Dte Energy Company · NYSE:DTE
Dte Energy — EEI Financial Conference 2017
44 slides from Dte Energy's conference presentation, Nov 3, 2017
Slide 1: EEI Financial Conference November 5-7, 2017
EEI Financial Conference November 5-7, 2017 EXHIBIT 99.1
Slide 2: Forward-looking statements
22017 EEI Financial Forum 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 assoc
Slide 3: Overview, Long-Term Growth Update, Summary
32017 EEI Financial Forum • Overview • Long-Term Growth Update • Summary
Slide 4: Growth plan continues to deliver significant shareholder value
42017 EEI Financial Forum Growth plan continues to deliver significant shareholder value Increasing customer focused infrastructure improvements Executing on 7% dividend increase for 2018 Driving strong non- utility growth over 5-year horizon Accelerating $3 billion of capital through 2022 Deliverin
Slide 5: DTE Energy overview
52017 EEI Financial Forum ~$20B market cap Top quartile in residential customer satisfaction for both DTE Electric & DTE Gas DTE operations DTE headquarters Michigan’s largest investor in and producer of renewable energy Winner of 5 consecutive Gallup Great Workplace Awards 100+ years of continuous
Slide 6: Growth driven by strong, stable utilities and complementary non-utility businesses
62017 EEI Financial Forum Natural gas transmission, storage and distribution 75% - 80% Utility Growth driven by investments aimed at improving reliability Electric generation and distribution DTE Electric DTE Gas Power & Industrial Projects (P&I) Gas Storage & Pipelines (GSP) Transport, store and ga
Slide 7: Expanded priorities tie to our aspiration
72017 EEI Financial Forum To be the best-operated energy company in North America and a force for growth and prosperity in the communities where we live and serve Expanded priorities tie to our aspiration that drives our focus and leads to superior results
Slide 8: Employee and customer focus provides a solid framework for success
82017 EEI Financial Forum Safety Customer Satisfaction Employee Engagement AGA’s Safety Achievement Award ...2nd consecutive year Employee and customer focus provides a solid framework for success National Safety Council’s top 2% of companies surveyed in safety culture On track for top decile safety
Slide 9: Strong track record of cost management
92017 EEI Financial Forum Average annual percentage change in O&M costs 2008 – 2016 Strong track record of cost management is a direct result of our focus on continuous improvement Electric utility* Gas utility** DTE Peers DTE Peers 1% 3% -1% 2% * Source: SNL Financial, FERC Form 1; major US electri
Slide 10: Maintaining customer affordability while investing in our utilities
102017 EEI Financial Forum 2012A 2017E 2012A 2017E 9%$1,223 $910 DTE Electric Average annual residential electric bill DTE Gas Average annual residential gas bill Maintaining customer affordability while investing in our utilities $1,165 $826 $7.6 billion capital investment while reducing customer b
Slide 11: Michigan's regulatory environment continues to be constructive
112017 EEI Financial Forum Tier 5 Tier 4 Tier 3 Tier 2 Tier 1 2017 ranking of state utility regulatory environments* (Michigan in Tier 1) 6 States 9 States 19 States 8 States 6 States Michigan’s regulatory environment continues to be constructive Solid regulatory climate driven by • Strong legislati
Slide 12: Strong track record supports commitment to deliver long-term value
122017 EEI Financial Forum Strong track record supports commitment to deliver long-term value to shareholders ~3% Dividend yield 7% dividend growth rate through 2020*** 5% - 7% Operating EPS** growth rate through 2022 Supported by a strong balance sheet 10-YR5-YR S&P 500 Utilities DTE Energy 1-YR 3-
Slide 13: Overview, Long-Term Growth Update, Summary
132017 EEI Financial Forum • Overview • Long-Term Growth Update • Summary
Slide 14: Targeting 5%-7% operating EPS growth through 2022
142017 EEI Financial Forum 2012A 2017 2018 2012 2017 2018 Growth segments*** Energy Trading $3.94 $5.31 $5.68 $2.48 $3.30 Original guidance Early outlook Operating EPS* Annualized Dividend Per Share Targeting 5% - 7% operating EPS growth through 2022 and annualized dividend growth of 7% through 2020
Slide 15: $17 billion of investment extends 5%-7% growth through 2022
152017 EEI Financial Forum $17 billion of investment extends 5% - 7% growth through 2022 * Reconciliation of operating earnings (non-GAAP) to reported earnings included in the appendix DTE Energy 5-year capital plan Increasing $3 billion over prior plan Current plan (2018 – 2022) Prior plan (2017 –
Slide 16: Core business grows at 10% clip through 2022
162017 EEI Financial Forum Core business grows at 10% clip through 2022 Total DTE Energy operating earnings* • Near-term, REF earnings higher with optimization • Mid-term, REF cash flows higher • Long-term, REF earnings replaced by investments across portfolio of businesses • Earnings shift to utili
Slide 17: Maintaining strong cash flow and balance sheet
172017 EEI Financial Forum * Debt excludes a portion of DTE Gas’ short-term debt and considers 50% of the junior subordinated notes and 100% of the convertible equity units as equity 21% 2017E 2018-2020E 51% 2017E 2018-2020E Leverage* Funds from Operations** / Debt* Target 50% - 54% Target ~20% Main
Slide 18: DTE Electric overview
182017 EEI Financial Forum Transitioning to cleaner energy Founded 1886 $10.4B 5-year capital plan (2018-2022) Upgrading distribution lines DTE Electric service territory DTE Electric overview $648M - $662M 2018 operating earnings* early outlook $16.6B 2017 rate base2.2M customers * Reconciliation o
Slide 19: DTE Electric investment
192017 EEI Financial Forum DTE Electric Investment Transitioning generation portfolio to more sustainable energy New generation Progress to best in class in reliability Distribution infrastructure Reduce costs through productivity and efficiency investments Base infrastructure Generation and distrib
Slide 20: Transitioning portfolio to cleaner, more sustainable generation
202017 EEI Financial Forum Transitioning portfolio to cleaner more sustainable generation by reducing CO2 emissions River Rouge Trenton Channel Belle River MonroePlanned Retiremen ts 2020 2030 2040 2050 Planned ad d iti o ns* * St. Clair CO2 reduction plan* 30% by ~2022 45% by 2030 75% by 2040 > 80%
Slide 21: Increasing reliability and customer satisfaction with distribution investments
212017 EEI Financial Forum Improves circuit reliability up to 70% Addresses substation load growth and aging infrastructure Targets 100% remote monitoring Improves distribution reliability Increasing reliability and customer satisfaction with distribution investments Infrastructure resilience Infras
Slide 22: DTE Gas overview
222017 EEI Financial Forum 1.3M customers 19,000 miles distribution main Founded 1849 DTE Gas service territory 139 Bcf Storage capacity $2.1B 5-year capital plan (2018-2022) $4.0B 2017 rate base DTE Gas overview $152M - $160M 2018 operating earnings* early outlook * Reconciliation of operating earn
Slide 23: DTE Gas investment
232017 EEI Financial Forum DTE Gas Investment Improving service to customers through infrastructure renewal and replacement 2013 - 2017 2017 - 2021 (Prior Plan) 2018 - 2022 (Current Plan) (billions) $1.5 $1.8 $2.1 Proposing accelerated 15 year main renewal cycle Infrastructure renewal Compression NE
Slide 24: Replacing aging infrastructure achieves a fundamental shift in performance
242017 EEI Financial Forum Minimizes leaks - reducing costs and improving customer satisfaction Reduces manual meter reading – improving operational efficiencies and customer satisfaction Strengthens the system - decreasing the potential for system issues Replacing aging infrastructure achieves a fu
Slide 25: GSP overview
252017 EEI Financial Forum Serves markets in Midwest, Northeast, Mid-Atlantic, and Southeast ??? Transport, store and gather natural gas $2.8B – $3.4B 5-year capital plan (2018-2022) 91 Bcf of storage 5 pipelines, 1,600 miles of pipe and gathering lines GSP overview $155M - $165M 2018 operating earn
Slide 26: Expanding strategic footprint in the most prolific dry gas geology
262017 EEI Financial Forum Expanding strategic footprint in the most prolific dry gas geology in the country Link Lateral & Gathering Bluestone Mid-Atlantic & LNG Southeast Northeast Midwest Michigan Gathering Birdsboro Ontario Market Gulf
Slide 27: Focusing on expanding NEXUS and Link over the next five years
272017 EEI Financial Forum Focusing on expanding NEXUS and Link over the next five years NEXUS • FERC certificate August 25th • Construction underway • Targeting in-service 3Q 2018 • Market interest increased significantly since receiving FERC certificate • Active discussions with 1 bcf/d of demand
Slide 28: GSP operating earnings: multiple platforms underpin strong growth
282017 EEI Financial Forum GSP Operating Earnings* 2017 Original guidance 2022E $140 - $150 $245 - $255 $61 2012A (millions) Multiple platforms underpin strong long-term growth • Looking to essentially replicate earnings growth of prior 5 years… ‒ 2013-2017 earnings growth ~$90 million ‒ 2018-2022 e
Slide 29: P&I overview
292017 EEI Financial Forum $0.8B – $1.2B 5-year capital plan (2018-2022) Geographic diversity 191 MW renewable plant capacity Industrial energy services, renewable energy, and reduced emissions fuel P&I overview $100M - $120M 2018 operating earnings* early outlook * Reconciliation of operating earni
Slide 30: Capitalizing on growth opportunities in our key business areas
302017 EEI Financial Forum Industrial energy services Renewable energy Reduced emissions fuel Finalized new large industrial project and continuing to develop strong queue of opportunities Integrating two Renewable Natural Gas (RNG) acquisitions and in advanced discussions on several others Maximizi
Slide 31: Executing strategy to grow industrial energy and renewables businesses
312017 EEI Financial Forum Executing strategy to continue growing our industrial energy and renewables businesses Renewable natural gas plant Two RNG acquisitions completed • Contracted output with fixed prices secures value ‒ Fort Bend in operation ‒ Seabreeze in construction • Developing additiona
Slide 32: Opportunities in industrial energy and renewables drive future growth
322017 EEI Financial Forum Opportunities in industrial energy and renewables businesses drive future growth Industrial energy services • In advanced discussions on 5 cogeneration sites • Strong queue of prospects, building on expertise and track record • Services provided under long-term contracts O
Slide 33: P&I is well on the way to achieving its 2022 development target
332017 EEI Financial Forum Executed in 2017 2022 project origination target (millions) P&I is well on the way to achieving its 2022 development target Project Origination Target (Operating Earnings) • 5% - 7% operating EPS growth plan calls for $45 million of non- REF earnings growth at P&I by 2022
Slide 34: P&I's new project growth will offset a portion of REF sunset
342017 EEI Financial Forum (millions) P&I’s new project growth will offset a portion of REF sunset P&I Operating Earnings* * Reconciliation of operating earnings (non-GAAP) to reported earnings included in the appendix • Our 5-year plan calls for P&I to: ‒ Replace a portion of expiring REF earnings
Slide 35: Overview, Long-Term Growth Update, Summary
352017 EEI Financial Forum • Overview • Long-Term Growth Update • Summary
Slide 36: Summary
362017 EEI Financial Forum • Targeting 5% - 7% operating EPS* growth through 2022 and annualized dividend growth of 7% through 2020** • Accelerating capital investment at utilities driven by investments focused on improving reliability and the customer experience • Accelerating capital investment at
Slide 37: Appendix
372017 EEI Financial Forum Appendix
Slide 38: 2018 early outlook and 2017 guidance
382017 EEI Financial Forum 2018 Early Outlook 2017 Original Guidance DTE Electric DTE Gas Gas Storage & Pipelines Power & Industrial Projects Corporate & Other Growth segments** Growth segments operating EPS Energy Trading DTE Energy Operating EPS Avg. Shares Outstanding $648 - $662 152 - 160 155 -
Slide 39: Revised 2017 cash flow and capital expenditures guidance
392017 EEI Financial Forum We recently revised our 2017 cash flow and capital expenditures guidance Capital Expenditures Summary Prior Guidance Revised Guidance DTE Electric Distribution Infrastructure $690 $690 New Generation 45 45 Base Infrastructure 725 725 $1,460 $1,460 DTE Gas Base Infrastructu
Slide 40: DTE Energy investment growth fueled by utility infrastructure and midstream
402017 EEI Financial Forum Growth fueled by investment in utility infrastructure and generation along with midstream opportunities Distribution infrastructure, maintenance, new generation Electric $10.4 billion Base infrastructure, main renewal, NEXUS related Gas $2.1 billion Expansions, NEXUS GSP $
Slide 41: DTE Electric plans to invest $10.4 billion over the next 5 years
412017 EEI Financial Forum DTE Electric increases customer reliability with plans to invest $10.4 billion over the next 5 years ~$16.6B ~$22.9BYE Rate Base** ~$749M ~$1,076MDepreciation 2017E 2018E 2019E 2020E 2021E 2022E 2018E - 2022E Total $1,460 $1,900 $2,100 $2,100 $2,400 $1,900 (millions) $10,4
Slide 42: DTE Gas plans to invest $2.1 billion over the next 5 years
422017 EEI Financial Forum 2017E 2018E 2019E 2020E 2021E 2022E 2018E - 2022E Total Base infrastructure Main renewal NEXUS related $2,100 $10 $1,140 $950 ~$4.0B ~$5.7BYE Rate Base* ~$121M ~$172MDepreciation $435 $400 $400 $400 $450 $450 (millions) Targeting 7% - 8% growth * Includes working capital D
Slide 43: Reconciliation of 2012 reported to operating earnings
432017 EEI Financial Forum Reconciliation of 2012 reported to operating earnings 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 th
Slide 44: Use of Operating Earnings Information
442017 EEI Financial Forum 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 representation of the company’s earning