Slide 1: Business Update August 18, 2016
Business Update August 18, 2016 EXHIBIT 99.1
Slide 2: Safe Harbor Statement
Safe Harbor Statement 2 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; t
Slide 3: Overview, Long-Term Growth Update, Summary
• Overview • Long-Term Growth Update • Summary 3
Slide 4: DTE Energy's growth is driven by strong, stable utilities and complementary non-utility businesses
DTE Energy’s growth is driven by strong, stable utilities and complementary non-utility businesses 4 DTE Electric • Electric generation and distribution • 2.2 million customers DTE Gas • Natural gas transmission, storage and distribution • 1.2 million customers Complementary Non-Utility Businesses S
Slide 5: Our business strategy is fundamental to how we create value for our investors
Our business strategy is fundamental to how we create value for our investors 5 5% - 6% Annual EPS Growth Attractive Dividend Strong Balance Sheet Utility growth plan driven by infrastructure investments Strategic and transparent growth opportunities in non-utility businesses provide diversity i
Slide 6: Operating EPS and dividend growth; raised 2016 guidance
$4.82 $2.35 $2.48 $2.62 $2.76 $2.92 $3.08 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Raised 2016 operating EPS* guidance to a midpoint of $5.05 6 * Reconciliation to GAAP reported earnings included in the appendix (dollars per share) Operating EPS Dividend (Annualized) Actuals Forecast Divide
Slide 7: Overview, Long-Term Growth Update, Summary
• Overview • Long-Term Growth Update • Summary 7
Slide 8: Infrastructure improvements drive capital investments through 2020
~$13 $8.2 Distribution infrastructure, maintenance, new generation $1.6 Base investments, infrastructure renewal, NEXUS related $2.0-$2.6 Gathering investments, NEXUS, pipeline expansions $0.6-$0.9 Cogeneration, on-site energy 2016 – 2020 Current Plan 8 ~$10 2011 – 2015 Actual P&I GSP Gas Electric D
Slide 9: Electric generation and infrastructure renewal will significantly increase investment
Electric generation and infrastructure renewal will significantly increase investment in the decade ahead 32% DTE Electric Investment $8.2 $9.7 2016-2020 2021-2025 $7.1 2011-2015 New generation Distribution infrastructure 9 Maintenance and other projects (billions) ~$18 billion next 10 years The ele
Slide 10: DTE Electric has already begun to retire its coal-fired generation
DTE Electric has already begun to retire its coal-fired generation 10 Note: Estimated amounts. Timing and mix of generation impacted by MISO capacity requirements and Michigan and EPA policies 2030 Scenario 55% 2015 20% 15% 12.4 25% 15%-30% 15% Nuclear/Other Gas Renewables Coal 10% 30%-45% Electric
Slide 11: Strengthening and expanding our gas infrastructure
Strengthening and expanding our gas infrastructure will reduce leaks and lost gas while creating and supporting Michigan jobs 11 2011-2015 2016-2020 $1.1 $1.6 DTE Gas Investment Base infrastructure Infrastructure renewal NEXUS related (billions) • $200 million through 2017 • Primarily additional com
Slide 12: Gas Storage & Pipelines has an asset portfolio with multiple growth platforms
12 Gas Storage & Pipelines has an asset portfolio with multiple growth platforms NEXUS Pipeline DTE Gas DTE Storage Marcellus Shale Utica Shale Bluestone Pipeline Bluestone Gathering System Michigan Gathering Millennium Pipeline Vector Pipeline (40%) • Bi-directional pipe • Firm capacity/demand-base
Slide 13: NEXUS project is progressing
13 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 • Draf
Slide 14: Power & Industrial Projects operates within three distinct business lines in 17 states
Power & Industrial Projects operates within three distinct business lines in 17 states DTW Airport, Michigan Gallia Fuels Project, Ohio Mt. Poso Waste Wood Project, California • On-site utility services for industrial and commercial customers • Coke and pulverized coal for steel customers • Wood-fir
Slide 15: Overview, Long-Term Growth Update, Summary
• Overview • Long-Term Growth Update • Summary 15
Slide 16: Summary
• Raised 2016 operating EPS* guidance by $0.12... ...in light of strong year-to-date performance • Increased 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... ...providin
Slide 17: Contact Us
DTE Energy Investor Relations www.dteenergy.com/investors (313) 235-8030 17 Contact Us
Slide 18: Appendix
Appendix
Slide 19: We continue to make progress on many fronts
19 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 regard
Slide 20: Energy legislation continues to move forward
20 Energy legislation continues to move forward • Key provisions include − Capacity requirements for all electricity providers − Integrated resource planning pre- approval process − Energy efficiency related incentives and revenue decoupling • 2008 law works well and includes − 10% retail open acces
Slide 21: Increased our 2016 operating EPS guidance
* Reconciliation to GAAP reported earnings included in the appendix ** Total DTE Energy excluding Energy Trading 2016 Original Guidance DTE Electric DTE Gas Gas Storage & Pipelines Power & Industrial Projects Corporate & Other Growth segments** Growth segments operating EPS Energy Trading DTE Energy
Slide 22: Capital Expenditures and Cash Flow Summary
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) *
Slide 23: A strong balance sheet remains a key priority to support growth
25% 21% 2014 2015 2016-2018E 51% 52% 2014 2015 2016-2018E Leverage* A strong balance sheet remains a key priority to support 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** / Debt* Targ
Slide 24: DTE targets total shareholder returns of 8-10%
DTE targets total shareholder returns of 8-10% 24 * Source: Bloomberg (as of 6/30/16) 2009 2010 2011 2012 2013 2014 2015 2016 Annualized Dividend per Share $2.12 $3.08 140% 280% 107% 184% DTE Energy S&P 500 Utilities 10-YR 5-YR Total Shareholder Return (TSR)* Top quartile (dollars per share) Over 10
Slide 25: $6.5 billion investment on distribution infrastructure
Of the $18 billion investment over the next 10 years, we will invest $6.5 billion on distribution infrastructure 32% 2016-2025 ~$18 Maintenance and other projects New generation Distribution infrastructure DTE Electric Total Investment 25 (billions) • $6.5 billion over next 10 years • Potential to i
Slide 26: Paving the way for cleaner energy for our customers
26 Paving the way for cleaner energy for our customers Generated/contracted enough electricity from renewable sources to power over 400,000 homes in 2015 • Announced retirement of 2.5 GW of less-efficient coal-fired generation – Capacity will be retired by 2023 – Combination of baseload gas and sola
Slide 27: Significant emissions reductions already achieved
Significant emissions reductions have already been achieved and we continue on the path to clean energy 32% 27 2005 2015 2030 CO2 Emissions 16% Reduction 2005 2015 2030 2005 2015 2030 NOX Emissions SO2 Emissions • Emissions reductions are largely due to $2 billion in controls installed at Monroe Pow
Slide 28: We remain focused on customer affordability
Average Annual Residential Bill* DTE Electric We remain focused on customer affordability 28 $1,223 $1,225 2012 2013 2014 2015 2016E 2017E Average Annual Residential Bill** DTE Gas $910 2012 2013 2014 2015 2016E 2017E 9% Flat ** Assumes normal weather and implementing $180 million rate increase begi
Slide 29: DTE Electric plans $8.2 billion of investments over the next 5 years
DTE Electric plans $8.2 billion of investments over the next 5 years 2015A 2016E 2017E 2018E 2019E 2020E Distribution infrastructure New generation Maintenance and other projects* 2016E - 2020E Total $14.8B ~$19.8B YE Rate Base** $662M ~$886M Depreciation * Includes power reliability, existing gener
Slide 30: DTE Gas plans $1.6 billion of investments
DTE Gas plans $1.6 billion of investments over the next 5 years 2015A 2016E 2017E 2018E 2019E 2020E 2016E - 2020E Total Base infrastructure Main Replacement* NEXUS related $1,600 $200 $600 $800 $3.3B ~$4.6B - $4.7B YE Rate Base** $102M ~$137M Depreciation ** Includes working capital $273 $430 $375 $
Slide 31: Strong results from Utica and Marcellus increasing expectations for the basin
0 5 10 15 20 25 30 2010 2015 2020 2025 2016 Forecast Utica / SW Marcellus Supply Growth (Bcf/d) Actuals 2012 Forecast 2013 Forecast 2014 Forecast 2015 Forecast Strong results from the Utica and Marcellus region are increasing expectations for the basin 31 Source: IHS CERA US Shale Basin Economics (N
Slide 32: Interconnect agreements provide strong support on the NEXUS path
Interconnect agreements provide strong support on the NEXUS path up to 1.75 Bcf/d 32
Slide 33: Gas Storage & Pipelines is focused on continued success in pipeline and gathering
Gas Storage & Pipelines is focused on continued success in pipeline and gathering • Accelerated Marcellus development in 2015 delivered 30% year over year earnings growth • Earnings growth driven by both pipeline and gathering platforms • Assessing investment opportunities given current sector dynam
Slide 34: Power & Industrial Projects is focused on replacing REF earnings
Power & Industrial Projects is focused on replacing REF earnings over the 5 year outlook • 2016 earnings in line with 2015 actuals • Higher REF earnings offset by lower steel related earnings Near-Term • Grow cogeneration portfolio • Pursue strategic asset acquisitions • Maximize REF opportunities L
Slide 35: Michigan's economy continues to improve
8.5% 7.1% 5.4% 4.8% 4.9% 2013 2014 2015 2016E 2017E Michigan’s economy continues to improve 35 Source: IHS 15.1 15.8 18.6 21.4 22.6 2013 2014 2015 2016E 2017E Unemployment Rate Housing Start Ups (000s) $407 $414 $419 $425 $432 2013 2014 2015 2016E 2017E Gross State Product (billions) Top decile in G
Slide 36: DTE rate case highlights
Filed December 18, 2015 Filed February 1, 2016 DTE Gas - 2015 Docket U-17999* DTE Electric - 2016 Docket U-18014* DTE rate case highlights • Requested rate recovery: $183 million • Test year: November 1, 2016 to October 31, 2017 • Return on Equity: 10.75% • Self implement*: $103 million on or after
Slide 37: 2011-2015 Full Year Reconciliation of Reported to Operating Earnings
2011 – 2015 Full Year Reconciliation of Reported to Operating Earnings 37 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 prima
Slide 38: 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