NiSource lost $44.3 million ($0.14/share) in the second quarter, with company officials pinning the sagging earnings on an expensive debt-related charge.

The Merrillville, Ind.-based parent of Northern Indiana Public Service Co. and Columbia Gas took a $111.5 million charge on early extinguishment of higher-coupon, long-term debt. However, CEO Joseph Hamrock said the charge, incurred for refinancing $990.7 million in debt, will be offset in the long term. The refinance will “result in significant interest expense savings over the next several years,” Hamrock said during an Aug. 2 earnings call.

NiSource reported $167 million in net income from continuing operations for the first six months of this year, compared with $215.6 million in the first half of 2016.

CFO Donald Brown said the company currently carries $7.9 billion in debt, with a 13-year weighted average maturity for long-term debt and a 5.4% average interest rate.

“It’s worth mentioning that our credit ratings at the three major agencies are investment-grade. Standard & Poor’s rates NiSource at BBB+, Moody’s at Baa2 and Fitch at BBB ― all with stable outlook. Going forward, our financial foundation is solid and poised for continued growth,” Brown said.

Hamrock said the company plans to invest $1.6 billion to $1.8 billion annually in utility infrastructure programs from 2018 through 2020, part of more than $30 billion in long-term investment opportunities the company has identified. (See NiSource Pegs Q1 Success on Infrastructure Investments.)

— Amanda Durish Cook