What NiSource (NI)'s Bigger, Simpler Credit Facility Means For Shareholders

• On December 11, 2025, NiSource Inc. entered into a Seventh Amended and Restated Revolving Credit Agreement, lifting its revolving credit capacity by US$650 million to US$2.50 billion, extending the facility’s maturity to December 11, 2030, and increasing standby letter of credit capacity to US$175 million.
• The agreement not only enhances NiSource’s liquidity but also removes ESG-linked rate adjustments, signaling a shift toward simpler, more conventional financing terms that could influence how lenders and investors assess its capital structure.
• We’ll now explore how this larger, longer-dated credit facility reshapes NiSource’s investment narrative, especially its ability to fund extensive infrastructure plans.

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NiSource Investment Narrative Recap

To own NiSource, you need to be comfortable with a capital-intensive, regulated utility that is leaning heavily on long-term gas and electric infrastructure spending. The larger US$2.50 billion revolving credit facility looks supportive for near term funding of that plan, but it does not remove the key risks around regulatory outcomes and the pressure that heavy capital expenditure could place on free cash flow and leverage.

The recent US$852.5 million follow on equity offering sits alongside this expanded credit line and highlights how NiSource is combining debt and equity to fund its US$19.4 billion five year infrastructure plan. For investors, these moves tie directly into the central catalyst of earning timely rate recovery on that spending, while also reinforcing the risk that returns could weaken if project approvals or rate cases do not progress as expected.

Yet, investors should also be aware that if regulatory lag extends or key rate cases are delayed, the combination of higher capex and rising leverage could...

Read the full narrative on NiSource (it's free!)

NiSource's narrative projects $6.8 billion revenue and $1.1 billion earnings by 2028. This requires 3.5% yearly revenue growth and an earnings increase of about $215 million from $884.6 million.

Uncover how NiSource's forecasts yield a $46.36 fair value, a 12% upside to its current price.

Exploring Other Perspectives

Three fair value estimates from the Simply Wall St Community span roughly US$34.19 to US$46.36, showing how far views can differ. When you weigh these alongside NiSource’s heavy multi year capital spend and its reliance on constructive regulation, it becomes even more important to compare several viewpoints before forming your own.

Explore 3 other fair value estimates on NiSource - why the stock might be worth as much as 12% more than the current price!

Build Your Own NiSource Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your NiSource research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.
• Our free NiSource research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate NiSource's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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