Cms Energy Corporation · NYSE:CMS
Cms Energy — Q3 2023 Earnings Presentation
17 slides from Cms Energy's earnings presentation, Oct 26, 2023
Slide 1: Third Quarter 2023 Results & Outlook
Leading the CLEAN ENERGY TRANSFORMATION Third Quarter 2023 Results & Outlook October 26, 2023
Slide 2: Forward-looking statements and non-GAAP 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: Investment Thesis
Investment Thesis . . . Industry-leading net zero commitments Clean Energy Leader Strong Cash Flow Infrastructure Excellence through the & Balance Sheet Renewal Top-tier regulatory jurisdictiona Diversified Service Constructive Territory Legislation Affordable Prices Premium total shareholder return
Slide 4: Electric Reliability Roadmap
Electric Reliability Roadmap . . . Capital Investment Opportunity Actions & Customer Benefits (5-year) Actions: ~$7B • Vegetation management to a 7-year trim cycle +$3B • Up to 400 miles of annual undergrounding • Replace >20K poles per year • Rebuild ~10% of substations within 5 years ~$4B • Update
Slide 5: Michigan's Strong Regulatory Environment
Michigan’s Strong Regulatory Environment . . . 2022 2023 Supportive Energy Law Integrated Resource Plan (IRP) • Timely recovery of investments ✓Jun. 23 :rd ✓ Forward-looking test years Settlement Approved ✓ 10-month rate cases U-21090 ✓ Earn authorized ROEs ✓ Monthly fuel adjustment trackers (PSCR/G
Slide 6: Financial Results & Outlook
Financial Results & Outlook . . . 2023 Results Amount Commentary Q3 Adjusted EPS 61¢ On track; managing unfavorable weather & YTD Adjusted EPS $2.06 severe storms 2023 Outlook Adjusted EPS Guidance $3.06 – $3.12 Toward the high end Annual DPS $1.95 Up 11¢ 2024 Outlook Adjusted EPS Guidance $3.27 – $
Slide 7: 2023 Adjusted EPS
2023 Adjusted EPS . . . First Nine Months Three Months To-Go (23)¢ 40¢ – 46¢ 23¢ – 29¢ $3.06 – $3.12 $2.89 17¢ 20¢ 27¢ Flat Flat (49)¢ (21)¢ Key Drivers ✓ Absence of 2022 voluntary refund et al. YTD EPS Results YTD ✓ NorthStar financial 2022 2023 YTD performance on $2.29 Reported EPS $2.27 $1.96 tra
Slide 8: Strong Balance Sheet
Strong Balance Sheet . . . Consumers Energy S&P Moody’s Fitch Key Strengths Senior Secured A A1 A+ ✓ Forward-looking recovery ✓ Constructive rate construct Commercial Paper A-2 P-2 F-2 ✓ Strong operating cash flow Outlook Stable Stable Stable generation CMS Energy Senior Unsecured BBB Baa2 BBB ✓ 100
Slide 9: 2023 Planned Financings
2023 Planned Financings . . . Financings Existing Facilities Plan YTD a ($M) ($M) ~$1.7B of net liquidity Consumers Energy: First Mortgage Bonds $1,970 $2,025 ✓ $250M (Nov-2024) Securitization 688 -- CMS Energy: Contracted Equity (issued) 444 -- $1,100M Convertible Debt -- 800 ✓ Funds 2024 financing
Slide 10: Industry-Leading Financial Performance
Industry-Leading Financial Performance . . . Adjusted EPSa +6% to +8% Dividend Weather Help Recession Recession Recession / Hurt Pandemic 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023+ Cold Mild Hot Warm Mild Cold Summer- Hot Hot Warm Mild P
Slide 11: Q&A Thank You! See you at EEI
Q&A Thank You! See you at EEI 1111
Slide 12: Endnotes
Endnotes “cus evens?
Slide 13: Presentation Endnotes
Presentation Endnotes Slide 3: aRRA state regulatory energy rankings, May 2023. Regulatory Research Associates, a group within S&P Global Commodity Insights. Slide 4: a134 minutes for IEEE benchmark year 2023 results for 2022 data in 2029 Slide 7: aSee GAAP reconciliation on slide 15 Slide 9: a$1,53
Slide 14: 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 to net income availa
Slide 15: 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 9/30/23 9/30/22 9/30/23 9/30/22 Electric Utility Reported net income per share $ 0.65 $ 0.67 $ 1.39 $ 1.73 Reconciling items: O
Slide 16: Reconciliation of GAAP Net Income to Non-GAAP Adjusted Net Income
CMS ENERGY CORPORATION Reconciliation of GAAP Net Income to Non-GAAP Adjusted Net Income (Unaudited) In Millions, Except Per Share Amounts Three Months Ended Nine Months Ended 9/30/23 9/30/22 9/30/23 9/30/22 Net Income Available to Common Stockholders $ 174 $ 163 $ 571 $ 659 Reconciling items: Dispo
Slide 17: 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 In Millions, Except Per Share Amounts (Unaudited) 2023 1Q 2Q 3Q Net Income Available to Common Stockholders $ 202 $ 195 $ 174 Reconciling items: Electric utility and gas utility 3 30 6 Tax impact (1)