Dte Energy Company · NYSE:DTE
Dte Energy — Q2 2023 Earnings Presentation
18 slides from Dte Energy's earnings presentation, Jul 27, 2023
Slide 1: 2Q 2023 Earnings Conference Call
2Q 2023 Earnings Conference Call July 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 and CEO Dave Ruud – Executive Vice President and CFO Barbara Tuckfield – Director of Investor Relations 3
Slide 4: Highly engaged team committed to delivering best-in-class results
JN 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 • Received Gallup Exceptional Workplace Award for 11th consecutive year, achieving top decile employee engagement
Slide 5: IRP settlement agreement supports transition to cleaner energy future
IRP settlement agreement 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 reductio
Slide 6: IRP also supports our customer-focused capital investment
IRP also supports our customer-focused capital investment Significant investment over the next 5 years… …with 95% of total investment in utilities ~$23 billion DTE Electric $18 billion DTE Vantage $1.0 - $1.5 • $9 billion - distribution infrastructure DTE Gas $3.6 DTE Electric • $5 billion - cleaner
Slide 7: Progress across all businesses
Progress across all businesses DTE Electric • Placed in service 225 MW wind park, Michigan's largest, generating enough clean energy to power more than 78,000 homes • Continued voluntary renewables program growth with over 2,300 MW of total subscriptions • Continuing enhanced tree trimming with 2,80
Slide 8: 2Q 2023 operating earnings variance
2Q 2023 operating earnings1 variance (millions, except EPS) 2022 2023 Variance Primary drivers Cooler weather, lower sales, higher rate base costs and 2022 DTE Electric $186 $178 ($8) accelerated deferred tax amortization partially offset by one- time O&M cost reductions One-time O&M cost reductions
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 Headwinds from lower-than-expected rate case sales, higher DTE Electric $1,010 - $1,030 storm expenses and cooler weather partially
Slide 10: Executing plan for successful 2023; well-positioned for long-term growth
Executing plan for successful 2023; well-positioned for long-term growth Operating EPS guidance midpoint ✓ Highly engaged team committed to delivering best-in-class results for our customers, communities and investors ✓ IRP settlement agreement supports transition to cleaner energy future while focu
Slide 11: Appendix
Appendix DTE
Slide 12: 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 13: 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 14: Weather impact on sales
Weather impact on sales DTE Electric DTE Gas Cooling degree days1 Heating degree days3 % YTD YTD % % YTD YTD % 2Q 2022 2Q 2023 2Q 2022 2Q 2023 Change 2022 2023 Change Change 2022 2023 Change Actuals 300 184 (39%) 300 184 (39%) Actuals 815 741 (9%) 4,204 3,563 (15%) Normal 246 252 2% 246 252 2% Norma
Slide 15: Cash flow and capital expenditures
Cash flow and capital expenditures Cash flow Capital expenditures (billions) (millions) YTD 2022 YTD 2023 YTD 2022 YTD 2023 DTE Electric Cash from operations1 $1.1 $1.8 Base infrastructure $569 $524 Capital expenditures (1.6) (1.9) Cleaner generation 28 230 Free cash flow ($0.5) ($0.1) Distribution
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) Cleaner generation 500 Dividends (0.8) Distribution in
Slide 17: 2Q 2022 and 2Q 2023 reconciliation of reported to operating earnings
2Q 2022 and 2Q 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 18: Reconciliation of reported to operating earnings; 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