Core Viewpoint - CMS Energy Corporation has announced an upsized cash tender offer for its outstanding bonds, increasing the Aggregate Tender Cap from $125 million to $147.095 million, with a focus on the 2.500% First Mortgage Bonds due 2060 [1][2]. Summary by Sections Tender Offer Details - The Tender Offer is for up to $147.095 million of the 2.500% First Mortgage Bonds due 2060, with this amount being validly tendered and not withdrawn by the Early Tender Date of June 17, 2025 [1][2]. - The Series Tender Cap for the 2060 Bonds has been set at $147.095 million, which is the maximum amount that may be purchased in the Tender Offer [2]. Acceptance and Payment - The acceptance of the 2060 Bonds will depend on the Aggregate Tender Cap and the Series Tender Cap, meaning some bonds may be returned to holders based on overall participation [3]. - Holders of validly tendered 2060 Bonds will receive a Total Consideration, including an early tender payment of $30 per $1,000 principal amount, with accrued interest paid in cash [4]. Timeline and Conditions - The Tender Offer is set to expire on July 3, 2025, and CMS Energy does not expect to accept any bonds tendered after the Early Tender Date due to the exceeded Aggregate Tender Cap [5]. - Acceptance of the bonds is subject to certain conditions outlined in the Offer to Purchase, which CMS Energy may choose to waive at its discretion [6]. Management and Contact Information - U.S. Bancorp Investments, Inc. is the sole lead dealer manager for the Tender Offer, with D.F. King & Co. Inc. acting as the information and tender agent [6].

Core Viewpoint - CMS Energy Corporation has initiated a cash tender offer for up to $125 million of outstanding bonds issued by Consumers Energy Company, with specific terms and conditions outlined in the Offer to Purchase [1][6]. Summary by Relevant Sections Tender Offer Details - The tender offer is for an aggregate principal amount of $125 million of the bonds, subject to acceptance priority levels and series tender caps [4][10]. - The tender offer will expire at 5:00 p.m. New York City time on July 3, 2025, with an early tender date of June 17, 2025, for holders to receive total consideration [6][11]. Bonds Information - The bonds involved include various series with different interest rates and maturity dates, such as: - 2.500% First Mortgage Bonds due 2060 with an outstanding amount of $525 million [3]. - 2.650% First Mortgage Bonds due 2052 with an outstanding amount of $300 million [3]. - 3.100% First Mortgage Bonds due 2050 with an outstanding amount of $550 million [3]. - 3.250% First Mortgage Bonds due 2046 with an outstanding amount of $450 million [3]. - 3.500% First Mortgage Bonds due 2051 with an outstanding amount of $575 million [3]. Consideration and Payments - Total consideration for bonds validly tendered before the early tender date will include an early tender payment, calculated based on fixed spreads and U.S. Treasury reference yields [5][8]. - Holders of bonds accepted for purchase will receive accrued and unpaid interest from the last interest payment date up to the settlement date [7]. Acceptance Priority Levels - Bonds will be accepted based on their acceptance priority levels, with the highest priority given to those tendered before the early tender date [10]. - If the aggregate principal amount of any series exceeds the aggregate tender cap, proration may occur [10]. Additional Information - U.S. Bancorp Investments, Inc. is acting as the dealer manager for the tender offer, and D.F. King & Co. Inc. is the information and tender agent [15]. - The company reserves the right to amend the tender offer, including increasing or decreasing the aggregate tender cap [4][14].

Core Viewpoint - CMS Energy Corporation is enhancing its operations through significant investments in renewable energy while phasing out coal generation, although it faces challenges related to coal ash disposal costs [1][5]. Group 1: Investment and Growth Plans - CMS Energy plans to invest $20 billion in infrastructure upgrades and clean power production from 2025 to 2029 [2]. - The company aims to add 9 gigawatts (GW) of solar and 2.8 GW of wind capacity to its renewable generation portfolio between 2025 and 2045 [3]. - CMS Energy will invest $5.2 billion in renewable energy resources, including wind, solar, and hydroelectric generation, during the same period [3]. Group 2: Coal Phase-Out Strategy - The company is reducing its coal-generating capacity to lower emissions, with plans to retire the J.H. Campbell coal-fired unit in 2025 and the D.E. Karn oil and gas-fueled unit in 2031 [4]. - CMS Energy aims to end the use of coal-fueled generation by 2025 [4]. Group 3: Financial Position and Risks - As of March 31, 2025, CMS Energy had $0.53 billion in cash and equivalents, $16.26 billion in long-term debt, and $0.71 billion in current debt, indicating a weak solvency position [6]. - The company expects to incur $237 million in costs related to coal ash disposal compliance from 2025 to 2029 [5]. Group 4: Stock Performance - Over the past year, CMS shares have increased by 15.5%, slightly trailing the industry's growth of 15.8% [7].

Group 1 - CMS Energy announced a new corporate organizational structure to support its operational transformation and long-term strategy, effective July 1, 2025 [1][2] - The new structure aims to provide safe, reliable, affordable, clean, and equitable energy for customers, focusing on the triple bottom line of people, planet, and prosperity [2][3] - The organization will enhance customer service and operational success, with a focus on strategy execution across four key business units [3] Group 2 - Leadership appointments include Lauren Snyder as senior vice president, chief customer and growth officer, overseeing Customer Operations, Experience, Sales, Marketing, and Economic Development [4] - Tonya Berry will serve as executive vice president & chief operating officer, responsible for Electric Supply, Electric Distribution, and Natural Gas Delivery [4] - Other key appointments include Sri Maddipati as president of Electric Supply, Greg Salisbury as president of Electric Distribution, and LeeRoy Wells, Jr. as president of Natural Gas Delivery [4]

Group 1 - Zacks Premium provides various tools for investors to enhance their stock market strategies, including daily updates, research reports, and stock screens [1][2] - The Zacks Style Scores are designed to complement the Zacks Rank, rating stocks based on value, growth, and momentum characteristics, helping investors identify stocks likely to outperform the market in the short term [2][3] Group 2 - The Value Score focuses on identifying undervalued stocks using financial ratios such as P/E and Price/Sales, appealing to value investors [3] - The Growth Score emphasizes a company's financial health and future growth potential, analyzing projected and historical earnings and cash flow [4] - The Momentum Score assists investors in capitalizing on price trends, utilizing recent price changes and earnings estimate shifts to identify high-momentum stocks [5] Group 3 - The VGM Score combines the three Style Scores, providing a comprehensive rating that highlights stocks with attractive value, strong growth forecasts, and promising momentum [6] - The Zacks Rank is a proprietary model that leverages earnings estimate revisions to guide investors in building successful portfolios, with 1 (Strong Buy) stocks historically yielding an average annual return of +25.41% since 1988 [7][8] Group 4 - CMS Energy Corporation, based in Jackson, MI, serves as a significant energy provider, delivering electricity and natural gas to 6.8 million residents in Michigan [11] - CMS holds a 3 (Hold) rating on the Zacks Rank, with a VGM Score of B, indicating potential for growth investors [12] - The company forecasts a year-over-year earnings growth of 7.5% for the current fiscal year, supported by upward revisions in earnings estimates from analysts [12][13]

Financial Data and Key Metrics Changes - In Q1 2025, CMS Energy reported adjusted earnings per share of $1.02, a favorable comparison to the same period in 2024, largely due to normal winter weather and higher rate relief [28][30] - The company reaffirmed its full-year guidance of $3.54 to $3.60 per share, maintaining confidence towards the high end of the range [28][30] - Adjusted net income for the first quarter was $304 million, reflecting a positive variance driven by weather and rate relief [30][31] Business Line Data and Key Metrics Changes - The absence of mild weather in Q1 2024 contributed to a favorable variance of 26 cents per share, while rate relief net of investment-related expenses added 7 cents per share [31] - Higher O&M costs at the utility were noted, driven by the execution of the electric reliability roadmap [30][32] Market Data and Key Metrics Changes - The company reported a significant increase in its data center pipeline, which grew to nine gigawatts, with 65% of that attributed to data centers following the elimination of sales and use taxes [25][27][43] - The electric rate order received in March was approximately 65% of the revised ask, indicating strong regulatory support for investments aimed at improving electric reliability [13][34] Company Strategy and Development Direction - CMS Energy's strategy focuses on conservative planning, disciplined execution, and a commitment to excellence across its electric and gas businesses [7][8] - The company is preparing to file its next electric rate case in Q2 and anticipates a constructive outcome in its pending gas rate case [14][34] - The renewable energy plan (REP) is expected to define the company's clean energy future, with a filing planned for next year [16][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating economic uncertainties, citing a diversified service territory with minimal exposure to the auto industry [17][21] - The company is actively monitoring supply chain dynamics and has a domestic sourcing strategy to limit exposure to tariffs [18][19] - Management highlighted the importance of the Inflation Reduction Act and its potential impact on renewable tax credits, while also noting Michigan's supportive energy law [20][21] Other Important Information - The storm that impacted Michigan in late March and early April was characterized as the costliest in the company's history, with preliminary estimates of $100 million in O&M expenses [34][35] - Fitch reaffirmed the company's credit ratings in March, and the company is targeting solid investment-grade credit ratings [38][39] Q&A Session Summary Question: Can you remind us what percentage of capital is going towards solar storage? - Management indicated that NorthStar represents about 5% of the EPS mix, with no capital currently allocated to storage, focusing instead on renewable projects [47][48] Question: Have you done a deferred accounting order before? - Management noted that this is atypical but justified given the historic nature of the storm, and they are seeking a quick resolution from the commission [65][66] Question: How are you thinking about the execution on the financing plan? - Management confirmed that they still have about $700 million left for financing needs and are keeping all options on the table for attractive securities [72][74] Question: What is the magnitude of earnings exposure in your plan? - Management guided NorthStar at $0.18 to $0.22 per share, with a significant portion expected from ongoing assets and two solar projects [104][105] Question: Did you see a big change in interest after the state approved the tax exemptions? - Management confirmed that the pipeline grew significantly, with 65% now attributed to data centers due to the tax exemptions [143]

Financial Performance and Outlook - CMS Energy reported adjusted EPS of $1.02 for Q1 2025, indicating they are executing on their plan[25] - The company's 2025 full-year adjusted EPS guidance is $3.54 – $3.60, with expectations toward the high end[25] - The annual dividend per share (DPS) is $2.17, an increase of 11¢[25] - The long-term adjusted EPS growth is projected at +6% to +8%, also toward the high end[25] Investment and Growth - The utility capital plan is $20 billion, up $3 billion from the prior plan[25] - The company anticipates a rate base growth of approximately 8½% per year from 2025 to 2029, reaching $39.4 billion in 2029 from $26.2 billion in 2024[39] - Economic development efforts are driving diversified growth across Michigan and reducing customer rates[24] Risk Management and Sensitivities - The auto sector represents approximately 2% of total gross margin, mitigating industrial recession risk[20,41] - The top 10 customers combined represent approximately 2½% of total gross margin[20] - A 1% full-year change in electric sales volume would impact adjusted EPS by 7¢, while a 1% change in gas sales volume would impact it by 4¢[43]

Financial Data and Key Metrics Changes - In Q1 2025, the company reported adjusted earnings per share (EPS) of $1.02, a favorable comparison to the same period in 2024, largely due to normal winter weather and higher rate relief [28][30][31] - The full-year guidance for EPS remains at $3.54 to $3.60, with a long-term growth target of 6% to 8% [28][30] Business Line Data and Key Metrics Changes - The absence of mild weather in Q1 2024 contributed to a favorable variance of $0.26 per share, while rate relief net of investment-related expenses added $0.07 per share [30][31] - Increased operational and maintenance (O&M) costs were noted, driven by the electric reliability roadmap and storm-related expenses, which are expected to impact future financials [34][35] Market Data and Key Metrics Changes - The company has seen a significant increase in its data center pipeline, which now comprises 65% of its nine-gigawatt total, attributed to the elimination of sales and use taxes for data centers [25][27][43][144] - The company is actively monitoring economic conditions and has a diversified service territory with minimal exposure to the auto industry, which is only about 2% of total gross margin [17][21] Company Strategy and Development Direction - The company is focused on conservative planning and disciplined execution, with a commitment to improving electric reliability and expanding its service capabilities [7][12] - Future filings include a renewable energy plan (REP) expected by mid-September and an integrated resource plan (IRP) to be filed next year, which will define the company's clean energy future [16][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating economic uncertainties, citing a strong track record of delivering results under various conditions [17][41] - The company is prepared to adjust its strategies based on evolving market conditions and regulatory environments, particularly in light of the Inflation Reduction Act [19][21] Other Important Information - The company has filed for a deferred accounting order related to storm costs, which is a historic filing for the company [35][61] - Fitch reaffirmed the company's credit ratings, and the company is working with Moody's on a review process [38] Q&A Session Summary Question: What percentage of capital is going towards solar storage at NorthStar? - Management indicated that solar storage represents a small portion, with NorthStar contributing about 5% to EPS, and no capital is currently allocated to storage projects [45][47][49] Question: What is the status of the deferred accounting order for storm costs? - Management clarified that they have not presupposed approval for the deferred accounting order and are awaiting a timeline from the commission [58][60][66] Question: How is the financing plan progressing? - The company has completed a significant portion of its financing needs through hybrid notes and is exploring additional financing options for the remainder of the year [72][74] Question: What is the outlook for the gas rate case? - Management expressed optimism about the gas rate case, highlighting a constructive starting position and the importance of replacing gas pipes for safety and capacity [93][96] Question: How does the company view the risk of losing transferability of tax credits? - Management remains optimistic about maintaining tax credits and transferability, citing ongoing discussions with legislators [127][129]

Core Viewpoint - CMS Energy Corporation reported mixed financial results for the first quarter of 2025, with earnings per share (EPS) slightly missing estimates but revenues exceeding expectations, indicating a strong operational performance despite rising expenses [1][2]. Financial Performance - EPS for Q1 2025 was $1.02, missing the Zacks Consensus Estimate of $1.05 by 2.9%, but increased by 5.2% from $0.97 in the prior-year quarter [1]. - Operating revenues reached $2.45 billion, surpassing the Zacks Consensus Estimate of $2.24 billion by 8.9%, and increased by 12.5% from $2.18 billion in the same quarter last year [1]. - Operating expenses totaled $1.95 billion, up 10.7% from the previous year [2]. - Net income was $295 million, higher than $263 million in the prior-year quarter, but below the projected $329.2 million [2]. Financial Condition - Cash and cash equivalents stood at $465 million as of March 31, 2025, compared to $103 million as of December 31, 2024 [3]. - Total debt and financial leases (excluding securitization debt) were $16.31 billion, up from $15.87 billion as of December 31, 2024 [3]. - Net cash flow from operating activities was $1 billion in Q1 2025, compared to $0.96 billion in the prior-year quarter [3]. Guidance - CMS reaffirmed its 2025 adjusted EPS guidance in the range of $3.54-$3.60, with the Zacks Consensus Estimate currently at $3.59 per share [4]. - The company also reaffirmed its long-term adjusted EPS growth target of 6-8% [4]. Industry Context - NextEra Energy reported adjusted earnings of 99 cents per share, beating estimates, but its operating revenues of $6.24 billion fell short of expectations [6]. - FirstEnergy reported operating earnings of 67 cents per share, exceeding estimates, with operating revenues of $3.77 billion surpassing consensus [7]. - Entergy is scheduled to report its Q1 2025 results on April 29, with consensus estimates indicating a 7.6% improvement in sales year-over-year [9].

Group 1 - CMS Energy reported $2.45 billion in revenue for Q1 2025, a year-over-year increase of 12.5% [1] - The EPS for the same period was $1.02, compared to $0.97 a year ago, with a consensus EPS estimate of $1.05, resulting in an EPS surprise of -2.86% [1] - The reported revenue exceeded the Zacks Consensus Estimate of $2.24 billion by 9.04% [1] Group 2 - Key metrics indicate that CMS Energy's shares returned +0.3% over the past month, while the Zacks S&P 500 composite declined by -5.1% [3] - CMS Energy holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3] Group 3 - NorthStar Clean Energy's operating revenue was $99 million, surpassing the three-analyst average estimate of $72.24 million, reflecting a year-over-year change of +25.3% [4] - Consumers Energy (Electric+Gas) reported operating revenue of $2.35 billion, exceeding the three-analyst average estimate of $2.17 billion [4] - The Gas utility segment generated $1.05 billion in operating revenue, above the two-analyst average estimate of $1.01 billion, marking a year-over-year change of +8.7% [4] - The Electric utility segment reported $1.30 billion in operating revenue, compared to the estimated $1.17 billion, representing a +14.8% change year-over-year [4]