CMS Energy : 2023 Second Quarter Results and Outlook

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To:	Investment Community	From: CMS Energy Investor Relations
Date:	July 27th, 2023	http://www.cmsenergy.com
Subject:	CMS Energy Second Quarter 2023 Results and Outlook

CMS Energy will hold a webcast to discuss its Second Quarter 2023 Results and Outlook on Thursday, July 27th at 8:30 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 Second Quarter 2023 Earnings Call" or click here.

CMS Energy Announces Second Quarter Results, Reaffirms 2023

Adjusted EPS Guidance

JACKSON, Mich., July 27, 2023 - CMS Energy announced today reported earnings per share of $0.67 for the second quarter of 2023, compared to $0.50 per share for the same quarter in 2022. The company's adjusted earnings per share for the second quarter of 2023 were $0.75, compared to $0.53 per share for the same quarter in 2022. For the first six months of the year, the company reported $1.36 per share compared to $1.71 per share for the same timeframe in 2022. On an adjusted earnings per share basis year to date, the company reported $1.45 per share in 2023, compared to $1.73 per share in 2022.

CMS Energy reaffirmed its 2023 adjusted earnings guidance of $3.06 to $3.12* 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 continued to deliver on our triple bottom line of people, planet, and prosperity. In addition to our strong financial performance this quarter, we closed our Karn coal plants, which supports our net zero carbon goal by 2040, while protecting the environment for Michigan residents. We also recently purchased the Covert natural gas plant which is adding reliable and affordable energy to meet our customers' needs," said Garrick Rochow, President and CEO of CMS Energy and Consumers Energy.

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.

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CMS Energy will hold a webcast to discuss its 2023 second quarter results and provide a business and financial outlook on Thursday, July 27 at 8:30 a.m. (EDT). To participate in the webcast, go to CMS Energy's

homepage(cmsenergy.com) and select "Events and Presentations."

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, voluntary separation program, 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					Six Months Ended
Operating Revenue			6/30/23			6/30/22			Change			6/30/23				6/30/22				Change
Electric utility	$	1,128	$	1,325	$	(197)	$	2,219	$	2,566			$	(347)
Gas utility			357			477			(120)			1,476				1,519				(43)
NorthStar Clean Energy			70			118			(48)			144				209				(65)
Total operating revenue			1,555			1,920			(365)			3,839				4,294				(455)
Operating Expenses
Fuel for electric generation			110			241			(131)			247				408				(161)
Purchased and interchange power			342			483			(141)			683				938				(255)
Purchased power - related parties			17			18			(1)			36				35				1
Cost of gas sold			84			216			(132)			631				684				(53)
Maintenance and other operating expenses			406			392			14			837				726				111
Depreciation and amortization			255			242			13			608				587				21
General taxes			97			89			8			239				221				18
Total operating expenses			1,311			1,681			(370)			3,281				3,599				(318)
Operating Income (Loss)
Electric utility			204			196			8			307				418				(111)
Gas utility			52			45			7			270				285				(15)
NorthStar Clean Energy			(8)			1			(9)			(12)				(4)				(8)
Other			(4)			(3)			(1)			(7)				(4)				(3)
Total operating income			244			239			5			558				695				(137)
Other Income (Expense)
Nonoperating retirement benefits, net			45			52			(7)			90				100				(10)
Other income			103			2			101			118				6				112
Other expense			(2)			(11)			9			(6)				(15)				9
Total other income			146			43			103			202				91				111
Earnings Before Interest, Taxes, and Other Charges			390			282			108			760				786				(26)
Interest on long-term debt			152			122			30			296				243				53
Interest expense - related parties			3			3			-			6				6				-
Other interest expense			6			1			5			6				2				4
Allowance for borrowed funds used during construction			(1)			-			(1)			(1)				(1)				-
Income tax expense			41			14			27			70				53				17
Income From Continuing Operations			189			142			47			383				483				(100)
Income from discontinued operations, net of tax			1			-			1			1				4				(3)
Net Income			190			142			48			384				487				(103)
Loss attributable to noncontrolling interests			(8)			(6)			(2)			(18)				(14)				(4)
Net Income Attributable to CMS Energy			198			148			50			402				501				(99)
Preferred stock dividends			3			3			-			5				5				-
Net Income Available to Common Stockholders	$	195	$	145	$	50	$	397	$	496			$	(99)
Reconciling items:
Disposal of discontinued operations (gain) loss			(1)			*			(1)			(1)				(5)				4
Tax impact			*			(*)			*			*				1				(1)
Other exclusions from adjusted earnings			2			(*)			2			5				(1)				6
Tax impact			(*)			*			(*)			(1)				*				(1)
Voluntary separation program			28			11			17			28				11				17
Tax impact			(7)			(3)			(4)			(7)				(3)				(4)
Adjusted Net Income - Non-GAAP		$	217		$	153		$	64		$	421			$	499			$	(78)
Average Common Shares Outstanding - Diluted			291.3			290.1			1.2			291.2				290.0				1.2
Diluted Earnings Per Average Common Share	$	0.67	$	0.50	$	0.17	$	1.36	$	1.71			$	(0.35)
Reconciling items:
Disposal of discontinued operations (gain) loss			(*)			*			(*)			(*)				(0.01)				0.01
Tax impact			*			(*)			*			*				*				(*)
Other exclusions from adjusted earnings			0.01			(*)			0.01			0.02				(*)				0.02
Tax impact			(*)			*			(*)			(*)				*				(*)
Voluntary separation program			0.09			0.04			0.05			0.09				0.04				0.05
Tax impact			(0.02)			(0.01)			(0.01)			(0.02)				(0.01)				(0.01)
Adjusted Diluted Earnings Per Average Common Share - Non-GAAP		$	0.75		$	0.53		$	0.22		$	1.45			$	1.73			$	(0.28)

* 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		6/30/23			12/31/22
Current assets
Cash and cash equivalents	$	389	$	164
Restricted cash and cash equivalents		17			18
Other current assets		2,197			3,251
Total current assets		2,603			3,433
Non-current assets
Plant, property, and equipment		24,264			22,713
Other non-current assets		5,398			5,207
Total Assets	$	32,265		$	31,353
Liabilities and Equity
Current liabilities (1)	$	1,605	$	1,866
Non-current liabilities (1)		7,832			7,583
Capitalization
Debt and finance leases (excluding securitization debt) (2)		14,966			14,139
Preferred stock and securities		224			224
Noncontrolling interests		561			580
Common stockholders' equity		6,921			6,791
Total capitalization (excluding securitization debt)		22,672			21,734
Securitization debt (2)		156			170
Total Liabilities and Equity	$	32,265		$	31,353

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
		Six Months Ended
		6/30/23			6/30/22
Beginning of Period Cash and Cash Equivalents, Including Restricted Amounts	$	182	$	476
Net cash provided by operating activities		1,705			1,059
Net cash used in investing activities		(2,079)			(1,139)
Cash flows from operating and investing activities		(374)			(80)
Net cash provided by (used in) financing activities		598			(300)
Total Cash Flows	$	224	$	(380)
End of Period Cash and Cash Equivalents, Including Restricted Amounts
$	406	$	96

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CMS ENERGY CORPORATION

Selected Financial Data

(Unaudited)

								In Millions
			Twelve Months Ended
EBIT - Non-GAAP(1)		6/30/23			12/31/22			6/30/22
Consolidated	$	1,438	$	1,441		$	1,374
Consumers Energy		1,355			1,441			1,395
Depreciation and Amortization
Consolidated	$	1,147	$	1,126		$	1,119
Consumers Energy		1,108			1,088			1,083
EBITDA - Non-GAAP(1)
Consolidated	$	2,585	$	2,567		$	2,493
Consumers Energy		2,463			2,529			2,478
Dividends and Other Distributions From Subsidiaries	$	641	$	769		$	1,646
Interest Expense, Net
Consolidated	$	576	$	519		$	501
Energy parent		186			181			183
Consumers Energy		390			335			312
								In Millions
					As of
		6/30/23			12/31/22			6/30/22
Book Value Per Share	$	23.72	$	23.31		$	22.93
Common Shares Outstanding - End of Period		291.7			291.3			290.2
Average Common Shares Outstanding
Basic		290.8			289.5			289.4
Diluted		291.2			290.0			290.0
Debt (2)
Energy parent	$	4,719	$	3,930		$	3,929
NorthStar Clean Energy		208			122			-
Consumers Energy (excluding securitization bonds)		10,039			10,087			8,317
Consolidated (excluding securitization bonds)		14,966			14,139			12,246
Securitization bonds		156			170			184
Consolidated	$	15,122		$	14,309		$	12,430
Unrestricted Cash and Cash Equivalents
Energy parent	$	222	$	36		$	31
Consumers Energy		99			43			8
CMS Treasury Services		27			39			8
Other		41			46			30
Consolidated	$	389		$	164		$	77
Consumers Energy
Regulated Common Equity Ratio (13-Month Average)
Electric		42.3%			43.5%			43.7%
Gas		42.3%			43.5%			43.7%
Regulated Rate Base (13-Month Average, in Millions)
Electric (3)	$	14,348	$	13,796		$	13,658
Gas		9,225			8,668			7,901
Regulated Return on Average Common Equity (12-Month Ended)
Electric (3)		8.0%			9.3%			9.6%
Gas		8.0%			10.0%			10.2%

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.