10-QPeriod: Q2 FY2021

CMS ENERGY CORP Quarterly Report for Q2 Ended Jun 30, 2021

Filed July 29, 2021For Securities:CMSCMS-PCCMSACMSCCMSD

Summary

CMS Energy Corporation (CMS) reported solid financial performance for the six months ended June 30, 2021, with net income available to common stockholders increasing to $525 million from $379 million in the prior year period, and diluted EPS rising to $1.82 from $1.33. This growth was primarily driven by rate increases in both gas and electric utilities, higher electric sales, and lower income tax expenses, partially offset by increased depreciation and property taxes due to higher capital expenditures. The company is actively pursuing a significant clean energy transformation. Notably, Consumers Energy plans to end coal-fueled generation by 2025, 15 years earlier than initially planned, and expand its investment in renewable energy, aiming for net-zero carbon emissions from its electric business by 2040. The company is also making progress on reducing its gas utility's methane footprint with a goal of net-zero methane emissions by 2030. A significant strategic move includes the pending sale of EnerBank for $960 million, with proceeds earmarked for core energy business initiatives focused on safety, reliability, and clean energy. Overall, CMS Energy demonstrates a commitment to both financial performance and environmental sustainability, supported by substantial capital investment plans aimed at modernizing infrastructure and advancing clean energy initiatives. Investors can look forward to continued strategic capital allocation towards safety, reliability, and the company's clean energy transition.

Financial Highlights

46 data points
Beta

Revenue

$1.56B

Net Income

$176.00M

11.3% Net Margin

EPS (Diluted)

$0.61

Total Assets

$29.95B

Cash & Equivalents

$153.00M

Free Cash Flow

$93.00M

Financial Statements
Beta
Revenue$1.56B
Operating Expenses$1.31B
Operating Income$252.00M
Interest Expense$125.00M
Net Income$176.00M
EPS (Basic)$0.61
EPS (Diluted)$0.61
Shares Outstanding (Basic)289.00M
Shares Outstanding (Diluted)289.40M

Key Highlights

  • 1Net income available to common stockholders increased by 38.5% to $525 million for the six months ended June 30, 2021, compared to $379 million for the same period in 2020.
  • 2Diluted earnings per share (EPS) rose to $1.82 for the first six months of 2021, up from $1.33 in the prior year period.
  • 3Consumers Energy plans to cease coal-fueled generation by 2025, accelerating its clean energy transition and aiming for net-zero carbon emissions by 2040.
  • 4The company announced an agreement to sell its industrial bank, EnerBank, for $960 million, intending to use the proceeds to fund core energy business initiatives.
  • 5Capital expenditures are substantial, with Consumers Energy planning $25 billion over the next ten years, focusing on infrastructure upgrades, replacements, and clean generation.
  • 6The company is experiencing growth driven by rate increases in both electric and gas utilities, alongside higher electric sales.
  • 7CMS Energy is committed to environmental stewardship, reporting significant reductions in carbon dioxide and methane emissions, and water usage.

Frequently Asked Questions

For the six months ended June 30, 2021, CMS Energy reported a significant increase in net income available to common stockholders to $525 million, a 38.5% rise from $379 million in the same period of 2020. Diluted Earnings Per Share (EPS) also increased to $1.82 from $1.33 year-over-year.

CMS Energy, through Consumers Energy, is aggressively pursuing a clean energy transition. Key initiatives include plans to end coal-fueled generation by 2025 (15 years ahead of schedule), expanding renewable energy investments to achieve nearly 8,000 MW of solar generation by 2040, and targeting net-zero carbon emissions from its electric business by 2040. Additionally, there's a goal to achieve net-zero methane emissions from the gas delivery system by 2030.

CMS Energy has entered into an agreement to sell EnerBank to Regions Bank for $960 million, expected to close in Q4 2021. The proceeds from this sale are intended to be reinvested into CMS Energy's core utility business, specifically for initiatives related to safety, reliability, and advancing its clean energy transformation.

Consumers Energy plans substantial capital investments totaling $25 billion over the next ten years. Over the next five years, significant expenditures are planned for infrastructure upgrades and replacements, as well as electric supply projects, including investments in clean generation and distribution systems to enhance safety, reliability, and facilitate the clean energy transition.