CMS Energy Corporation Reports Strong 1999 Earnings

Strategic Insights -

In 1999, CMS Energy Corporation, a leading U.S. energy company, achieved significant milestones in its efforts to expand its operations and strengthen its financial performance. The company reported consolidated net income of $326 million, or $2.89 per share, compared to $285 million, or $2.65 per share, in 1998. The improvement in earnings was driven by a 19 percent increase in operating revenue to $6.10 billion and the successful acquisition of the CMS Panhandle companies for $2.2 billion.

Key Takeaways:

  • CMS Energy reported consolidated net income of $326 million, or $2.89 per share, in 1999, compared to $285 million, or $2.65 per share, in 1998.
  • Operating revenue increased by 19 percent to $6.10 billion in 1999, driven by the acquisition of the CMS Panhandle companies and strong performance in CMS Energy's non-utility, diversified energy businesses.
  • The company's principal subsidiary, Consumers Energy, reported a 4 percent increase in operating earnings to $626 million in 1999, with total electric sales increasing 2.5 percent to 41 billion kilowatt-hours.
  • CMS Energy's natural gas pipeline, storage and processing business recorded an operating loss of $11 million in the fourth quarter, primarily due to the writeoff of investments in Nitrotec.
  • The company's independent power production operating earnings increased 9 percent to $157 million in 1999, driven by increased power plant earnings and operating fees.
  • CMS Energy's oil and gas exploration and production operating earnings increased 171 percent to $17 million in 1999, driven by higher oil prices and lower exploration expenses.
  • The company's customer base grew in 1999, with over 25,700 new natural gas customers connected, and 25,000 new electric customers added.
  • CMS Energy is a leading U.S. energy company with annual sales of over $6 billion and assets of about $15 billion throughout the U.S. and in 22 countries around the world.

Statistics:

  • Consolidated net income: $326 million in 1999, compared to $285 million in 1998.
  • Operating revenue: $6.10 billion in 1999, up 19 percent from $5.14 billion in 1998.
  • CMS Energy's consumer base: over 25,700 new natural gas customers connected, and 25,000 new electric customers added in 1999.
  • Operating earnings of CMS Energy's principal subsidiary, Consumers Energy: $626 million in 1999, up 4 percent from $601 million in 1998.
  • Natural gas deliveries: 389 billion cubic feet in 1999, up 8 percent from 359 billion cubic feet in 1998.
  • Electric sales: 41 billion kilowatt-hours in 1999, up 2.5 percent from 40 billion kilowatt-hours in 1998.

Sources:

  • CMS Energy Corporation, "CMS Energy Corporation Reports Strong 1999 Earnings," January 31, 2000 (Press Release)
  • CMS Energy Corporation, "Digest of Consolidated Earnings," (unaudited)
  • CMS Energy Corporation, "Annual Report 1999"