8-KRegulation FDExhibits & Filings

CMS ENERGY CORP 8-K Report, Regulation FD Disclosure (Aug 6, 2010)

Filed August 6, 2010For Securities:CMSCMS-PCCMSACMSCCMSD

Summary

CMS Energy Corporation (CMS) announced on August 6, 2010, a significant increase in its quarterly common stock dividend to $0.21 per share, up from $0.15 per share, effective with the November 30th dividend payment. This early dividend increase aligns with an adjustment to the company's five-year capital investment plan. CMS Energy is reducing its planned investments by approximately $1 billion over the next five years. While this will moderate future rate increases for customers, the company still expects to invest over $6 billion in its Michigan electric and natural gas utility, Consumers Energy. Concurrently, the company has revised its long-term earnings per share (EPS) growth projection downwards to 5%-7% annually from a previous 6%-8% range. CMS Energy also reaffirmed its 2010 adjusted EPS guidance of $1.35 per share.

Key Highlights

  • 1CMS Energy is increasing its quarterly common stock dividend by 40% to $0.21 per share, effective November 30, 2010.
  • 2The company is reducing its five-year capital investment plan by approximately $1 billion.
  • 3Despite the reduction, CMS Energy still plans to invest over $6 billion in Consumers Energy over the next five years.
  • 4The long-term annual EPS growth projection has been adjusted down from 6%-8% to 5%-7%.
  • 5CMS Energy reaffirmed its 2010 adjusted EPS guidance of $1.35 per share.
  • 6Management will discuss these changes, along with a business and financial outlook, on August 10, 2010, via a webcast.

Frequently Asked Questions

The company stated that the dividend increase was moved up to coincide with an adjustment to its five-year capital investment plan. The reduced investment plan is intended to moderate future rate increases for customers, while the dividend increase signals confidence in the company's financial position and commitment to returning value to shareholders.

CMS Energy has adjusted its long-term annual EPS growth projection downwards from 6%-8% to 5%-7%. This reflects the impact of the reduced investment spending, though the company still anticipates substantial investments of over $6 billion in its utility operations.

CMS Energy reaffirmed its guidance for 2010 adjusted earnings per share to be $1.35.

CMS Energy's President and CEO, John Russell, and CFO, Tom Webb, will discuss these matters and provide a business and financial outlook on Tuesday, August 10, 2010, at 9 a.m. EDT. The presentation will be available on the company's website, www.cmsenergy.com.