Dte Energy Company · NYSE:DTE
Dte Energy — AGA Financial Forum 2012
40 slides from Dte Energy's conference presentation, May 7, 2012
Slide 1: AGA Financial Forum, May 7-8, 2012
Exhibit 99.1 AGA7-8, Gerry Jerry May Norcia, Financial Anderson, 2012Chief Forum Chairman, Operating President Officer and President CEO of MichCon
Slide 2: Safe Harbor Statement
Safe The FERC, regulatory conditions receivable; environmental volatility y losses of application phenomena relations plant interpretation Exchange forward-looking reflect “Forward-Looking conjunction Cautionary production reserves” Q, 2 800-SEC-0330. ratings; significant File information Harbor and
Slide 3: Business Overview – Detroit Edison
Business Overview – 3 Detroit& Power MichConUpdate Edison Industrial and Gas Storage Projects& Pipelines
Slide 4: DTE Energy: Strong, Complementary Businesses
DTEStorage Strong, ~80% Electric Natural Complementary ~20% Gas Transport Power Own Energy Generate Unconventional Production Detroit 4 Energy and of &Edison Trading Stable gas generation DTE Industrial economic operate and of distribution &isshale store Energy’s and MichCon Pipelines an Gas Non-Uti
Slide 5: DTE Energy Targeting ~7% Earnings Growth
DTE Targeting ~7% earnings Operating $3.30 $3.60 $3.73 $3.80** Guidance $2.12 $2.18 $2.32 EPS* 5%-6% per Dividend 2008A * ** 5 Reconciliation Midpoint share CAGR Energy $2.12 2009A EPS growth 5%—6% $2.89 EPS CAGR of Earnings 2010A $3.65—$3.95 toGrowth GAAP Long-Term Payout 2011A & Dividend from repo
Slide 6: Michigan Economy Shows Signs of Improvement
%006 14 Lowest 12 D 4 8 (000’s) Quarterly 600 Detroit Michigan 2005 Territory Q1 Southeast Beginning Annual 10 0 2 Uptick (1Q * 6 ec-09 Source: Michigan August Declining* 400 2012 2006 2007 in Edison 800 Jun-10 since permits 2012 Auto Bureau IHS Census housing auto Economy Michigan 2008 to 2007 2008
Slide 7: 24% Fewer Normal HDDs in 1Q 2012
24% Fewer 1962 1,000 1,500 2,000 2,500 3,000 3,230** Normal 3,500 HDD’s Jan-Mar* MichCon:($23) Energy *Data **Normal HDDs Actions Procurement O&M Further Revenue Storage Potential 7 1967 source: (Heating Trading: expansion opportunities & being to upside HDDs Pipelines Offset 1972 HDDs and National
Slide 8: Impact of Weather and Gas Prices on Segments
Impact Regulated Lower Monetization Power New Bluestone Marcellus Energy Expect 8 opportunities & fuel of little Trading Industrial Low well anchor Utilities and long-term tied Gas positioned purchased customer tofor Unconventional Projects Price oilonsite impact play on on power has DTE co-generati
Slide 9: Outlook: US Gas Supply and Demand
Outlook US 80 Bcf/d 60 Demand to 40 20 Gas fill Supply new Supply for New Natural and drilling shortfall Demand Gas Demand &cost Supply 2011 4 4drilling Production 1. 2015 6 $/MMBtu1 2Source: Susquehanna8with 2012 6Gas Fayetteville wells 2 8-10 New 0 Bcf/d Marcellus 9 NE Ford Incremental Bcf/d drill
Slide 10: Business Overview – Detroit Edison
Business Overview – Detroit& Power MichConUpdate Edison Industrial and Gas Storage Projects& Pipelines
Slide 11: Detroit Edison Investment Base
Detroit Investment Base Infrastructure* ~$4 Investments of distribution $255 $785 * 11 generation billion Environmental million Edison Includes $1.3—$1.8 Profile, systems toinvestment fleet ensure Compliance AMI, and 2012 $235 Renewable reliability Ludington environmental billion in –million 2016 20
Slide 12: Detroit Edison Dry Sorbent Injection for MATS
Detroit Dry St DSI * 12 ** Clair Sorbent reduces effective not Edison MATS Power fundamental Source: emissions Injection for SNL(Mercury Plant Detroit to(DSI) tosupply Financial Edison and comply Air stack coal-fired Toxics with position MATS* Standard). fleet foroDetroit AllowsEdison majority coal
Slide 13: Detroit Edison Renewable Energy: Thumb Wind Parks
Detroit Renewable Thumb 110 In-service ~$250 New Gratiot 212 102 by 13 Detroit MW Wind million Wind Edison Wind (64 4Q Edison Park Energy turbines) Energy Parks 2012 capital online (Huron Wind 110 investment March owned County) Development MW2012 and Wind operated 2013 Construction ~$250 million cap
Slide 14: Business Overview – Industrial Projects
Business Overview – 14Detroit& Power MichConUpdate Edison Industrial and Gas Storage Projects& Pipelines
Slide 15: Power & Industrial Projects Earnings
PowerFuel Earnings Earnings* ~$25 ~$125 ($millions) ~$35 development ~$60 $45—$55 Energy $38* ~$75 ~($70) Services interest 2011A Renewable Wood-fired Reduced Midwest Industrial Steam *Reconciliation 15 New Renewable Reduced Industrial &2012E Corporate &Emissions Utility Chilled Potential Industrial
Slide 16: Reduced Emissions Fuel Facility Operations
PowerFacility Reduced 2012 Operations Working Earnings 2012: 2013-2021: REF Significant 16 Status ~$30 & to Emission Outlook Industrial and value relocate Average million at volume Monroe and Fuels Projects earnings four annual strong on Power units Development target earnings earnings contribution
Slide 17: Business Overview – MichCon
Business Overview – 17Detroit& Power MichConUpdate Edison Industrial and Gas Storage Projects& Pipelines
Slide 18: MichCon Investment Base
Investment MichCon Base Main Meter Strengthen Transmission 660 10 Move Improves Rate (includes 18 years mile case Capital Renewal out Move-out ($500 main infrastructure customer filed ~25,000 and Profile, $675 pipeline replacement $250 in million expand $115 April million meters 2012 service million
Slide 19: Natural Gas Vehicles and CNG Program
Natural CNG 000’s 150 500 1,200 2,000 2009 * 19 250 **CNG 2010 Fueling GGE** Propane Ethanol Price MichCon 18 Over Source—U.S. Gas Dispensed Nationwide CNG** Gasoline Diesel Biodiesel NGVs 2011 compressed 170 in $3.46 GGE** $4.44 is $2.13Vehicles $4.26Station $3.37 2012E vehicles $4.14 NGV byFuel co
Slide 20: Gas Storage & Pipelines Growth Opportunities
Growth Gas ($millions) $57* 2011A Millennium First service Second * 20 Storage two $57-60 2012E Expansionlate expansion: Reconciliation Opportunities expansions 2~$100 12012 Mainline &2013E Pipelines FERC fully “Minisink “Hancock 2014E Expansions from toSolid GAAP approval contracted Marcellus 2015E
Slide 21: Bluestone Pipeline Gathering Update
Gasservice Bluestone Phase Right-of-way Gathering In Additional 180,000 21 Storage 1 acres 2Bluestone 2012 system Pipeline Gathering &and within Pipelines construction permitting Project & 5Opportunities Gathering miles $280 nearly ofunderway; million Bluestone Update complete investment portion 6 m
Slide 22: DTE Energy Investment Thesis
Investment DTE – 5%-6% Attractive 22Utility Constructive Plans Meaningful, Energy in Average growth place Dividend Thesis has low-risk regulatory to plan Annual a achieve plan driven growth itEPS believes structure operational by Growth opportunities mandated will andexcellence provide continued inv
Slide 23: Contact DTE Energy Investor Relations
Contact DTE 23 Energy Us Investor Relations www.dteenergy.com/investors 313-235-8030
Slide 24: Appendix
Appendix
Slide 25: 2012 Operating Earnings Guidance
2012Storage 2011 (millions, Full Detroit Continued MichCon Modest Gas Unconventional Power Production Energy Projects balance Corporate DTE Operating Avg. * 25 year Shares Energy 2012 Operating &Edison Trading Reconciliation incremental ofrate Industrial 110 except & EPS year cost 2012 Outstanding &
Slide 26: Capital Expenditures and Cash Flow Summary
2012 ($ 2011 Actual Detroit Environmental Capital Renewables Free $1,202 Operational MichCon Expansion $180 Non-Utility Other Total Equity and 26 millions)($ not Cash 2012 Capital $215 $1,528 $146 Guidance issued $1,275 Edison Expenditures Spending(1.5)(1.9) included Flow 25 Net $430 /$155 $688 /$1,
Slide 27: Strong Balance Sheet Supports Growth
Strong 50%—52% Leverage* 51% •– Funds 28% 22%—24% Target 2010 *Debt 27Series Leverage Fitch 51% 24% 2011 excludes from Balance upgraded of 22% 50% credit 2012E and Operations • A cash strong Sheet securitization, improvements Detroit – Moody’s flow Supports balance / Debt* Edison metrics raised ashe
Slide 28: Continuous Improvement of Utility O&M Costs
Continuous Other ($ $1,635 ~$350 ~$1,900 $1,550 2005 Utility *Excludes **Includes 28 millions) 2006 Costs Operations O&M Target ~$1,590** bad 2007 $40 Improvement reduction debt million 2008 and $1,550 expense, 2009 Maintenance of Efforts $85 higher 2010 energy million storm 2011 Offsetting Expense*
Slide 29: Michigan Public Service Commission Commissioners
Michigan The Commissioners No One John Chairman Appointed: Term Source: (Republican)(Democrat)(Independent) 29 more Michigan commissioner Quackenbush Ends: MPSC than Public Commissioner 9/15/11 7/2/17 two Public website—www.michigan.gov/mpsc—Jan. are Service Commissioners Term is Orjiakor appointed
Slide 30: MichCon Estimated Rate Case Highlights
MichCon Estimated ($ $27 *Projected $49 Rate Represents Lower $377 Other Timing – 3011% Modified Infrastructure Filed: Self-implement: Final millions) $1 Case million highlights return Sales $77 Order: April Rate Net Highlights annualized annual revenue due increase on 2012 By Rate Case recovery equ
Slide 31: Gas Storage & Pipelines Assets Overview
GasBcf Vector 348 Millennium DTE Fully 90 26,200 Michigan Comprised MichCon Two Storage Pipeline 31 miles Storage systems: Gas contracted Pipeline of H.P. Assets Interests Storage storage Gathering ofof of Pipeline &pipe; One MichCon compression Pipeline: –(6 (> 40% capacity 120,000 designed year 10
Slide 32: Barnett Shale Reserves and Production
Barnett Reserves 555 17 201 70 Acres 32 354 215 224 559 186 YE2011 5.1 1Q 9 20122012 373 6—7Shale 17 87 71 Prudently Pursue new (Bcfe) Goals 88Operating Proven (Unaudited) YE2010 Gross Net Producing wells Acreage Developed monetization Probable YE2011 1Q Results manage 2012 Acres on-line, Wells YE20
Slide 33: Unconventional Production: Marble Falls Oil Play
Unconventional Revenue NGL 2010 Proved Oil Gas NGL39% 2009 * 33 Well – and 60% 11% Focus Wells10% 50% 2011 2010 30% reserves Natural NGLs* by Attractive Vertical Potential ~65,000 2012E 2011 payback product confirming on driving gas maturing wells well net upsideby Gas: product economics period acre
Slide 34: Energy Trading Operating Earnings Reconciliation
DTE Operating ($2)($2) $0 $22 $2 Economic communications * millions) 2012 $24 $2($2) ** Energy Reconciliation Operating transmission unrealized Energy ($ Earnings* 1Q Realized Unrealized O&M 34 millions, Consists 2011 Earnings* Adjustments** netTrading / Trading income with Other(14)(11) 1Q $16 purc
Slide 35: Reconciliation to Operating Earnings: 1Q 2011
Reconciliation Use uses against 1Q Gas DTE Energy Reported Fermi Operating 35 2011 of Power operating Electric 1Operating budget Utility Asset Net $EPS Earnings Earnings &Income Gas Retirement Utility earnings and of Earnings 1Q Storage $176 $1.04 to$1.11 $188 ($ 2011 report Pipelines as millions) $
Slide 36: Reconciliation to Operating Earnings: 2011
Reconciliation to Use earnings Internally, Adjustment(87)————(87) 2011 Gas DTE Energy Reported Michigan Fermi Adjustment(0.50)————(0.50) Operating 36 Operating ofElectric Power Net $EPS 1Operating Utility Asset from Income Earnings Corporate Earnings DTE &Earnings Gas Retirement ongoing Utility ofEn
Slide 37: Reconciliation to Operating Earnings: 2010
Reconciliation to Use earnings Internally, 2010 Gas DTE Energy Reported Performance Cost Settlement Operating * 37 Operating of Power to Electric Net $EPS Operating Achieve Utility Deferral from Earnings Income Earnings DTE with &Earnings Excellence Gas ongoing Utility ofEnergy Detroit Deferral*(20)
Slide 38: Reconciliation to Operating Earnings: 2009
Reconciliation to Use earnings Internally, FY Gas DTE Energy Reported Gain assets Goodwill treating Chrysler General Antrim Operating 38 Operating 2009 ofElectric Power on(before Operating Utility Hedge assets Motors Sale—gathering from Bad Net $EPS Earnings allocation—gathering Earnings DTE &Earnin
Slide 39: Reconciliation to Operating Earnings: 2008
Reconciliation to Use earnings Internally, FY Gas DTE Energy Reported Performance Core Antrim Barnett Crete Synfuel Operating 39 Operating 2008 ofElectric Power Barnett Sale—Tax Operating Utility hedge Lease Discontinued from Net $EPS Earnings Earnings DTE &Earnings Excellence Sale(81)——(81)—— Sale(
Slide 40: Use of Operating Earnings Information
Reconciliation Use uses against In operating fluctuate There 40 this of operating were presentation, Operating budget significantly results. no earnings reported and of AEarnings Other to reconciliation DTE report from to as Reported Energy operating the Information period toprimary theprovides to t