Dte Energy Company · NYSE:DTE
Dte Energy — Corporate Update (December 2023)
28 slides from Dte Energy's corporate update, Dec 8, 2023
Slide 1: Business Update
Business Update December 8, 2023
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 Dave Ruud – Executive Vice President and CFO Barbara Tuckfield – Director of Investor Relations 3
Slide 4: Significant utility investment improves reliability and provides cleaner generation, while maintaining affordability
Significant utility investment improves reliability and provides cleaner generation, while maintaining affordability 95% of 5-year investment Customer-focused capital investments support building the grid of the future and plan in utilities 2024 - 2028 cleaner energy transition (billions) ✓ Construc
Slide 5: Energy policy drives Michigan's clean energy future and supports our cleaner energy journey
Energy policy drives Michigan’s clean energy future and supports our cleaner energy journey • Accelerates the pace of decarbonization and deployment of renewables − Renewable compliance standard of 50% by 2030 and 60% by 2035 − Clean energy standard of 80% by 2035 and 100% by 2040 − Allows MPSC to a
Slide 6: DTE Electric: transformational investments in distribution and generation
DTE Electric: transformational investments in distribution and generation Capital investment plan focused on building the grid of the future and transitioning to cleaner generation DTE Electric investment • DGP outlines detailed roadmap to increase reliability by over 60% over the (billions) next 5
Slide 7: DTE Gas: replacing aging infrastructure to ensure reliability and transition to net zero emissions
DTE Gas: replacing aging infrastructure to ensure reliability and transition to net zero emissions DTE Gas investment (billions) Capital investment focused on infrastructure improvements and decarbonization $3.6 $3.7 • Significant investment recovered through Infrastructure Recovery Mechanism to sup
Slide 8: DTE Vantage: strategic focus on decarbonization solutions for customers
JN DTE Vantage: strategic focus on decarbonization solutions for customers Capitalizing on a growing preference for cleaner, more efficient energy • Strong development pipeline with opportunities in RNG and large custom energy solutions projects while expanding into carbon capture and sequestration
Slide 9: 2024 operating EPS early outlook midpoint provides 7% growth over 2023 original guidance
2024 operating EPS1 early outlook midpoint provides 7% growth over 2023 original guidance midpoint (millions, except EPS) 2023 2024 original guidance early outlook DTE Electric $1,010 - $1,030 $1,100 - $1,120 DTE Gas 262 - 272 295 - 305 DTE Vantage 115 - 125 125 - 135 Energy Trading 20 - 30 30 - 40
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 • Generating consistent, healthy cash flows • Targeting minimal equity issuances of $0 - $100 million annually through 2026 • Effectively managing near-term debt ma
Slide 11: Increased utility investment focused on improved reliability and cleaner generation; well-positioned for long-term growth
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 customers, communities and investors Operating EPS guidance midpoint ✓ Customer-focused capital invest
Slide 12: Appendix
Appendix 12
Slide 13: Overcoming majority of unprecedented headwinds in 2023
Overcoming majority of unprecedented headwinds in 2023 (millions, except EPS) 2023 original 2023 current Primary drivers guidance guidance Headwinds from lower-than-expected rate order, higher DTE Electric $1,010 - $1,030 $813 - $827 storm expenses and cooler weather partially offset by one-time O&M
Slide 14: 2023 cash flow and capital expenditures guidance
2023 cash flow and capital expenditures guidance Cash flow Capital expenditures (billions) (millions) 2023 2023 guidance guidance Cash from operations1 $3.2 DTE Electric Capital expenditures (4.2) Base infrastructure $1,200 Free cash flow ($1.0) Cleaner generation 500 Dividends (0.8) Distribution in
Slide 15: Strong cash flows, supportive energy policy and constructive regulatory environment supports customer-focused capital investments
Strong cash flows, supportive energy policy and constructive regulatory environment supports customer-focused capital investments 2023 sources and uses of cash (billions) < $0.1 Equity financing Three funding sources enable investments in grid Dividends $0.8 reliability, cleaner energy and infrastru
Slide 16: Environmental, social and governance (ESG) efforts are key priorities; aspiring to be the best in the industry
Environmental, social and governance (ESG) efforts are key priorities; aspiring to be the best in the industry Environment Award-winning commitment to ESG priorities • Transitioning towards net zero emissions at both utilities • Accelerating transition to cleaner generation • Protecting our natural
Slide 17: IRP supports transition to cleaner energy future while focusing on reliability and affordability
IRP supports transition to cleaner energy future while focusing on reliability and affordability Accelerating path to cleaner generation… …while continuing to focus on customer affordability and economic development • Transforming generation by targeting carbon emission reductions • Investing over $
Slide 18: IRP outlines accelerated path to cleaner energy
IRP outlines accelerated path to cleaner energy First 5 years (2023 - 2027) Generation mix1 (MWh %) • Ceasing coal use at one Belle River unit in 2025 and remaining unit in 2026; converting to 1,300 MW natural gas peaking resource 1% 3% 2% 14% • Adding 1,200 MW of solar 22% 17% 3% 32% • Adding 350 M
Slide 19: Progressing on EV initiatives
Progressing on EV initiatives Charging Forward Program 2019 • Promoting EV education, infrastructure and adoption program inception • Providing residential and commercial rebates, infrastructure support and fleet advisory services • Offering unique solutions such as home charger installation financi
Slide 20: MIGreenPower program continues significant growth
MIGreenPower program continues significant growth 1,600 • Allows customers to attribute up to 100% of electricity use to business customers renewable sources • Recognized by National Renewable Energy Laboratory as having the largest Green Tariff program in the country, fulfilling more load under con
Slide 21: Natural Gas Balance program empowers customers to manage their carbon footprint
Natural Gas Balance program empowers customers to manage their carbon footprint 2021 program inception • Offering an affordable way to balance 25% to 100% of customers’ GHG emissions • RNG will be sourced by transforming landfill emissions and wastewater treatment plant by-products into usable gas 1
Slide 22: Building on the momentum of the last decade, committed to Michigan investments and supplier diversity
Building on the momentum of the last decade, committed to Michigan investments and supplier diversity 2022 Michigan spend (millions) $2.5b invested in Michigan businesses in 2022 65,000 jobs created since 2010 $20 $900m invested with Detroit suppliers in 2022 $19 invested with suppliers owned by wom
Slide 23: Economic development fuels Michigan's growth
Economic development fuels Michigan’s growth ✓ Michigan ranked in the top 10 by CNBC for America’s Top States for Business in 2023 ✓ $4 billion General Motors investment to convert an assembly plant to produce full-size electric pickup trucks, creating 2,300 jobs ✓ $2.4 billion Gotion investment to
Slide 24: Committed to Diversity, Equity and Inclusion (DEI); creating a safe and welcoming environment
Committed to Diversity, Equity and Inclusion (DEI); creating a safe and welcoming environment Employee groups create an inclusive environment where differences Health and safety of our people is a priority are celebrated and a sense of belonging exists for all employees • Multiple safety committees
Slide 25: Governance framework provides shareholder rights and enables sustainable value creation
Governance framework provides shareholder rights and enables sustainable value creation Best-in-class governance practices Composition of DTE Board of Directors • Lead Independent Director 1 8 • All board committees are composed exclusively of independent Directors 33% 92% gender or • Stock ownershi
Slide 26: Executive management compensation plan is aligned with our stakeholder priorities
Executive management compensation plan is aligned with our stakeholder priorities Annual or long-term incentive metrics • Employee engagement Our team • Employee safety • Customer satisfaction Our customers • Customer complaints • System reliability • Customer satisfaction Our communities • Customer
Slide 27: Overcame a significant portion of the ~$370 million of unprecedented operating earnings headwinds
Overcame a significant portion of the ~$370 million of unprecedented operating earnings1 headwinds through one-time cost management initiatives and opportunities throughout the portfolio 4Q 2022 1H 2023 3Q 2023 Total impact $100 million headwind $165 million headwinds $106 million headwinds = ~$370
Slide 28: 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 meaningful representati