Dte Energy Company · NYSE:DTE
Dte Energy — Q3 2024 Earnings Presentation
19 slides from Dte Energy's earnings presentation, Oct 24, 2024
Slide 1: 3Q 2024 Earnings Conference Call
3Q 2024 Earnings Conference Call October 24, 2024
Slide 2: Safe harbor statement
Safe harbor statement The information contained herein is as of the date of this document. DTE Energy expressly disclaims any current intention to update any forward-looking statements contained in this document as a result of new information or future events or developments. Words such as “anticipa
Slide 3: Participants
Participants Jerry Norcia – Chairman and CEO Joi Harris – President and COO Dave Ruud – Executive Vice President and CFO Matt Krupinski – Director of Investor Relations 3
Slide 4: Highly engaged team committed to delivering best-in-class results for our stakeholders
Highly engaged team committed to delivering best-in-class results for our stakeholders Continuing best-in-class engagement, health and safety of our employees ✓ 2024 Best Place to Work for Disability Inclusion Award Addressing our customers’ most vital needs ✓ Investment in automation devices saved
Slide 5: Achieving success across all businesses
Achieving success across all businesses • Strong year-to-date results in 2024; on track to achieve full-year guidance and well- positioned for future growth • Progressing toward constructive rate orders at both utilities • Received constructive feedback from third-party audit of electric distributio
Slide 6: Advancing regulatory proceedings to support improved system reliability for customers
Advancing regulatory proceedings to support improved system reliability for customers DTE Gas general rate case filing (U-21291) • Filing focuses on continued system safety, reliability and reducing carbon emissions, with a continued focus on affordability for customers • Final order expected Novemb
Slide 7: Continuing to improve reliability for our customers while focusing on affordability
Continuing to improve reliability for our customers while focusing on affordability Committed to improve reliability… …while maintaining affordability • We are committed to our goal of reducing power outages by 30% ✓ Distinctive continuous improvement culture drives and cutting outage duration in ha
Slide 8: 3Q 2024 operating earnings variance
3Q 2024 operating earnings1 variance (millions, except EPS) 2023 2024 Variance Primary drivers Rate implementation, warmer weather, lower storm expense DTE Electric $268 437 $169 and timing of taxes, partially offset by higher rate base costs Higher rate base and O&M costs partially offset by IRM DT
Slide 9: Maintaining strong cash flows, balance sheet and credit profile
Maintaining strong cash flows, balance sheet and credit profile Strong balance sheet supports robust customer-focused investment agenda • Customer-focused capital investment plan is supported by consistent, healthy cash flows • Targeting minimal equity issuances of $0 - $100 million annually through
Slide 10: Investment focused on improved reliability and cleaner generation; well-positioned for long-term growth
Investment focused on improved reliability and cleaner generation; well-positioned for long-term growth ✓ Highly engaged team committed to delivering best-in-class results for our customers, communities and investors ✓ Customer-focused capital investments support building the grid of the future and
Slide 11: Appendix
Appendix 11
Slide 12: Economic development opportunities support long-term growth
Economic development opportunities support long-term growth Economic development fuels Michigan’s growth • $4 billion General Motors investment to convert an assembly plant to produce full-size electric pickup trucks, creating 2,300 jobs • $3 billion Henry Ford Health, Detroit Pistons and Michigan S
Slide 13: Committed to maintaining affordability for our customers; top quartile in bill growth
Committed to maintaining affordability for our customers; top quartile in bill growth over the last 3 years State comparison – electric residential bill change % from 2021 to 20241 1st quartile 2nd quartile 3rd quartile 4th quartile U.S. average 16.4% Great Lakes average 9.6% 0.6% DTE Great Lake pee
Slide 14: 2024 operating EPS guidance midpoint provides 7% growth over 2023 original guidance midpoint
2024 operating EPS1 guidance midpoint provides 7% growth over 2023 original guidance midpoint (millions, except EPS) 2024 guidance DTE Electric $1,100 - $1,120 DTE Gas 295 – 305 Warmer weather DTE Vantage 125 - 135 Continued strong performance of contracted physical power and Energy Trading 30 - 40
Slide 15: Weather impact on sales
Weather impact on sales DTE Electric DTE Gas Cooling degree days1 Heating degree days3 % YTD YTD % % YTD YTD % 3Q 2023 3Q 2024 3Q 2023 3Q 2024 Change 2023 2024 Change Change 2023 2024 Change Actuals 498 619 24% 682 911 34% Actuals 77 55 (29%) 3,640 3,358 (8%) Normal 643 647 1% 895 900 1% Normal 112
Slide 16: Cash flow and capital expenditures guidance
Cash flow and capital expenditures guidance Cash flow Capital expenditures (billions) (millions) 2024 2024 guidance guidance Cash from operations1 $3.3 DTE Electric Capital expenditures (4.7) Base infrastructure $630 Free cash flow ($1.4) New generation 1,200 Dividends (0.8) Distribution infrastruct
Slide 17: Cash flow and capital expenditures
Cash flow and capital expenditures Cash flow Capital expenditures (billions) (millions) YTD 3Q YTD 3Q YTD 3Q YTD Q3 2023 2024 2023 2024 Cash from operations1 $2.4 $2.6 DTE Electric Capital expenditures (2.9) (3.7) Base infrastructure $676 $577 Free cash flow ($0.5) ($1.1) New generation 391 832 Divi
Slide 18: 3Q 2023 and 3Q 2024 reconciliation of reported to operating earnings (non-GAAP)
3Q 2023 and 3Q 2024 reconciliation of reported to operating earnings (non- GAAP) and operating EPS (non-GAAP) (Earnings per share2) Adjustments key A) Certain adjustments resulting from derivatives being marked-to-market without revaluing the underlying non-derivative contracts and assets — recorded
Slide 19: Reconciliation of reported to operating earnings (non-GAAP) Definition of net zero
Reconciliation of reported to operating earnings (non-GAAP) Use of Operating Earnings Information – Operating earnings exclude non-recurring items, certain mark-to-market adjustments and discontinued operations. DTE Energy management believes that operating earnings provide a meaningful representati