Dte Energy Company · NYSE:DTE
Dte Energy — Q1 2019 Earnings Presentation
20 slides from Dte Energy's earnings presentation, Apr 24, 2019
Slide 1: 1Q 2019 Earnings Conference Call
1Q 2019 Earnings Conference Call April 24, 2019
Slide 2: Safe Harbor Statement
Safe Harbor Statement Many factors impact forward-looking statements including, but not limited to, the following: impact of regulation by the EPA, the FERC, the MPSC, the NRC, and for DTE Energy, the CFTC, as well as other applicable governmental proceedings and regulations, including any associate
Slide 3: Participants
Participants • Gerry Anderson – Chairman and CEO • Jerry Norcia – President and COO • Peter Oleksiak – Senior Vice President and CFO • Barbara Tuckfield – Director, Investor Relations 3
Slide 4: 2019 has started out strong and we remain confident in delivering on our financial plan
2019 has started out strong and we remain confident in delivering on our financial plan • On track to achieve 2019 operating EPS* guidance range of $5.97 to $6.33 • Targeting 5% - 7% operating EPS growth from 2019 guidance base through 2023 • Maintaining strong balance sheet • Business update ‒ DTE
Slide 5: IRP filing supports steady march to creating clean, reliable, affordable, home-grown energy
IRP filing supports steady march to creating clean, reliable, affordable, home-grown energy Generation Mix IRP Filing 1% ✓ Consistent with EEI 5-year capital investment 2% 10% 17% plan 20% 7% 25-30% 17% 18% ✓ Accelerating carbon emissions reductions* 20% 20-25% 32% by 2023, 50% by 2030, 80% by 2040
Slide 6: 1Q 2019 operating earnings variance
1Q 2019 operating earnings* variance (millions, except EPS) 1Q 2018 1Q 2019 Change Primary Drivers Rate case impact and colder weather, offset by DTE Electric $ 142 $ 147 $ 5 higher O&M and rate base growth costs Rate case impact, colder weather and a timing DTE Gas 111 151 40 item in 2018, offset b
Slide 7: Maintaining strong cash flow and balance sheet
Maintaining strong cash flow and balance sheet Funds from Operations* / Debt** • Issuing $1.0 - $1.5 billion of equity in 2019 - 2021 ‒ Up to $250 million of equity in 2019 Target using internal mechanisms; $150 Target 18% 19% million issued in 1Q 18% • Supporting capital investments with strong cas
Slide 8: Reliability investments at utilities and strategic non-utility opportunities support growth plan
Reliability investments at utilities and strategic non-utility opportunities support growth plan DTE Electric Gas Storage & Pipelines • Launched large customer voluntary renewables program • Acquiring Generation Pipeline, supplier of ‒ Signed contracts with Ford Motor natural gas to power and indust
Slide 9: We are on track to continue to deliver strong results for customers and shareholders
We are on track to continue to deliver strong results for customers and shareholders Total Shareholder Return* (Annualized) 21% • Targeting 5% - 7% operating EPS** growth and dividends that drive premium total shareholder returns 15% 15% 14% • Starting the year off strong – on track to 13% achieve o
Slide 10: CONTACT US
CONTACT US DTE Energy Investor Relations www.dteenergy.com/investors 313.235.8030 10
Slide 11: Appendix
Appendix 11
Slide 12: Replacing coal with renewables and natural gas
Replacing coal with renewables and natural gas Planned Retirements River St. Trenton Belle Monroe Rouge Clair Channel River 2022 2030 2040 Planned Additions ✓ Quadrupling renewables by 2040 ✓ Increasing voluntary renewables up to 1,400 MW by 2030 ✓ Additional natural gas if needed A steady march tow
Slide 13: Reaffirming 2019 operating EPS guidance
Reaffirming 2019 operating EPS* guidance (millions, except EPS) 2019 Operating Earnings Guidance DTE Electric $698 - $712 DTE Gas 171 - 179 Gas Storage & Pipelines 208 - 218 Power & Industrial Projects 119 - 134 Energy Trading 15 - 25 Corporate & Other (112) - (102) DTE Energy $1,099 - $1,166 Operat
Slide 14: Weather and DTE Electric weather normal sales
Weather and DTE Electric weather normal sales Cooling degree days – DTE Electric service territory Heating degree days – DTE Gas service territory 1Q 2018 1Q 2019 % change 1Q 2018 1Q 2019 % change Actuals - - 0% Actuals 3,187 3,420 7% Normal - - 0% Normal 3,251 3,245 0% Deviation from normal 0% 0% D
Slide 15: Cash flow and capital expenditures actuals
Cash flow and capital expenditures actuals (billions) (millions) Cash Flow Capital Expenditures 1Q 2018 1Q 2019 1Q 2018 1Q 2019 DTE Electric Cash From Operations* $0.8 $0.8 Base Infrastructure $193 $178 Capital Expenditures (0.6) (0.7) New Generation 2 142 Free Cash Flow $0.2 $0.1 Distribution Infra
Slide 16: Cash flow and capital expenditures guidance
Cash flow and capital expenditures guidance (billions) (millions) Cash Flow Capital Expenditures 2019 2019 Guidance Guidance Cash From Operations* $2.4 DTE Electric Capital Expenditures (3.9) Base Infrastructure $820 Free Cash Flow ($1.5) New Generation 490 Distribution Infrastructure 890 $2,200 Div
Slide 17: 1Q 2019 Energy Trading reconciliation of operating earnings to economic net income
1Q 2019 Energy Trading reconciliation of operating earnings* to economic net income (millions) • Economic net income equals economic gross margin*** minus O&M expenses and taxes 1Q 2018 1Q 2019 • DTE Energy management uses economic net income as one of the performance Operating Earnings $1 $5 measur
Slide 18: Reconciliation of reported to operating earnings
Reconciliation of reported to operating earnings (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 operating earnings as the primary performance
Slide 19: Reconciliation of reported to operating earnings
Reconciliation of reported to operating earnings (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 operating earnings as the primary performance
Slide 20: Reconciliation of reported to operating earnings
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 repres