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Supplemental Slides

Second Quarter 2014 Earnings July 31, 2014

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This document contains forward-looking statements within the meaning of federal securities laws. These forward-looking statements are subject to various risks and uncertainties. Factors that could cause actual results to differ materially from the projections, forecasts, estimates and expectations discussed herein include, among other things, weather; fluctuations in supply and demand for energy commodities; growth opportunities for NiSource's businesses; increased competition in deregulated energy markets; the success of regulatory and commercial initiatives; dealings with third parties over whom NiSource has no control; actual operating experience of NiSource’s assets; the regulatory process; regulatory and legislative changes; the impact of new environmental laws and regulations; the results of material litigation; changes in pension funding requirements; changes in general economic, capital and commodity market conditions; counter-party credit risk; and the matters set forth in the “Risk Factors” sections in NiSource’s most recent Form 10-K and subsequent Forms 10-Q, many of which are beyond the control of NiSource. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this presentation. NiSource expressly disclaims a duty to update any of the forward-looking statements contained in this document. With regard to Net Operating Earnings Guidance for 2014 – it should be noted that there will likely be differences between net operating earnings and GAAP earnings for matters including, but not limited to, weather, and other factors. NiSource is not able to estimate the impact of such items on GAAP earnings and, as such, is not providing earnings guidance on a GAAP basis.

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Forward-Looking Statements

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Key Takeaways – Second Quarter 2014

• Financial results on track to deliver at the upper half of 2014 earnings guidance range of $1.61 to 1.71 per share

– Second quarter earnings per share: $0.25*

• Growing inventory of significant pipeline growth and midstream investments

• Legislative action in Massachusetts supports infrastructure modernization investment

• NIPSCO Gas $700M modernization program approved

• Record $2.2 billion 2014 capital investment program on track

Continued Execution of NiSource’s Infrastructure Investment Strategy

* Net Operating Earnings from Continuing Operations (non-GAAP); For a reconciliation to GAAP, see Schedule 1 of the Company’s July 31, 2014 Earnings Release

Building Long-Term, Sustainable Growth

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Q2 2014* Q2 2013* Change*

Income from Continuing Operations $78.5 $72.4 $6.1

Earnings Per Share $0.25 $0.23 $0.02

Operating Income $219.6 $194.0 $25.6

GAAP

Non-GAAP**

* All results listed in millions, except for EPS; ** For a reconciliation to GAAP, see Schedule 1 of the Company’s July 31, 2014 Earnings Release

Q2 2014* Q2 2013* Change*

Net Operating Earnings from Continuing Operations $77.9 $72.8 $5.1

Net Operating Earnings Per Share $0.25 $0.23 $0.02

Operating Earnings $219.1 $194.7 $24.4

Second Quarter 2014 Financial Highlights

Results on Track for Upper Half of Full-Year Earnings Guidance Range

A Compelling Investment Opportunity

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• Continued strong liquidity position of ~$1.2B as of June 30, 2014

• ~77% of infrastructure investments focused on revenue-generating opportunities

• Total debt to capitalization ~60.6% as of June 30, 2014

• Balanced, transparent approach to funding capital requirements

• Commitment to investment-grade credit, sustainable earnings growth, strong liquidity and a growing dividend

Moody’s Baa2 /P2 | S&P BBB- /A3 | Fitch BBB- /F3

Results on Track for Upper Half of Full-Year Earnings Guidance Range

Financial Foundation to Support Robust Capital Investment Program

Second Quarter 2014 Financing Highlights

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• Operating earnings $103.7M in Q2 2014 vs. $88.8M in Q2 2013* • $300M/year pipeline modernization program on track • Warren County project ready for service • Rayne and Leach XPress projects discussions in advanced stages of development • WB XPress development activities proceeding well • 2014 capital investment: ~$825M

Project Key Components Status

Utica Access Project • New pipeline facilities to transport Utica Shale gas into liquid trading points on the Columbia Transmission system

• 200 million cubic feet per day • ~$50M investment

• Projected in service by YE 2016

Big Pine Expansion Project • Additional gathering and compression facilities connected to Big Pine Gathering System

• Up to 175 million cubic feet per day

• Currently in advanced discussion with customers

• Projected in service Q2 2015

Washington County Gathering Project

• Additional gathering and compression facilities • Long-term gathering agreements in place • Up to 100 million cubic feet per day • ~$120M investment

• Projected in service 2H 2015

Pennant Midstream, LLC NGL Pipeline 50/50 Joint Venture with Harvest Pipeline

• NGL pipeline in eastern Ohio connecting the Hickory Bend processing facility to the UEO Kensington facility

• 90K barrels per day capacity • ~$60M investment (NI: $30M)

• Projected in service Q3 2014

Other In-Progress Growth and Modernization Projects

• Expanding mix of new and ongoing investments to support continued system reliability and shale production

• ~$300M in modernization investments in 2014

• Complete details available in Appendix on slides 13-14

* Non-GAAP. For a reconciliation to GAAP, see Schedule 2 of the Company’s July 31, 2014 Earnings Release

Looking Ahead:

Columbia Pipeline Group – Second Quarter 2014

Project Inventory Expands Further to Support Shale Supply Development

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• Operating earnings $59.8M in Q2 2014 vs. $58.6M in Q2 2013*

• Environmental, transmission, modernization investments on schedule, on budget • Energy efficiency program extension requested • 2014 capital investment: ~$440M

Highlight Key Components Status

Electric System Modernization Program

• Seven-year, ~$1.1B investment focused on replacing poles, transformers and other related equipment

• Filing approved by IURC on Feb. 17, 2014 • Investments in progress

Electric Generating Plant Environmental Investments

• ~$850M in total environmental investments • Schahfer Flue Gas Desulfurization (FGD) investments: Units

14 & 15 • Michigan City FGD: Unit 12 • Enhanced mercury and particulate controls (MATS)

• Schahfer Unit 14 in service • Schahfer Unit 15 and Michigan City Unit

12 on schedule, on budget

Electric Transmission System Enhancement – Reynolds to Topeka Project

• 100-mile, 345-kV transmission project • $250M-$300M investment • Projected in-service latter part of 2018

• Final route selected • Right of way acquisition in progress

Electric Transmission System Enhancement – Reynolds to Greentown (Joint Project)

• ~70-mile, 765-kV transmission project • $300M-$400M investment (NIPSCO portion $150M - $200M) • Projected in-service latter part of 2018

• Final route selected • Stakeholder outreach continues

* Non-GAAP. For a reconciliation to GAAP, see Schedule 2 of the Company’s July 31, 2014 Earnings Release

Electric Operations – Second Quarter 2014

Modernization Investments Provide Growth, Customer & Economic Benefits

Looking Ahead:

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Highlight Key Components Status

NIPSCO Natural Gas System Modernization Program

• Seven-year plan focused on system modernization and system extensions to rural customers

• ~$700M investment

• Filing approved by IURC on April 30, 2014

• Investments initiated

Columbia Gas of Virginia Base Rate Case

• Filed April 30, 2014 • Requested revenue increase of $25M • Supports multi-year system modernization program

• A decision with rates in effect projected by the end of 2014

Columbia Gas of Pennsylvania Base Rate Case

• Filed March 21, 2014 • Requested revenue increase of ~$54M • Supports continuation of robust infrastructure modernization

plans

• A decision with rates in effect projected later this year

Columbia Gas of Virginia Industrial Customer Expansion

• ~$15M growth project to serve major industrial customer • Columbia Gas Transmission will execute a complementary

project to interconnect with CGV (~$25M investment)

• On schedule, on budget • Projected in-service late 2014

Infrastructure Modernization Investments

• ~$10B+ long-term program across service territory • Complete program update outlined in Appendix on slide 16

• Operating earnings $62.5M in Q2 2014 vs. $51.8M in Q2 2013*

• New Massachusetts legislation supports infrastructure modernization efforts • NIPSCO Gas seven-year modernization program approved • 2014 capital investment: ~$785M

* Non-GAAP. For a Reconciliation to GAAP, See Schedule 2 of the Company’s July 31, 2014 Earnings Release

NiSource Gas Distribution – Second Quarter 2014

$10B+ Inventory of Long-Term Infrastructure Investments

Looking Ahead

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Appendix

Second Quarter 2014 Earnings July 31, 2014

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$785

$440

$825

$125

2014

Gas Distribution Electric Pipeline Group Corporate

Capital Expenditures ($M)

2014 Forecasted CapEx

2014 Growth & Tracker ~$1,675M (77%) and Age & Condition ~$500M (23%)

$2,175

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Capitalization ($M)

Total Debt to Capitalization 60.6% as of 6/30/14

Debt Equity Total Debt Equity Total

Long-Term Debt $ 7,640.6 $ - $ 7,640.6 $ 7,593.2 $ - $ 7,593.2

Short-Term Debt 801.1 - 801.1 433.6 - 433.6

Sale of A/R 300.0 - 300.0 265.1 - 265.1

Current Portion of Long-Term Debt 530.0 - 530.0 542.1 - 542.1

Common Equity - 6,028.3 6,028.3 - 5,886.6 5,886.6

Total Capitalization Per Balance Sheet $ 9,271.7 $ 6,028.3 $15,300.0 $ 8,834.0 $ 5,886.6 $14,720.6

% of Capitalization Per Balance Sheet 60.6% 39.4% 100.0% 60.0% 40.0% 100.0%

Actual 6/30/2014 Actual 12/31/2013

Moody’s Baa2 /P2 ● S&P BBB- /A3 ● Fitch BBB- /F3

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Current Liquidity ($M)

Actual 6/30/2014 Maturity

Committed Credit Facility $ 2,000 September 2018

Less:

Drawn on Credit Facility -

Commercial Paper (801)

Letters of Credit (14)

Add:

Cash & Equivalents 18

Net Available Liquidity $ 1,203

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CPG Regulated Pipeline & Storage Growth Update

Millennium ~$90M (NI: $45M) In-Service

2Q ‘13 & 1Q ’14 Marcellus: Deliver Marcellus supplies to multiple markets with expanded compression at Minisink (+150 MMcf/Day) and Hancock (+175 MMcf/Day)

Warren County ~$35M 2Q ’14 Gas Generation: Expansion serving Virginia Power’s new 1,300 MW plant (250 MMcf/Day)

Virginia LNG Facility ~$30M Phase 1: 4Q ‘13

Phases 2 & 3: ’14 - ’15 Facility Upgrade: Multi-phased project over three years to upgrade and maintain service to existing customers. (~120 MMcf/Day)

West Side Expansion ~$200M 4Q ‘14 Marcellus: Transport supply to the Gulf Coast and growing Southeast Markets (~500 MMcf/Day).

East Side Expansion ~$275M 3Q ’15 Marcellus: Connect northern Marcellus supplies to Northeast and Mid-Atlantic Markets (~315 MMcf/Day)

Giles County ~$40M

(CPG $25M - CGV $15M) 4Q ’14 Gas Conversion: Pipeline extension to serve coal-to-natural gas boiler conversion (~45 MMcf/Day).

Line 1570 ~$20M 4Q ’14 Marcellus: Increased takeaway capacity (~100 MMcf/Day).

Cameron Access Project ~$310M 3Q ’17 Transport supplies from numerous basins into Cameron’s LNG facility via a new pipeline and additional compression. (~800 MMcf/Day) Utica Access Project ~$50M 4Q’16 Greenfield pipeline to transport growing supply onto existing Columbia Gas line. (~200 MMcf/Day)

Rayne / Leach XPress TBD 4Q ’17 Marcellus / Utica: Facilitates transportation of Marcellus and Utica production to markets on Columbia Gas (Leach = ~1.5 Bcf/Day) and Columbia Gulf (Rayne = ~800 MMcf/Day).

Kentucky Power Project ~$25M 2Q ‘16 Gas Conversion: Expansion project to serve gas-fired power plant in Kentucky (~70MMcf/Day).

WB XPress TBD 4Q ‘18 Marcellus: Expansion to provide supply access to markets on Columbia Gas east towards Loudoun and west towards Leach (~1.3 Bcf/Day).

Columbia Gas Modernization $300M/Yr 2013 – 2017 FERC approved (1/2013) - 5 Year settlement agreement (with potential extension provisions) to execute a comprehensive, balanced and transparent pipeline modernization program. The program was approved and initiated in 2013…first year tracker recovery started February 2014.

$3B-$4B Opportunity

$4B-$5B Opportunity

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Complete

In Execution

In Development

In Evaluation

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CPG Midstream & Minerals Growth Update

Majorsville ~$85M

In-Service

3Q ’10 Marcellus: Gathers wet gas to processing facility and provides downstream pipeline market access with additional pipeline and compression assets (325 MMcf/Day)

Big Pine Gathering ~$165M In-Service

2Q ’13 Marcellus: ~60 Miles of Pipeline with multiple interstate connections (425 MMcf/Day) Pennant JV – Hickory Bend Gathering/Processing ~$320M (NI = ~$160M)

In-Service 4Q ’13

Utica: ~45 miles of Pipeline (500 MMcf/Day) and an NGL processing facility (200 MMcf/Day); Pipelines and NGL processing facility complete.

Pennant JV – NGL Pipeline ~$60M (NI = ~$30M) 3Q ’14 Utica: Pipeline development to transport NGLs from the Hickory Bend processing facility to Kensington. Capacity of the gas liquids pipeline is expected to be up to ~90K barrels a day.

Washington County Gathering ~$120M 2H ‘15 Marcellus: Greenfield gathering system in Washington County, PA to gather wellhead production.

NMS Interconnects ~$10M 4Q ‘14 Marcellus: Interconnects along the Big Pine Gathering System to transport new supplies.

Big Pine Expansion TBD 2Q ‘15 Marcellus: A nine mile, 20 inch lateral to Bluestone Processing Plant and incremental compression on Big Pine (~175 MMcf/Day).

Pennant JV – Phase II ~$300M (NI = ~$150M) TBD Utica: Gathering system extension and additional processing facilities.

Utica Minerals Arrangement

Executing Drilling Program

Utica: Joint development with Hilcorp to extract value from a combined acreage of mineral rights – drilling started in 2013. Production volumes dedicated to Pennant JV-Hickory Bend

Potential Minerals Opportunities Under Evaluation Utica: Optimize minerals position in shale region to leverage downstream infrastructure opportunities

Self-Funded Investment

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$1B-$1.5B Opportunity

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Complete

In Execution

In Development

In Evaluation

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NIPSCO Electric Distribution & Transmission Modernization

7-Year Investment ~$1.1B

Approved / Implemented: 2014

Modernization: SB 560 (80% Tracked / 20% Deferred) NIPSCO is implementing year 1 of its 7-year, ~$1.1B electric infrastructure replacement plan. The plan was approved by the IURC on February 17, 2014 and requires NIPSCO to file a rate case within seven years.

Reynolds-Topeka $250M - $300M 2H 2018 MISO MVP: FERC approved 345-kV transmission project from Reynolds Substation to Hiple Substation (100 miles) – route determination complete…right-of-way acquisition and permitting activities continue.

Greentown-Reynolds $300M - 400M

(NI: $150M – $200M) 2H 2018 MISO MVP – partnership: FERC approved 765-kV transmission project from Reynolds Substation to Greentown Substation (~70 miles) – route determination complete…right-of way acquisition to begin soon.

U14 FGD ~$250M In-Service

YE ’13 ECRM (Environmental Cost Recovery Mechanism - 100% Tracked) FGD (Flue Gas Desulfurization) facility at Schahfer Generating Station

U15 FGD ~$250M YE’14 ECRM (100% Tracked) FGD facility at Schahfer Generating Station

U12 FGD ~$250M YE’15 ECRM (100% Tracked) FGD facility at Michigan City Generating Station

NOx Upgrades ~$50M YE’15 ECRM (100%Tracked) NOx upgrades and monitoring

MATS ~$60M YE’13/YE’14/YE’15 ECRM (100%Tracked) projects enhancing mercury and particulate controls at all coal plants

Water Treatment $25M - $130M YE’17/YE’18 Environmental: SB 251 (80% Tracked / 20% Deferred) projects enhancing wastewater treatment at all coal plants and water intake modifications at Bailly Station

Coal Ash Improvements $100M - $300M TBD Environmental: SB 251 (80% Tracked / 20% Deferred) projects upgrading ash handling and disposal at all coal plants

Electric Operations Infrastructure Investment Update

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Upgrade Generation Fleet ($700M - $1.4B Opportunity)

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Enhance Transmission System ($500M - $1.0B Opportunity)

Infrastructure Modernization Program ($3B - $4B Opportunity)

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Complete

In Execution

In Development

In Evaluation

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NIPSCO – Gas Seven-Year ~$700M

Investment Plan Effective: April ‘14 NIPSCO’s ~$700M gas infrastructure replacement plan. Columbia Gas of Virginia – Rate Case

Requested Increase: $25M

Filed: 2Q ’14 Effective: 3Q ’14

Filing supports CGV's capital investments associated with a multi-year gas distribution modernization program. Columbia Gas of Pennsylvania – Rate Case

Requested Increase: $54M

Filed: 1Q ‘14 Effective: 4Q ’14

Filing supports CPA's capital investments to enhance pipeline safety initiatives and customer programs. This is the second filing under Act 11, using a forward test-year that extends to 12/31/2015. Columbia Gas of Massachusetts – Infrastructure Filing TBD TBD CMA plans to file an infrastructure plan under the provision of House Bill 4164 by October 31, 2014 with an anticipated effective date of May 1, 2015.

NGD Infrastructure Investment Update

Annual Investment

Columbia Gas of Ohio $150M - $200M 20+ Years Tracked: Execution of established Infrastructure Replacement Program; annual tracker filings with 5-year program renewal (next renewal 2018)

Columbia Gas of Pennsylvania $100M - $150M 20+ Years Rate Case/Tracked: Execution of established Infrastructure Replacement Program; recovery utilizes forward test year rate case filings supplemented by periodic DSIC filings under Act 11

Columbia Gas of Massachusetts $25M - $50M 20+ Years Tracked: Execution of established Infrastructure Replacement Program; annual tracker filings, program approved in 2009 and expanded in 2013 rate case

Columbia Gas of Virginia $20M - $35M 20+ Years Tracked: Execution of established Infrastructure Replacement Program; annual tracker filings with 5-year program renewal (next renewal 2017)

Columbia Gas of Kentucky $10M - $15M 20+ Years Tracked: Execution of established Infrastructure Replacement Program with annual tracker filings

Columbia Gas of Maryland $5M - $10M 20+ Years Rate Case/Tracked: Execution of established Infrastructure Replacement Program; rate case filings with make whole filings for up to three subsequent years

NIPSCO – Gas $50M - $115M 7 Years Modernization: SB 560 (80% Tracked / 20% Deferred). The NIPSCO Gas 7-year, ~$700M gas infrastructure replacement plan also contains plans to expand natural gas service into rural areas of Indiana. The plan was approved by the IURC on April 30, 2014.

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Current Regulatory Activity

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Infrastructure Modernization Programs ($10B+ Opportunity)

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In Execution

In Development

In Evaluation

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Key Path Forward Markers 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15

Liquidity

LT Debt Planned Issuances: (Term: TBD)

LT Debt Maturities: $500M (7/2014) / $230M (11/2015)

DRIP: ~$50M/year

Gas

Distribution

Columbia Gas of MA – Rate Case (Effective)

Columbia Gas of PA – Rate Case (Filed / Effective)

Columbia Gas of VA – Rate Case (Filed / Effective)

NIPSCO Gas – Infrastructure Replacement – SB 560 (Approval of 7-Year Plan / Implementation)

Infrastructure Replacement Programs (~$350-$450M Per Year)

Electric

NIPSCO – FGD’s: U14, U15, U12 (U14 Completed - 2013 / U15 In-Service / U12 In-Service )

Infrastructure Replacement Program – SB 560 (Approval of 7-Year Plan / Implementation)

MISO Approved Transmission Projects (Planning & Construction / In-Service 2018)

Colum

bia Pipeline Group

Giles County (FERC Approval / In-Service)

Pennant NGL Pipeline (In-Service)

Washington County Gathering (In-Service)

Warren County Project (In-Service)

Millennium Pipeline – Expanded Compression (Minisink Completed - 2013 / Hancock In-Service)

Columbia Gas Modernization (2013 Tracker Implementation / Execution)

West Side Expansion (In-Service )

East Side Expansion (In-Service)

Virginia LNG Facility Upgrade (Phase 1: Completed 2013 / Phase 2 & Phase 3: In-Service)

Line 1570 (FERC Approval / In-Service)

NMS Interconnects (In-Service)

Utica Access Project (FERC Approval 1Q 2016 / In-Service 4Q 2016 )