EX-99.3 5 k71065exv99w3.txt CMS ENERGY'S CALL SLIDE PRESENTATIONS EXHIBIT 99.3 [CMS ENERGY LOGO] -------------------------------------------------------------------------------- This presentation contains forward-looking statements within the meaning of the safe-harbor provisions of the federal securities laws. Our actual results may differ materially from those anticipated in such statements as a result of various factors discussed in our SEC filings. 1 [CMS ENERGY LOGO] 2002 Second Quarter Earnings Per Share Reconciliation -------------------------------------------------------------------------------- 2002 2001 ---- ---- EPS Reported $ (0.56) $ 0.40 Reconciling Items: Asset Sales Gains (Losses) $ 0.16 $ (0.01) Discontinued Operations Income (Loss) (1.05) 0.14 Restructuring Costs (0.06) -- Extraordinary Item (0.05) -- ------- ------- (1.00) 0.13 ======= ======= EPS Operating $ 0.44 $ 0.27 ======= ======= 2 [CMS ENERGY LOGO] Year to Date - June 2002 Earnings Per Share Reconciliation -------------------------------------------------------------------------------- 2002 2001 ---- ---- EPS Reported $ 2.30 $ 1.25 Reconciling Items: Asset Sales Gains (Losses) $ 0.26 $ (0.01) Discontinued Operations Income (Loss) 1.22 0.14 Restructuring Costs (0.05) -- Extraordinary Item (0.05) -- Goodwill Accounting Change - Viron (0.07) -- ------- ------- 1.31 0.13 ======= ======= EPS Operating $ 0.99 $ 1.12 ======= ======= 3 [CMS ENERGY LOGO] Electric Utility -------------------------------------------------------------------------------- Operating Net Income [BAR GRAPH] 2002 2001 (in Millions) $54 $29 PTOI $116 $82 - Variance $25 million - Overall deliveries up 133 Gwh's - $5 MM - Lower Supply costs - $22 MM - Other including higher Other Operating Expenses ($2) MM 4 [CMS ENERGY LOGO] Gas Utility -------------------------------------------------------------------------------- Operating Net Income [BAR GRAPH] 2002 2001 (in Millions) $4 $0 PTOI $20 $16 - Variance $4 million - Deliveries up 8.3 Bcf - $5 MM - Interim rate increase - $1 MM - Higher other operating expenses & other - ($2) MM 5 [CMS ENERGY LOGO] CMS Panhandle Companies -------------------------------------------------------------------------------- [BAR GRAPH] Operating Net Income 2002 2001 (in Millions) $12 $10 PTOI $35 $37 - Variance - $2 million - Lower LNG operations - ($5) MM - Absence of goodwill amortization - $2 MM - Lower operating expenses - $3 MM - Lower fixed charges and other - $2 MM 6 [CMS ENERGY LOGO] Natural Gas Transmission -------------------------------------------------------------------------------- [BAR GRAPH] Operating Net Income 2002 2001 (in Millions) $1 $4 PTOI $3 $7 - Variance ($3) million - Other pipeline operations/lower costs - $4 MM - Argentine expropriation & devaluation impacts ($5) MM - Field services and gas processing operations - ($2) MM 2002 Operating net income excludes a ($2) MM adjustment to the previously reported gain on sale of the Methanol Investment 7 [CMS ENERGY LOGO] Marketing, Services & Trading -------------------------------------------------------------------------------- [BAR GRAPH] Operating Net Income 2002 2001 (in Millions) ($18) $33 PTOI $(27) $51 - Variance ($51) MM - Lower electric net margins - ($24) MM - Lower gas net margins - ($22) MM - Intercompany MTM losses - ($21) MM - Lower operating expenses & other - $16 MM 8 [CMS ENERGY LOGO] Independent Power Production -------------------------------------------------------------------------------- [BAR GRAPH] Operating Net Income 2002 2001 (in Millions) $48 $18 PTOI $73 $28 - Variance $30 million - MCV - MTM of long term supply costs & other - $23 MM - DIG - lower steam costs - $8 MM - Other plant operations / lower costs $7 MM - Argentine expropriation & devaluation impacts ($8) MM 9 [CMS ENERGY LOGO] Parent Interest Expense & Other -------------------------------------------------------------------------------- [BAR GRAPH] Operating Net Income (Loss) 2002 2001 (in Millions) ($42) ($59) PTOI $22 $4 - Variance $17 million - Inter company MTM gains - $21 MM - Lower Parent Interest Expense $6 MM - Other Investments ($10) MM 10 [CMS ENERGY LOGO] Asset Sales and Other Cash Proceeds --------------------------------------------------------------------------------
Date $ Millions EDEERSA Electric 2001 Done Distribution and other $133 Done LNG monetization 310 Done Securitization proceeds 469 --------------- Sub-Total - 2001 912 --------------- Equatorial Guinea Oil & Gas 2002 Done reserves and Atlantic Methanol 1,002 operations Done Consumers' Electric Transmission 288 Done Powder River reserves and other 131 Q3 Oil & Gas Company 232 Completed & announced 2,565 Q3-Q4 Generation, distribution & other 75 - 275 --------------- Total 2001 & 2002 Asset Sales and Other Cash Proceeds $2,640 - $2,840 ===============
11 [CMS ENERGY LOGO] CMS Energy Parent - Sources and Uses of Cash Last Half 2002 -------------------------------------------------------------------------------- Sources Cash on Hand @ June 30 $ 70 July bank borrowings 186 Asset sales announced 232 Dividends - Consumers Energy 105 - Enterprises 115 Other 42 ------ Subtotal- Sources $680 ------
Uses
Debt paydown $286 Capital investments 160 Parent interest 130 Common & preferred Dividends 75 -------- Subtotal- Uses 651 -------- Cash on hand @ December 31 $ 99 ========
12 [CMS ENERGY LOGO] Capital Structure -------------------------------------------------------------------------------- 12-31-01 -------- $11.1 billion [3D PIE CHART] Common Equity Preferred Stock Debt** 18% 11% 71% 6-30-02 ------- $9.9 billion [3D PIE CHART] Common Equity Preferred Stock Debt** 19% 12% 69% 12-31-02 E ---------- $10.2 [3D PIE CHART] Common Equity Preferred Stock Debt** 22% 12% 66% **Excludes securitization debt of $469 MM 13 [CMS ENERGY LOGO] 2002 Net Income Guidance --------------------------------------------------------------------------------
(In Millions, except EPS) 2002 Current 2002 Prior Description Guidance Guidance Change ----------- -------- -------- ------ Electric Utility $ 200 $ 200 $ 0 Gas Utility 45 45 0 Natural Gas Transmission 70 70 0 MS&T 0 15 (15) IPP 105 105 0 Oil & Gas (5) (5) 0 Energy parent interest expense & other (200) (215) 15 ------- ------- ------- Operating Net Income $ 215 $ 215 $ 0 ======= ======= =======
14 [CMS ENERGY LOGO] 2002 Other Issues -------------------------------------------------------------------------------- - PEPL Goodwill Impairment - Rating Triggers - Officer Certificates 15 [CMS ENERGY LOGO] 2002 Other Issues (contd) -------------------------------------------------------------------------------- - Investigations - Ernst & Young Audit - Potential Pipeline Sale 16