Nisource, Inc., an energy holding company, through its subsidiaries, provides natural gas, electricity, and other products and services. The company operates in four segments: Gas Distribution Operations, Gas Transmission and Storage Operations, Electric Operations, and Other Operations. The Gas Distribution Operations provides natural gas to residential, commercial, and industrial customers. As of December 31, 2006, it served approximately 3.3 million customers in Ohio, Pennsylvania, Virginia, Kentucky, Maryland , northern Indiana, Massachusetts, Maine, and New Hampshire, as well as operated approximately 58 thousand miles of pipeline. The Gas Transmission and Storage Operations segment owned and operated 16 thousand miles of interstate pipelines and operated underground natural gas storage systems capable of storing approximately 637 billion cubic feet of natural gas. The Electric Operations segment generates, transmits, and distributes electricity to approximately 454 thousand customers in the northern part of Indiana, and engages in wholesale and transmission transactions. The company owned and operated 4 coal-fired electric generating stations with a net capability of 3,059 megawatt (mw), 6 gas-fired generating units with a net capability of 323 mw, and 2 hydroelectric generating plants with a net capability of 10 mw. The Other Operations segment provides energy-related services, including gas marketing, power and gas risk management, and ventures focused on distributed power generation technologies, including a cogeneration facility, fuel cells, and storage systems. It also engages in real estate and other businesses. The company, formerly known as NIPSCO Industries, Inc., was founded in 1912. It changed its name to NiSource, Inc. in 1999. Nisource is headquartered in Merrillville, Indiana.

Utility Industry Analysis

WikiWealth.com Industry Description: A public utility (usually just utility) is an organization that maintains the infrastructure for a public service (often also providing a service using that infrastructure). Public utilities are subject to forms of public control and regulation ranging from local community-based groups to state-wide government monopolies. ... Read more about the utility industry. Also see the Industry Analysis Home Page.

WikiWealth.com Industry Analysis: Utilities tend to be less sensitive to economic changes. During economic recessions, consumers tend to decrease discretionary expenses to save money, but they can not decrease utilities purchases, because they are needed for everyday living. Spending on utilities generally remains constant, so during economic recessions, investors tend to buy utilities stocks, which causes stock prices to increase. During economic recoveries, utilities stock prices generally underperform the general stock market. Investor who bought utilities stocks during the recession, tend to make new investments in faster growing industries. During longer economic expansions, utilities tend to grow at the same rate as the general stock market.

¹ WikiWealth.com only uses the largest 30 companies in each industry for the basis of these financial measures. Each statistic is the market weighted average of the 30 companies.

² Investment potential (margin of safety) is a weighted average of the discounted cash flow analysis (DCF), the enterprise value (EV) market multiple analysis, and the Warren Buffett investment analysis. WikiWealth obtains 80% of their quantitative investment potential from fundamental investment analysis.

³ The weighted average cost of capital (WACC) analysis for the industry is a broad representation of the WACC for each individual company. A sub-industry WACC analysis offers both stability and accuracy for each individual company.

WikiWealth.com Profit Analysis: The best way to profit from utilities stock investments is to find the most undervalued investments (Wall Street and Main Street buy ratings) before economic recessions. Those investments should be undervalued (see Wall Street Analysis on left side), and have high Main Street Common Sense investment ratings (see Main Street Analysis on right side). When an economic recovery occurs, utilities stocks tend to underperform the general stock market, because consumers quickly resume spending on items they wanted, but resisted buying during tougher economic times. Utilities are generally items that consumers bought during a recession, but don't increase purchases during economic expansions. Eventually other stock investments become overvalued, because profits and stock prices increase past their fair values. During the last stages of an economic business cycle, just before a recession, it is best to buy utilities stocks, because they are the least risky equity investments in a declining stock market. As investors search for safe (less risky) stock investments, they tend to buy utilities. Expensive (overvalued) stocks with low Main Street Common Sense ratings should be sold at any time to invest in better stocks. Two buys ratings are the best and two sell ratings are the worst possible stock investments. Click for more information: stock research ratings.

Investment Moats

Investment Moats are fundamental investing theories developed by Warren Buffett and adapted to the SWOT analysis. Investment moats are general characteristics that separate great investments from average stock investments. The wider the investment moat the better. Read more: Investment Moats. For company-specific investment moats: SWOT Analysis.

SWOT Strengths Increase Investor Moats: Below is a list of relevant industry investment characteristics, if any exist

SWOT Weaknesses Decrease Investor Moats: Below is a list of relevant industry investment characteristics, if any exist

Stock Price Triggers

Triggers were developed by WikiWealth.com to predict changes in stock price direction, which depend on events outside of the control of the company. In general, if SWOT opportunities are greater than SWOT threats, the stock price should raise; the opposite is also true. For more precise measures, examine each SWOT opportunity and threat, then rank them according to importance and timing. The more important the investment characteristic, the greater the impact on stock direction. The sooner a investment trigger may occur, the more influence it will have on stock price direction. Read more: Stock Price Triggers. For company-specific stock price triggers: SWOT Analysis.

SWOT Opportunities are Positive Stock Price Triggers: Below is a list of relevant industry investment characteristics, if any exist.

SWOT Threats are Negative Stock Price Triggers: Below is a list of relevant industry investment characteristics, if any exist.

Long Company Description (help)

NiSource Inc. (NYSE: NI), based in Merrillville, Ind., is a Fortune 500 company engaged in natural gas transmission, storage and distribution, as well as electric generation, transmission and distribution. NiSource operating companies deliver energy to 3.8 million customers located within the high- demand energy corridor stretching from the Gulf Coast through the Midwest to New England.

FAQs

How can I obtain a copy of the NiSource Annual Report?
You may request a printed copy of NiSource’s Annual Report from Mellon Investor Services at the address or telephone number at the top of this page. You can also access our Annual Report through this web site.

Does NiSource offer dividend reinvestment?
NiSource offers an Automatic Dividend Reinvestment and Share Purchase Plan for registered common stockholders.

May I make any initial purchase of NiSource common stock through the Plan?
No. You will need to be a registered owner of at least one share of NiSource stock to be eligible to participate in the Plan.

What are the minimum and maximum cash payments allowed?
You may contribute up to $5,000 per quarter toward the purchase of NiSource shares. The minimum investment is $25.00 per payment.

May I purchase shares with cash payments without reinvesting my dividends?
Yes. An Optional Cash Payments Only feature is available through this Plan.

SWOT Analysis

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