Dte Energy Company · NYSE:DTE
Dte Energy — Q3 2019 Earnings Presentation
22 slides from Dte Energy's earnings presentation, Oct 28, 2019
Slide 1: 3Q 2019 Earnings Conference Call
3Q 2019 Earnings Conference Call October 28, 2019 1
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 Jerry Norcia – President and CEO Peter Oleksiak – Senior Vice President and CFO Barbara Tuckfield – Director, Investor Relations 3
Slide 4: Delivering significant shareholder and customer value
Delivering significant shareholder and customer value • Increasing 2019 operating EPS1 guidance • Providing 2020 operating EPS early outlook ‒ 7.5% growth over 2019 original guidance midpoint • Increasing dividend per share by 7% • Business update ‒ DTE Electric: announced commitment to net zero car
Slide 5: Accelerated near-term growth; sustaining growth from higher 2020 operating EPS early outlook
Accelerated near-term growth; sustaining growth from higher 2020 operating EPS1 early outlook Operating EPS • Delivering additional operating EPS growth from 2019 original guidance $6.61 ‒ Growing 2020 operating EPS 7.5% from 2019 original guidance $6.15 ‒ Executing on highly visible plan that deliv
Slide 6: 3Q 2019 operating earnings variance
3Q 2019 operating earnings1 variance (millions, except EPS) 3Q 2018 3Q 2019 Change Primary Drivers Rate implementation offset by rate base growth DTE Electric $ 304 $ 307 $ 3 costs and cooler weather DTE Gas (28) (38) (10) Rate base growth costs and higher O&M offset by rate implementation Transitio
Slide 7: Increasing 2019 operating earnings guidance
Increasing 2019 operating earnings1 guidance (millions, except EPS) 2019 Current 2019 Revised Guidance Guidance DTE Electric $703 - $717 $705 - $719 DTE Gas 175 - 183 175 - 183 Gas Storage & Pipelines 208 - 218 208 - 218 Power & Industrial Projects 119 - 134 125 - 135 Energy Trading 15 - 25 20 - 30
Slide 8: 5% – 7% operating EPS growth from higher 2020 outlook
5% – 7% operating EPS1 growth from higher 2020 outlook (millions, except EPS) 2019 Original 2020 Guidance Early Outlook DTE Electric $698 - $712 $759 - $773 DTE Gas 171 - 179 185 - 193 Gas Storage & Pipelines 208 - 218 277 - 293 Power & Industrial Projects 119 - 134 133 - 148 Energy Trading 15 - 25
Slide 9: 2020 operating earnings early outlook for utilities shows material growth
2020 operating earnings1 early outlook for utilities shows material growth from 2019 original guidance (millions) DTE Electric Operating Earnings DTE Gas Operating Earnings $766 $189 $175 $705 2019 Original Guidance 2020 Early Outlook 2019 Original Guidance 2020 Early Outlook Midpoint Midpoint Midpo
Slide 10: 2020 operating earnings early outlook for non-utilities shows material growth
2020 operating earnings1 early outlook for non-utilities shows material growth from 2019 original guidance (millions) GSP Operating Earnings P&I Operating Earnings $285 $141 $213 $127 2019 Original Guidance 2020 Early Outlook 2019 Original Guidance 2020 Early Outlook Midpoint Midpoint Midpoint Midpo
Slide 11: Maintaining strong cash flow and balance sheet
Maintaining strong cash flow and balance sheet • Issuing $500 million in 20193 ‒ $300 million of acquisition equity financing ‒ $200 million with internal mechanisms • Issuing $1.5 – $2.0 billion of equity in 2020 – 2022 including convertible equity units ‒ $300 million of equity in 2020 using inter
Slide 12: On track to continue delivering strong results for customers and shareholders
On track to continue delivering strong results for customers and shareholders • Increasing 2019 operating EPS1 guidance Total Shareholder Return2 • On track to beat original guidance for 11th consecutive year 451% • Providing early outlook for 2020 operating EPS ‒ 7.5% growth from 2019 original guid
Slide 13: Contact Us
CONTACT US DTE Investor Relations www.dteenergy.com/investors 313.235.8030 13
Slide 14: Appendix
Appendix DTE
Slide 15: 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 2018 3Q 2019 % change 3Q 2018 3Q 2019 % change Actuals 822 702 (15%) Actuals 88 57 (35%) Normal 580 580 0% Normal 118 121 3% Deviation from normal 42%
Slide 16: Cash flow and capital expenditures actuals
Cash flow and capital expenditures actuals Cash Flow Capital Expenditures (billions) (millions) YTD 2018 YTD 2019 YTD 2018 YTD 2019 DTE Electric Cash From Operations1 $2.0 $1.9 Base Infrastructure $630 $524 Capital Expenditures (2.3) (2.8) New Generation 81 384 Free Cash Flow ($0.3) ($0.9) Distribut
Slide 17: Updating 2019 cash flow and capital expenditures guidance
Updating 2019 cash flow and capital expenditures guidance Cash Flow Capital Expenditures (billions) (millions) Prior Revised Prior Revised Guidance Guidance Guidance Guidance Cash From Operations1 $2.4 $2.7 DTE Electric Capital Expenditures (3.9) (5.9) Base Infrastructure $820 $820 Free Cash Flow ($
Slide 18: DTE Electric and DTE Gas regulatory update
DTE Electric and DTE Gas regulatory update DTE Electric DTE Gas • General rate case – order received • General rate case – order received May 2019 (U-20162) September 2018 (U-18999) – Effective: May 2019 – Effective: October 2018 – Rate recovery: $273 million – Rate recovery: $47 million – ROE: 10.0
Slide 19: 3Q and YTD Energy Trading reconciliation of operating earnings to economic net income
3Q and YTD Energy Trading reconciliation of operating earnings 1 to economic net income (millions) 3Q 2018 2019 • Economic net income equals economic gross Operating Earnings $15 $18 margin3 minus O&M expenses and taxes Accounting Adjustments2 3 (8) • DTE Energy management uses economic net income a
Slide 20: Reconciliation of reported to operating earnings (non-GAAP)
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 21: Reconciliation of reported to operating EPS (non-GAAP)
Reconciliation of reported to operating EPS (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 meas
Slide 22: 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 represe