Dte Energy Company · NYSE:DTE
Dte Energy — Q4 2023 Earnings Presentation
19 slides from Dte Energy's earnings presentation, Feb 8, 2024
Slide 1: 2023 Year-end Earnings Conference Call
2023 Year-end Earnings Conference Call February 8, 2024
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
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 95% of 5-year investment ✓ Received Gallup Great Workplace Award for 11th consecutive year plan in utilities 2024 - 2
Slide 5: DTE Electric: transformational investments in distribution and generation
DTE Electric: transformational investments in distribution and generation Capital investment plan focused on building the grid of the future and transitioning to cleaner generation DTE Electric investment • DGP outlines detailed roadmap to increase reliability by over 60% over the next 5 years (bill
Slide 6: DTE Gas: replacing aging infrastructure to ensure reliability and transition to net zero
DTE Gas: replacing aging infrastructure to ensure reliability and transition to net zero emissions DTE Gas investment (billions) Capital investment focused on infrastructure improvements and decarbonization $3.6 $3.7 • Significant investment recovered through Infrastructure Recovery Mechanism (IRM)
Slide 7: DTE Vantage: strategic focus on decarbonization solutions for customers
JN DTE Vantage: strategic focus on decarbonization solutions for customers Capitalizing on a growing preference for cleaner, more efficient energy • Strong development pipeline in RNG, large custom energy solutions and carbon capture and sequestration projects − Expanded long-term, fixed fee custom
Slide 8: 2023 operating earnings variance
2023 operating earnings1 variance (millions, except EPS) 2022 2023 Variance Primary drivers Warmer winter weather, cooler summer weather, higher storm expenses, higher rate base costs, lower sales and 2022 DTE Electric $961 $791 ($170) accelerated deferred tax amortization offset by one-time O&M cos
Slide 9: 2024 operating EPS guidance midpoint provides 7% growth
2024 operating EPS1 guidance midpoint provides 7% growth over 2023 original guidance midpoint (millions, except EPS) 2023 2024 original guidance guidance DTE Electric $1,010 - $1,030 $1,100 - $1,120 DTE Gas 262 - 272 295 - 305 DTE Vantage 115 - 125 125 - 135 Energy Trading 20 - 30 30 - 40 Corporate
Slide 10: Maintaining strong cash flows, balance sheet and credit profile
Maintaining strong cash flows, balance sheet and credit profile Strong balance sheet supports robust customer-focused investment agenda • Investment is primarily funded with consistent, healthy cash flows • Targeting minimal equity issuances of $0 - $100 million annually through 2026 • Effectively m
Slide 11: Increased utility investment focused on improved reliability and cleaner generation
Increased utility investment focused on improved reliability and cleaner generation; well-positioned for long-term growth ✓ Highly engaged team committed to delivering best-in-class results for our customers, communities and investors Operating EPS guidance midpoint ✓ Customer-focused capital invest
Slide 12: Appendix
Appendix 12
Slide 13: Cash flow and capital expenditures
Cash flow and capital expenditures Cash flow Capital expenditures (billions) (millions) 2023 2024 2023 2024 actuals guidance actuals guidance Cash from operations1 $3.2 $3.3 DTE Electric Capital expenditures (4.0) (4.7) Base infrastructure $943 $630 Free cash flow ($0.8) ($1.4) New generation 591 1,
Slide 14: Weather impact on sales
Weather impact on sales DTE Electric DTE Gas Cooling degree days1 Heating degree days3 % % % 2022 2023 4Q 2022 4Q 2023 2022 2023 Change Change Change Actuals 980 703 (28%) Actuals 2,108 1,924 (9%) 6,422 5,564 (13%) Normal 899 913 2% Normal 2,177 2,179 0% 6,314 6,319 0% Deviation Deviation 9% (23%) (
Slide 15: Overcame a significant portion of ~$400 million of headwinds in 2023
Overcame a significant portion of the ~$400 million of unprecedented operating earnings1 headwinds in 2023 ~$400 million of unprecedented headwinds faced throughout the year 4Q 2022 1H 2023 3Q 2023 4Q 2023 • Lower-than-expected rate • Historical winter storms: • Additional storms: $53 million • One
Slide 16: IRP supports transition to cleaner energy future
IRP 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 reductions • Investing over $
Slide 17: Energy policy drives Michigan's clean energy future
Energy policy drives Michigan’s clean energy future and supports our cleaner energy journey • Accelerates the pace of decarbonization and deployment of renewables − Renewable compliance standard of 50% by 2030 and 60% by 2035 − Clean energy standard of 80% by 2035 and 100% by 2040 − Allows MPSC to a
Slide 18: 2022 and 2023 reconciliation of reported to operating earnings
2022 and 2023 reconciliation of reported to operating earnings (non-GAAP) and operating EPS (non-GAAP) (Earnings per share2) Adjustments key A) MPSC disallowance of certain capital project costs previously recorded — recorded in Operating Expenses — Asset (gains) losses and impairments, net B) Certa
Slide 19: 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