NiSource Inc. (NI) reported fourth-quarter 2014 operating earnings of 51 cents per share, missing the Zacks Consensus Estimate by a penny. Quarterly earnings surged 8.5% from 47 cents a year ago, primarily due to an increase in revenues on higher electricity sales volume.

On a GAAP basis, earnings for the quarter stood at 49 cents per share, flat with the prior-year figure.

For 2014, operating earnings of the company were $1.72 per share, beating the Zacks Consensus Estimate of $1.70 by 1.2%. Moreover, reported earnings were 8.9% higher than the prior-year figure of $1.58 per share.

The company reported GAAP earnings of $1.68 per share in 2014 as against $1.57 per share a year ago.

Revenues

In the fourth quarter, NiSource’s gross revenues of $1.69 billion lagged the Zacks Consensus Estimate by 0.5%. On a year-over-year basis, the reported top line increased 6.1% primarily on the back of higher contribution from Gas Transportation and Storage (13.2%), Gas Distribution (5.1%) and Electric (1.5%). This was partially offset by lower revenues from the Other (7.3%) segment.

The company’s gross annual revenues came in at $6.46 billion, missing the Zacks Consensus Estimate by 0.2%. Reported revenues increased 14.1% from $5.66 billion a year ago.

Quarterly Operational Highlights

In the quarter under review, electricity sales volume surged 6.1% to 4,492.1 gigawatt-hours. On the other hand, total gas sales and transportation volumes decreased 2.1% year over year to 280.4 million decatherm.

Cost of sales increased 2.5% year over year to $560.8 million.

Total operating expenses came in at $781 million, up 9.1% year over year primarily due to higher operation and maintenance expenses, and depreciation and amortization.

NiSource’s operating income in the reported quarter stood at $361.8 million, up 6.4% from $340 million a year ago.

Interest expenses increased 4.8% year over year to $115.8 million due to higher outstanding debts.

Financial Position

As of Dec 31, 2014, NiSource had cash and cash equivalents of $25.4 million versus $26.8 million as of Dec 31, 2013.

Long-term debt (excluding amounts due within one year) as of Dec 31, 2014 was $8,155.9 million versus $7,593.2 million as of Dec 31, 2013.

In 2014, net cash flows from operating activities came in at $1,319.6 million versus $1,436.8 million in the year-ago period.

NiSource’s capital expenditure in 2014 stood at $2,028.5 million compared with $1,879.9 million in the year-ago period.

Other Peer Releases

American Electric Power Company Inc. (AEP) reported fourth-quarter 2014 operating earnings of 48 cents per share, missing the Zacks Consensus Estimate by 7.7%.

CMS Energy Corp. (CMS) reported fourth-quarter 2014 adjusted earnings per share of 35 cents, lagging the Zacks Consensus Estimate by a penny.

DTE Energy Co. (DTE) reported fourth-quarter 2014 operating earnings per share of $1.17, beating the Zacks Consensus Estimate 12.5%.

Zacks Rank

NiSource currently has a Zacks Rank #3 (Hold).