DEARBORN, Mich., June 26, 2002 — CMS Energy Corp. on Tuesday announced a series of steps designed to further sharpen its business focus, improve cash flow and improve its balance sheet.
In addition to identifying new assets to be sold, the company is restructuring its energy marketing unit, and revising its net operating earnings outlook for 2002 to reflect decreased energy trading activities.
CMS Energy announced plans to sell CMS Marketing, Services and Trading’s (CMS-MST) energy performance contracting subsidiary, CMS Viron, as well as CMS Trunkline’s one-third ownership interest in Centennial Pipeline, LLP, an interstate refined petroleum products pipeline. These asset sales will contribute to the company’s $2.9 billion asset optimization program, of which $2.4 billion has been completed to date.
CMS-MST will eliminate its speculative energy trading business line and reduce its work force by approximately 25 percent, or 50 positions. CMS Energy lowered its 2002 net operating earnings forecast to approximately $1.50 to $1.55 per share, primarily due to decreased energy trading activities.
This net operating earnings forecast includes the previously announced impact of the economic crisis in Argentina, but excludes the effects of asset sales, discontinued operations and restructuring charges.
CMS Energy chairman and chief executive officer Kenneth Whipple said, “these actions will make our energy marketing business more predictable, reduce outstanding credit requirements, improve cash flow, and re-establish our emphasis on serving customers and pursuing customer power and natural gas supply contracts.” He said while CMS-MST will have less of an emphasis on trading, it will continue trades that support asset optimization and risk management.
CMS Energy Corporation is an integrated energy company which has as its primary business operations an electric and natural gas utility, natural gas pipeline systems, independent power generation, oil and gas exploration and production and energy marketing, services and trading.
For more information on CMS Energy, please visit our web site at: http://www.cmsenergy.com/