Cms Energy Corporation · NYSE:CMS
Cms Energy — Q3 2024 Earnings Presentation
18 slides from Cms Energy's earnings presentation, Oct 31, 2024
Slide 1: Third Quarter 2024 Results & Outlook
Third Quarter 2024 Results & Outlook October 31, 2024
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 . . . Clean Energy Industry-leading net zero commitments Leader s Co or Strong Infrastructure Cash Flow & Renewal st -w Balance Sheet Inve orkers Excellence through the Cu Customers sto m ers Attractive & Constructive Top-tier regulatory jurisdictiona Diversified Legislation & Terr
Slide 4: New Michigan Energy Law
a New Michigan Energy Law . . . Key Items Notable Changes Benefits • Renewable Portfolio Standard 60% by 2035 ✓Ability to own AND contract throughout MISO • Next Renewable Energy Plan (REP) filing (50% by 2030) (Nov. 2024) • Clean Energy Standard (incl. renewables, gas w/ CCS, or nuclear) 100% by 20
Slide 5: Electric Reliability Roadmap
Electric Reliability Roadmap . . . Electric Reliability Roadmap Additional Customer Value 5-yr Capital Investments • Proactive grid enhancements vs. reactive +$3B ~$7B maintenance and repair $1.5B Not in plan • More reliable and resilient system • Fewer and shorter customer outages ~$4B • Lower futu
Slide 6: Expansive Economic Development Efforts
Expansive Economic Development Efforts . . . Electric Gas Combined Contracted Load Corning Inc. 2022 New Load 2023 New Load 2024 New Load (MW) Solar production facility $900M investment Large Data Center Expansion ~1,100 jobs ~230 MW contracted 1,350 MW cumulative contracted a Saab Inc. Hemlock load
Slide 7: Michigan's Strong Regulatory Environment
Michigan’s Strong Regulatory Environment . . . 2024 2025 Supportive Energy Policy Electric • Timely recovery of investments ✓ Forward-looking test years/earn authorized ✓ Mar. 1st: Order Oct. 18th: Revised By Mar. 31, 2025: Expected Order ROEs $92M, 9.9% ROE $277Ma, 10.25% ROE U-21389 U-21585 U-2158
Slide 8: Financial Results & Outlook
Financial Results & Outlook . . . YTD 2024 Results Amount Commentary Up vs. 2023 with confidence in Adjusted EPS $2.47 the full year 2024 Full-Year Outlook Adjusted EPS Guidance $3.29 – $3.35 Toward the high end Annual Dividend Per Share $2.06 Up 11¢ 2025 Full-Year Outlook Adjusted EPS Guidance $3.5
Slide 9: 2024 Adjusted EPS
2024 Adjusted EPS . . . First Nine Months Three Months To-Go 41¢ (17)¢ – (23)¢ 16¢ 14¢ ✓9¢ 18¢ 2¢ (15)¢ $3.29 – $3.35 $3.11 5¢ (25)¢ – (31)¢ YTD YTD EPS Results YTD $2.06 2023 2024 $2.47 Reported EPS $1.96 $2.45 Adjustmentsa 0.10 0.02 Adjusted EPS $2.06 $2.47 2023 Weather Rates & Cost Savings & Usag
Slide 10: 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 11: 2024 Planned Financings Completed
2024 Planned Financings Completed . . . Financingsa Plan YTD b ~$2.2B of net liquidity ($M) ($M) Consumers Energy: $250M First Mortgage Bonds ~$1,275 $1,300 ✓ ~4.65%c (Nov-2025) CMS Energy: Contracted Equity (issued) ~266 ~266 ✓ ~$70/sh $1,100M Retirements: (Dec-2027) Consumers Energy 302 250 $550M
Slide 12: Industry-Leading Financial Performance
Industry-Leading Financial Performance . . . Adjusted EPS +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 2024+ Cold Mild Hot Warm Mild Cold Summer- Hot Hot Warm Mi
Slide 13: Q&A
Q&A See you at EEI! 13 13
Slide 14: Endnotes
ENDNOTES 14 14
Slide 15: Presentation Endnotes
Presentation Endnotes a Slide 3: UBS Research, 2024 state rankings and D.C. Slide 4: aNew energy law effective June 1, 2024 Slide 6: aNew or expanding load since 2015 as of October 15, 2024 Slide 7: a$277M position includes a $22M surcharge related to distribution investments made in 2023 above prio
Slide 16: 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 17: 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 9/30/24 9/30/23 9/30/24 9/30/23 Net Income Available to Common Stockholders $ 251 $ 174 $ 731 $ 571 Reconciling items: Dispo
Slide 18: 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 2024 2023 1Q 2Q 3Q 1Q 2Q 3Q 4Q Net Income Available to Common Stockholders $ 285 $ 195 $ 251 $ 202 $ 195 $ 174 $ 306 Reconciling items: Electric utili