Dte Energy Company · NYSE:DTE
Dte Energy — Q1 2022 Earnings Presentation
19 slides from Dte Energy's earnings presentation, Apr 28, 2022
Slide 1: Q1 2022 Earnings Conference Call
D T E 1 Q 2 0 2 2 E A R N I N G S C O N F E R E N C E C A L L APRIL 28, 2022
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 – President and CEO Dave Ruud – Senior Vice President and CFO Barbara Tuckfield – Director Investor Relations 3
Slide 4: Focusing on our team, customers and communities while delivering for investors
Focusing on our team, customers and communities while delivering for investors Ensuring the health and safety of our employees Our Team 10 consecutive Gallup Great Workplace Award th Addressing our customers’ most vital needs Progressing on reliability initiatives to prepare for potential future sev
Slide 5: Strong start to 2022 and well positioned for continued success
Strong start to 2022 and well positioned for continued success Operating EPS guidance Achievements across all businesses • DTE Electric: filed first general rate case in almost 3 years; exceeded 50,000 $5.90 residential customers in MIGreenPower voluntary renewable program Revised • DTE Gas: acceler
Slide 6: Advancing on environmental initiatives to provide cleaner energy to our customers
Advancing on environmental initiatives to provide cleaner energy to our customers Cleaner generation mix1 (MWh %) Significant clean energy milestones in 2022 • Placing Blue Water Energy Center, DTE Electric’s 1,100 MW 3% state-of-the-art natural gas plant, in service in 2Q 2% 1% 4% 4% Storage • Reti
Slide 7: 1Q 2022 operating earnings variance
1Q 2022 operating earnings1 variance (millions, except EPS) 2021 2022 Variance Primary drivers Higher rate base costs and O&M partially offset by cooler DTE Electric $208 $201 (7) weather and accelerated deferred tax amortization in 2022 Rate implementation and cooler weather in 2022 partially DTE G
Slide 8: Maintaining strong cash flow, balance sheet and credit profile
Maintaining strong cash flow, balance sheet and credit profile • Expect minimal equity issuances outside of convertible equity units Planned equity issuances • Strong investment-grade credit rating 2022 - 2024 (billions) − Targeting ~16% FFO1 / Debt2 $1.3 • Increased 2022 annualized dividend 7% to $
Slide 9: Well positioned to continue delivering strong results for customers and shareholders
Well positioned to continue delivering strong results for customers and shareholders Total shareholder return2 298% ✓ Continued focus on our team, customers and communities ✓ 2022 operating EPS1 guidance midpoint provides 7% growth from 2021 original guidance midpoint ✓ Robust investment in cleaner
Slide 10: DTE Investor Relations 2021 ESG Report
VISIT US: DTE INVESTOR RELATIONS 2021 ESG REPORT
Slide 11: Appendix
Appendix DTE
Slide 12: On track to achieve increased 2022 operating EPS guidance
On track to achieve increased 2022 operating EPS 1 guidance (millions, except EPS) 2022 original guidance 2022 current guidance DTE Electric $915 - $929 $918 - $932 DTE Gas 227 - 237 232 - 238 DTE Vantage 85 - 95 90 - 95 Energy Trading 15 - 25 15 - 25 Corporate & Other (127) - (117) (120) - (115) DT
Slide 13: Weather impact on sales
Weather impact on sales DTE Electric DTE Gas Cooling degree days Heating degree days 1Q 2021 1Q 2022 % Change 1Q 2021 1Q 2022 % Change Actuals - - 0% Actuals 3,051 3,389 11% Normal - - 0% Normal 3,212 3,230 1% Deviation Deviation 0% 0% (5%) 5% from normal from normal Operating earnings1 impact of we
Slide 14: Cash flow and capital expenditures actuals
Cash flow and capital expenditures actuals Cash flow Capital expenditures (billions) (millions) 1Q 2021 1Q 2022 1Q 2021 1Q 2022 Cash from operations1 $1.1 $0.8 DTE Electric Capital expenditures (0.7) (0.8) Base infrastructure $190 $288 Free cash flow $0.4 $0.0 New generation 100 18 Distribution infr
Slide 15: 2022 cash flow and capital expenditures guidance
2022 cash flow and capital expenditures guidance Cash flow Capital expenditures (billions) 2022 (millions) 2022 guidance guidance Cash from operations1 $2.6 DTE Electric Capital expenditures (3.7) Base infrastructure $1,170 Free cash flow ($1.1) New generation 210 Dividends (0.7) Distribution infras
Slide 16: Environmental, social and governance efforts are key priorities
Environmental, social and governance efforts are key priorities; aspiring to be the best in the industry Environment Social Governance • Transitioning towards net zero1 • Focusing on the diversity, safety, • Focusing on the oversight of emissions at both utilities well-being and success of environme
Slide 17: Continuing to evaluate the cessation of coal use to further accelerate decarbonization plan
Continuing to evaluate the cessation of coal use to further accelerate decarbonization plan River St. Trenton Belle Belle Monroe Rouge Clair Channel River River 2021 2022 2028 2030 2040 Accelerating Evaluating cessation of coal cessation of use from 2030 coal use earlier to 2028 than 2040 • Stakehol
Slide 18: Reconciliation of reported to operating earnings
1Q 2021 and 1Q 2022 reconciliation of reported to operating earnings (non- GAAP) and 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
Slide 19: 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 more meaningful represe