10-KPeriod: FY2022

CMS ENERGY CORP Annual Report, Year Ended Dec 31, 2022

Filed February 9, 2023For Securities:CMSCMS-PCCMSACMSCCMSD

Summary

CMS Energy Corporation (CMS) reported its 2022 fiscal year results, showcasing a stable performance within its core utility operations in Michigan. The company's primary business segments are electric utility and gas utility, which together form the vast majority of its assets, income, and revenue. CMS Energy is focused on balancing its 'triple bottom line' of people, planet, and profit, with a significant commitment to environmental stewardship and achieving net-zero carbon emissions by 2040 for its electric business and net-zero methane emissions from its gas delivery system by 2030. Financially, the company experienced a decrease in net income available to common stockholders in 2022 compared to 2021, largely due to the absence of a significant gain from the sale of its banking subsidiary, EnerBank, in the prior year. Despite this, the utility segments demonstrated resilience, with gas utility operations benefiting from favorable weather and rate increases. The company continues to invest heavily in infrastructure upgrades and clean energy generation, with significant capital expenditures planned over the next five years to modernize its systems and support its clean energy transition. CMS Energy's outlook remains focused on regulatory stability, operational efficiency, and continued investment in sustainability.

Financial Statements
Beta
Revenue$8.60B
Operating Expenses$7.37B
Operating Income$1.22B
Interest Expense$509.00M
Net Income$837.00M
EPS (Basic)$2.85
EPS (Diluted)$2.85
Shares Outstanding (Basic)289.50M
Shares Outstanding (Diluted)290.00M

Key Highlights

  • 1CMS Energy's operating revenue reached $8.6 billion in 2022, an increase from $7.3 billion in 2021, driven primarily by its electric and gas utility segments.
  • 2Net income available to common stockholders decreased to $827 million in 2022 from $1.3 billion in 2021, primarily due to the absence of a significant gain from the EnerBank divestiture in the prior year.
  • 3The company is committed to a clean energy future, with plans to retire all coal-fueled generation by 2025 and achieve net-zero carbon emissions from its electric business by 2040.
  • 4CMS Energy plans substantial capital expenditures of approximately $15.5 billion over the next five years (2023-2027) to maintain and upgrade its gas and electric infrastructure, and to invest in clean generation.
  • 5Regulatory approvals for rate increases in both the electric and gas utility segments were secured in 2022, supporting recovery of investments and operational costs.
  • 6The company maintained strong credit ratings and ample liquidity at year-end 2022, with significant availability under its revolving credit facilities.
  • 7CMS Energy reported a decrease in its OSHA recordable incident rate to 1.17 in 2022, demonstrating a continued focus on safety with a 34% reduction over the last ten years.

Frequently Asked Questions

CMS Energy's primary business focus is on its regulated utility operations in Michigan, specifically its electric utility and gas utility segments. These segments constitute the vast majority of the company's assets, income, and operating revenue.

In 2022, CMS Energy's net income available to common stockholders decreased to $827 million from $1.3 billion in 2021. This reduction was primarily attributed to the absence of the significant gain realized from the sale of EnerBank in the prior year. However, the utility operations themselves showed resilience, with positive contributions from gas sales and rate increases.

CMS Energy is committed to environmental stewardship, aiming for net-zero carbon emissions from its electric business by 2040 and net-zero methane emissions from its natural gas delivery system by 2030. This includes plans to replace coal-fueled generation with renewable energy sources and investing in infrastructure to reduce emissions.

CMS Energy plans to invest approximately $15.5 billion in capital expenditures over the next five years (2023-2027). These investments will focus on maintaining and upgrading its gas and electric infrastructure, enhancing safety and reliability, and advancing its clean energy transformation.