Slide 1: 2nd Quarter 2016 Earnings Conference Call
EXHIBIT 99.2 2nd Quarter 2016 Earnings Conference Call July 26, 2016
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, FERC, MPSC, NRC, and CFTC, as well as other applicable governmental proceedings and regulations, including any associated impact on rate structures; the
Slide 3: Participants
• Gerry Anderson – Chairman and CEO • Jerry Norcia – President and COO • Peter Oleksiak – Senior Vice President and CFO • Barbara Tuckfield – Director, Investor Relations 3 Participants
Slide 4: Overview, 2nd Quarter 2016 Financial Update, Summary
• Overview • 2nd Quarter 2016 Financial Update • Summary 4
Slide 5: We continue to make progress on many fronts
5 Financial performance Strong year-to-date financial results 2016 operating EPS* guidance raised 7th consecutive year with a dividend increase Regulatory framework New commissioner appointed to MPSC Regulatory proceedings progressing in a constructive manner, including a supportive position regardi
Slide 6: Strong 2nd quarter results and increased operating EPS guidance
6 Achieved strong results in the 2nd quarter and are increasing operating EPS* guidance for the year • 2nd quarter 2016 operating EPS* of $0.98, up $0.22 from last year • 2016 operating EPS guidance range raised to $4.91 - $5.19 ̶ Guidance midpoint raised by $0.12 • Annualized dividend increased $0.
Slide 7: Raising 2016 operating EPS guidance to a midpoint of $5.05
$4.82 $2.35 $2.48 $2.62 $2.76 $2.92 $3.08 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Raising 2016 operating EPS* guidance to a midpoint of $5.05 7 * Reconciliation to GAAP reported earnings included in the appendix (dollars per share) Operating EPS Dividend (Annualized) Actuals Forecast Divid
Slide 8: Paving the way to cleaner energy for our customers
8 Paving the way to cleaner energy for our customers Note: Estimated amounts. Timing and mix of generation impacted by MISO capacity requirements and Michigan and EPA policies • Announced retirement of 2.5 GW of less-efficient coal-fired generation – Capacity will be retired by 2023 – Combination of
Slide 9: NEXUS project is progressing
9 NEXUS project is progressing and originates in the most economical geology in the country Natural Gas LDC Industrial Customer Power Generation Marcellus / Utica Dry Gas Core DTE Gas Vector • Project on track for 4th quarter 2017 in- service • FERC Notice of Schedule issued 2nd quarter 2016 • Draft
Slide 10: Overview, 2nd Quarter 2016 Financial Update, Summary
• Overview • 2nd Quarter 2016 Financial Update • Summary 10
Slide 11: 2nd quarter operating earnings by segment
2Q 2015 2Q 2016 Change DTE Electric 111$ 135$ 24$ DTE Gas (7) 13 20 Gas Storage & Pipelines 25 35 10 Power & Industrial Projects 18 17 (1) Corporate & Other (13) (23) (10) Growth segments** 134$ 177$ 43$ Growth segments operating EPS 0.75$ 0.98$ 0.23$ Energy Trading 3 - (3) DTE Energy 137$ 177$ 40$
Slide 12: Increasing our 2016 operating EPS guidance
* Reconciliation to GAAP reported earnings included in the appendix ** Total DTE Energy excluding Energy Trading 2016 Original Guidance 2016 YTD 2Q Actuals DTE Electric DTE Gas Gas Storage & Pipelines Power & Industrial Projects Corporate & Other Growth segments** Growth segments operating EPS Energ
Slide 13: June YTD 2016 Cash Flow and Capital Expenditures
Capital Expenditures Summary YTD 2015 YTD 2016 DTE Electric Distribution Infrastructure $288 $224 New Generation 253 55 Maintenance & Other 364 361 $905 $640 DTE Gas Base Infrastructure $82 $93 Nexus Related - 14 Main Replacement** 35 50 $117 $157 Non-Utility $146 $184 Total $1,168 $981 (millions) *
Slide 14: Strong balance sheet remains a key priority and supports growth
25% 21% 2014 2015 2016E 51% 52% 2014 2015 2016E Leverage* Funds from Operations** / Debt* Target 50% - 53% Target 20% + • Strong year-to-date cash performance; 2016 financing plan is on track − $100 million equity issuance possible, but may not be necessary − Issued $300 million of 60-year, 5.375% j
Slide 15: Overview, 2nd Quarter 2016 Financial Update, Summary
• Overview • 2nd Quarter 2016 Financial Update • Summary 15
Slide 16: Summary
• Raising 2016 operating EPS* guidance by $0.12... ...in light of strong year-to-date performance • Increasing dividend for 7th consecutive year... ...as we continue to grow dividends with earnings • Investing in utilities and strategic growth opportunities in our non-utility businesses... ...provid
Slide 17: Contact Us
DTE Energy Investor Relations www.dteenergy.com/investors (313) 235-8030 17 Contact Us
Slide 18: Appendix
Appendix
Slide 19: DTE Electric Variance Analysis
2 Q 2 0 1 5 O p e rati n g E a rn in g s W e a th e r Ra te Impl e m e n ta ti o n 2 0 1 5 R e v e n u e Dec o u p le r A m o rtiza ti o n Ra te B a s e / O th e r 2 Q 2 0 1 6 O p e rati n g E a rn in g s * Reconciliation to GAAP reported earnings included in the appendix Drivers • Warmer weather in
Slide 20: 2016 Cash Flow and Capital Guidance
Cash Flow Summary 2015 Actual 2016 Guidance Cash From Operations* $1.9 $1.8 Capital Spending (2.3) (2.7) Free Cash Flow ($0.4) ($0.9) Asset Sales & Other 0.1 - Dividends (0.5) (0.5) Net Cash ($0.8) ($1.4) Debt Financing: Issuances $1.1 $1.9 Redemptions (0.3) (0.5) Change in Debt $0.8 $1.4 Capital Ex
Slide 21: Weather impact and sales
2Q 2015 2Q 2016 % change 2Q 2015 2Q 2016 % change Actuals 230 274 19% Actuals 699 838 20% Normal 215 215 0% Normal 780 774 -1% Deviation from normal 7% 27% Deviation from normal -10% 8% YTD 2015 YTD 2016 % change YTD 2015 YTD 2016 % change Actuals 230 274 19% Actuals 4,490 3,755 -16% Normal 215 215
Slide 22: 2Q 2016 Economic Net Income
** Consists of 1) the income statement effect of not recognizing changes in the fair market value of certain non-derivative contracts including physical inventory and capacity contracts for transportation, transmission and storage. These contracts are not marked-to- market, instead are recognized fo
Slide 23: YTD 2016 Economic Net Income
** Consists of 1) the income statement effect of not recognizing changes in the fair market value of certain non-derivative contracts including physical inventory and capacity contracts for transportation, transmission and storage. These contracts are not marked-to- market, instead are recognized fo
Slide 24: Use of Operating Earnings Information – 2Q 2016
24 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 measurement for external communications with analysts an
Slide 25: Use of Operating Earnings Information – YTD 2016
25 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 measurement for external communications with analysts an
Slide 26: Use of Operating Earnings Information – 2Q 2015
26 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 measurement for external communications with analysts an
Slide 27: Use of Operating Earnings Information – YTD 2015
27 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 measurement for external communications with analysts an
Slide 28: 2011–2015 Full Year Reconciliation of Reported to Operating Earnings
28 2011 – 2015 Full Year Reconciliation of Reported to Operating Earnings 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 DTE Energy Reported Earnings 711$ 610$ 661$ 905$ 727$ 4.18$ 3.55$ 3.76$ 5.10$ 4.05$ DTE Electric Fermi 1 asset retirement obligation 9 0.05 2011/2012 PSCR disallowance 12 0.07
Slide 29: Use of Operating Earnings Information
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 measurement for external communications with analysts and i