NiSource Inc.’s (NI) second-quarter 2014 adjusted operating earnings of 25 cents per share were in line with the Zacks Consensus Estimate.
Quarterly earnings improved 8.7% year over year as the company continued to strengthen its infrastructure.
The company also recorded quarterly GAAP earnings of 25 cents per share compared with 23 cents per share in the prior year.
Total Revenues
NiSource’s gross revenues during the quarter climbed 11% year over year to $1.33 billion.
The top-line rise came on the back of higher contributions across the company’s segments, comprising Gas Distribution, Gas Transportation and Storage, Electric Operations and Other.
Highlights of the Release
In the quarter under review, NiSource’s total operating expenses increased 13.3% to $755.3 million from $666.4 million a year ago. The surge in expenses was primarily due to an 8.9% spike in operating and maintenance expenses.
Operating income in the reported quarter was $219.1 million, up 12.5% year over year, primarily due to a strong top line.
Interest expenses increased 6.9% year over year to $109.1 million due to higher outstanding debts.
Financial Position
As of Jun 30, 2014, NiSource had cash and cash equivalents of $18 million versus $26.8 million as of Dec 31, 2013.
Long-term debt (excluding amounts due within one year) as of Jun 30, 2014 was $7,640.6 million versus $7,593.2 million as of Dec 31, 2013.
In the first half of 2014, net cash flows from operating activities were $652 million versus $880.9 million in the year-ago period.
NiSource’s capital expenditure was $852.9 million in the first half of 2014 compared with $801.7 million in the year-ago period.
Guidance
NiSource reaffirmed its 2014 net operating earnings expectation of $1.61–$1.71 per share. The company’s capital investment program of about $2.2 billion for 2014 is on track.
At the Peer End
American Electric Power Co., Inc.’s (AEP) earnings per share of 80 cents in the second quarter 2014 surpassed the Zacks Consensus Estimate of 75 cents by 6.7%.
Entergy Corp. (ETR) reported second-quarter earnings of $1.11 per share, lagging the Zacks Consensus Estimate of $1.14 by 2.6%
DTE Energy Co. (DTE) announced second-quarter 2014 earnings of 73 cents per share, lagging the Zacks Consensus Estimate of 77 cents by 5.2%.
Zacks Rank
NiSource currently has a Zacks Rank #3 (Hold).
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