July 2, NiSource Inc. and Columbia Pipeline Group announced that the separation of the two companies was completed successfully through a distribution of all the common stock of Columbia Pipeline Group held by NiSource to NiSource shareholders.
As of the separation, NiSource, based in Merrillville, Indiana, remains one of the largest natural gas utility companies in the United States, serving more than 3.5 million customers in seven states under the Columbia Gas and NIPSCO brands. The company also provides electric distribution, generation and transmission services for approximately 500,000 NIPSCO electric customers in northern Indiana. NiSource will continue to be listed on the NYSE.
“As a pure-play utility company, NiSource offers a fully regulated platform for growth with a storied track record of execution on stakeholder-supported system enhancement opportunities, which are expected to exceed $30 billion over the next 20-plus years,” said Joseph Hamrock, NiSource president and CEO. “This straightforward and well-established plan is underpinned by a deep commitment to safety, customer service, environmental sensitivity and employee engagement.”
Beginning with the market open July 2, Columbia Pipeline Group began “regular way” trading on the NYSE as an independent public company under the symbol “CPGX.”
Columbia Pipeline Group, based in Houston, includes Columbia Gas Transmission, Columbia Gulf Transmission, Columbia Midstream Group, its ownership interest in Columbia Pipeline Partners LP and other natural gas pipeline, storage and midstream holdings previously owned by NiSource.
In total Columbia Pipeline Group operates more than 15,000 miles of natural gas transmission pipelines, nearly 300 billion cubic feet of underground natural gas storage working capacity, and a growing portfolio of midstream and related facilities.
“As an independent company, we are committed to unlocking significant value and enabling even greater growth investment,” said CPG chairman and CEO Robert C. Skaggs, Jr. “We are actively executing on a significant number of transformational growth opportunities, as well as our landmark long-term system modernization program. These investments are expected to drive robust adjusted EBITDA and dividend growth and triple CPG’s net investment by 2020.”