Sale of a 19.9% Ownership Interest in NIPSCO slide image

Sale of a 19.9% Ownership Interest in NIPSCO

PREMIUM VALUATION HIGHLIGHTS THE VALUE EMBEDDED IN NISOURCE $2.40B Equity Raise at a Premium Valuation 18.4 x NiSource² P/E Multiple¹ -77% premium 32.5 X Transaction Substantial premium to NiSource's P/E and to alternative sources of financing NIPSCO Benefits from NiSource's Full Operating Platform ■ Shared services across 4M customers delivering greater customer value Enhanced purchasing power fueled by a robust capital plan across six operating companies Benefitting from energy diversification, particularly through the energy transition ■ Regulatory diversification to support and grow safety and reliability initiatives for our communities Highlights Immense Value Embedded in NiSource Columbia Gas 59% $ 11.3B We exist to deliver safe, reliable energy that drives value to our customers NiSource | NYSE: NI| nisource.com | ♥M Equity Value NiSource Market Capitalization² LTM Operating Earnings¹ $ 10.8B NIPSCO Contribution to NiSource NIPSCO 41% Implied Value for 100% of NIPSCO³ Columbia Gas 53% 2022 Rate Base Implied value for 100% of NIPSCO represents -96% of NiSource market capitalization, despite NIPSCO contributing <50% to consolidated earnings and rate base NIPSCO 47% ¹LTM P/E multiple and earnings based on the LTM ended 31-Mar-2023. Transaction multiple shown reflects $2.15B investment at closing. 2 Market data as of 16-Jun-2023.3 Value for NIPSCO implied by upfront consideration of $2.15B in exchange for 19.9% ownership of NIPSCO. 7
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