ongoing focus to refine our operations through AI efficiency and continuous improvement initiatives supports our steadfast commitment to customer affordability. ensuring that our investments and operational decisions are made to support our goal of keeping energy costs reasonable and predictable for the communities we serve. Today, we reported third quarter adjusted EPS of 19 cents, bringing our year-to-date total to $1.38. We are reaffirming the upper half of our 2025 adjusted EPS guidance of $1.85 to $1.89. We're also announcing 2026 consolidated EPS guidance of $2.02 to $2.07. Despite these strong financial commitments, significant upside remains as we continue to invest in regulated infrastructure to better serve our communities. Developing projects supporting data center growth or ensuring a manufacturing And economic development across our territories remains robust across the outlook of our plan. Some of that robust pipeline has been realized through the recently executed contract with a large investment grade data center customer. Let's move to slide five. Our AI and digital strategy is measurably driving efficiency, scalability, and better experiences for employees and customers. Our AI work management intelligence continues to deliver sustained field productivity uplifts of over 20%, as measured through work hours achieved, less idle time, and less rework. Building on this success, we are expanding AI into additional high-value areas, including a new supply chain program to reinforce our focus on customer affordability, We're also piloting AI for system reliability and faster storm response, including average prediction and resource staging. Across the enterprise, we're employing AI through secure, role-based tools and strong governance. These initiatives are outcome-driven, aligned with our regulatory commitments, and designed to capture sustainable O&M efficiencies while improving service quality. We're making deliberate investments in the people and capabilities required to meet the growing needs of our data center customers. Our ability to execute large-scale construction projects stems from a proven track record of project management, deep technical experience, and a culture of accountability. These efforts align directly with our commitment to operational excellence, ensuring we're not only prepared to deliver but positioned to lead this next phase of growth. On slide six, we continue to make strong progress on our regulatory agenda. We're advancing our tracker programs in Ohio and Indiana, and our Pennsylvania rate case remains on track with a final order expected by year end. We're also advancing initiatives that promote economic development. These efforts expand the customer base, which leads to more efficient distribution of fixed costs. Columbia Gas of Virginia's partnership in delivering natural gas to Eli Lilly and Company's newly announced $5 billion manufacturing facility near Richmond exemplifies a proactive approach to economic transition and infrastructure development. This state-of-the-art facility is projected to create 650 permanent jobs and 1,800 construction jobs, showcasing how strategic investments can drive both immediate and long-term economic benefits for local communities. Columbia Gas of Virginia's collaboration with state and local agencies underscores a commitment to attracting high impact investments and building foundational energy infrastructure that supports ongoing economic growth. In parallel with these economic initiatives, NISOS remains focused on its energy transition strategy by advancing coal plant retirements, including Schaefer at the end of 2025 and Michigan City in 2028. The company continues to closely monitor executive orders and regulatory developments and is working with federal and state officials and MISO to ensure these transitions are managed responsibly. The goal is to provide the best outcomes for customers and communities, ensuring reliability and affordability. These efforts, together with investments in new facilities and infrastructure, reinforces NYSource's commitment to supporting both community prosperity and a sustainable energy future. The IURC's approval of GENCO unlocks a unique business model designed to protect existing customers serve new customers with speed and flexibility, and maintain the financial integrity of NIPSCO. The Genco strategy goes beyond simply providing power. It establishes a framework that strengthens our system, supports local communities, and drives long-term sustainable growth for all stakeholders. Last month, we executed a data center contract with a large investment-grade customer to support significant gas and battery storage build-up in northern Indiana, representing approximately $6 to $7 billion in capital investment. This project fully aligns with our strategic priorities, enabling affordability for customers, supporting economic development in the communities we serve, enhancing shareholder value for a strengthened financial profile, and prudent risk management. I want to emphasize that customer affordability remains central to our strategy. The special contract ensures that growth enhances value for our existing customers, going well beyond cost neutrality. The counterparty's use of the NIPSCO's infrastructure will generate significant bill savings for our retail customers, while investments in grid modernization will enhance reliability and reduce long-term operational expenses. This project also delivers meaningful economic development benefits including job creation, workforce development, and increased tax revenues that support public services and infrastructure across Indiana. Lastly, this agreement enhances our existing financial commitments and will diversify and strengthen NYSource's earnings, cash flow, and growth profile, as Sean will touch on later. But first, I'll turn it over to Michael to walk us through the agreement in more detail.