Attached files
| file | filename |
|---|---|
| EX-99.1 - EXHIBIT 99.1 - DTE ENERGY CO | exhibit991-06302016.htm |
| 8-K - 8-K - DTE ENERGY CO | a8-kearningsrelease2ndqtr2.htm |
EXHIBIT 99.2
2nd Quarter 2016
Earnings Conference Call
July 26, 2016
Safe Harbor Statement
Many factors impact forward-looking statements including, but not limited to, the following: impact of regulation by the EPA, FERC, MPSC, NRC,
and CFTC, as well as other applicable governmental proceedings and regulations, including any associated impact on rate structures; the
amount and timing of cost recovery allowed as a result of regulatory proceedings, related appeals, or new legislation, including legislative
amendments and retail access programs; economic conditions and population changes in our geographic area resulting in changes in demand,
customer conservation, and thefts of electricity and, for DTE Energy, natural gas; environmental issues, laws, regulations, and the increasing
costs of remediation and compliance, including actual and potential new federal and state requirements; health, safety, financial, environmental,
and regulatory risks associated with ownership and operation of nuclear facilities; changes in the cost and availability of coal and other raw
materials, purchased power, and natural gas; volatility in the short-term natural gas storage markets impacting third-party storage revenues
related to DTE Energy; impact of volatility of prices in the oil and gas markets on DTE Energy's gas storage and pipelines operations; impact of
volatility in prices in the international steel markets on DTE Energy's power and industrial projects operations; volatility in commodity markets,
deviations in weather, and related risks impacting the results of DTE Energy's energy trading operations; changes in the financial condition of
DTE Energy's significant customers and strategic partners; the potential for losses on investments, including nuclear decommissioning and
benefit plan assets and the related increases in future expense and contributions; access to capital markets and the results of other financing
efforts which can be affected by credit agency ratings; instability in capital markets which could impact availability of short and long-term
financing; the timing and extent of changes in interest rates; the level of borrowings; the potential for increased costs or delays in completion of
significant capital projects; changes in, and application of, federal, state, and local tax laws and their interpretations, including the Internal
Revenue Code, regulations, rulings, court proceedings, and audits; the effects of weather and other natural phenomena on operations and sales
to customers, and purchases from suppliers; unplanned outages; the cost of protecting assets against, or damage due to, terrorism or cyber
attacks; employee relations and the impact of collective bargaining agreements; the risk of a major safety incident at an electric distribution or
generation facility and, for DTE Energy, a gas storage, transmission, or distribution facility; the availability, cost, coverage, and terms of
insurance and stability of insurance providers; cost reduction efforts and the maximization of plant and distribution system performance; the
effects of competition; changes in and application of accounting standards and financial reporting regulations; changes in federal or state laws
and their interpretation with respect to regulation, energy policy, and other business issues; contract disputes, binding arbitration, litigation, and
related appeals; and the risks discussed in our public filings with the Securities and Exchange Commission. New factors emerge from time to
time. We cannot predict what factors may arise or how such factors may cause results to differ materially from those contained in any forward-
looking statement. Any forward-looking statements speak only as of the date on which such statements are made. We undertake no obligation
to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made or to reflect the
occurrence of unanticipated events. This presentation should also be read in conjunction with the Forward-Looking Statements section of the
joint DTE Energy and DTE Electric 2015 Form 10-K and 2016 Forms 10-Q (which sections are incorporated by reference herein), and in
conjunction with other SEC reports filed by DTE Energy and DTE Electric.
2
• Gerry Anderson – Chairman and CEO
• Jerry Norcia – President and COO
• Peter Oleksiak – Senior Vice President and CFO
• Barbara Tuckfield – Director, Investor Relations
3
Participants
• Overview
• 2nd Quarter 2016 Financial Update
• Summary
4
5
Financial performance
Strong year-to-date financial results
2016 operating EPS* guidance raised
7th consecutive year with a dividend increase
Regulatory framework
New commissioner appointed to MPSC
Regulatory proceedings progressing in a constructive manner,
including a supportive position regarding NEXUS
Operations
DTE Electric ranked 2nd in Midwest for residential customer satisfaction**
Year to date safety performance best in company’s history
NEXUS project on track for 4th quarter 2017 in-service
* Reconciliation to GAAP reported earnings included in the appendix
We continue to make progress on many fronts
** J.D. Power 2016 Electric Utility Residential Customer Satisfaction Study(sm)(large providers). Visit jdpower.com
6
Achieved strong results in the 2nd quarter and are
increasing operating EPS* guidance for the year
• 2nd quarter 2016 operating EPS* of
$0.98, up $0.22 from last year
• 2016 operating EPS guidance range
raised to $4.91 - $5.19
̶ Guidance midpoint raised by $0.12
• Annualized dividend increased $0.16
to $3.08 per share
̶ 5.5% increase
̶ 7th consecutive year with a
dividend increase
• Continuing significant investment to
improve customer reliability
• Balance sheet remains strong
* Reconciliation to GAAP reported earnings included in the appendix
$4.82
$2.35
$2.48
$2.62
$2.76
$2.92
$3.08
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Raising 2016 operating EPS* guidance to a
midpoint of $5.05
7 * Reconciliation to GAAP reported earnings included in the appendix
(dollars per share)
Operating
EPS
Dividend
(Annualized)
Actuals Forecast
Dividend per
share 5.6%
CAGR
2011 – 2015
$3.75
$5.05
5.5% increase
Operating EPS
6.5% CAGR
2011 – 2015
2016 Operating EPS
Guidance Midpoint
Growth segments $4.97
Total DTE Energy $5.05
Original guidance $4.93
$4.93
8
Paving the way to cleaner energy for our customers
Note: Estimated amounts. Timing and mix of generation impacted by MISO capacity requirements and Michigan and EPA policies
• Announced retirement of 2.5 GW of
less-efficient coal-fired generation
– Capacity will be retired by 2023
– Combination of baseload gas and
solar/wind renewables replace
retired generation
– ~$3 billion of expected investment
• Will retire additional 1.0 GW by 2030
– Coal generation reduced by more
than half
• Reducing CO2 and conventional
emissions significantly through 2030
2030
Scenario
55%
2015
20%
15%
12.4
25%
15%-30%
15% Nuclear/Other
Gas
Renewables
Coal
10%
30%-45%
Electric Capacity Shift
(GW)
12 - 13
9
NEXUS project is progressing and originates in the
most economical geology in the country
Natural Gas LDC
Industrial Customer
Power Generation
Marcellus
/ Utica Dry
Gas Core
DTE
Gas
Vector
• Project on track for 4th quarter 2017 in-
service
• FERC Notice of Schedule issued 2nd
quarter 2016
• Draft Environmental Impact Statement
(EIS) received on July 8, 2016
• Final EIS expected by November 30,
2016
• FERC certificate of construction
expected within 90 days of final EIS
• Right of way acquisitions and detailed
engineering progressing
• Constructive work with FERC and other
regulatory agencies continues
• Overview
• 2nd Quarter 2016 Financial Update
• Summary
10
2Q 2015 2Q 2016 Change
DTE Electric 111$ 135$ 24$
DTE Gas (7) 13 20
Gas Storage & Pipelines 25 35 10
Power & Industrial Projects 18 17 (1)
Corporate & Other (13) (23) (10)
Growth segments** 134$ 177$ 43$
Growth segments operating EPS 0.75$ 0.98$ 0.23$
Energy Trading 3 - (3)
DTE Energy 137$ 177$ 40$
Operating EPS 0.76$ 0.98$ 0.22$
Avg. Shares Outstanding 179 180
Operating Earnings Drivers
DTE Electric
• Warmer weather in May and June and
rate implementation partially offset by
2015 revenue decoupler amortization
DTE Gas
• Cooler April weather, main replacement
surcharge and planned initiatives in
response to warm 1Q weather
Non-Utility
• Gas Storage & Pipelines: higher
earnings across all platforms
• Power & Industrial Projects: lower steel
related earnings offset by REF
favorability primarily due to project in-
service 4Q 2015
Corporate & Other
• Timing of taxes
Energy Trading
• Primarily lower realized power results
(millions, except EPS)
11
2nd Quarter 2016 Operating Earnings* Variance
* Reconciliation to GAAP reported earnings included in the appendix
** Total DTE Energy excluding Energy Trading
* Reconciliation to GAAP reported earnings included in the appendix
** Total DTE Energy excluding Energy Trading
2016
Original
Guidance
2016
YTD 2Q
Actuals
DTE Electric
DTE Gas
Gas Storage & Pipelines
Power & Industrial Projects
Corporate & Other
Growth segments**
Growth segments operating EPS
Energy Trading
DTE Energy
Operating EPS
Avg. Shares Outstanding
$4.80 - $5.05
$4.80 - $5.05
$584 - $600
135 - 141
105 - 115
90 - 100
(50) - (46)
$864 - $910
0
$864 - $910
180
$262
100
65
38
(30)
$435
$2.42
16
$451
180
$2.51
(millions, except EPS)
12
Increasing our 2016 operating EPS* guidance
2016
Revised
Guidance
$4.85 - $5.08
$4.91 - $5.19
$589 - $605
135 - 141
110 - 115
90 - 100
(50) - (46)
$874 - $915
10 - 20
$884 - $935
180
Capital Expenditures Summary
YTD
2015
YTD
2016
DTE Electric
Distribution Infrastructure $288 $224
New Generation 253 55
Maintenance & Other 364 361
$905 $640
DTE Gas
Base Infrastructure $82 $93
Nexus Related - 14
Main Replacement** 35 50
$117 $157
Non-Utility $146 $184
Total $1,168 $981
(millions)
** Includes Main Renewal / Meter Move-out / Pipeline Integrity 13
Cash Flow Summary
YTD
2015
YTD
2016
Cash From Operations* $1.2 $1.3
Capital Spending (1.2) (1.0)
Free Cash Flow $0.0 $0.3
Asset Sales & Other 0.1 -
Dividends (0.2) (0.3)
Net Cash ($0.1) $0.0
Debt Financing:
Issuances $0.8 $0.6
Redemptions (0.5) (0.6)
Change in Debt $0.3 $0.0
(billions)
* Includes ~$0.2b and $0 of equity issued for employee benefit programs in 2015 and
2016, respectively
June YTD 2016 Cash Flow and Capital Expenditures
25%
21%
2014 2015 2016E
51% 52%
2014 2015 2016E
Leverage*
Funds from Operations** / Debt*
Target
50% - 53%
Target
20% +
• Strong year-to-date cash performance;
2016 financing plan is on track
− $100 million equity issuance
possible, but may not be necessary
− Issued $300 million of 60-year,
5.375% junior subordinated
debentures at DTE Energy
− Issued $300 million of 30-year,
3.70% long-term debt at DTE Electric
• $1.8 billion of available liquidity
• Successfully extended the existing
$1.9 billion credit facilities to 2021
14
Strong balance sheet remains a key priority
and supports growth
* Debt excludes securitization, a portion of DTE Gas’ short-term debt, and considers 50% of the Junior Subordinated Notes as equity
** Funds from Operations (FFO) is calculated using operating earnings
• Overview
• 2nd Quarter 2016 Financial Update
• Summary
15
• Raising 2016 operating EPS* guidance by $0.12...
...in light of strong year-to-date performance
• Increasing dividend for 7th consecutive year...
...as we continue to grow dividends with earnings
• Investing in utilities and strategic growth opportunities in our non-utility businesses...
...providing consistent 5% to 6% annual EPS growth
• Retiring coal plants and replacing with a combination of gas and renewables...
...paving the way to cleaner energy by significantly reducing emissions
• Maintaining strong cash flow and balance sheet...
...supporting our future growth opportunities
16 * Reconciliation to GAAP reported earnings included in the appendix
Summary
DTE Energy Investor Relations
www.dteenergy.com/investors
(313) 235-8030
17
Contact Us
Appendix
2
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* Reconciliation to GAAP reported earnings included in the appendix
Drivers
• Warmer weather in May and
June 2016
Variance to normal weather
- 2Q 2015: ($2)
- 2Q 2016: $14
• July 1st 2015 rate
implementation supporting
infrastructure improvements to
enhance reliability for our
customers
Operating Earnings* Variance
19
(millions)
$111
$135
$16
$35 ($19)
($8)
DTE Electric Variance Analysis
Cash Flow Summary
2015
Actual
2016
Guidance
Cash From Operations* $1.9 $1.8
Capital Spending (2.3) (2.7)
Free Cash Flow ($0.4) ($0.9)
Asset Sales & Other 0.1 -
Dividends (0.5) (0.5)
Net Cash ($0.8) ($1.4)
Debt Financing:
Issuances $1.1 $1.9
Redemptions (0.3) (0.5)
Change in Debt $0.8 $1.4
Capital Expenditures Summary
(millions)
2015
Actual
2016
Guidance
DTE Electric
Distribution Infrastructure $579 $610
New Generation 316 150
Maintenance & Other 892 790
$1,787 $1,550
DTE Gas
Base Infrastructure $184 $220
NEXUS Related 2 110
Main Replacement** 87 100
$273 $430
Non-Utility $299 $520 – 720
Total $2,359 $2,500 - 2,700
** Includes Main Renewal / Meter Move-out / Pipeline Integrity 20
(billions)
* Includes ~$0.2b and ~$0.1b of equity issued for employee benefit programs in 2015
actuals and 2016 guidance, respectively
2016 Cash Flow and Capital Guidance
2Q 2015 2Q 2016 % change 2Q 2015 2Q 2016 % change
Actuals 230 274 19% Actuals 699 838 20%
Normal 215 215 0% Normal 780 774 -1%
Deviation from normal 7% 27% Deviation from normal -10% 8%
YTD 2015 YTD 2016 % change YTD 2015 YTD 2016 % change
Actuals 230 274 19% Actuals 4,490 3,755 -16%
Normal 215 215 0% Normal 4,004 4,095 2%
Deviation from normal 7% 27% Deviation from normal 12% -8%
2Q YTD 2Q YTD
($2) $8 ($2) $18
$14 $6 $3 ($11)
2Q YTD 2Q YTD
($0.01) $0.04 ($0.01) $0.10
$0.08 $0.03 $0.02 ($0.06)
(Includes Electric Choice) (GWh)
YTD 2015 YTD 2016 % change
Residential 7,097 7,112 0%
Commercial 9,813 9,825 0%
Industrial 5,997 5,957 -1%
Other 147 136 -7%
TOTAL SALES** 23,054 23,030 0%
Cooling degree days Heating degree days
DTE Electric service territory DTE Gas service territory
Earnings impact of weather - DTE Electric Earnings impact of weather - DTE Gas
Variance from normal weather
2015 2015
($millions, after-tax)
($ per share)
($millions, after-tax)
($ per share)
2016 2016
Weather Normal Electric Sales* - DTE Electric Service Area
2015 2015
2016 2016
Variance from normal weather
21
Weather and DTE Electric Weather Normal Sales
* Includes adjustments for temperature normalization and customer outages due to weather
** Includes choice of 2,469 YTD 2015 and 2,486 YTD 2016
** Consists of 1) the income statement effect of not recognizing changes in the fair market value of certain non-derivative contracts
including physical inventory and capacity contracts for transportation, transmission and storage. These contracts are not marked-to-
market, instead are recognized for accounting purposes on an accrual basis; and 2) operating adjustments for unrealized marked-to-
market changes of certain derivative contracts
2Q 2016 Economic
Net Income
Accounting
Adjustments**
2Q 2016 Operating
Earnings*
$3
$19
• Economic net income
equals economic gross
margin*** minus O&M
expenses and taxes
• DTE Energy management
uses economic net income
as one of the performance
measures for external
communications with
analysts and investors
• Internally, DTE Energy
uses economic net income
as one of the measures to
review performance
against financial targets
and budget
* Reconciliation to GAAP reported earnings included in the appendix
*** Economic gross margin is the change in net fair value of realized and unrealized purchase and sale contracts including certain non-derivative
contract costs
Operating Earnings*
Realized
Unrealized
O&M / Other
2Q 2016 2Q 2015
$4 $12
2 8
(12) (11)
(millions, after-tax)
$0 $3
2Q 2015 Operating
Earnings*
2Q 2015 Economic
Net Income
Accounting
Adjustments**
$16
$0
$12 $12
22
2nd Quarter Trading Reconciliation of Operating
Earnings* to Economic Net Income
(millions)
** Consists of 1) the income statement effect of not recognizing changes in the fair market value of certain non-derivative contracts
including physical inventory and capacity contracts for transportation, transmission and storage. These contracts are not marked-to-
market, instead are recognized for accounting purposes on an accrual basis; and 2) operating adjustments for unrealized marked-to-
market changes of certain derivative contracts
YTD 2016 Economic
Net Income
Accounting
Adjustments**
YTD 2016 Operating
Earnings*
$15
$39
• Economic net income
equals economic gross
margin*** minus O&M
expenses and taxes
• DTE Energy management
uses economic net income
as one of the performance
measures for external
communications with
analysts and investors
• Internally, DTE Energy
uses economic net income
as one of the measures to
review performance
against financial targets
and budget
* Reconciliation to GAAP reported earnings included in the appendix
*** Economic gross margin is the change in net fair value of realized and unrealized purchase and sale contracts including certain non-derivative
contract costs
Operating Earnings*
Realized
Unrealized
O&M / Other
YTD 2016 YTD 2015
$31 $28
10 8
(23) (23)
(millions, after-tax)
$16 $15
YTD 2015 Operating
Earnings*
YTD 2015 Economic
Net Income
Accounting
Adjustments**
$24
$16
$14 $30
23
June YTD Trading Reconciliation of Operating
Earnings* to Economic Net Income
(millions)
24
Use of Operating Earnings Information – DTE Energy management believes that operating earnings provide a more meaningful representation of the company’s earnings from ongoing
operations and uses operating earnings as the primary performance measurement for external communications with analysts and investors. Internally, DTE Energy uses operating
earnings to measure performance against budget and to report to the Board of Directors. Operating earnings are presented both with and without Energy Trading. The term “Growth
Segments” refers to DTE Energy without Energy Trading and represents the business segments that management expects to generate earnings growth going forward.
2Q 2016
DTE
Electric DTE Gas
Gas Storage
and Pipelines
Power and
Industrial
Projects
Corporate
and Other
Growth
Segments
Energy
Trading DTE Energy
Reported Earnings 135$ 13$ 35$ 15$ (23)$ 175$ (23)$ 152$
Plant closure - - - 2 - 2 - 2
Certain mark-to-market transactions - - - - - - 23 23
Operating Earnings 135$ 13$ 35$ 17$ (23)$ 177$ -$ 177$
Net Income (millions)
2Q 2016
DTE
Electric DTE Gas
Gas Storage
and Pipelines
Power and
Industrial
Projects
Corporate
and Other
Growth
Segments
Energy
Trading DTE Energy
Reported Earnings 0.75$ 0.07$ 0.20$ 0.08$ (0.13)$ 0.97$ (0.13)$ 0.84$
Plant closure - - - 0.01 - 0.01 - 0.01
Certain mark-to-market transactions - - - - - - 0.13 0.13
Operating Earnings 0.75$ 0.07$ 0.20$ 0.09$ (0.13)$ 0.98$ -$ 0.98$
EPS
2nd Quarter 2016 Reconciliation of Reported to
Operating Earnings
25
Use of Operating Earnings Information – DTE Energy management believes that operating earnings provide a more meaningful representation of the company’s earnings from ongoing
operations and uses operating earnings as the primary performance measurement for external communications with analysts and investors. Internally, DTE Energy uses operating
earnings to measure performance against budget and to report to the Board of Directors. Operating earnings are presented both with and without Energy Trading. The term “Growth
Segments” refers to DTE Energy without Energy Trading and represents the business segments that management expects to generate earnings growth going forward.
YT 2016
DTE
Electric DTE Gas
Gas Storage
and Pipelines
Power and
Industrial
Projects
Corporate
and Other
Growth
Segments
Energy
Trading DTE Energy
Reported Earnings 262$ 100$ 65$ 32$ (30)$ 429$ (30)$ 399$
Plant closure - - - 6 - 6 - 6
Certain mark-to-market transactions - - - - - - 46 46
Operating Earnings 262$ 100$ 65$ 38$ (30)$ 435$ 16$ 451$
Net Income (millions)
YTD 2016
DTE
Electric DTE Gas
Gas Storage
and Pipelines
Power and
Industrial
Projects
Corporate
and Other
Growth
Segments
Energy
Trading DTE Energy
Reported Earnings 1.46$ 0.56$ 0.36$ 0.18$ (0.17)$ 2.39$ (0.17)$ 2.22$
Plant closure - - - 0.03 - 0.03 - 0.03
Certain mark-to-market transactions - - - - - - 0.26 0.26
Operating Earnings 1.46$ 0.56$ 0.36$ 0.21$ (0.17)$ 2.42$ 0.09$ 2.51$
EPS
June YTD 2016 Reconciliation of Reported to
Operating Earnings
26
Use of Operating Earnings Information – DTE Energy management believes that operating earnings provide a more meaningful representation of the company’s earnings from ongoing
operations and uses operating earnings as the primary performance measurement for external communications with analysts and investors. Internally, DTE Energy uses operating
earnings to measure performance against budget and to report to the Board of Directors. Operating earnings are presented both with and without Energy Trading. The term “Growth
Segments” refers to DTE Energy without Energy Trading and represents the business segments that management expects to generate earnings growth going forward.
2Q 2015
DTE
Electric DTE Gas
Gas Storage
and Pipelines
Power and
Industrial
Projects
Corporate
and Other
Growth
Segments
Energy
Trading DTE Energy
Reported Earnings 99$ (7)$ 25$ 8$ (13)$ 112$ (3)$ 109$
2011/2012 PSCR disallowance 12 - - - - 12 - 12
Contract termination - - - 10 - 10 - 10
Certain mark-to-market transactions - - - - - - 6 6
Operating Earnings 111$ (7)$ 25$ 18$ (13)$ 134$ 3$ 137$
Net Income (millions)
2Q 2015
DTE
Electric DTE Gas
Gas Storage
and Pipelines
Power and
Industrial
Projects
Corporate
and Other
Growth
Segments
Energy
Trading DTE Energy
Repor ed Earnings 0.55 (0.04 0.14 0.05 (0.07 0.63 (0.02) 0.61
2011/2012 PSCR disallowance 0.07 - - - - 0.07 - 0.07
Contract termination - - - 0.05 - 0.05 - 0.05
Certain mark-to-market transactions - - - - - - 0.03 0.03
Operating Earnings 0.62$ (0.04)$ 0.14$ 0.10$ (0.07)$ 0.75$ 0.01$ 0.76$
EPS
2nd Quarter 2015 Reconciliation of Reported to
Operating Earnings
27
Use of Operating Earnings Information – DTE Energy management believes that operating earnings provide a more meaningful representation of the company’s earnings from ongoing
operations and uses operating earnings as the primary performance measurement for external communications with analysts and investors. Internally, DTE Energy uses operating
earnings to measure performance against budget and to report to the Board of Directors. Operating earnings are presented both with and without Energy Trading. The term “Growth
Segments” refers to DTE Energy without Energy Trading and represents the business segments that management expects to generate earnings growth going forward.
YTD 2015
DTE
Electric DTE Gas
Gas Storage
and Pipelines
Power and
Industrial
Projects
Corporate
and Other
Growth
Segments
Energy
Trading DTE Energy
R rted rnings 235$ 104$ 52$ 41$ (38)$ 394$ (12)$ 382$
2011/2012 PSCR disallowance 12 - - - - 12 - 12
Contract termination - - - 10 - 10 - 10
Natural gas pipeline refund - - - - - - (10) (10)
Certain mark-to-market transactions - - - - - - 37 37
Operating Earnings 247$ 104$ 52$ 51$ (38)$ 416$ 15$ 431$
Net Income (millions)
YT 2015
DTE
Electric DTE Gas
Gas Storage
and Pipelines
Power and
Industrial
Projects
Corporate
and Other
Growth
Segments
Energy
Trading DTE Energy
Reported E nings 1.31$ 0.58$ 0.29$ 0.23$ (0.21)$ 2.20$ (0.0 )$ 2.13$
2011/2012 PSCR disallowance 0.0 - - - - 0.07 - 0.07
Contract termination - - - 0.05 - 0.05 - 0.05
Natural gas pipeline refund - - - - - - (0.06) (0.06)
Certain mark-to-market transactions - - - - - - 0.22 0.22
Operating Earnings 1.38$ 0.58$ 0.29$ 0.28$ (0.21)$ 2.32$ 0.09$ 2.41$
EPS
June YTD 2015 Reconciliation of Reported to
Operating Earnings
28
2011 – 2015 Full Year
Reconciliation of Reported to Operating Earnings
2011 2012 2013 2014 2015 2011 2012 2013 2014 2015
DTE Energy Reported Earnings 711$ 610$ 661$ 905$ 727$ 4.18$ 3.55$ 3.76$ 5.10$ 4.05$
DTE Electric
Fermi 1 asset retirement obligation 9 0.05
2011/2012 PSCR disallowance 12 0.07
Tree trimming disallowance 8 0.05
DTE Gas
Gas Storage & Pipelines
Power & Industrial Projects
Coke oven gas settlement 7 0.04
Chicago Fuels terminal sale 2 0.01
Pet coke mill impairment 1 0.01
Asset impairment 4 0.02
Contract termination 10 0.05
Plant closure 69 0.39
Energy Trading
Certain mark-to-market transactions 55 (102) 47 0.31 (0.57) 0.26
Natural gas pipeline refund (10) (0.05)
Corporate & Other
Michigan corporate income tax adj. (87) (0.50)
Investment impairment 5 0.03
NY state tax law change 8 0.04
Unconventional Gas
Discontinued operations 3 56 0.02 0.33
DTE Energy Operating Earnings 636$ 676$ 720$ 816$ 863$ 3.75$ 3.94$ 4.09$ 4.60$ 4.82$
Net Income (millions) EPS
Use of Operating Earnings Information – DTE Energy management believes that operating earnings provide a more meaningful representation of the company’s earnings from ongoing
operations and uses operating earnings as the primary performance measurement for external communications with analysts and investors. Internally, DTE Energy uses operating
earnings to measure performance against budget and to report to the Board of Directors.
Use of Operating Earnings Information – DTE Energy management believes that operating earnings
provide a more meaningful representation of the company’s earnings from ongoing operations and uses
operating earnings as the primary performance measurement for external communications with analysts
and investors. Internally, DTE Energy uses operating earnings to measure performance against budget
and to report to the Board of Directors.
In this presentation, DTE Energy provides guidance for future period operating earnings. It is likely that
certain items that impact the company’s future period reported results will be excluded from operating
results. A reconciliation to the comparable future period reported earnings is not provided because it is not
possible to provide a reliable forecast of specific line items. These items may fluctuate significantly from
period to period and may have a significant impact on reported earnings.
For comparative purposes, 2011 and 2012 operating earnings exclude the Unconventional Gas Production
segment that was classified as a discontinued operation on 12/31/2012.
29
Reconciliation of Other Reported to Operating
Earnings