DTE Energy Company · NYSE:DTE
DTE Energy — Q3 2017 Earnings Presentation
17 slides from DTE Energy's earnings presentation, Oct 25, 2017
Slide 1: 3rd Quarter 2017 Earnings Conference Call
Click to edit Master title style 3rd Quarter 2017 Earnings Conference Call October 25, 2017
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: Continuing to deliver significant shareholder value and achieve significant milestones
Continuing to deliver significant shareholder value and achieve significant milestones • Strong year-to-date results ‒ Increasing 2017 operating EPS* guidance midpoint $0.12 to $5.54 • DTE ranked 2nd in customer satisfaction** with electric and gas residential customers in the Midwest • Gas Storage
Slide 4: 3rd quarter operating earnings variance
3rd quarter operating earnings* variance (millions, except EPS) Operating Earnings Primary Drivers 3Q 2016 3Q 2017 Change DTE Electric DTE Electric $ 285 $ 222 $ (63) • Cooler weather in 2017 DTE Gas (4) (13) (9) DTE Gas Gas Storage & Pipelines 28 36 8 • Timing of main renewal revenue and higher O&M
Slide 5: Increasing 2017 operating EPS guidance midpoint by $0.12
Increasing 2017 operating EPS* guidance midpoint by $0.12 (millions, except EPS) Prior Revised Guidance Guidance DTE Electric $610 - $624 $610 - $624 DTE Gas 143 - 151 143 - 151 Gas Storage & Pipelines 145 - 155 150 - 160 Power & Industrial Projects 100 - 110 115 - 125 Corporate & Other (64) - (60)
Slide 6: Updating 2017 cash flow and capital expenditures guidance
Updating 2017 cash flow and capital expenditures guidance (billions) (millions) Cash Flow Capital Expenditures Prior Revised Prior Revised Guidance Guidance Guidance Guidance Cash From Operations $1.9 $1.9 DTE Electric Capital Expenditures (3.0) (2.5) Distribution Infrastructure $690 $690 New Genera
Slide 7: Summary
Summary • Increasing 2017 operating EPS* guidance given continued strong financial performance • Driving utility growth through infrastructure investments focused on improving reliability and the customer experience • Continuing strategic and sustainable growth in non-utility businesses • Maintainin
Slide 8: DTE Energy Investor Relations
Contact us DTE Energy Investor Relations dteenergy.com/investors (313) 235-8030 8
Slide 9: Appendix
oe DTE Energy Appendix
Slide 10: Our business strategy is fundamental to creating value for investors
Our business strategy is fundamental to creating value for investors Infrastructure investments drive 5%-7% regulated utility growth Operating EPS* growth target Strategic and transparent growth opportunities in non-utility businesses provide diversity in earnings and ~7% dividend growth targete
Slide 11: DTE Electric variance analysis
DTE Electric variance analysis (millions) Operating Earnings* Variance Primary Drivers $285 ($50) • Return to relatively normal weather ($10) ($3) $222 Variance to normal weather – 3Q 2016: $53 – 3Q 2017: $3 • Rate base growth (depreciation, property tax and interest) 3Q 2016 Weather Rate Other 3Q 2
Slide 12: September YTD cash flow and capital expenditures
September YTD cash flow and capital expenditures (billions) (millions) Cash Flow Capital Expenditures YTD 2016 YTD 2017 YTD 2016 YTD 2017 Cash From Operations $1.8 $1.6 DTE Electric Distribution Infrastructure $381 $478 Capital Expenditures (1.5) (1.8) New Generation 101 41 Free Cash Flow $0.3 ($0.2
Slide 13: 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 3Q 2016 3Q 2017 % change 3Q 2016 3Q 2017 % change Actuals 823 590 (28%) Actuals 47 100 113% Normal 580 580 0% Normal 125 115 (8%) Deviation from normal 42% 2
Slide 14: 3rd quarter and September YTD Energy Trading reconciliation of operating earnings to economic net income
3rd quarter and September YTD Energy Trading reconciliation of operating earnings* to economic net income 3Q 2016 2017 Operating Earnings $10 ($10) • Economic net income equals economic gross margin*** minus O&M expenses and Accounting Adjustments** (9) 7 taxes Economic Net Income $1 ($3) • DTE Ener
Slide 15: 3rd quarter 2017 reconciliation of reported to operating earnings (non-GAAP)
3rd quarter 2017 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 pr
Slide 16: 3rd quarter 2016 reconciliation of reported to operating earnings (non-GAAP)
3rd quarter 2016 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 pr
Slide 17: 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 repres