CMS Energy Announces Second Quarter Net Income of $74 Million, or $0.32 Per Share,...

CMS Energy Announces Second Quarter Net Income of $74 Million, or $0.32 Per
Share, and Affirms Adjusted Earnings Guidance

JACKSON, Mich., July 30 /PRNewswire-FirstCall/ -- CMS Energy announced today
reported net income of $74 million, or $0.32 per share, for the second quarter
of 2009 compared to reported net income of $44 million, or $0.18 per share, in
the same quarter of 2008.

The 2009 second quarter results reflect income from the expiration of a
contingent liability linked to certain assets sold in 2007, income from early
retirement of debt at a discount, and a charge to increase the reserve for the
Bay Harbor environmental project.

CMS Energy's second quarter adjusted (non-Generally Accepted Accounting
Principles) net income, which excludes the effects of asset sales, the Bay
Harbor charge, and certain other items, was $62 million, or $0.26 per share.
In the second quarter of 2008, the company had adjusted net income of $42
million, or $0.18 per share.

For the first six months of 2009, CMS Energy had reported net income of $143
million, or $0.61 per share, compared to reported net income of $146 million,
or $0.60 per share, for the first half of 2008.

On an adjusted basis, the company had net income of $131 million, or $0.56 per
share, for the first half of 2009, compared to adjusted net income of $144
million, or $0.60 per share for the first six months of 2008.

CMS Energy reaffirmed its guidance for 2009 adjusted earnings of $1.25 per
share. While the company expects 2009 reported earnings to be about the same
as its adjusted earnings, reported earnings could vary because of several
factors such as legacy issues associated with prior asset sales. Because of
those uncertainties, the company isn't providing reported earnings guidance.

David Joos, the president and chief executive officer of CMS Energy, said
despite mild weather, the solid second quarter results were consistent with
the company's full-year earnings guidance and reflect strong operational
performance at its Michigan utility, Consumers Energy.

"We are continuing to focus on providing reliable, affordable service to our
customers while investing in new infrastructure for the future," Joos said.
"These investments are creating jobs now, and supporting economic recovery and
long-term growth for Michigan."

CMS Energy (NYSE: CMS) is a Michigan-based company that has an electric and
natural gas utility, Consumers Energy, as its primary business and also owns
and operates independent power generation businesses.

CMS Energy provides financial results on both a reported (Generally Accepted
Accounting Principles) and adjusted (non-GAAP) basis. Management views
adjusted earnings as a key measure of the company's present operating
financial performance, unaffected by discontinued operations, asset sales,
impairments, or other items detailed in the attached summary financial
statements. Certain contingent obligations arising in connection with
previously disposed assets or discontinued operations have the potential to
impact, favorably or unfavorably, the company's reported earnings in 2009.

This news release contains "forward-looking statements" as defined in Rule
3b-6 of the Securities Exchange Act of 1934, as amended, Rule 175 of the
Securities Act of 1933, as amended, and relevant legal decisions. The
forward-looking statements are subject to risks and uncertainties. They
should be read in conjunction with "FORWARD-LOOKING STATEMENTS AND
INFORMATION" and "RISK FACTORS" each found in the MANAGEMENT'S DISCUSSION AND
ANALYSIS sections of CMS Energy's Form 10-K and Consumers Energy's Form 10-K
each for the Year Ended December 31, 2008 and as updated in CMS Energy's and
Consumers Energy's Forms 10-Q for the Quarter Ended March 31, 2009. CMS
Energy's and Consumers Energy's "FORWARD-LOOKING STATEMENTS AND INFORMATION"
and "RISK FACTORS" sections are incorporated herein by reference and discuss
important factors that could cause CMS Energy's and Consumers Energy's results
to differ materially from those anticipated in such statements.

For more information on CMS Energy, please visit our web site at:
www.cmsenergy.com

CMS Energy Corporation
SUMMARIZED CONSOLIDATED STATEMENTS OF INCOME
---------------------------------------------
(In Millions, Except Per Share Amounts)

Second Quarter First Half
(Unaudited) (Unaudited)
----------- -----------
2009 2008 2009 2008
---- ---- ---- ----

Operating Revenue $1,228 $1,365 $3,334 $3,549

Loss from Equity Method Investees (*) (1) (1) (2)

Operating Expenses 1,086 1,209 2,986 3,139
----- ----- ----- -----

Operating Income $142 $155 $347 $408

Other Income 42 15 57 34

Fixed Charges 105 97 204 198
--- -- --- ---

Income before Income Taxes $79 $73 $200 $244

Income Tax Expense 29 24 77 87
-- -- -- --

Income from Continuing Operations $50 $49 $123 $157

Income (Loss) from Discontinued
Operations 29 (1) 29 (1)
-- -- -- --

Net Income 79 48 152 156

Income Attributable to Noncontrolling
Interests 2 1 3 4
- - - -

Net Income Attributable to CMS Energy $77 $47 $149 $152

Preferred Dividends 3 3 6 6
- - - -

Net Income Available to Common
Stockholders $74 $44 $143 $146
=== === ==== ====

Income Per Share
Basic $0.33 $0.20 $0.63 $0.64
Diluted 0.32 0.18 0.61 0.60

(*) Less than $500 thousand.

CMS Energy Corporation
SUMMARIZED CONSOLIDATED BALANCE SHEETS
--------------------------------------
(In Millions)

June 30 December 31
2009 2008
---- ----
(Unaudited)
Assets
Cash and cash equivalents $1,025 $213
Restricted cash and cash equivalents 31 35
Other current assets 2,100 2,579
----- -----
Total current assets $3,156 $2,827
Net plant and property 9,421 9,190
Investments 10 11
Non-current assets 2,690 2,873
----- -----
Total Assets $15,277 $14,901
======= =======

Stockholders' Investment and Liabilities
Capitalization
Debt and capital and finance leases (*)
Long-term debt and capital leases
(excluding FIN 46 debt, finance
leases and securitization debt) $6,843 $6,204
FIN 46 debt and finance leases 106 254
--- ---
Total debt and capital and finance leases $6,949 $6,458
Preferred stock and securities 287 287
Noncontrolling interests 51 52
Common stockholders' equity 2,582 2,476
----- -----
Total capitalization $9,869 $9,273
Securitization debt 261 277
Current liabilities 1,200 1,349
Non-current liabilities 3,947 4,002
----- -----
Total Stockholders' Investment and
Liabilities $15,277 $14,901
======= =======

(*) Current and long-term

CMS Energy Corporation
SUMMARIZED STATEMENTS OF CASH FLOWS
-----------------------------------
(In Millions)

First Half
(Unaudited)
-----------
2009 2008
---- ----

Beginning of Period Cash $213 $348

Cash provided by operating activities $803 $651
Cash used in investing activities (436) (344)
---- ----
Cash flow from operating and investing
activities $367 $307
Cash provided by (used in) financing activities 445 (128)
--- ----
Total Cash Flow $812 $179
---- ----

End of Period Cash $1,025 $527
====== ====

CMS Energy Corporation
SUMMARY OF CONSOLIDATED EARNINGS
--------------------------------
Reconciliations of GAAP Net Income to Non-GAAP Adjusted Net Income
(In Millions, Except Per Share Amounts)

Second Quarter First Half
(Unaudited) (Unaudited)
----------- -----------
2009 2008 2009 2008
---- ---- ---- ----

Net Income Available to Common Stockholders $74 $44 $143 $146

Reconciling Items:
Discontinued Operations (Income) Loss (29) 1 (29) 1

Asset Sales (Gains) Losses and Other 17 (3) 17 (3)
-- -- -- --

Adjusted Net Income - Non-GAAP Basis $62 $42 $131 $144
=== === ==== ====

Average Number of Common Shares Outstanding
Basic 227 225 227 225
Diluted 235 241 234 240

Basic Earnings Per Average Common Share

Net Income Per Share as Reported $0.33 $0.20 $0.63 $0.64

Reconciling Items:
Discontinued Operations (Income) Loss (0.13) 0.01 (0.13) 0.01

Asset Sales (Gains) Losses and Other 0.07 (0.01) 0.08 (0.01)
---- ----- ---- -----

Adjusted Net Income - Non-GAAP Basis $0.27 $0.20 $0.58 $0.64
===== ===== ===== =====

Diluted Earnings Per Average Common Share

Net Income Per Share as Reported $0.32 $0.18 $0.61 $0.60

Reconciling Items:
Discontinued Operations (Income) Loss (0.13) 0.01 (0.13) 0.01

Asset Sales (Gains) Losses and Other 0.07 (0.01) 0.08 (0.01)
---- ----- ---- -----

Adjusted Net Income - Non-GAAP Basis $0.26 $0.18 $0.56 $0.60
===== ===== ===== =====

Note: Management views adjusted (non-Generally Accepted Accounting
Principles) earnings as a key measure of the Company's present operating
financial performance, unaffected by discontinued operations, asset
sales, impairments, or other items detailed in these summary financial
statements.

SOURCE CMS Energy

Media: Jeff Holyfield, +1-517-788-2394, or Dan Bishop, +1-517-788-2395, both
of CMS Energy, Investment Analyst Contact: CMS Energy Investor Relations,
+1-517-788-2590