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Actionable news in CMS: CMS ENERGY CORPORATION,

CMS Energy: Bnp Fixed Income Lunch September 8, 2015

The following excerpt is from the company's SEC filing.

Ludington Pumped Storage Ray Compressor Station Cross Winds âEnergy Park

Fourth largest in the world #1 LDC in gas storage #2 in renewable sales in the Great Lakes area

Barclays Capital CEO Energy and Power Conference September 8 & 9, 2015

This presentation is made as of the date hereof and contains forward-looking statements as defined in Rule 3b-6 of the

Securities Exchange Act of 1934, Rule 175 of the Securities Act of 1933, and relevant legal decisions. The forward-looking statements are subject to risks and uncertainties. All forward-looking statements should be considered in the context of the risk and other factors detailed from time to time in CMS Energys and Consumers Energys Securities and Exchange Commission filings. Forward-looking statements should be read in conjunction with FORWARD-LOOKING STATEMENTS AND

INFORMATION and RISK FACTORS sections of CMS Energys and Consumers Energys Form 10-K for the year ended

December 31, 2014 and as updated in subsequent 10-Qs. CMS Energys and Consumers Energys FORWARD-LOOKING

STATEMENTS AND INFORMATION and RISK FACTORS sections are incorporated herein by reference and discuss important factors that could cause CMS Energys and Consumers Energys results to differ materially from those anticipated in such statements. CMS Energy and Consumers Energy undertake no obligation to update any of the information presented herein to reflect facts, events or circumstances after the date hereof.

The presentation also includes non-GAAP measures when describing CMS Energys results of operations and financial performance. A reconciliation of each of these measures to the most directly comparable GAAP measure is included in the appendix and posted on our website at www.cmsenergy.com.

CMS Energy provides historical financial results on both a reported (Generally Accepted Accounting Principles) and adjusted (non-GAAP) basis and provides forward-looking guidance on an adjusted basis. Management views adjusted earnings as a key measure of the companys present operating financial performance, unaffected by discontinued operations, asset sales, impairments, regulatory items from prior years, or other items. These items have the potential to impact, favorably or unfavorably, the companys reported earnings in future periods.

Investors and others should note that CMS Energy routinely posts important information on its website and considers the Investor Relations section, www.cmsenergy.com/investor-relations, a channel of distribution.

Why Invest in CMS Energy?

Our Growth Engine

(2015-2024 Capex)

$15.5 Billion

5%7% EPS a growth

More upside $5 bil NOT yet in Plan!

a Adjusted EPS (non-GAAP)

Supported By

SIDES create headroom

(Investment, Sales, Cost, & DIG)

PARTNERS in progress

(Customers, Regulators, & Policy Makers)

PASSION to improve for customers AND owners

(Value, Reliability, & Environment)

SELF-FUNDED!

. . . . next 10 years even brighter than last 10 year record!

Simple, Perhaps Unique CMS Growth Model . . . .

Capital investment (drives EPS growth)

O&M cost reductions

Sales growth

No block equity dilution

Surcharges and other Investment self-funded Rate increase at or below inflation

-2 pts

-1 -1

-5 pts

. . . . drives sustainable growth.

Investment Catch-up . . . .

Capex (bils) $1.8

One of first with a ten year plan

> $1.5 per year

Capex as a Percent of Market Capa

20052014 20152024

CMS 10% 16% Peers 15 11

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

a Based on December 31, 2014 information percent of market cap Source: 10K; actual amounts through 2014 smoothed for illustration

. . . . creating an opportunity for the next ten years.

Capex Up 45% . . . .

2005-2014 $10.7 bil

2015-2024 $15.5 bil

Opportunity

$20 + bil

Organic Growth +45% Electric Maintenance

Gas Infrastructure

Environ.

ctric Reliability Smart Energy

Generation

Generation Smart

Energy Electric Reliability

Environmental

EPS Growth

CMS 7%/yr

Peers 4

5% -7% /yr 4

6%8% /yr

. . . . with more opportunity and no big bets over ten years!

Generation Capacity

Grid Modernization

Renewables

O&M Cost Reductions . . . .

2006 2014 2018

Down 7% Down 10% or 2%/yr

$1.1 bil $1.0 bil $0.9 bil

Inflation Inflation

?2% ?2%

Coal to Gas Switching (Zeeland) Smarter benefit plans Productivity/Attrition

Coal to Gas Switching (Jackson)

Pole Top Hardening

Productivity/Smart Energy

. . . . provide more headroom for more capital investment.

O&M Cost Performance . . . .

Electric Annual Growth

(2014 over 2006)

Peer Average >5%

Consumers2.7%

Source: SNL, Form 1, Electric Non-fuel O&M

O&M Cost Savings

2014 2014

& 2015 2018

(mils) (mils)

Attrition $35 $ 75 Productivity (Coal Gas) 35 50

Pole Top Hardening 30 30

Smart Meters 5 25

Eliminate Waste (UAs) 15 20 Mortality Tables & +50 + 50 Discount Rates Service Upgrades +10 + 50

Net Savings $60 $100 Percent Savings 6% 10%

FAST START! a year!

. . . . better than peers with substantial upside.

Sales Growth . . . .

Our Service Territorya Outperforms

a Grand Rapids b Annualized numbers thru June

Annual Electric Sales c

Industrial Total

Conservative

2010-2014 20152019 Post-Recession Future

c Weather normalized vs. prior year

. . . . planned conservatively.

Building Permits b

2010 2013

Population

2011 2014

Unemployment

(6/15)

Michigan

+14% 11 0 5.5

U.S +13% 8 2 5.3

Economic Growth . . . .

Examples of New Business

Electric Gas Combination

Announcement

Bayer CropScience

One of the worlds leading crop science companies

Secures 70 jobs

$50 million investment

Dicastal

Durolast Roofing Continental Dairy Betz GM Assembly Plasan Enbridge Magna-Cosma Dart Post MSU FRIB

WKW MACI Denso Brembo

Industries

Auto Food Manufacturing Metal Petroleum Plastics Others

50 15 25 20 19 19 20

Total Up 168

. . . . almost 3% of additional sales growth.

No Block Equity Dilution . . . .

Typical utility Model w/o NOLs

< 5% -1%

Rate Base Dilution EPS Growth Growth

CMS Model w/ NOLs

6% 6%

. . . . under CMS growth model.

PPAs (2,000 MW) Create Unique Opportunity for . . . .

PPA vs Owned Capacity

Peers CMS Today CMS Future

Opportunity 2,000 MW

Amount

PPAs $(650) New Gas Build 650 Annual Customer Impact zero

. . . . more capacity investment, without increasing bills.

ROA (800 MW) Creates Unique Opportunity for . . . .

Potential Return

800 MW

One-Way Door

Decision

Build Decision

Today Future

. . . . more capacity investment, without increasing bills; 10% return worth five years of growth.

$150 million subsidy

0.02% of customers on ROA

(~300 customers)

Could lower rates 4% for everyone if all returned

Build new generation capacity, funded by return

Capacity & Energy Price Increases . .

Was Now Future Scenarios

(mils) (mils) (mils)

+ $25 $50 $65

Energy more

Capacity $55

price < $0.50 ? $2.00 $4.50 $7.50

($ kW per (Prior) (Forecast) (CONE) month)

Long-term Energy

250 MW at $4.00 per kWm (6/14)

250 MW ? $5.75 per kWm (4/15)

Recent Capacity

Long-term > $3.30

Near-term ? $4.50

Upside: Capacity and energy contracts layered in over time

. . . . adding value to our DIG plant.

Electric Customer Prices . . . .

Residential Bills

Worse

National Avg

Residential bills well below U.S. average

Better (13)% (13)% Rates Rates & Rates & Act 169

-20 Fuel (17)%

2013 2014 2015 2016 Plus

Industrial Rates

30% 26%

Policy could (8)% Better eliminate gap

. . . . affordable for residential and improving for industrial customers.

Customer Satisfaction .

1st Quartile #4 2nd Quartile

3rd Quartile 4th Quartile

Present

2010 2012 2014 Rank 2016

Residential Business

#3 1st Quartile 2nd Quartile

2010 2012 2014 Present 2016

. . . .continues to improve rapidly.

CMS Energy . . . .

+5% to +7% /year

7% CAGR

Recession Recession

Help Hurt

003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Future

We work Cold Mild Hot Warm Mild Cold Summer- Hot Hot Warm Mild Polar Cold with anyone winter summer summer winter summer winter less summer summer winter summer vortex Feb.

and in any Governor (D) Governor (R)

condition New

Commission (D) Commission (D) Commission (R)

. . . . consistent growth through recession, adverse weather, changing policy leaders . . . .

Michigan Energy Law . . . .

Retail

Access

Efficiency

Renewables IRP process

. . . . builds off the 2008 law, adding growth opportunities.

Constructive Regulation . . . .

Commission Tier 1 State Ranking

John Quackenbush (R), Chairman Term Ends: July 2, 2017

Sally Talberg (I) Term Ends: July 2, 2019

Norm Saari (R)

Term Ends: July 2, 2021

Newly appointed!

. . . . is supported by a quality Commission and a strong Law.

CMS Energy Consistent Growth . . . .

Future Shines Bright a Sustainable Future Growth

EPS a +5% to +7% / Past Next 5 $2.50 year Performance Years Investment (bils) $6.4 $7.6

+7% /year (2010-2014) Capacity Op!

O&M Reduction (10)% (7)%

(2006-2014) Conservative

Sales Growth +1% +

(2010-2014) Conservative

Energy Policy 2008 Improved Law Law Last 7 Years Next 5 Years

a Adjusted EPS (non-GAAP)

. . . . even easier, with lots of upsides.

Appendix

Clean Power Plan . . . .

Lbs CO2

(per MWh) (Preliminary Emission Rate)

Consumers Energy 2005 Baseline

Retire 950 MW coal State of Michigan Target

Projected outlook with 20% renewables investment not yet in Plan

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

. . . . positioned well for compliance.

Capacity Diversity . . . .

Oil Nuclear

6% 8%

9% Coal 34% Pumped 2014 Storage 11%

Gas 32%

Nuclear Oil 6% 8% Renewables...


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