Dte Energy Company · NYSE:DTE
Dte Energy — Merger or Acquisition (September 2016)
17 slides from Dte Energy's merger presentation, Sep 26, 2016
Slide 1: Gas Midstream Acquisition and 2016 Guidance Update
Gas Midstream Acquisition and 2016 Guidance Update September 27, 2016 EXHIBIT 99.1
Slide 2: Safe Harbor Statement
Safe Harbor Statement 2 Certain information presented herein includes “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 with respect to the financial condition, results of operations, and businesses of DTE Energy. Words such as “anticipate,” “bel
Slide 3: Contact Us
DTE Energy Investor Relations www.dteenergy.com/investors (313) 235-8030 3 Contact Us
Slide 4: Gas Midstream Acquisition and 2016 Guidance Update
• Gas Midstream Acquisition • 2016 Guidance Update 4
Slide 5: DTE Energy is purchasing a new asset in the SW Marcellus / Dry Utica region
Delivers solid economics underpinned by long-term contracts and high-quality reserves Expands our footprint in the most prolific geology in the country spanning the heart of the SW Marcellus/Dry Utica Provides platform for new value creation with significant growth potential Complements our existing
Slide 6: Acquisition complements our existing gas midstream business
6 Acquisition of attractive gas midstream assets complements our existing gas midstream business Connects market to demand in Michigan, Ohio, Chicago and Ontario, Canada through NEXUS Connects geographically and strategically to our current assets Provides access to high quality reserves in the SW M
Slide 7: Expands footprint in most prolific geology in the country
7 % DTE Ownership 100% 55% In-Service 2012-2013 2015 Length (miles) 110 67 Diameter 16”- 24” 36” Capacity (Bcf/d) 0.7 1.5 Partners Expands footprint in most prolific geology in the country spanning SW Marcellus/Dry Utica 2 Customers AGS SGG AGS SGG / Contracts Average Tenor (Years) Contracted (Perce
Slide 8: This asset lies in one of the most economically favorable shale basins
8 This asset lies in one of the most economically favorable shale basins $ / MMBtu 2 $0 $1 $2 $3 $4 $5 Marcellus Shale NE Core Marcellus Shale SW Source: Credit Suisse February 2016 report and Wright and Company Feeds Bluestone/ Millennium Basin feeding AGS/SGG US Shale Basin Economics NYMEX Gas Pri
Slide 9: Platform for new value creation with significant growth potential
Platform for new value creation with significant growth potential Expansion potential over 1 Bcf/d New set of producer relationships U p si d e P o tentia l 3 9 Synergies with NEXUS Significant stacked play opportunities
Slide 10: Positive impact to our GSP business
10 Positive impact to our GSP business 4 * Reconciliation to GAAP reported earnings included in the appendix GSP Operating Earnings* 2010 2016E 2020E $115 - $120 $195 $51 Pipelines Gathering Storage • GSP has a solid track record for earnings results • Trend continues with projected earnings CAGR of
Slide 11: Transaction economics are strong and provide excellent returns
11 Transaction economics are strong and provide excellent returns Purchase Price $1.3 billion EPS Accretion Accretive beginning in 2017 and $0.10 accretive in 2020 with potential to be significantly higher in out years Operational / Regulatory Construction and regulatory risks eliminated Financing P
Slide 12: In summary, this transaction adds another platform for growth
12 In summary, this transaction adds another platform for growth and is complementary to DTE’s current portfolio Supports DTE’s strategy to invest in strategically situated assets… …gateway to multiple growth opportunities in the area creating synergies with existing assets Complements existing as
Slide 13: Gas Midstream Acquisition and 2016 Guidance Update
• Gas Midstream Acquisition • 2016 Guidance Update 13
Slide 14: Increasing our 2016 operating EPS guidance
* Reconciliation to GAAP reported earnings included in the appendix ** Total DTE Energy excluding Energy Trading Prior 2016 Guidance 2016 YTD 2Q Actuals DTE Electric DTE Gas Gas Storage & Pipelines Power & Industrial Projects Corporate & Other Growth segments** Growth segments operating EPS Energy T
Slide 15: June YTD 2016 Reconciliation of Reported to Operating Earnings
15 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 an
Slide 16: Reconciliation of 2010 Reported to Operating Earnings
Reconciliation of 2010 Reported to Operating Earnings 16 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 me
Slide 17: Use of Operating Earnings Information
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 i