Dte Energy Company · NYSE:DTE
Dte Energy — FY2021 Earnings Presentation
23 slides from Dte Energy's earnings presentation, Feb 10, 2022
Slide 1: DTE 2021 Year-End Earnings Conference Call
D T E 2 0 2 1 Y E A R - E N D E A R N I N G S C O N F E R E N C E C A L L FEBRUARY 10, 2022
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 – President and CEO Dave Ruud – Senior Vice President and CFO Barbara Tuckfield – Director Investor Relations 3
Slide 4: Focusing on our team, customers and communities while delivering for investors
Focusing on our team, customers and communities while delivering for investors Ensuring the health and safety of our employees Named to the Best and Brightest Companies to Work For in Metropolitan Our Team Detroit for 16 consecutive years Addressing our customers’ most vital needs Ranked first by J.
Slide 5: Delivered strong financial results in 2021 and well-positioned for growth in 2022 and beyond
Delivered strong financial results in 2021 and well-positioned for growth in 2022 and beyond Operating EPS guidance provides 7% growth ✓ Strong 2021 operating EPS1 exceeded high end of guidance $5.90 ✓ Successful spin of DTM ✓ Raising 2022 operating EPS guidance range to $5.80 - $6.00; $5.84 Origina
Slide 6: DTE Electric: transformational investments in generation and distribution
DTE Electric: transformational investments in generation and distribution provide customers cleaner, more reliable energy Achieved operational successes in 2021 DTE Electric investment plan (billions) • Announced accelerated carbon reduction plan $15 − Ceasing coal use at Belle River Power Plant and
Slide 7: Building the grid of the future creates $35 billion of investment opportunity
Building the grid of the future and clean energy transformation creates $35 billion of investment opportunity over the next 10 years DTE Electric 10-year investment plan Robust investment opportunities for the grid of the future to improve (billions) reliability and provide additional capacity ~$35
Slide 8: DTE Gas: replacing aging infrastructure to reduce greenhouse gas emissions
DTE Gas: replacing aging infrastructure to reduce greenhouse gas emissions DTE Gas investment plan (billions) Achieved operational successes in 2021 $3.1+ • Announced CleanVision Natural Gas Balance Program and reached Additional 5,300 customers within the first year $3.0 opportunity • Finished firs
Slide 9: DTE Vantage: operating earnings derived from cleaner energy-related projects
DTE Vantage: operating earnings1 derived from cleaner energy-related projects Renewable natural gas (RNG) • Commenced construction on new South Dakota RNG project, new Wisconsin DTE Vantage operating earnings RNG project and secured additional project in New York (millions) • Converting Michigan-bas
Slide 10: 2021 operating earnings variance
2021 operating earnings1 variance (millions, except EPS) 2020 2021 Variance Primary drivers Rate implementation and higher sales partially offset by DTE Electric $813 $864 $51 higher O&M and rate base costs Rate implementation partially offset by higher O&M and DTE Gas 196 214 18 rate base costs DTE
Slide 11: Raising 2022 guidance midpoint to $5.90 per share
Raising 2022 guidance midpoint to $5.90 per share; 7% growth from 2021 original guidance midpoint (millions, except EPS) 2022 original guidance 2022 revised guidance DTE Electric $915 - $929 $918 - $932 DTE Gas 227 - 237 232 - 238 DTE Vantage 85 - 95 90 - 95 Energy Trading 15 - 25 15 - 25 Corporate
Slide 12: Maintaining strong cash flow, balance sheet and credit profile
Maintaining strong cash flow, balance sheet and credit profile • Expect minimal equity issuances outside of convertible equity units • Strong investment-grade credit rating Planned equity issuances − Targeting ~16% FFO1 / Debt2 2022 - 2024 (billions) • Increased 2022 annualized dividend 7% to $3.54
Slide 13: Delivered strong results in 2021; well-positioned for long-term growth
Delivered strong results in 2021; well-positioned for long-term growth ✓ Continued focus on our team, customers and communities ✓ Strong results across all business lines in 2021 ✓ Raising 2022 operating EPS1 guidance range; increased midpoint provides 7% growth from 2021 original guidance midpoint
Slide 14: Visit us: DTE Investor Relations, 2021 ESG Report
VISIT US: DTE INVESTOR RELATIONS 2021 ESG REPORT
Slide 15: Appendix
Appendix DTE
Slide 16: Weather impact on sales
Weather impact on sales DTE Electric DTE Gas Cooling degree days Heating degree days 2020 2021 % Change % % 4Q 2020 4Q 2021 2020 2021 Change Change Actuals 961 1,028 7% Actuals 2,100 1,935 (8%) 6,082 5,845 (4%) Normal 875 875 0% Normal 2,205 2,191 (1%) 6,389 6,323 (1%) Deviation Deviation 10% 17% (5
Slide 17: 2021 cash flow and capital expenditures
2021 cash flow and capital expenditures Cash flow Capital expenditures (billions) 2021 (millions) 2021 Cash from operations1 $3.1 DTE Electric Capital expenditures (3.9) Base infrastructure $867 Free cash flow ($0.8) New generation 870 Dividends (0.8) Distribution infrastructure 1,275 Other (0.2) $3
Slide 18: 2022 cash flow and capital expenditures guidance
2022 cash flow and capital expenditures guidance Cash flow Capital expenditures (billions) 2022 (millions) 2022 guidance guidance Cash from operations1 $2.6 DTE Electric Capital expenditures (3.7) Base infrastructure $1,170 Free cash flow ($1.1) New generation 210 Dividends (0.7) Distribution infras
Slide 19: Environmental, social and governance efforts are key priorities
Environmental, social and governance efforts are key priorities; aspiring to be the best in the industry Environment Social Governance • Transitioning towards net zero • Focusing on the diversity, safety, • Focusing on the oversight of emissions at both utilities well-being and success of environmen
Slide 20: Continuing to evaluate the cessation of coal use to further accelerate decarbonization plan
Continuing to evaluate the cessation of coal use to further accelerate decarbonization plan River St. Trenton Belle Belle Monroe Rouge Clair Channel River River 2021 2022 2028 2030 2040 Accelerating Evaluating cessation of coal cessation of use from 2030 coal use earlier to 2028 than 2040 • Stakehol
Slide 21: 2020 - 2021 reconciliation of reported to operating earnings (non-GAAP)
2020 - 2021 reconciliation of reported to operating earnings (non-GAAP) and operating EPS (non-GAAP) 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 oper
Slide 22: 2020 - 2021 reconciliation of reported to operating earnings: adjustments key
2020 - 2021 reconciliation of reported to operating earnings (non-GAAP) and operating EPS (non-GAAP) Adjustments key A) Impairment of long-lived assets for the closure of a pulverized coal facility — recorded in Operating Expenses — Assets (gains) losses and impairments, net B) Reversal of deferred
Slide 23: 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