EX-99.B 3 k58189ex99-b.txt CMS ENERGY MAJOR VARIANCE ANALYSIS 1 EXHIBIT 99(b) CMS ENERGY CONSOLIDATED SUMMARY EARNINGS ANALYSIS IN MILLIONS, EXCEPT EPS (UNAUDITED - PRELIMINARY AND FOR DISCUSSION ONLY)
------------------------------------------------------------------------------------------------------------------------------------ VARIANCE ------------------------------ QUARTERS ENDED - SEPTEMBER 30, 2000 1999 DOLLARS PERCENT ------------------------------------------------------------------------------------------------------------------------------------ PRETAX OPERATING INCOME (LOSS) Consumers Electric $118.5 $168.4 ($49.9) (30) Consumers Gas 8.9 (6.2) 15.1 244 Natural Gas Transmission 47.7 46.0 1.7 4 Independent Power Production 50.0 52.5 (2.5) (5) Oil & Gas Exploration & Production 13.0 4.3 8.7 202 Marketing, Services & Trading (2.5) 0.1 (2.6) (2600) International Energy Distribution 7.3 (1.1) 8.4 764 Other 4.5 9.7 (5.2) (54) --------- ----------- ------------- Total 247.4 273.7 (26.3) (10) Other Income (Deductions) 4.4 (3.3) 7.7 233 Fixed Charges 175.2 162.8 12.4 8 Income Taxes 19.9 24.8 (4.9) (20) Minority Interest 1.2 (0.1) 1.3 1300 --------- ----------- ------------- CONSOLIDATED NET INCOME $55.5 $82.9 ($27.4) (33) ========= =========== ============= CLASS G NET INCOME (LOSS) $0.0 ($3.3) $3.3 (100) ========= =========== ============= CMS NET INCOME $55.5 $86.2 ($30.7) (36) ========= =========== ============= CMS AVERAGE SHARES OUTSTANDING - DILUTED 114.4 113.8 0.6 1 ========= =========== ============= CMS EPS - DILUTED $0.51 $0.78 ($0.27) (35) ========= =========== =============
-------------------------------------------------------------------------------- QUARTERS MAJOR VARIANCE ANALYSIS -------------------------------------------------------------------------------- CONSUMERS ELECTRIC*: MARKETING, SERVICES & TRADING: - Deliveries down 295 Gwh to 10,650 Gwh and - Higher operating expenses and trading losses higher power supply costs - ($51.0 MM); partially offset by higher gas margins, higher gas and - Residential rate reduction - ($13.7 MM); electric volumes and higher NGL margins - ($2.6 MM). - Lower operating expenses and other - $14.8 MM. INTERNATIONAL ENERGY DISTRIBUTION: CONSUMERS GAS: - Reliability improvements and lower operating - Deliveries up 1.5 Bcf to 45.1 Bcf; expenses - $8.4 MM. - Firm sales up 1.7 Bcf - $2.7 MM; - Transport deliveries down 0.2 Bcf - ($0.3 MM); OTHER INCOME/(DEDUCTIONS): - Gas Customer Choice Program - ($1.1 MM); - Gains on asset sales and other - $7.7 MM. - Lower operating expenses and other - $13.8 MM. FIXED CHARGES: NATURAL GAS TRANSMISSION: - Higher average borrowings and interest rates for - Increased LNG cargoes and throughput at processing capital investments and other - $12.4 MM. facilities, partially offset by higher operating expenses - $1.7 MM. INDEPENDENT POWER PRODUCTION: - Plant operations and other - $2.0 MM; - Lower O&M fees and higher operating expenses - ($4.5 MM). *WEATHER IMPACTS: 3Q00 3Q99 ---- ---- OIL & GAS EXPLORATION & PRODUCTION: ELECTRIC: - Oil volumes down 166 MBbls to 1,672 MBbls - ($1.9 MM); - Percent warmer (colder) than normal (12.5) 10.2 - Oil prices up $4.70 to $16.28/Bbl - $7.9 MM; using cooling degree days - Gas volumes down 3.0 Bcf to 3.6 Bcf - ($6.3 MM); - Increase (decrease) from average in: - Gas prices up 82(cent)to $2.91/Mcf - $3.0 MM; Electric sales (Gwh) (220) (48) - Lower geological, DD&A, and production-related Pretax operating income (millions) ($10.6) ($2.5) expenses and other - $6.0 MM.
-------------------------------------------------------------------------------- 2 CMS ENERGY CONSOLIDATED SUMMARY EARNINGS ANALYSIS IN MILLIONS, EXCEPT EPS (UNAUDITED - PRELIMINARY AND FOR DISCUSSION ONLY)
------------------------------------------------------------------------------------------------------------------------------------ VARIANCE ---------------------------- Y-T-D ENDED - SEPTEMBER 30, 2000 1999 DOLLARS PERCENT ------------------------------------------------------------------------------------------------------------------------------------ Pretax Operating Income (Loss) Consumers Electric $342.1 $424.8 ($82.7) (19) Consumers Gas 44.0 87.4 (43.4) (50) Natural Gas Transmission 171.8 92.1 79.7 87 Independent Power Production 135.4 118.9 16.5 14 Oil & Gas Exploration & Production 23.2 10.9 12.3 113 Marketing, Services & Trading 1.4 0.5 0.9 180 International Energy Distribution 17.1 (5.5) 22.6 411 Other 10.2 20.1 (9.9) (49) ---------- ----------- ---------- Total 745.2 749.2 (4.0) (1) Other Income (Deductions) 67.2 14.2 53.0 373 Fixed Charges 505.0 415.9 89.1 21 Income Taxes 87.9 91.4 (3.5) (4) Minority Interest 3.1 (0.1) 3.2 3200 ========== =========== ========== CONSOLIDATED NET INCOME $216.4 $256.2 ($39.8) (16) ========== =========== ========== CLASS G NET INCOME $0.0 $7.6 ($7.6) (100) ========== =========== ========== CMS NET INCOME $216.4 $248.6 ($32.2) (13) ========== =========== ========== CMS AVERAGE SHARES OUTSTANDING - DILUTED 115.6 113.3 2.3 2 ========== =========== ========== CMS EPS - DILUTED $1.93 $2.25 ($0.32) (14) ========== =========== ==========
-------------------------------------------------------------------------------- Y-T-D MAJOR VARIANCE ANALYSIS -------------------------------------------------------------------------------- CONSUMERS ELECTRIC*: MARKETING, SERVICES & TRADING: - Deliveries down 869 Gwh to 30,410 Gwh and higher - Higher gas margins, higher gas and electricity volumes power supply costs - ($63.8 MM); and higher NGL margins, partially offset by higher - Residential rate reduction - ($18.6 MM); operating expenses, lower electricity margins and - Other - ($0.3 MM). trading losses - $0.9 MM. CONSUMERS GAS*: INTERNATIONAL ENERGY DISTRIBUTION: - Deliveries up 0.3 Bcf to 272.6 Bcf - $1.4 MM; - Reliability improvements and lower operating - Gas Customer Choice Program - ($61.8 MM); expense - $22.6 MM. - Higher retail services and other miscellaneous revenue - $4.2 MM; OTHER INCOME/DEDUCTIONS: - Lower operating expenses and other - $12.8 MM. - Gains on asset sales - $68.0 MM; - Increased accretion expense, absence of 1999 litigation NATURAL GAS TRANSMISSION: reserve reversal and other - ($15.0 MM). - PEPL operations - $67.9 MM; - Pipeline and processing operations and lower FIXED CHARGES: operating expenses - $11.8 MM. - Higher average borrowings and interest rates for capital investments and other - $89.1 MM. INDEPENDENT POWER PRODUCTION: - Plant operations, PPA restructuring and other - $30.8 MM; *WEATHER IMPACTS: YTD00 YTD99 ----- ----- - Lower O&M fees and higher operating expenses - ($14.3 MM). ELECTRIC: - Percent warmer (colder) than OIL & GAS EXPLORATION & PRODUCTION: normal using cooling degree days (5.1) 23.3 - Oil volumes up 65 MBbls to 5,510 MBbls - $0.7 MM; - Increase (decrease) from average in: - Oil prices up $3.04 to $13.85/Bbl - $16.7 MM; Electric sales (Gwh) (388) (81) - Gas volumes down 5.6 Bcf to 13.8 Bcf - ($11.4 MM); Pretax operating income (millions) ($18.4) ($3.4) - Gas prices up 54(cent)to $2.58/Mcf - $7.5 MM; GAS: - Higher production and G&A expenses, partially - Percent (warmer) colder than offset by lower DD&A and other - ($1.2 MM). normal using heating degree days (7.5) (5.5) - Increase (decrease) from normal in Gas sales (Bcf) (16.8) (8.6) Pretax operating income (millions) ($16.0) ($7.9)
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