Skip to main content Third Quarter 2014 Results and Outlook – Cms Oil and Gas Company Investor Presentation | Shale Experts
Loading...
Pm

Third Quarter 2014 Results and Outlook – Cms Oil and Gas Company

Cms Oil and Gas Company · Oct 23, 2014 · 31 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. Third Quarter 2014 Results and Outlook – Cms Oil and Gas Company – slide 1
    Third Quarter 2014 Results and Outlook October 23, 2014 Ludington Pumped Storage Ray Compressor Jackson Gas Plant Station Cross Winds Energy Park Fourth largest in the world 1 LDC in gas storage 2 in renewable sales in the Great…
  2. Third Quarter 2014 Results and Outlook – Cms Oil and Gas Company – slide 2
    Agenda Overview John Russell Third Quarter Review President & CEO 2014 & 2015 Guidance Political Update Around the Corner Results & Outlook Tom Webb 2014 & 2015 Outlook Executive VP & CFO Long-term Plan Upsides Investment &…
  3. Third Quarter 2014 Results and Outlook – Cms Oil and Gas Company – slide 3
    First Nine Months . . . . Financial: First nine months adjusted EPS (non-GAAP) at 1.42, up 10% 2014 full year adjusted EPS (non-GAAP) guidance continues at high end of original range 1.76 to 1.78, up 6% to 7%. Operational: J.D. Power…
  4. Third Quarter 2014 Results and Outlook – Cms Oil and Gas Company – slide 4
    2014 EPS Guidance . . . . a a EPS 2 +7% Average growth per year +7% +7% 1.78 +5% 1.66 1.76 1.55 1.66 +6% 1.63 1.45 1.55 1.78 1.52 1.73 1.36 1.44 1.35 Original guidance 0 2010 2011 2012 2013 2014 Future Future…
  5. Third Quarter 2014 Results and Outlook – Cms Oil and Gas Company – slide 5
    2015 EPS Guidance . . . .a a EPS 2 1.89 +7% +7% +7% Average growth per year +7% +5% 1.78 1.85 +5% 1.66 1.76 1.55 1.66 +6% 1.63 1.45 1.55 1.78 1.52 1.73 1.36 1.44 1.35 Original guidance 0 2010 2011 2012 2013 2014 2015…
  6. Third Quarter 2014 Results and Outlook – Cms Oil and Gas Company – slide 6
    Michigan Governors Race . . . . Rick Snyder Republican, Incumbent Mark Schauer Democrat, Challenger On Energy... Campaign Issues On ROA Education As Senate Democratic Leader, Jobs Choice creates a lot of Mark played a key…
  7. Third Quarter 2014 Results and Outlook – Cms Oil and Gas Company – slide 7
    Michigan Energy Law Update . . . . Adaptability Reliability Update Affordability Environmental protection 10% renewables by 2015 Senate Workgroup Energy efficiency drafting energy standards efficiency legislation…
  8. Third Quarter 2014 Results and Outlook – Cms Oil and Gas Company – slide 8
    Around the Corner . . . . November election 2015 Energy Law improvements (Improving on an already constructive environment & Law) Price competitiveness (Reducing industrial rates & maintaining competitive residential bills)…
  9. Third Quarter 2014 Results and Outlook – Cms Oil and Gas Company – slide 9
    New Electric Rate Design . . . . Residential Commercial Industrial Energy Intensive 2.5% -0.7% -1.3% -3.2% -3.4% -4.7% -5.0% -4.8% -4.8% -9.8% -15.0% -20.0% Base Rate Fuel Recovery Net Reduction . . . . and lower fuel…
  10. Third Quarter 2014 Results and Outlook – Cms Oil and Gas Company – slide 10
    Breakthrough Thinking . . . . Customer Value Cost Control Most improved gas utility About 400 employees leave in the U.S. and 300 are hired per year. Engaged Employees Productivity Enhancements First quartile in utilities Up…
  11. Third Quarter 2014 Results and Outlook – Cms Oil and Gas Company – slide 11
    Major Construction Projects . . . . Cross Winds Energy Park Southwest Michigan Pipeline 111 MW, 255 Million 24 Miles, 36 pipe, 88 Million Commercial operation November 2014 Completed two months ahead of schedule Meets 10% renewable…
  12. Third Quarter 2014 Results and Outlook – Cms Oil and Gas Company – slide 12
    2014 First Nine Months EPS . . . . Results By Business Segment 2014 2013 EPS Reported -- (GAAP) 1.39 1.29 Utility 1.63 Enterprises 0.02 Excludes: Interest & other (0.23) Legacy costs & other 0.03 * CMS Energy 1.42 Adjusted…
  13. Third Quarter 2014 Results and Outlook – Cms Oil and Gas Company – slide 13
    2014 Adjusted EPS (non-GAAP) . . . . Year-to-date Three Months To Go 13 (1) (3) 1.78 to 20 1.76 8 5 1.66 (2) - (4) (4) (15) 1.29 1.42 YTD YTD 2013 Rate Change, Customer O&M Weather Customer O&M Cost Savings Captial…
  14. Third Quarter 2014 Results and Outlook – Cms Oil and Gas Company – slide 14
    2014 Reinvestment Helps Customers . . . . Adjusted EPS (non-GAAP) 2014 +18 Third Quarter EPS Weather (Electric) (6) +15 Reinvestment (5) Total Change (11) +9 Good First Nine Months EPS Choices Weather (Gas) 16 +4 Cost…
  15. Third Quarter 2014 Results and Outlook – Cms Oil and Gas Company – slide 15
    Ten-Year Capex Plan Expanding . . . . 2015-2024 Opportunity Level 10-Year Plan Amount (bils) Generation capacity PPA replacement 3.0 ROA return Higher renewables 20+ Billion 15.5 Billion Gas conversions & expansion 1.0 Grid…
  16. Third Quarter 2014 Results and Outlook – Cms Oil and Gas Company – slide 16
    Capacity Opportunities . . . . Capacity Growth Over Next Ten Years Further MW 11,000 Not in plan Upside 10,000 900 PPAs Expire MW PPA 8,600 MW 1,240 MW 580 PPA 2,600 780 MW 7,500 capacity Owned 30% 8,820 800 MW 410 MW…
  17. Third Quarter 2014 Results and Outlook – Cms Oil and Gas Company – slide 17
    Trend of O&M Cost Savings . . . . O&M Trend vs Peers Future Savings 2018 vs 2013 0 50% (mils) 6% per year 0 Peers Fuel mix - 25 0 2% per year Benefits - 75 0 Less Expensive New - 75 0 Inflation -25% Hires & Lower Headcount 00…
  18. Third Quarter 2014 Results and Outlook – Cms Oil and Gas Company – slide 18
    Michigans Economic Growth . . . . Grand Rapids Gross Domestic Product 2010 through 2013 15.3% Top 10% of All Cities WA ND MT 8.8 54.9 11.6 MN 11.5 Michigan ME SD OR ID 11.3 WI Top 10 VT 1.7 17.3 5.5 WY 7.4 MI state NY…
  19. Third Quarter 2014 Results and Outlook – Cms Oil and Gas Company – slide 19
    Sales Growth . . . . Economic Indicators Annual Electric Salesa Industrial Grand Total Rapids Michigan U.S Total excluding Energy Optimization 8.0% Building Permits* +48% +15% +8% 5.0% GDP 2010 2013 15.3 11.4 8.4 3.5% 2.5% 2.0%…
  20. Third Quarter 2014 Results and Outlook – Cms Oil and Gas Company – slide 20
    Economic Growth . . . . Examples of New Business Industries Electric Gas Combination MW Recent Announcement Recent Announcement Auto 50 Plasan Carbon Composites Dicastal North America, Inc. Food 7 High performance auto Worlds largest…
  21. Third Quarter 2014 Results and Outlook – Cms Oil and Gas Company – slide 21
    Capacity Price Increases . . . . Today Future Scenarios Recent Contracts (mils) (mils) +50 55 Nine-year 250 MW energy contract at 4.06 Capacity to Consumers 35 25 MW/2015 at 2.32 +30 50 MW/2016 at 4.36 Upside: Capacity and…
  22. Third Quarter 2014 Results and Outlook – Cms Oil and Gas Company – slide 22
    Gas and Electric Rate Cases . . . . 2013 2014 2015 Main Features GAS A) Investment recovery Avoided Filed File annual 88 M Self- Final & cost reductions rate case implement Order 7/01 B) Simple, small case Securitization A)…
  23. Third Quarter 2014 Results and Outlook – Cms Oil and Gas Company – slide 23
    Consumers Energy Recent Financing . . . . Recent Financing Peer Performance b Issued: Capex Liquidity Cash Flow 378 million, 3% securitization bonds (oper) 25 % 250 million, 3.125%, 2024 21% 20 19% 250 million, 4.35%, 2064 a…
  24. Third Quarter 2014 Results and Outlook – Cms Oil and Gas Company – slide 24
    2014 Sensitivities . . . . 2014 Impact Status Sensitivity EPS OCF (mils) Sales a Electric (37,523 GWh) + 1% + 0.05 + 20 Gas (298.6 Bcf) + 5 + 0.07 + 30 Gas prices (NYMEX) + 1.00 0.01 25 + + ROE (authorized) Electric (10.3%) +…
  25. Third Quarter 2014 Results and Outlook – Cms Oil and Gas Company – slide 25
    2014 & 2015 Financial Targets . . . . 2014 Target 2015 Target Adjusted EPS (non-GAAP) 1.76 - 1.78 +6% to +7% 1.85 - 1.89 +5% to +7% Operating cash flow (bils) 1.45 1.55 Dividend payout ratio 62% 62% Customer base rate increases…
  26. Third Quarter 2014 Results and Outlook – Cms Oil and Gas Company – slide 26
    Mindset . . . . 10-Year Actual 1.76-1.78 7% CAGR 1.89 a EPS 1.66 1.85 Dividend Peers 4% 1.55 1.45 1.36 b 1.26 1.21 6% 1.08 1.08 6% 14% 1.02 0.96 96 0.90 27% 84 0.84 32% 0.81 Intl Sale 66 39% 50 80% 36 20 2003…
  27. Third Quarter 2014 Results and Outlook – Cms Oil and Gas Company – slide 27
    Appendix
  28. Third Quarter 2014 Results and Outlook – Cms Oil and Gas Company – slide 28
    Consumers Energy Securitization . . . . Transaction Benefits 378 Million July 22, 2014 AAA rated bonds Immediate recovery of plant balance 3% weighted average Recover plant balances Lowers electric customer base rates NPV…
  29. Third Quarter 2014 Results and Outlook – Cms Oil and Gas Company – slide 29
    Operating Cash Flow Growth . . . . Amount Up 0.5 Billion (bils) Gross operating cash flowa 2.5 up 0.1 billion per year 2.3 2.2 2.1 2.0 2.0 1.9 Interest, working 1.8 1.7 capital and taxes 1.55 1.5 1.45 Pct of Market Cap (as…
  30. Third Quarter 2014 Results and Outlook – Cms Oil and Gas Company – slide 30
    2014 Guidance . . . . Adjusted EPS (non-GAAP) Utility Electric 1.41 - 1.42 Gas 0.63 - 0.64 Total Utility 2.04 - 2.06 Enterprises & EnerBank 0.11 Interest and other (0.39) Total EPS 1.76 - 1.78 +6% - 7% Operating cash flow…
  31. Third Quarter 2014 Results and Outlook – Cms Oil and Gas Company – slide 31
    2014 Cash Flow Forecast (non-GAAP) CMS Energy Parent Consumers Energy Amount Amount (mils) (mils) Cash at year end 2013 116 Cash at year end 2013 18 Sources Sources Consumers Energy dividend and tax sharing 680 Operating…

From the store

Browse maps, data & reports in the Shale Experts store