Summary
CMS Energy Corporation, through its principal subsidiary Consumers Energy Company, operates primarily as an electric and natural gas utility in Michigan. In 2009, the company reported operating revenue of $6.2 billion. Consumers' operations constitute the vast majority of CMS Energy's assets, income, and revenue. The company's business is heavily influenced by regulatory decisions, economic conditions in Michigan, weather patterns, and commodity prices. CMS Energy's strategy focuses on investing in Consumers' utility system, controlling costs, and maintaining safe and efficient operations, while navigating the challenging economic environment of Michigan, particularly the impact of the automotive industry downturn.
Financial Highlights
42 data pointsBeta
Financial Statements
Beta
| Revenue | $6.21B |
| Operating Expenses | $5.51B |
| Operating Income | $698.00M |
| Interest Expense | $435.00M |
| Net Income | $229.00M |
| EPS (Basic) | $0.96 |
| EPS (Diluted) | $0.91 |
| Shares Outstanding (Diluted) | 237.90M |
Key Highlights
- 1CMS Energy's primary operating subsidiary, Consumers Energy Company, serves 6.5 million residents in Michigan, making it the state's largest utility.
- 2In 2009, CMS Energy reported consolidated operating revenue of $6.2 billion, with Consumers' utility operations accounting for the substantial majority of this.
- 3The company's electric utility segment generated $3.4 billion in operating revenue in 2009, while the gas utility segment generated $2.6 billion.
- 4CMS Energy's 'Enterprises' segment, comprising non-utility operations and investments, had operating revenue of $216 million in 2009, with a strategic shift to focus on domestic independent power production.
- 5The company faces significant regulatory oversight from the Michigan Public Service Commission (MPSC) and the Federal Energy Regulatory Commission (FERC), impacting its rates, operations, and capital expenditures.
- 6A major risk factor identified is CMS Energy's dependence on dividends from its subsidiaries to meet debt service obligations, with restrictions on dividend payments from Consumers potentially impacting CMS Energy's liquidity.
- 7Environmental compliance is a significant focus, with Consumers estimating $1.4 billion in expenditures from 2010-2017 for emissions control equipment and an additional $150 million for cooling water intake systems.
Frequently Asked Questions
CMS Energy is an energy holding company. Its primary operating subsidiary, Consumers Energy Company, is a major electric and natural gas utility serving Michigan. Consumers generates, purchases, transmits, and distributes electricity and natural gas to millions of customers across Michigan's Lower Peninsula.
The vast majority of CMS Energy's revenue comes from its utility operations, specifically the electric and gas utility segments operated by Consumers Energy. The electric utility segment generated $3.4 billion in operating revenue in 2009, and the gas utility segment generated $2.6 billion in 2009.
CMS Energy faces several risks, including dependence on dividends from subsidiaries to service debt, substantial indebtedness that could limit financial flexibility, potential material adverse effects from environmental regulations and remediation efforts (like at Bay Harbor), regulatory investigations into past pricing information, and contingent liabilities from asset sales. Additionally, the company is exposed to risks related to the challenging economic conditions in Michigan and potential disruptions in capital and credit markets.
CMS Energy's non-utility segment, 'Enterprises,' has shifted its business strategy to focus on domestic independent power production after exiting the international marketplace in 2007. The company's primary focus for its remaining non-utility businesses is to optimize cash flow and maximize asset value.