Dte Energy Company · NYSE:DTE
Dte Energy — Corporate Update (May 2021)
29 slides from Dte Energy's corporate update, May 12, 2021
Slide 1: DTE Energy Business Update
DTE ENERGY BUSINESS UPDATE MAY 12-14, 2021
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: Focusing on our employees, customers and communities while delivering for investors
Focusing on our employees, customers and communities while delivering for investors Employees • Recognized as a Gallup Great Workplace for the ninth consecutive year • Demonstrating a safe start to 2021 with industry-leading low OSHA rate • Building on our diversity, equity and inclusion focus with
Slide 4: Positioned to deliver significant shareholder value
Positioned to deliver significant shareholder value Continuing long track record of delivering value for shareholders with strong performance in 2020; well-positioned for 2021 ✓ Targeting 5% - 7% long-term operating EPS1 growth from 2020 original guidance midpoint ✓ 2021 operating EPS guidance provi
Slide 5: Advancing on environmental initiatives across our businesses
Advancing on environmental initiatives across our businesses ✓ Began operations on three new wind parks with a total capacity of 455 MW ✓ Filed settlement agreement for incremental voluntary renewable energy sources of 420 MW in 2022 and 380 MW from 2023 - 2025 ✓ Reached 900 MW of voluntary renewabl
Slide 6: Maintaining long-term operating EPS growth of 5% - 7% while becoming a predominantly pure-play utility
Maintaining long-term operating EPS1 growth of 5% - 7% while becoming a predominantly pure-play utility DTE annualized proforma2 operating EPS excluding Midstream • 7.4% proforma (excluding Midstream) operating EPS growth from 2020 original guidance midpoint to 2021 guidance midpoint • Continuing 5%
Slide 7: Spin generates a combined dividend expected to be higher than DTE's current dividend
Spin generates a combined dividend that is expected to be higher than DTE’s current, pre-transaction dividend ($ per share) Annualized dividend • Increased annualized dividend per share every year since ~$4.70 - $4.803 2010 $4.341 • 7% dividend increase in 2021 • Spin generates a combined dividend t
Slide 8: Maintaining strong cash flow, balance sheet and credit profile
Maintaining strong cash flow, balance sheet and credit profile (billions) Planned equity issuances • Issued $1 billion in green bonds 2021 - 2023 • Strong investment-grade credit rating $1.3 − Spin transaction is credit enhancing allowing FFO1 / Debt2 target to be lowered from 18% to ~16% • $4.1 bil
Slide 9: Two high-quality utilities operating in a constructive regulatory environment
Two high-quality utilities operating in a constructive regulatory environment Ranking of U.S. regulatory jurisdictions1 DTE Electric ROE (Michigan in tier 1) Tier 1 7 10.3% 10.1% 10.0% 10.0% 9.9% Tier 2 9 2016 2017 2018 2019 2020 Tier 3 18 Authorized ROE Earned ROE DTE Gas ROE Tier 4 9 Tier 5 8 10.1
Slide 10: DTE Electric progressed on key initiatives; accelerating distribution and generation investments
DTE Electric progressed on key initiatives; accelerating distribution and generation investments Electric investment Advanced our clean energy investments and plan to accelerate the modernization (billions) of our electric grid $14 • Progressed toward net zero carbon emissions target by 2050 $2 • Ac
Slide 11: DTE Gas progressed on key initiatives; replacing aging infrastructure
DTE Gas progressed on key initiatives; replacing aging infrastructure to reduce greenhouse gas emissions Gas investment Advanced our clean energy investments and upgrading and replacing aging (billions) infrastructure $3.5 • Targeting net zero greenhouse gas emissions by 2050 Additional $3.0 $0.5 op
Slide 12: Midstream business off to strong start in 2021; well-positioned for future success
Midstream business off to strong start in 2021; well-positioned for future success Continuing to deliver success in 2021 Key markets ✓ Executing across all platforms ✓ Targeting strong financial metrics in 2021 Ontario Northeast − Adjusted EBITDA1 target of $710 - $750 million − ~4x debt / adjusted
Slide 13: Environmental, social and governance efforts are key priorities
Environmental, social and governance efforts are key priorities; aspiring to be the best in the industry Environmental Transitioning towards net zero greenhouse gas emissions Delivering clean and reliable energy to customers Protecting our natural resources Social Focusing on the diversity, safety,
Slide 14: Award-winning commitment to being a top ESG employer in the country
Award-winning commitment to being a top ESG employer in the country Superior corporate citizenship Ambassadors Championing Veteran friendly employer America’s Most Responsible and community involvement Excellence Award for commitment Companies 2021 to supporting minority businesses Gallup Great Work
Slide 15: Environmental sustainability is critical to the creation of long-term shareholder value
Environmental sustainability is critical to the creation of long-term shareholder value Driving collaboration in the fight against climate change • Leading by example with aggressive goal to achieve net zero carbon emissions by 2050 • Active participant in coalitions that advocate for strong environ
Slide 16: Continuing the journey to provide clean and reliable energy to customers
Continuing the journey to provide clean and reliable energy to customers Current renewable energy portfolio 1,800 MW capacity Planned capacity additions 2020 – 20251 • Wind: 850 MW • Solar: 935 MW • Blue Water Energy Center: 1,100 MW Planned coal capacity retirements 2020 – 2025 • 2021 River Rouge:
Slide 17: More than doubling renewable energy by 2024
More than doubling renewable energy by 2024 Cleaner generation mix 1% 2% 17% 20% 25 – 30% Renewables 18% 20 - 25% Natural gas 20% 77% 20% Nuclear & other 45% 30% Coal 2005 2023E 2030E River St. Trenton Belle Monroe Rouge Clair Channel River 2021 2022 2030 2040 17
Slide 18: A force for growth and prosperity in the Michigan communities we serve
A force for growth and prosperity in the Michigan communities we serve World class volunteerism improves our communities Our efforts include education and mentoring programs and contributes to employee engagement Partnering with a correctional facility to train inmates to Consistently recognized as
Slide 19: Building on the momentum of the last decade, DTE is committed to Michigan investments and supplier diversity
Building on the momentum of the last decade, DTE is committed to Michigan investments and supplier diversity 19
Slide 20: Health and safety of our people is a priority
Health and safety of our people is a priority • Multiple safety committees spanning all levels of the company providing input into seasonal safety plans, addressing unique challenges of each business unit • Regular employee safety training − Leading industry OSHA rate in 2020 with safest year on rec
Slide 21: Committed to diversity, equity and inclusion
Committed to diversity, equity and inclusion; creating an environment where all are welcome Office of Diversity, Equity and Inclusion 9 active employee resource groups that promote a safe and • Led by our CEO and key executive leaders, including a Director of welcoming environment and offer professi
Slide 22: Governance framework provides shareholder rights and enables sustainable value creation
Governance framework provides shareholder rights and enables sustainable value creation ✓ Lead Independent Director ✓ Stock ownership guidelines for non-employee Directors ~9yr average tenure 3 Directors since 2018 added ✓ Majority voting standard Board diversity ✓ Annual Director elections 2 Best-i
Slide 23: Executive management compensation plan is aligned with our core priorities
Executive management compensation plan is aligned with our core priorities Priorities Performance-based compensation elements Annual incentive metrics Long-term metrics • Employee engagement Highly engaged employees • Employee safety Top decile customer • Customer satisfaction satisfaction • Custome
Slide 24: Visit us: DTE Investor Relations, 2020 ESG Report
VISIT US: DTE INVESTOR RELATIONS 2020 ESG REPORT CORPORATE CITIZENSHIP HIGHLIGHTS
Slide 25: Appendix
Appendix DTE
Slide 26: On track to achieve 2021 operating EPS guidance
On track to achieve 2021 operating EPS1 guidance (millions, except EPS) 2021 guidance DTE Electric $826 - $840 DTE Gas 202 - 212 Gas Storage & Pipelines 296 - 312 Power & Industrial Projects 147 - 163 Energy Trading 15 - 25 Corporate & Other (148) - (138) DTE Energy $1,338 - $1,414 Operating EPS $6.
Slide 27: Cash flow and capital expenditures guidance
Cash flow and capital expenditures guidance1 Cash flow Capital expenditures (billions) (millions) 2021 2021 guidance guidance Cash from operations2 $3.0 DTE Electric Base infrastructure $1,030 Capital expenditures (4.2) Free cash flow ($1.2) New generation 950 Distribution infrastructure 1,030 Divid
Slide 28: DTE Electric and DTE Gas regulatory update
DTE Electric and DTE Gas regulatory update DTE Electric DTE Gas • General rate case final order (U-20561) • Voluntary renewable plan (U-20713) • General rate case filed February 2021 (U-20940) − Effective: May 15, 2020 − Filed settlement: April 2021 − Effective: January 1, 2022 − Rate recovery: $188
Slide 29: Reconciliation of reported to operating earnings (non-GAAP)
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 more meaningful represe