Dte Energy Company · NYSE:DTE
Dte Energy — Q2 2024 Earnings Presentation
19 slides from Dte Energy's earnings presentation, Jul 25, 2024
Slide 1: 2Q 2024 Earnings Conference Call
2Q 2024 Earnings Conference Call July 25, 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 ✓ Received Gallup Great Workplace Award for 12th consecutive year ✓ 2024 Best Employers award for excellence in health and well-being Address
Slide 5: Achieving success across all businesses
Achieving success across all businesses ✓ Strong first half of 2024; on track to achieve full-year guidance and well-positioned for future growth ✓ Progressing toward constructive rate orders • DTE Electric rate case filing underpins customer-focused investments in system reliability, grid moderniza
Slide 6: 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 • $2.5 billion Henry Ford Health, Detroit Pistons and Michigan
Slide 7: Executing customer-focused capital investment plan while maintaining affordability
Executing customer-focused capital investment plan while maintaining affordability Investing in reliability and cleaner generation 5-year investment plan (2024 – 2028) • Modernizing electric grid: preparing for impacts of increased extreme weather Investing 95% in utilities (billions) events and inc
Slide 8: Continued progress on improving reliability
Continued progress on improving reliability Transitioning to a smarter grid • More than 200 automated reclosers installed in 2023 • Targeting to automate entire system over the next five years ✓ Helps quickly locate and isolate outages to speed restoration Updating existing infrastructure • New pole
Slide 9: 2Q 2024 operating earnings variance
2Q 2024 operating earnings1 variance (millions, except EPS) 2023 2024 Variance Primary drivers Rate implementation and warmer weather partially offset by DTE Electric $178 $279 $101 higher rate base costs Warmer weather and higher rate base costs partially offset by DTE Gas 24 12 (12) IRM revenue Ti
Slide 10: 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 11: Increased utility investment focused on improved reliability and cleaner generation
Increased utility 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 Operating EPS guidance midpoint customers, communities and investors ✓ Customer-focused capital invest
Slide 12: Appendix
Appendix 12
Slide 13: Rate case underpins next step in grid reliability and cleaner generation investment
Rate case underpins next step in our $9 billion grid reliability and $7 billion cleaner generation investment commitment while maintaining affordability Committed to improve reliability… …while transitioning to cleaner generation and keeping bill • Creating a more reliable grid over the next five ye
Slide 14: Weather impact on sales
Weather impact on sales DTE Electric DTE Gas Cooling degree days1 Heating degree days3 % YTD YTD % % YTD YTD % 2Q 2023 2Q 2024 2Q 2023 2Q 2024 Change 2023 2024 Change Change 2023 2024 Change Actuals 184 292 59% 184 292 59% Actuals 741 560 (24%) 3,563 3,303 (7%) Normal 252 253 0% 252 253 0% Normal 79
Slide 15: 2024 operating EPS guidance midpoint provides 7% growth over 2023
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 DTE Vantage 125 - 135 Energy Trading 30 - 40 Corporate & Other (195) - (185) DTE Energy $1,355 - $1,415 Operating EPS $6.5
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 2023 YTD 2024 YTD 2023 YTD 2024 DTE Electric Cash from operations1 $1.8 $1.8 Base infrastructure $524 $422 Capital expenditures (1.9) (2.5) New generation 230 515 Free cash flow ($0.1) ($0.7) Distribution inf
Slide 18: 2Q 2023 and 2Q 2024 reconciliation of reported to operating earnings
2Q 2023 and 2Q 2024 reconciliation of reported to operating earnings (non- GAAP) and operating EPS (non-GAAP) (Earnings per share2) Adjustments key A) One-time costs resulting from the voluntary separation incentive program - recorded in Operating Expenses - Operation and maintenance B) Gain on sale
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