Dte Energy Company · NYSE:DTE
Dte Energy — Investor Presentation (July 2007)
17 slides from Dte Energy's investor presentation, Jul 2, 2007
Slide 1: Realizing Value for Shareholders: Power & Industrial Projects Monetization
Realizing Value for Shareholders: Power & Industrial Projects Monetization July 2, 2007
Slide 2: Safe Harbor Statement
Safe Harbor Statement The information contained herein is as of the date of this presentation. 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 "anti
Slide 3: Participants
Participants Tony Earley, Chairman and CEO Gerry Anderson, President and COO Dave Meador, Executive Vice President and CFO Lisa Muschong, Director of Investor Relations
Slide 4: Today's Announcements
Today's Announcements Sale of 50% interest in and refinancing of a portfolio of select Power & Industrial Projects to GE Corporate Lending Expect total non-utility monetization proceeds of approximately $1.5 billion in 2007 with potential upside Expect to buy back approximately $900 million of commo
Slide 5: Overview
Overview We are pleased to announce that we have taken another significant step in executing our non-utility monetization plans Agreed to sell 50% interest in a newly formed LLC that will hold a portfolio of select Power & Industrial Projects to GE Corporate Lending Includes 15 projects Transaction
Slide 6: Value Proposition
Value Proposition Including the sale of the equity interest, DTE will realize $1.3 - $1.5 billion in net cash flow over the life of these projects In addition to the $1 billion of cash flow to date, we expect to continue to generate significant value through our 50% equity ownership in these project
Slide 7: Transaction Overview
Transaction Overview Projects Included in Transaction 6 Steel Projects 3 Coke Battery Projects 3 Pulverized Coal Projects 9 On-Site Energy Projects 7 projects in the automotive sector 2 projects in the airport sector The cash flow profile, long term contractual nature and limited commodity price and
Slide 8: Significant Power & Industrial Assets Remain that Were Not Included in the Transaction
Significant Power & Industrial Assets Remain that Were Not Included in the Transaction Projects Included in Transaction Projects Excluded from Transaction * 3 Coke Battery 3 Pulverized Coal 7 On-Site Auto 2 On-Site Airport 8 Chrysler Projects (50% owner in DTE Energy Center) 2 Pulp & Paper Projects
Slide 9: 2007 Cash Impact of Transaction
2007 Cash Impact of Transaction Targeted Debt Proceeds Equity Proceeds Total After- Tax Cash Impact $155 ($115) $690 The transaction results in a 2007 after-tax cash impact of $690 million Debt will be excluded from DTE consolidated financials ($ Millions) Impact of Accelerated Tax Credits Monetizat
Slide 10: Future Investment Approach in Power & Industrial Projects
Future Investment Approach in Power & Industrial Projects We will continue to execute upon our existing strategy to provide value added products and services to large, energy-intensive customers Applied consistent, value-focused approach to investments since mid-1990s Build business lines around a h
Slide 11: Total Non-Utility Monetization After-Tax Cash Proceeds
Total Non-Utility Monetization After-Tax Cash Proceeds Previous Guidance Expected Proceeds * Given the transactions entered into to date, we are confident that we'll now realize ~$1.5 billion of after-tax proceeds by year-end 2007 with potential upside In process of selling the Crete peaker and cont
Slide 12: Sources and Uses of Monetization Proceeds and Synfuel Cash
Sources Long-Term Uses East 1.4 0.75 West 0.95 0.75 0.25 0.65 Sources and Uses of Monetization Proceeds and Synfuel Cash Synfuel $900 - 1,000 (2007 - 2009) Monetization Proceeds ~$1,500 (2007) Monetization Proceeds and Synfuel Cash Sources and Uses ($ Millions) $2,400 - 2,500 $2,400 - 2,500 Debt Red
Slide 13: 2007 Segment Earnings Guidance Revised
Power & Industrial Projects guidance has been reduced from $10 million to $5 million following the monetization Reduction includes earnings impacts from the 50% sale and DTE's share of interest expense from the LLC partially offset by YTD favorability in the underlying business Due to the timing of
Slide 14: Earnings Accretion
Earnings Accretion Total Monetization Program Share Buyback Debt Earnings Accretion $0.31 $0.10 ($0.16) $0.25 Total Program Accretion - Pro-Forma 2007 (earnings per share) Pro-forma assumes transactions and share repurchase occur January 1, 2007 Combination of share repurchase and debt reduction mak
Slide 15: DTE Energy's Investment Thesis
DTE Energy's Investment Thesis DTE Energy plans to create significant value for shareholders over the next five years The utilities are positioned to grow earnings 5 - 6% per year while driving a customer focused investment program Continued growth in the Coal & Gas Midstream and Power & Industrial
Slide 16: Appendix
Appendix DTE Energy
Slide 17: Reconciliation of 2007 Reported Earnings to Operating Earnings
In this presentation, DTE Energy provides 2007 guidance for operating earnings. It is likely that certain items that impact the company's 2007 reported results will be excluded from operating results. A reconciliation to the comparable 2007 reported earnings/net income guidance is not provided becau