Cms Energy Corporation · NYSE:CMS
Cms Energy — Q3 2021 Earnings Presentation
21 slides from Cms Energy's earnings presentation, Oct 28, 2021
Slide 1: Third Quarter 2021 Results and Outlook
Third Quarter 2021 Results and Outlook Leading the Clean Energy Transformation October 28, 2021
Slide 2: Forward-looking statements disclaimer
This presentation is made as of the date hereof and contains “forward-looking statements” as defined in Rule 3b-6 of the Securities Exchange Act of 1934, Rule 175 of the Securities Act of 1933, and relevant legal decisions. The forward-looking statements are subject to risks and uncertainties. All f
Slide 3: Strong Execution
Strong Execution . . . ✓ Completed EnerBank transaction for gross proceeds of >$1 Bna ✓Approved Voluntary Green Pricing (VGP) program adds an incremental 1,000 MW ✓Filed 5-yr, ~$4 Bn Electric Distribution Infrastructure Investment Plan (EDIIP)b ✓Executing on >$75 MM of customer assistance to help ke
Slide 4: Strong Results
Strong Results . . . 2021 YTD Amount Commentary Adjusted Continuing Ops. EPS (non-GAAP) $2.18 Ahead of Plan 2021 Full-Year Adjusted Continuing Ops. EPS Guidance $2.63 – $2.65 Raised from Q2 2022 Full-Year Adjusted EPS Guidance $2.85 – $2.87 Reaffirmed Long-Term Adjusted EPS Growth +6% to +8% Toward
Slide 5: Uniquely Positioned Gas Business
Uniquely Positioned Gas Business . . . Gas Sales (Bcf)a • Procurement of natural gas at lower costs during summer months for storage to meet winter ~190 demand As needed purchases • Gas Cost Recovery (GCR) mechanism limits under- Nov. – Mar. recovery ~140 • Annual $1/Mcf movement in gas prices equat
Slide 6: Michigan's Strong Regulatory Construct
Michigan’s Strong Regulatory Construct . . . 2021 2022 Integrated Resource Plan ✓ Jun. 30th: Filed Integrated Apr.: Initial order Resource Plan (IRP) U-21090 Electric ✓Mar. 1 : st Filed $225 MM By Dec. 22nd: Q1: Expected File next Updated $201 MM final order rate case U-20963 10.5% ROE Gas Gas Dec.:
Slide 7: Q3 2021 and YTD Adjusted EPS
Q3 2021 and YTD Adjusted EPS . . . Third Quarter Adj. EPS by Segment 2020 2021 Q3 YTD Reported Continuing Ops. EPS (GAAP)a $0.72 $0.54 Utility $0.64 $2.46 Adjustmentsb 0.01 -- Enterprises 0.03 0.09 Adj. Continuing Ops. EPS (non-GAAP)b $0.73 55 $0.54 EnerBank Disc. Ops. Disc. Ops. Parent and Other (0
Slide 8: 2021 Adjusted EPS Ahead of Plan
2021 Adjusted EPS Ahead of Plan . . . Year-to-Date Three Months To-Go 19¢ (1)¢ – (3)¢ 45¢ 6¢ 7¢ a a 2¢ $2.63 – $2.65 $2.47 7¢ (7)¢ (35)¢ (7)¢ – (9)¢ Includes Q3 storms 16¢ YTD YTD $1.99 $2.18 2020 Weather Rates & Customer Usage, Normal Rates & Customer Usage, 2021 Investment Initiatives & Enterprise
Slide 9: 2021 Financing Plan Completed
2021 Financing Plan Completed . . . Financings Existing Facilities Plan YTDa (MM) (MM) $250 MM Consumers Energy: (Nov-2022) First Mortgage Bonds $665 ✓ $335b c $1.7 Bn of net liquidity CMS Energy: position with no CP outstanding ✓ Preferred - Hybrid $235 $230 50% equity credit (as of 9/30/21) Planne
Slide 10: A Simple Investment Thesis
A Simple Investment Thesis . . . Industry-leading clean energy commitment a Net Zero Carbon (2040) & Net Zero Methane (2030) Clean Energy Leader Diversified Service Infrastructure Excellence through the Territory Renewal Top-tier regulatory jurisdictionb Strong Cash Flow Constructive & Balance Sheet
Slide 11: Q&A Thank You See You at EEI!
Q&A Thank You See You at EEI! 11 11
Slide 12: Appendix
Appendix 12 12
Slide 13: Utility Sales Continue to Recover
Utility Sales Continue to Recover . . . a Weather-Normalized Electric Deliveries August Unemployment Rate (YTD 2021 vs. YTD 2020) 5.2% 8% b 4.2% 4.7% >3% ~2% b ~(2)% Grand Rapids Michigan U.S. Res. Com. Ind. Total Residential Customer Growth YTD New Service Connections (5-Yr Avg. Customer Count) (El
Slide 14: Credit Metrics Maintained
Credit Metrics Maintained . . . Consumers Energy S&P Moody’s Fitch Ratings Drivers Senior Secured • Strong financial A A1 A+ position Commercial Paper A-2 P-2 F-2 • Growing operating Outlook Stable Stable Stable cash flow CMS Energy • Return on regulated investment Senior Unsecured BBB Baa2 BBB Juni
Slide 15: Endnotes
Endnotes “severe?
Slide 16: Presentation Endnotes
Presentation Endnotes a b Slide 3: Gross proceeds from the sale of Enerbank total $1,019 MM $5.4 Bn total investment which includes $4 Bn of capital investment and $1.4 Bn of investment in forestry, service restoration and other O&M a Slide 5: Includes sales to Gas Cost Recovery (GCR) customers a b
Slide 17: GAAP Reconciliation
GAAP Reconciliation CMS Energy provides historical financial results on both a reported (GAAP) and adjusted (non-GAAP) basis and provides forward-looking guidance on an adjusted basis. During an oral presentation, references to “earnings” are on an adjusted basis. All references to net income refer
Slide 18: Reconciliation of GAAP EPS to Non-GAAP Adjusted EPS by Segment
CMS ENERGY CORPORATION Reconciliation of GAAP EPS to Non-GAAP Adjusted EPS by Segment (Unaudited) In Millions, Except Per Share Amounts Three Months Ended Nine Months Ended 9/30/21 9/30/20 9/30/21 9/30/20 Electric Utility Reported net income per share available to common stockholders $ 0.67 $ 0.79 $
Slide 19: Reconciliation of GAAP Net Income to Non-GAAP Adjusted Net Income by Quarter
CMS ENERGY CORPORATION Reconciliation of GAAP Net Income to Non-GAAP Adjusted Net Income by Quarter (Unaudited) In Millions, Except Per Share Amounts 2021 1Q 2Q 3Q Net Income Available to Common Stockholders $ 349 $ 176 $ 186 Reconciling items: Electric utility and gas utility - - - Tax impact - - -
Slide 20: Reconciliation of GAAP to Non-GAAP Adjusted Income from Continuing Operations
CMS ENERGY CORPORATION Reconciliation of GAAP to Non-GAAP Adjusted Income from Continuing Operations (Unaudited) In Millions, Except Per Share Amounts Three Months Ended Nine Months Ended 9/30/21 9/30/20 9/30/21 9/30/20 Net Income Available to Common Stockholders $ 186 $ 218 $ 711 $ 597 Reconciling
Slide 21: Reconciliation of GAAP to Non-GAAP Adjusted Income from Continuing Operations
CMS ENERGY CORPORATION Reconciliation of GAAP to Non-GAAP Adjusted Income from Continuing Operations (Unaudited) In Millions, Except Per Share Amounts Three Months Ended Nine Months Ended 9/30/21 9/30/20 9/30/21 9/30/20 Income Available to Common Stockholders Reported income from continuing operatio