10-QPeriod: Q1 FY2013

CMS ENERGY CORP Quarterly Report for Q1 Ended Mar 31, 2013

Filed April 25, 2013For Securities:CMSCMS-PCCMSACMSCCMSD

Summary

CMS Energy Corporation (CMS) reported a significant increase in net income available to common stockholders for the first quarter of 2013, reaching $144 million, or $0.53 per diluted share, a substantial improvement from $67 million, or $0.25 per diluted share, in the same period of 2012. This strong performance was primarily driven by increased natural gas deliveries, particularly due to colder weather in the first quarter of 2013 compared to milder weather in the prior year, and the absence of a one-time charge related to Consumers Energy's electric revenue decoupling mechanism that impacted 2012 results. The company's utility operations, specifically Consumers Energy's electric and gas segments, showed improved profitability. The electric utility saw higher revenues driven by delivery increases and rate adjustments, while the gas utility benefited from both increased deliveries and favorable rate adjustments. CMS Energy continues to focus on strategic investments in utility infrastructure, with Consumers Energy planning approximately $7 billion in capital investments from 2013 through 2017 to enhance reliability, capacity, and environmental compliance. The company's financial position remains solid, with ample liquidity and access to credit facilities, positioning it to fund its ongoing capital expenditure plans.

Financial Statements
Beta
Revenue$1.98B
Operating Expenses$1.65B
Operating Income$329.00M
Interest Expense$98.00M
Net Income$144.00M
EPS (Basic)$0.55
EPS (Diluted)$0.53
Shares Outstanding (Diluted)270.90M

Key Highlights

  • 1CMS Energy's net income available to common stockholders more than doubled to $144 million ($0.53/share) in Q1 2013, up from $67 million ($0.25/share) in Q1 2012.
  • 2Increased natural gas deliveries, attributed to colder weather in Q1 2013, significantly boosted the gas utility segment's performance.
  • 3The absence of a $59 million charge related to the electric revenue decoupling mechanism in Q1 2013, which impacted the prior year, contributed to improved electric utility results.
  • 4Consumers Energy plans substantial capital investments of approximately $7 billion over the next five years (2013-2017) focused on reliability, capacity, and environmental compliance.
  • 5The company maintains strong liquidity, with $615 million in consolidated cash and cash equivalents at the end of the quarter and significant availability under its revolving credit facilities.
  • 6CMS Energy's electric rate case filing sought an annual increase of $145 million, with $110 million self-implemented in March 2013, subject to refund.

Frequently Asked Questions

The primary drivers were increased natural gas deliveries due to colder weather in the first quarter of 2013 compared to milder weather in 2012, and the absence of a significant charge in 2012 related to the write-off of Consumers Energy's electric revenue decoupling regulatory asset.

Consumers Energy plans to invest approximately $7 billion from 2013 through 2017. This includes $3.2 billion for electric and gas utility projects to improve reliability and capacity, $1.4 billion for additional reliability investments, $1.1 billion for environmental compliance, and $0.3 billion for renewable energy projects.

Consumers Energy filed a new general electric rate case in September 2012, initially seeking $148 million, later revised to $145 million. It self-implemented an $110 million annual rate increase in March 2013, subject to refund. For gas, Consumers filed an application in February 2013 seeking an annual rate increase of $49 million.

CMS Energy maintained strong liquidity with $615 million in consolidated cash and cash equivalents at March 31, 2013. The company has access to significant revolving credit facilities totaling $550 million for CMS Energy and $680 million for Consumers Energy, which provide ample resources to meet its obligations and fund capital expenditures.