Dte Energy Company · NYSE:DTE
Dte Energy — Q1 2023 Earnings Presentation
19 slides from Dte Energy's earnings presentation, Apr 27, 2023
Slide 1: 1Q Earnings Conference Call
1Q Earnings Conference Call April 27, 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, President and CEO Dave Ruud – Senior Vice President and CFO Barbara Tuckfield – Director of Investor Relations 3
Slide 4: Highly engaged team committed to delivering best-in-class results for customers, communities and investors
Highly engaged team committed to delivering best-in-class results for our customers, communities and investors Continuing best-in-class engagement, health and safety of our employees Operating EPS guidance midpoint • Safely restored power to customers during most severe two-week storm period in comp
Slide 5: Extreme weather events continue to increase in frequency
Extreme weather events continue to increase in frequency Increasing severe weather events drive need for Critical utility reliability and infrastructure additional reliability investment investments supported by Michigan leaders Number of days with 35+ mph wind gusts “The work to rebuild this grid,
Slide 6: Significant utility investments to improve reliability in the near-term and over the next 10 years
Significant utility investments to improve reliability in the near-term and over the next 10 years (billions) Significant 5-year utility capital investment Focused strategy to further enhance reliability Continue accelerated tree trimming $21.6 $18.1 • Majority of outages caused by tree interference
Slide 7: Achieving success across all businesses
Achieving success across all businesses DTE Electric • Integrated Resource Plan (IRP) and rate case proceedings continue to progress • Placed Michigan’s largest wind park in service • Continued voluntary renewables program growth with new Toyota Motor North America contract • Development opportuniti
Slide 8: 1Q 2023 operating earnings variance
1Q 2023 operating earnings1 variance (millions, except EPS) 2022 2023 Variance Primary drivers Warmer weather, higher storm expenses, lower sales, higher DTE Electric $201 $101 ($100) rate base costs and 2022 accelerated deferred tax amortization partially offset by one-time O&M cost reductions Warm
Slide 9: Plans are in place to achieve 2023 operating EPS guidance midpoint
Plans are in place to achieve 2023 operating EPS 1 guidance midpoint, which provides 7% growth over 2022 original guidance midpoint (millions, except EPS) 2023 guidance DTE Electric $1,010 - $1,030 DTE Gas 262 - 272 DTE Vantage 115 - 125 Energy Trading 20 - 30 Corporate & Other (150) - (136) DTE Ene
Slide 10: Executing plan for successful 2023; well-positioned for long-term growth
Executing plan for successful 2023; well-positioned for long-term growth ✓ Highly engaged team committed to delivering best-in-class results for our customers, communities and investors ✓ Executing on plan to achieve 2023 targets ✓ Robust customer-focused capital investment plan supports clean energ
Slide 11: Appendix
Appendix DTE
Slide 12: Maintaining strong cash flow, balance sheet and credit profile
Maintaining strong cash flow, balance sheet and credit profile Continued balance sheet strength… …while providing a healthy dividend • Targeting equity issuances of $0 - $100 million annually • Increased 2023 annualized dividend 7.6% to $3.81 per share through 2025 • Over 100 consecutive years of pa
Slide 13: Weather impact on sales
Weather impact on sales DTE Electric DTE Gas Cooling degree days1 Heating degree days3 1Q 2022 1Q 2023 % Change 1Q 2022 1Q 2023 % Change Actuals - - 0% Actuals 3,389 2,822 (17%) Normal - - 0% Normal 3,230 3,235 0% Deviation Deviation 0% 0% 5% (13%) from normal from normal Operating earnings2 impact
Slide 14: Number of customers with power
Experienced most significant two-week storm period in company history Ice storm Sleet, snow, accumulation winds > 40 of 0.65”, winds mph 2.4 > 40 mph 99.6% 99.9% 98% 98% 2.2 95% 94% 91% Number of customers with power 2.0 86% >10” of 1.8 heavy wet 1.6 snow, 45 (millions) mph winds 1.4 1.2 1.0 0.8 0.6
Slide 15: Cash flow and capital expenditures
Cash flow and capital expenditures Cash flow Capital expenditures (billions) (millions) 1Q 2022 1Q 2023 1Q 2022 1Q 2023 DTE Electric Cash from operations1 $0.8 $0.9 Base infrastructure $288 $299 Capital expenditures (0.8) (0.9) New generation 18 81 Free cash flow $0.0 $0.0 Distribution infrastructur
Slide 16: 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) New generation 500 Dividends (0.8) Distribution infras
Slide 17: IRP and rate case filing prioritize electric reliability with a focus on decarbonization and affordability
IRP and rate case filing prioritize electric reliability with a focus on decarbonization and affordability • IRP filing (U-21193) prioritizes electric reliability with a focus on decarbonization and affordability − Outlines generation transformation to achieve carbon reduction of 85% in 2035, 90% by
Slide 18: 1Q 2022 and 1Q 2023 reconciliation of reported to operating earnings (non-GAAP)
1Q 2022 and 1Q 2023 reconciliation of reported to operating earnings (non- GAAP) and operating EPS (non-GAAP) (Earnings per share2) Adjustments key A) Certain adjustments resulting from derivatives being marked-to-market without revaluing the underlying non-derivative contracts and assets — recorded
Slide 19: Reconciliation of reported to operating earnings (non-GAAP); definition of net zero
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