Financial Analysis

"Contractual Obligations . We have certain contractual obligations requiring payments at specified periods. The obligations include long-term debt, lease obligations, energy commodity contracts and obligations for various services including pipeline capacity and outsourcing of IT services. The total contractual obligations in existence at December 31, 2025 and their maturities were: (in millions) Total 2026 2027 2028 2029 2030 After Long-term debt (1) $ 15,345.0 $ $ 1,090.0 $ 1,055.0 $ 1,350.0 $ 1,000.0 $ 10,850.0 Interest payments on long-term debt 12,361.2 729.1 725.1 675.0 647.3 575.9 9,008.8 Finance leases (2) 497.9 32.6 27.4 26.2 21.3 22.3 368.1 Operating leases (3) 30.5 10.7 5.1 3.8 3.2 2.1 5.6 Energy commodity and capacity contracts 476.9 315.9 116.7 9.3 7.6 4.6 22.8 Service obligations: Pipeline service obligations 2,829.1 809.5 879.3 482.3 326.5 156.6 174.9 IT service obligations 322.1 98.3 81.8 61.7 43.0 37.3 Plant equipment purchase obligations 103.3 87.6 10.4 5.3 Other liabilities (4) 120.3 74.0 10.1 9.5 8.4 8.0 10.3 Total contractual obligations $ 32,086.3 $ 2,157.7 $ 2,945.9 $ 2,328.1 $ 2,407.3 $ 1,806.8 $ 20,440.5 (1) Long-term debt balance excludes unamortized issuance costs and discounts of $141.5 million and finance leases of $274.0 million . (2) Finance lease payments shown above are inclusive of interest totaling $223.9 million. (3) Operating lease payments shown above are inclusive of interest totaling $3.6 million. Operating lease balances do not include …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

"The tables below reconcile revenue disaggregation by customer class to segment revenue, as well as to revenues reflected on the Statements of Consolidated Income: Year Ended December 31, 2025 (in millions) Columbia Operations NIPSCO Operations Corporate and Other Total Gas Distribution Residential $ 2,279.9 $ 708.0 $ $ 2,987.9 Commercial 763.7 270.0 1,033.7 Industrial 167.4 100.2 267.6 Off-system 75.8 75.8 Wholesale 2.1 2.1 Miscellaneous (1) 35.9 13.5 49.4 Subtotal $ 3,324.8 $ 1,091.7 $ $ 4,416.5 Electric Generation and Power Delivery Residential $ $ 768.4 $ $ 768.4 Commercial 713.9 713.9 Industrial 578.3 578.3 Wholesale 45.1 45.1 Public Authority 9.5 9.5 Miscellaneous (1) (8.9) (8.9) Subtotal $ $ 2,106.3 $ $ 2,106.3 Total Customer Revenues (2) 3,324.8 3,198.0 6,522.8 Other Revenues (3) 5.2 109.3 4.9 119.4 Total Operating Revenues $ 3,330.0 $ 3,307.3 $ 4.9 $ 6,642.2 (1) Amounts included in Columbia Operations are primarily related to earnings sharing mechanisms and late fees. Amounts included in NIPSCO Operations are primarily related to revenue refunds, public repairs and property rentals. (2) Customer revenue amounts exclude intersegment revenues. See Note 21, ""Business Segment Information,"" for discussion of intersegment revenues. (3) Amounts included in Columbia Operations primarily relate to alternate revenue programs, including weather normalization adjustment mechanisms. Amounts included in NIPSCO Operations primarily relate to weather normalization adjustment mecha …

DisaggregationOfRevenueTableTextBlock · excerpt; the full note is in the filing

"A. Fair Value Measurements Recurring Fair Value Measurements The following tables present financial assets and liabilities measured and recorded at fair value on our Consolidated Balance Sheets on a recurring basis and their level within the fair value hierarchy as of December 31, 2025 and December 31, 2024. As of December 31, 2025 and December 31, 2024, there were no material transfers between fair value hierarchies. Additionally, there were no changes in the method or significant assumptions used to estimate the fair value of our financial instruments. Recurring Fair Value Measurements December 31, 2025 ( in millions ) Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Balance as of December 31, 2025 Assets Risk management assets $ $ 18.8 $ $ 18.8 Available-for-sale debt securities 146.1 146.1 Equity Securities (1)(2) 8.5 8.5 Total $ 8.5 $ 164.9 $ $ 173.4 Liabilities Risk management liabilities $ $ 5.9 $ $ 5.9 Total $ $ 5.9 $ $ 5.9 (1) Equity securities are in a high dividend equity fund and are valued using market prices in active markets. Level 1 instrument valuations are obtained from real-time quotes for transactions in active exchange markets involving identical assets. Equity securities are presented in ""Other Investments"" on the Consolidated Balance Sheets. (2) As of December 31, 2025, the investment cost of equity securities measured at fair value was $7.9 million, …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

"The following presents our goodwill balance allocated by segment as of December 31, 2025: (in millions) Columbia Operations NIPSCO Operations Total Goodwill $ 1,468.1 $ 17.8 $ 1,485.9 For our annual goodwill impairment analysis performed as of May 1, 2025, we performed a qualitative ""step 0"" assessment and determined that it was more likely than not that the estimated fair value of a reporting unit substantially exceeded its carrying value of our reporting unit. For this test, we assessed various assumptions, events and circumstances that would have affected the estimated fair value of the reporting unit as compared to its baseline May 1, 2024 ""step 1"" fair value measurement. There have been no impairments recorded during the periods presented."

GoodwillAndIntangibleAssetsDisclosureTextBlock

"Judgment and the use of estimates are required in developing the provision for income taxes and reporting of tax-related assets and liabilities. The interpretation of tax laws and associated regulations involves uncertainty as taxing authorities may interpret the laws differently. NIPSCOs historical business activities through the closing of the NIPSCO Minority Interest Transaction in 2023 were included in the consolidated U.S. federal and certain state income tax returns of NiSource Inc. Prior to April 13, 2023, NIPSCO was treated as a taxable division of its corporate parent, NiSource Inc. Beginning on that date, NIPSCO became a division of NIPSCO Holdings I. In connection with the NIPSCO Minority Interest Transaction, NIPSCO Holdings I retained NIPSCOs income tax balances and 80.1% of the excess deferred income tax regulatory balances as described below. NIPSCO Holdings Is income tax balances are based on the difference between the financial statement amount and the tax basis of its investment in NIPSCO Holdings II. Income Tax Expense. The components of income tax expense (benefit) were as follows: Year Ended December 31, (in millions) 2025 2024 2023 Income Taxes Current Federal $ (30.4) $ (19.3) $ State (1.6) 9.4 5.3 Total Current (Benefit) Expense (32.0) (9.9) 5.3 Deferred Federal Taxes before operating loss carryforwards and investment credits 189.2 105.9 49.7 Tax utilization expense of operating loss carryforwards 34.2 60.4 65.1 Investment tax credits (0.1) (2.1) Stat …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

Lease Descriptions. We are the lessee for substantially all of our leasing activity, which includes operating and finance leases for corporate and field offices, railcars, land, and fleet vehicles. Our corporate and field office leases and certain land leases have remaining terms between 1 and 38 years with options to renew the leases for up to 35 years. We lease railcars to transport coal to and from our electric generation facilities in Indiana. Our railcars are specifically identified in the lease agreements which have remaining lease terms between 1 and 3 years with options to renew for 1 year. Our fleet vehicles include trucks, trailers and equipment that have been customized specifically for use in the utility industry. We lease fleet vehicles for 1 year terms, after which we have the option to extend on a month-to-month basis or terminate with written notice. We elected the short-term lease practical expedient, allowing us to not recognize ROU assets or lease liabilities for all leases with a term of 12 months or less. ROU assets and liabilities on our Consolidated Balance Sheets do not include obligations for possible fleet vehicle lease renewals beyond the initial lease term. While we have the ability to renew these leases beyond the initial term, we are not reasonably certain to do so. We have not provided material residual value guarantees for our leases, nor do our leases contain material restrictions or covenants. Lease contracts containing renewal and terminatio …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

"Our long-term debt as of December 31, 2025 and 2024 is as follows: Long-term debt type Maturity as of December 31, 2025 Weighted average interest rate (%) Outstanding balance as of December 31, (in millions) 2025 2024 Senior notes: NiSource August 2025 0.950 % $ $ 1,250.0 NiSource May 2027 3.490 % 1,000.0 1,000.0 NiSource December 2027 6.780 % 3.0 3.0 NiSource March 2028 5.250 % 1,050.0 1,050.0 NiSource July 2029 5.200 % 600.0 600.0 NiSource September 2029 2.950 % 750.0 750.0 NiSource May 2030 3.600 % 1,000.0 1,000.0 NiSource February 2031 1.700 % 750.0 750.0 NiSource June 2033 5.400 % 450.0 450.0 NiSource April 2034 5.350 % 650.0 650.0 NiSource July 2035 5.350 % 900.0 NiSource December 2040 6.250 % 152.6 152.6 NiSource June 2041 5.950 % 347.4 347.4 NiSource February 2042 5.800 % 250.0 250.0 NiSource February 2043 5.250 % 500.0 500.0 NiSource February 2044 4.800 % 750.0 750.0 NiSource February 2045 5.650 % 500.0 500.0 NiSource May 2047 4.375 % 1,000.0 1,000.0 NiSource March 2048 3.950 % 750.0 750.0 NiSource June 2052 5.000 % 350.0 350.0 NiSource April 2055 5.850 % 1,500.0 Total senior notes $ 13,253.0 $ 12,103.0 Junior subordinated notes: NiSource November 2054 6.950 % $ 500.0 $ 500.0 NiSource March 2055 6.375 % 500.0 500.0 NiSource July 2056 5.750 % 1,000.0 Total junior subordinated notes $ 2,000.0 $ 1,000.0 Medium term notes: NiSource May 2027 7.990 % $ 29.0 $ 29.0 NIPSCO June 2027 to August 2027 7.644 % 58.0 58.0 Columbia of Massachusetts December 2025 6.430 % 10.0 Columb …

LongTermDebtTextBlock · excerpt; the full note is in the filing

"We provide defined contribution plans and noncontributory defined benefit retirement plans that cover certain of our employees. Benefits under the defined benefit retirement plans reflect the employees compensation, years of service and age at retirement. Additionally, we provide health care and life insurance benefits for certain retired employees. Certain employees may become eligible for these benefits if they reach retirement age while working for us. The expected cost of such benefits is accrued during the employees years of service. Current rates of rate-regulated companies include postretirement benefit costs, including amortization of the regulatory assets that arose prior to inclusion of these costs in rates. For most plans, cash contributions are remitted to grantor trusts. Our Pension and Other Postretirement Benefit Plans Asset Management . The Board has delegated oversight of the pension and other postretirement benefit plans assets to the NiSource Benefits Committee (the ""Committee""). The Committee has adopted investment policy statements for the pension and other postretirement benefit plans assets. For the pension plans, we employ a liability-driven investing strategy. A total return approach is utilized for some of the other postretirement benefit plans assets. A mix of diversified investments are used to maximize the long-term return of plan assets and hedge the liabilities at a prudent level of risk. The investment portfolio includes U.S. and non-U.S. eq …

PensionAndOtherPostretirementBenefitsDisclosureTextBlock · excerpt; the full note is in the filing

"Customer Revenues. Substantially all of our revenues are tariff-based. Under ASC 606, the recipients of our utility service meet the definition of a customer, while the operating company tariffs represent an agreement that meets the definition of a contract, which creates enforceable rights and obligations. Customers in certain of our jurisdictions participate in programs that allow for a fixed payment each month regardless of usage. Payments received that exceed the value of gas or electricity actually delivered are recorded as a liability and presented in ""Customer deposits and credits"" on the Consolidated Balance Sheets. Amounts in this account are reduced and revenue is recorded when customer usage exceeds payments received. We have identified our performance obligations created under tariff-based sales as i) the commodity (natural gas or electricity, which includes generation and capacity) and ii) delivery. These commodities are sold and / or delivered to and generally consumed by customers simultaneously, leading to satisfaction of our performance obligations over time as gas or electricity is delivered to customers. Due to the at-will nature of utility customers, performance obligations are limited to the services requested and received to date. Once complete, we generally maintain no additional performance obligations. Transaction prices for each performance obligation are generally prescribed by each operating companys respective tariff. Rates include provisions t …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

"Our reportable segments reflect the manner in which our business is managed and our resources are allocated. Following the consummation of the NIPSCO Minority Interest Transaction, we revised how we evaluate results and allocate resources across our business with an increased focus on operating performance at the state level. Refer to Note 4, ""Noncontrolling Interests,"" for additional information on the NIPSCO Minority Interest Transaction. At December 31, 2025, our operations are divided into two primary reportable segments, the Columbia Operations and the NIPSCO Operations segments. Columbia Operations aggregates the results of the fully regulated and wholly owned subsidiaries of NiSource Gas Distribution Group, Inc. (a holding company that owns Columbia of Kentucky, Columbia of Maryland, Columbia of Ohio, Columbia of Pennsylvania, and Columbia of Virginia). Each Columbia distribution company is an operating segment which we aggregate to form the Columbia Operations reportable segment. NIPSCO Operations includes the results of NIPSCO Holdings I and its majority-owned subsidiaries, including NIPSCO, which has fully regulated gas and electric operations in northern Indiana. Our historical segment disclosures have been recast to be consistent with the current presentation. The remainder of our operations, which are not significant enough on a stand-alone basis to warrant treatment as an operating segment, are presented as ""Corporate and Other"" in the subsequent reconcilia …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

"A. Company Structure and Principles of Consolidation. We are an energy holding company incorporated in Delaware and headquartered in Merrillville, Indiana. Our subsidiaries are fully regulated natural gas and electric utility companies serving approximately 3.8 million customers in six states. We generate substantially all of our operating income through these rate-regulated businesses. The consolidated financial statements include the accounts of us, our majority-owned subsidiaries, and VIEs of which we are the primary beneficiary after the elimination of all intercompany accounts and transactions. B. Use of Estimates. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. C. Cash, Cash Equivalents and Restricted Cash. We consider all highly liquid investments with original maturities of three months or less to be cash equivalents. We report amounts deposited in brokerage accounts for margin requirements as restricted cash. In addition, we have amounts deposited in trusts to satisfy requirements for the provision of various property, liability, workers compensation, and long-term disability insurance, and holdbacks related to certain jo …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing

"Holders of shares of our common stock are entitled to receive dividends when, as, and if declared by the Board out of funds legally available. The policy of the Board has been to declare cash dividends on a quarterly basis payable on or about the 20th day of February, May, August and November. We have certain debt covenants that could restrict our ability to pay dividends or potentially limit the amount of dividends we could pay in order to maintain compliance with these covenants. Refer to Note 8, ""Long-Term Debt,"" for more information. As of December 31, 2025, these covenants did not restrict our ability to pay dividends or the amount of dividends that were available to be paid. There is no preferred stock outstanding as of December 31, 2025. Common and preferred stock activity for 2025, 2024 and 2023 is described further below. Details of our 2024 ATM program are summarized below: In February 2024, we entered into eight separate equity distribution agreements providing for the sale of up to an aggregate of $900.0 million of our common stock. During 2024, we executed and settled four forward sale agreements. Under these agreements, we issued 21,143,900 shares resulting in net proceeds of $600.3 million. In February 2025, we executed a forward sale agreement, which allowed us to issue a fixed number of shares at a price to be settled in the future. The forward purchaser under our forward sale agreement borrowed 2,000,000 shares from third parties, which the forward purcha …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing