NiSource Inc. (NI) SEC Filings & Earnings Calls

Increased leverage may pressure credit metrics and financial flexibility.

“Item 2.03: material direct financial obligation, increasing leverage.”

Increased leverage with $750M subordinated debt; interest deferral option could signal future cash flow stress.

“Notes are junior subordinated; company may defer interest for up to 20 consecutive periods under certain conditions.”

Data Center Contract Termination Risk

“any decisions by ADS or Alphabet to terminate, or by ADS to reduce the committed capacity under, our Current Data Center Contracts” · word for word

Financing Risk for Data Center Infrastructure

“our ability to obtain the significant additional financing required to construct the Contract Assets, Pool Resource Assets and any other generation or transmission assets we develop to support future data center contracts on favorable terms, if at all” · word for word

Construction and Cost Overrun Risk

“our ability to construct, develop and place into service the Contract Assets, Pool Resource Assets and any other generation or transmission assets we develop to support future data center contracts on time or at all and consistent with initial cost estimates” · word for word

Interest Rate and Debt Service Risk

“Interest expense, net ... $199.2 (2026) vs $139.1 (2025)”

Regulatory Disallowance Risk

“our ability to recover our investments and realize our expected return under our Current Data Center Contracts and any future data center contracts that we enter into” · word for word

Weather-related storm activity could impact operations and costs

“elevated storm activity we experienced this season” · word for word

Increased debt burden and interest expense; refinancing risk upon maturity.

“New debt of $1.25B with fixed rates; use of proceeds includes repaying existing indebtedness.”

Data center contract execution risk

“our ability to construct, develop and place into service the Contract Assets, Pool Resource Assets and any other generation or transmission assets we develop to support future data center contracts on time or at all and consistent with initial cost estimates” · word for word

Financing risk for data center investments

“our ability to obtain the significant additional financing required to construct the Contract Assets and any other generation or transmission assets we develop to support future data center contracts on favorable terms, if at all” · word for word

Customer concentration risk

“any decisions by ADS to terminate or reduce the committed capacity under the ADS Contract or any decision by any customer under any future data center contract to terminate or reduce the committed capacity under the contract” · word for word

Regulatory lag and rate case outcomes could impact earnings

“Utility operations subject to regulatory approval; no specific rate case mentioned.”

Data center demand may be lumpy or subject to economic cycles

“Data center operations and development activities have different growth profile; separated in guidance.”

Data center load growth may alter net zero interim goals

“certain of our interim goals may evolve as we assess and respond to business opportunities such as data centers.” · word for word

Net zero goal dependent on supportive regulation and technology

“Achievement of our Net Zero Goal by 2040 will require supportive regulatory and legislative policies, favorable stakeholder environments and advancement of technologies that are not currently economically or technologically feasible to deploy at scale” · word for word

Execution risk on large-scale data center investments and associated infrastructure.

“Nearly $7.0 billion in strategic data center infrastructure investments; construction of new dispatchable generation.” · word for word

Regulatory approval risk for data center contract and cost recovery mechanisms.

“The Contract will be submitted to the Indiana Utility Regulatory Commission (IURC) for approval.”

Financing risk given significant capex plan; potential equity dilution.

“expects to finance the project through a combination of debt and equity financing, which may include minority equity investments.”

Data center contract execution risk

“our ability to construct, develop and place into service the Contract Assets and any other generation or transmission assets we develop to support future data center contracts on time or at all and consistent with initial cost estimates” · word for word

Regulatory and environmental compliance cost

“In June 2025, the EPA proposed to repeal GHG emissions standards... If finalized, this action would remove regulatory constraints that could significantly impact NIPSCO’s planned gas generation, allowing customers to avoid approximately $675 million in additional costs as contemplated through the 2024 NIPSCO IRP.” · word for word

Credit rating and financing risk

“our ability to maintain our investment grade credit ratings as we finance and pursue our data center strategy, including our performance under the ADS Contract and any future data center contracts that we enter into” · word for word

Increased debt capacity may lead to higher leverage if drawn.

“Facility increased by $650M to $2.5B.”

Increased leverage from $1B debt issuance; subordinated structure increases cost of capital.

“$1B in junior subordinated notes; interest rate 5.75% initially, resetting to Treasury + 2.035%.”

Interest deferral risk: company may defer interest payments under certain conditions, which could signal financial stress.

“Company may, at its option, defer interest payments on the Notes ... for up to 20 consecutive semi-annual interest payment periods.” · word for word

Potential equity dilution from future ATM issuances.

“ATM equity offering program established; no specific size or timing.”

Execution risk on large-scale data center investments and associated infrastructure.

“Nearly $7.0 billion in strategic data center investments; construction of new dispatchable generation.” · word for word

Regulatory approval risk for data center contract and cost recovery mechanisms.

“The Contract will be submitted to the Indiana Utility Regulatory Commission (IURC) for approval.”

Financing risk given significant capex plan; potential equity dilution.

“expects to finance the project through a combination of debt and equity financing, which may include minority equity investments.”

Data center contract execution risk

“our ability to construct, develop and place into service the Contract Assets on time or at all and consistent with initial cost estimates, as well as the performance of these assets once constructed and placed into service” · word for word

Financing risk for data center investments

“our ability to obtain the significant additional financing that will be required to construct the Contract Assets on favorable terms, if at all” · word for word

Customer concentration risk

“our Customer’s performance under the Data Center Contract and any decision by the Customer to terminate the Data Center Contract or reduce the committed capacity thereunder” · word for word