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CMS Energy Corp. Reports Operating Results (10-Q)

July 26, 2012 | About:
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CMS Energy Corp. (CMS) filed Quarterly Report for the period ended 2012-05-30.

Cms Energy Corporation has a market cap of $6.42 billion; its shares were traded at around $24.43 with a P/E ratio of 18.6 and P/S ratio of 1. The dividend yield of Cms Energy Corporation stocks is 3.9%. Cms Energy Corporation had an annual average earning growth of 1% over the past 10 years.

Highlight of Business Operations:

For the six months ended June 30, 2012, CMS Energys net income available to common stockholders was $167 million, and diluted EPS were $0.62. This compares with net income available to common stockholders of $235 million and diluted EPS of $0.90 for the six months ended June 30, 2011. The main factors contributing to the decline in earnings in 2012 were the write-off of Consumers electric revenue decoupling mechanism regulatory asset, as discussed above, and the absence of a tax benefit recognized in 2011 related to the enactment of the MCIT.

Electric deliveries and rate increases: For the three months ended June 30, 2012, electric delivery revenues increased $45 million compared with 2011. This variance was due to additional revenues of $25 million resulting from a December 2011 self-implemented rate increase and $26 million resulting from higher deliveries, reflecting warmer weather and increased usage in 2012. Additionally, other miscellaneous revenue increased $3 million. These increases were offset partially by the absence, in 2012, of $9 million of electric decoupling revenues recognized in 2011. Deliveries to end-use customers were 9.5 billion kWh in 2012, an increase of 0.6 billion kWh, or 6.7 percent, compared with 2011.

For the six months ended June 30, 2012, electric delivery revenues decreased $12 million compared with 2011. This decrease reflected a $59 million charge to write off Consumers electric decoupling mechanism regulatory asset, and the absence, in 2012, of $30 million of electric decoupling revenues recognized in 2011. These decreases were offset largely by additional revenues of $51 million resulting from a December 2011 self-implemented rate increase, $11 million resulting from higher deliveries in 2012, and a $15 million increase in surcharges and other miscellaneous revenues. Deliveries to end-use customers were 18.7 billion kWh in 2012, an increase of 0.4 billion kWh, or 2.2 percent, compared with 2011.

Gas deliveries and rate increases: For the three months ended June 30, 2012, gas delivery revenues increased $3 million compared with 2011. This increase reflected $5 million in additional revenues from March 2012 and May 2011 rate increases and a $5 million increase in surcharges and other miscellaneous revenues. These increases were offset partially by a $7 million reduction resulting from lower customer deliveries, due primarily to warmer weather in 2012. Gas deliveries, including transportation to end-use customers, were 40 bcf in 2012, a decrease of 6 bcf, or 13 percent, compared with 2011.

For the six months ended June 30, 2012, gas delivery revenues decreased $32 million compared with 2011. This decrease reflected a $67 million reduction resulting from lower customer deliveries, due primarily to warmer weather in 2012. The decrease was offset partially by $19 million of additional revenues from March 2012 and May 2011 rate increases, an $8 million increase related to the energy optimization program, and an $8 million increase in other miscellaneous revenues. Gas deliveries, including transportation to end-use customers, were 146 bcf in 2012, a decrease of 33 bcf, or 18 percent, compared with 2011.

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