NiSource Inc (NI, Financial) filed Quarterly Report for the period ended 2009-09-30.
NiSource Inc. formerly NIPSCO Industries Inc. is an energyand utility-based holding company headquartered in Merrillville Indiana that provides natural gas electricity and water to the public for residential commercial and industrial uses. NiSource operating companies deliver energy to millions of customers located within the high-demand energy corridor stretching from the Gulf Coast through the Midwest to New England. Nisource Inc has a market cap of $3.66 billion; its shares were traded at around $13.31 with a P/E ratio of 11.8 and P/S ratio of 0.4. The dividend yield of Nisource Inc stocks is 6.9%.
Net revenues of $6.2 million for the first nine months of 2009 decreased by $0.2 million from the first nine months of 2008. Net revenues for the Other Operations segment are primarily related to energy-related ventures and the NDC Douglas Properties. Net revenues in 2008 included gas marketing activities as described above.
Operating Loss Other Operations reported an operating loss of $5.3 million for the third quarter of 2009, versus an operating loss of $1.3 million for the comparable 2008 period. The increase in operating loss resulted primarily from increased operating expenses of $4.3 million. During the third quarter of 2009 an impairment of $4.4 million was recorded on three NDC Douglas Properties that are classified as assets held in use.
Other Operations reported an operating loss of $8.1 million for the first nine months of 2009, versus an operating loss of $4.7 million for the comparable 2008 period. The increase in operating loss resulted primarily from increased operating expenses of $3.2 million due to an impairment of $4.4 million that was recorded on three NDC Douglas Properties as described above.
is due royalties from CNR (and its predecessors or successors) on lands lying within the boundary of the state of West Virginia. All claims by the government of the United States are excluded from the class. Although NiSource sold CNR in 2003, NiSource remains obligated to manage this litigation and for the majority of any damages ultimately awarded to the plaintiffs. On January 27, 2007, the jury hearing the case returned a verdict against all defendants in the amount of $404.3 million; this is comprised of $134.3 million in compensatory damages and $270 million in punitive damages. In January 2008, the Defendants filed their petition for appeal, and on March 24, 2008, the Defendants filed their amended petition for appeal with the West Virginia Supreme Court of Appeals. On May 22, 2008, the West Virginia Supreme Court of Appeals refused the defendants petition for appeal. On August 22, 2008, Defendants filed their petitions to the United States Supreme Court for writ of certiorari. The Plaintiffs filed their response on September 22, 2008. On September 19, 2008, the West Virginia Supreme Court issued an order extending the stay of the judgment until proceedings before the United States Supreme Court are fully concluded. Given the West Virginia Courts refusal of the appeal, NiSource adjusted its reserve in the second quarter of 2008 to reflect the portion of the trial court judgment for which NiSource would be responsible, inclusive of interest. This amount was included in Legal and environmental reserves, on the Consolidated Balance Sheet as of December 31, 2008. On October 24, 2008, the West Virginia Circuit Court for Roane County, West Virginia, preliminarily approved a settlement agreement with a total settlement amount of $380 million. The settlement received final approval by the Court on November 22, 2008. NiSources share of the settlement liability is up to $338.8 million. NiSource has complied with its obligations under the settlement agreement to fund $85.5 million in the qualified settlement fund by January 13, 2009. Additionally, NiSource provided a letter of credit on January 13, 2009 in the amount of $254 million and thereby complied with its obligation to secure the unpaid portion of the settlement. The trial court entered its order discharging the judgment on January 20, 2009. The Court is supervising the administration of the settlement proceeds. As of September 30, 2009, NiSource has contributed $208.2 million into the qualified settlement fund, $25 million of which was paid in 2008. NiSource has since contributed an additional $27.7 million. As of September, 30, 2009, $131.2 million of the associated letter of credit remains outstanding. NiSource will be required to make additional payments, pursuant to the settlement, upon notice from the Class Administrator.
Read the The complete ReportNI is in the portfolios of Brian Rogers of T Rowe Price Equity Income Fund, Brian Rogers of T Rowe Price Equity Income Fund.
NiSource Inc. formerly NIPSCO Industries Inc. is an energyand utility-based holding company headquartered in Merrillville Indiana that provides natural gas electricity and water to the public for residential commercial and industrial uses. NiSource operating companies deliver energy to millions of customers located within the high-demand energy corridor stretching from the Gulf Coast through the Midwest to New England. Nisource Inc has a market cap of $3.66 billion; its shares were traded at around $13.31 with a P/E ratio of 11.8 and P/S ratio of 0.4. The dividend yield of Nisource Inc stocks is 6.9%.
Highlight of Business Operations:
Net Revenues Net revenues of $2.5 million for the third quarter of 2009 increased by $0.3 million from the third quarter of 2008. Net revenues for the Other Operations segment are primarily associated with energy-related ventures and the NDC Douglas Properties. Net revenues in 2008 included gas marketing activities as described above with Columbia Energy Services. Obligations under these contracts were completed by December 2008.Net revenues of $6.2 million for the first nine months of 2009 decreased by $0.2 million from the first nine months of 2008. Net revenues for the Other Operations segment are primarily related to energy-related ventures and the NDC Douglas Properties. Net revenues in 2008 included gas marketing activities as described above.
Operating Loss Other Operations reported an operating loss of $5.3 million for the third quarter of 2009, versus an operating loss of $1.3 million for the comparable 2008 period. The increase in operating loss resulted primarily from increased operating expenses of $4.3 million. During the third quarter of 2009 an impairment of $4.4 million was recorded on three NDC Douglas Properties that are classified as assets held in use.
Other Operations reported an operating loss of $8.1 million for the first nine months of 2009, versus an operating loss of $4.7 million for the comparable 2008 period. The increase in operating loss resulted primarily from increased operating expenses of $3.2 million due to an impairment of $4.4 million that was recorded on three NDC Douglas Properties as described above.
is due royalties from CNR (and its predecessors or successors) on lands lying within the boundary of the state of West Virginia. All claims by the government of the United States are excluded from the class. Although NiSource sold CNR in 2003, NiSource remains obligated to manage this litigation and for the majority of any damages ultimately awarded to the plaintiffs. On January 27, 2007, the jury hearing the case returned a verdict against all defendants in the amount of $404.3 million; this is comprised of $134.3 million in compensatory damages and $270 million in punitive damages. In January 2008, the Defendants filed their petition for appeal, and on March 24, 2008, the Defendants filed their amended petition for appeal with the West Virginia Supreme Court of Appeals. On May 22, 2008, the West Virginia Supreme Court of Appeals refused the defendants petition for appeal. On August 22, 2008, Defendants filed their petitions to the United States Supreme Court for writ of certiorari. The Plaintiffs filed their response on September 22, 2008. On September 19, 2008, the West Virginia Supreme Court issued an order extending the stay of the judgment until proceedings before the United States Supreme Court are fully concluded. Given the West Virginia Courts refusal of the appeal, NiSource adjusted its reserve in the second quarter of 2008 to reflect the portion of the trial court judgment for which NiSource would be responsible, inclusive of interest. This amount was included in Legal and environmental reserves, on the Consolidated Balance Sheet as of December 31, 2008. On October 24, 2008, the West Virginia Circuit Court for Roane County, West Virginia, preliminarily approved a settlement agreement with a total settlement amount of $380 million. The settlement received final approval by the Court on November 22, 2008. NiSources share of the settlement liability is up to $338.8 million. NiSource has complied with its obligations under the settlement agreement to fund $85.5 million in the qualified settlement fund by January 13, 2009. Additionally, NiSource provided a letter of credit on January 13, 2009 in the amount of $254 million and thereby complied with its obligation to secure the unpaid portion of the settlement. The trial court entered its order discharging the judgment on January 20, 2009. The Court is supervising the administration of the settlement proceeds. As of September 30, 2009, NiSource has contributed $208.2 million into the qualified settlement fund, $25 million of which was paid in 2008. NiSource has since contributed an additional $27.7 million. As of September, 30, 2009, $131.2 million of the associated letter of credit remains outstanding. NiSource will be required to make additional payments, pursuant to the settlement, upon notice from the Class Administrator.
Read the The complete ReportNI is in the portfolios of Brian Rogers of T Rowe Price Equity Income Fund, Brian Rogers of T Rowe Price Equity Income Fund.
