CMS Energy : 2022 Fourth Quarter Results and Outlook

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To:	Investment Community	From: CMS Energy Investor Relations
Date:	February 2nd, 2023	http://www.cmsenergy.com
Subject:	CMS Energy Year-End 2022 Results and Outlook

CMS Energy will hold a webcast to discuss its Year-End 2022 Results and Outlook on Thursday, February 2nd at 9:30 a.m. (ET).

To participate in the webcast, go to CMS Energy's home page (www.cmsenergy.com), select "Investor Relations", "Events and Presentations", and "CMS Energy Year-End 2022 Earnings Call" or click here.

CMS Energy Announces Strong 2022 Results for the 20th Consecutive

Year and Raises 2023 Adjusted EPS Guidance

JACKSON, Mich., Feb. 2, 2023 - CMS Energy announced today reported earnings per share of $2.85 for 2022, compared to $4.66 per share for 2021. The company's adjusted earnings per share for 2022 were $2.89, compared to $2.65 for 2021. CMS Energy also announced the increase of its annual dividend by 11 cents per share to $1.95 for 2023.

CMS Energy raised its 2023 adjusted earnings guidance to $3.06 to $3.12 per share, from $3.05 to $3.11 per share* (*See below for important information about non-GAAP measures) and reaffirmed long-term adjusted EPS growth of 6 to 8 percent, with continued confidence toward the high end of the adjusted EPS growth range.

"CMS Energy has delivered two decades of industry leading financial performance and our strong results in 2022 have positioned the company well for 2023," said Garrick Rochow, President and CEO of CMS Energy and Consumers Energy. "Our commitment remains steadfast to our customers, communities and investors as we deliver across the triple bottom line."

CMS Energy (NYSE: CMS) is a Michigan-based energy provider featuring Consumers Energy as its primary business. It also owns and operates independent power generation businesses.

# # #

CMS Energy will hold a webcast to discuss its 2022 year-end results and provide a business and financial outlook on Thursday, February 2 at 9:30 a.m. (EST). To participate in the webcast, go to CMS Energy's homepage (cmsenergy.com) and select "Events and Presentations."

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Important information for investors about non-GAAP measures and other disclosures.

This news release contains non-Generally Accepted Accounting Principles (non-GAAP) measures, such as adjusted earnings. All references to net income refer to net income available to common stockholders and references to earnings per share are on a diluted basis. Adjustments could include items such as discontinued operations, asset sales, impairments, restructuring costs, business optimization initiative, changes in accounting principles, changes in federal tax policy, regulatory items from prior years, unrealized gains or losses from mark-to-market adjustments recognized in net income related to NorthStar Clean Energy's interest expense, or other items. Management views adjusted earnings as a key measure of the company's present operating financial performance and uses adjusted earnings for external communications with analysts and investors. Internally, the company uses adjusted earnings to measure and assess performance. Because the company is not able to estimate the impact of specific line items, which have the potential to significantly impact, favorably or unfavorably, the company's reported earnings in future periods, the company is not providing reported earnings guidance nor is it providing a reconciliation for the comparable future period earnings. The company's adjusted earnings should be considered supplemental information to assist in understanding our business results, rather than as a substitute for the reported earnings.

This news release contains "forward-looking statements." The forward-looking statements are subject to risks and uncertainties that could cause CMS Energy's and Consumers Energy's results to differ materially. All forward-looking statements should be considered in the context of the risk and other factors detailed from time to time in CMS Energy's and Consumers Energy's Securities and Exchange Commission filings.

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.

For more information on CMS Energy, please visit our website at cmsenergy.com.

To sign up for email alert notifications, please visit the Investor Relations section of our website.

Media Contacts: Katie Carey, 517/740-1739

Investment Analyst Contact: Travis Uphaus, 517/817-9241

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CMS ENERGY CORPORATION
Consolidated Statements of Income
	(Unaudited)
												In Millions, Except Per Share Amounts
				Three Months Ended				Twelve Months Ended
Operating Revenue			12/31/22	12/31/21			Change		12/31/22	12/31/21			Change
Electric utility	$	1,259	$	1,245	$	14	$	5,419	$	4,958	$	461
Gas utility				921			702			219			2,732			2,063			669
NorthStar Clean Energy				98			86			12			445			308			137
Total operating revenue				2,278			2,033			245			8,596			7,329			1,267
Operating Expenses
Fuel for electric generation				185			155			30			905			593			312
Purchased and interchange power				418			435			(17)			1,928			1,665			263
Purchased power - related parties				20			21			(1)			76			77			(1)
Cost of gas sold				454			303			151			1,256			735			521
Maintenance and other operating expenses				530			534			(4)			1,669			1,610			59
Depreciation and amortization				296			282			14			1,126			1,114			12
General taxes				104			99			5			412			389			23
Total operating expenses				2,007			1,829			178			7,372			6,183			1,189
Operating Income (Loss)
Electric utility				113			107			6			789			801			(12)
Gas utility				166			117			49			446			375			71
NorthStar Clean Energy				(1)			(17)			16			2			(21)			23
Other				(7)			(3)			(4)			(13)			(9)			(4)
Total operating income				271			204			67			1,224			1,146			78
Other Income (Expense)
Nonoperating retirement benefits, net				51			44			7			205			165			40
Other income				8			8			-			19			30			(11)
Other expense				(7)			(11)			4			(27)			(18)			(9)
Total other income				52			41			11			197			177			20
Earnings Before Interest, Taxes, and Other Charges				323			245			78			1,421			1,323			98
Interest on long-term debt				139			122			17			509			481			28
Interest expense - related parties				3			3			-			12			12			-
Other interest expense				(2)			2			(4)			-			10			(10)
Allowance for borrowed funds used during construction				(1)			(1)			-			(2)			(3)			1
Income tax expense				21			5			16			93			95			(2)
Income From Continuing Operations				163			114			49			809			728			81
Income from discontinued operations, net of tax				-			520			(520)			4			602			(598)
Net Income				163			634			(471)			813			1,330			(517)
Loss attributable to noncontrolling interests				(8)			(5)			(3)			(24)			(23)			(1)
Net Income Attributable to CMS Energy				171			639			(468)			837			1,353			(516)
Preferred stock dividends				3			2			1			10			5			5
Net Income Available to Common Stockholders	$	168	$	637	$	(469)	$	827	$	1,348	$	(521)
Reconciling items:
Disposal of discontinued operations gain				-			(665)			665			(5)			(657)			652
Tax impact				-			145			(145)			1			143			(142)
Discontinued operations income				-			-			-			-			(115)			115
Tax impact				-			-			-			-			27			(27)
Other exclusions from adjusted earnings				9			*			9			8			(1)			9
Tax impact				(2)			(*)			(2)			(2)			*			(2)
Loss on fleet impairment				-			29			(29)			-			29			(29)
Tax impact				-			(7)			7			-			(7)			7
Voluntary separation program				1			-			1			12			-			12
Tax impact				(*)			-			(*)			(3)			-			(3)
Adjusted Net Income - Non-GAAP		$	176		$	139		$	37		$	838		$	767		$	71
Average Common Shares Outstanding - Diluted				290.1			289.7			0.4			290.0			289.5			0.5
Diluted Earnings Per Average Common Share	$	0.58	$	2.20	$	(1.62)	$	2.85	$	4.66	$	(1.81)
Reconciling items:
Disposal of discontinued operations gain				-			(2.30)			2.30			(0.01)			(2.27)			2.26
Tax impact				-			0.50			(0.50)			*			0.49			(0.49)
Discontinued operations income				-			-			-			-			(0.39)			0.39
Tax impact				-			-			-			-			0.09			(0.09)
Other exclusions from adjusted earnings				0.03			*			0.03			0.03			(*)			0.03
Tax impact				(0.01)			(*)			(0.01)			(0.01)			*			(0.01)
Loss on fleet impairment				-			0.10			(0.10)			-			0.10			(0.10)
Tax impact				-			(0.03)			0.03			-			(0.03)			0.03
Voluntary separation program				*			-			*			0.04			-			0.04
Tax impact				(*)			-			(*)			(0.01)			-			(0.01)
Adjusted Diluted Earnings Per Average Common Share - Non-GAAP		$	0.60		$	0.47		$	0.13		$	2.89		$	2.65		$	0.24

* Less than $0.5 million or $0.01 per share.

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CMS ENERGY CORPORATION

Summarized Consolidated Balance Sheets

(Unaudited)

					In Millions
			As of
Assets		12/31/22			12/31/21
Current assets
Cash and cash equivalents	$	164	$	452
Restricted cash and cash equivalents		18			24
Other current assets		3,251			2,151
Total current assets		3,433			2,627
Non-current assets
Plant, property, and equipment		22,713			22,352
Other non-current assets		5,207			3,774
Total Assets	$	31,353		$	28,753
Liabilities and Equity
Current liabilities (1)	$	1,866	$	1,822
Non-current liabilities (1)		7,583			7,269
Capitalization
Debt and finance leases (excluding securitization debt) (2)
Debt and finance leases (excluding non-recourse and securitization debt)		14,139			12,200
Non-recourse debt		-			76
Total debt and finance leases (excluding securitization debt)		14,139			12,276
Preferred stock and securities		224			224
Noncontrolling interests		580			557
Common stockholders' equity		6,791			6,407
Total capitalization (excluding securitization debt)		21,734			19,464
Securitization debt (2)		170			198
Total Liabilities and Equity	$	31,353		$	28,753

1. Excludes debt and finance leases.
2. Includes current and non-current portions.

CMS ENERGY CORPORATION

Summarized Consolidated Statements of Cash Flows

(Unaudited)

					In Millions
		Twelve Months Ended
		12/31/22			12/31/21
Beginning of Period Cash and Cash Equivalents, Including Restricted Amounts	$	476	$	185
Net cash provided by operating activities		855			1,819
Net cash used in investing activities		(2,476)			(1,233)
Cash flows from operating and investing activities		(1,621)			586
Net cash provided by (used in) financing activities		1,327			(295)
Total Cash Flows	$	(294)	$	291
End of Period Cash and Cash Equivalents, Including Restricted Amounts
$	182	$	476

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CMS ENERGY CORPORATION

Selected Financial Data

(Unaudited)

								In Millions
			Twelve Months Ended
EBIT - Non-GAAP(1)		12/31/22			12/31/21			12/31/20
Consolidated	$	1,441	$	1,351		$	1,329
Consumers Energy		1,441			1,364			1,334
Depreciation and Amortization
Consolidated	$	1,126	$	1,114		$	1,043
Consumers Energy		1,088			1,077			1,023
EBITDA - Non-GAAP(1)
Consolidated	$	2,567	$	2,465		$	2,372
Consumers Energy		2,529			2,441			2,357
Dividends and Other Distributions From Subsidiaries	$	769	$	1,593		$	659
Interest Expense, Net
Consolidated	$	519	$	500		$	505
Energy parent		181			183			178
Consumers Energy		335			311			320
								In Millions
					As of
		12/31/22			12/31/21			12/31/20
Book Value Per Share	$	23.31	$	22.11		$	19.02
Common Shares Outstanding - End of Period		291.3			289.8			288.9
Average Common Shares Outstanding
Basic		289.5			289.0			285.0
Diluted		290.0			289.5			286.3
Debt (2)
Energy parent	$	3,930	$	3,928		$	4,126
NorthStar Clean Energy		122			76			83
Consumers Energy (excluding securitization bonds)		10,087			8,272			7,957
Consolidated (excluding securitization bonds)		14,139			12,276			12,166
Securitization bonds		170			198			225
Consolidated	$	14,309		$	12,474		$	12,391
Unrestricted Cash and Cash Equivalents
Energy parent	$	36	$	390		$	-
Consumers Energy		43			22			20
CMS Treasury Services		39			19			3
Other		46			21			9
Consolidated	$	164		$	452		$	32
Consumers Energy
Regulated Common Equity Ratio (13-Month Average)
Electric		43.5%			42.6%			41.7%
Gas		43.5%			42.6%			41.7%
Regulated Rate Base (13-Month Average, in Millions)
Electric (3)	$	13,796	$	13,354		$	12,992
Gas		8,668			7,654			6,790
Regulated Return on Average Common Equity (12-Month Ended)
Electric (3)		9.3%			10.1%			10.1%
Gas		10.0%			9.4%			9.5%

1. EBIT (non-GAAP) equals net income available to common stockholders + income taxes + interest charges + noncontrolling interests + discontinued operations + writedowns + impairments + losses (gains) on asset sales + accounting changes. EBITDA (non-GAAP) equals EBIT + depreciation and amortization.
2. Includes current maturities, leases and notes payable.
3. Includes Renewable Portfolio Standard (RPS) renewables rate base of ~$1.2 billion in total.