Dte Energy Company · NYSE:DTE
Dte Energy — Q3 2017 Earnings Presentation
17 slides from Dte Energy's earnings presentation, Oct 25, 2017
Slide 1: 3rd Quarter 2017 Earnings Conference Call
Click to edit Master title style 3rd Quarter 2017 Earnings Conference Call October 25, 2017 EXHIBIT 99.2
Slide 2: Safe Harbor Statement
Safe Harbor Statement 2 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 associa
Slide 3: Continuing to deliver significant shareholder value and achieve significant milestones
• Strong year-to-date results ‒ Increasing 2017 operating EPS* guidance midpoint $0.12 to $5.54 • DTE ranked 2nd in customer satisfaction** with electric and gas residential customers in the Midwest • Gas Storage & Pipelines (GSP) ‒ NEXUS: received FERC Notice to Proceed; in-service 3Q 2018 ‒ Millen
Slide 4: 3rd quarter operating earnings variance
3Q 2016 3Q 2017 Change DTE Electric 285$ 222$ (63)$ DTE Gas (4) (13) (9) Gas Storage & Pipelines 28 36 8 Power & Industrial Projects 35 44 9 Corporate & Other (1) (15) (14) Growth segments** 343$ 274$ (69)$ Growth segments operating EPS 1.91$ 1.53$ (0.38)$ Energy Trading 10$ (10)$ (20)$ DTE Energy 3
Slide 5: Increasing 2017 operating EPS guidance midpoint by $0.12
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 (millions, except EPS) Increasing 2017 operating EPS* guidance midpoint by $0.12 5 Prior Guidance
Slide 6: Updating 2017 cash flow and capital expenditures guidance
Prior Guidance Revised Guidance DTE Electric Distribution Infrastructure $690 $690 New Generation 45 45 Replacement & Other 725 725 $1,460 $1,460 DTE Gas Base Infrastructure $200 $200 NEXUS Related 90 90 Main Renewal 145 145 $435 $435 Non-Utility $900 - $1,100 $550 - $650 Total $2,795 - $2,995 $2,44
Slide 7: Summary
7 Summary • Increasing 2017 operating EPS* guidance given continued strong financial performance • Driving utility growth through infrastructure investments focused on improving reliability and the customer experience • Continuing strategic and sustainable growth in non-utility businesses • Maintain
Slide 8: Contact us
DTE Energy Investor Relations dteenergy.com/investors (313) 235-8030 8 Contact us
Slide 9: DTE Energy
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Slide 10: Our business strategy is fundamental to creating value for investors
Our business strategy is fundamental to creating value for investors Infrastructure investments drive regulated utility growth Strategic and transparent growth opportunities in non-utility businesses provide diversity in earnings and geography Constructive regulatory structure and continued co
Slide 11: DTE Electric variance analysis
• Return to relatively normal weather Variance to normal weather – 3Q 2016: $53 – 3Q 2017: $3 • Rate base growth (depreciation, property tax and interest) $285 $222($3) ($50) Primary DriversOperating Earnings* Variance (millions) 3Q 2016 Operating Earnings 3Q 2017 Operating Earnings Weather Other ($
Slide 12: September YTD cash flow and capital expenditures
YTD 2016 YTD 2017 DTE Electric Distribution Infrastructure $381 $478 New Generation 101 41 Replacement & Other 517 584 $999 $1,103 DTE Gas Base Infrastructure $138 $140 NEXUS Related 45 73 Main Renewal 85 123 $268 $336 Non-Utility $274 $387 Total $1,541 $1,826 YTD 2016 YTD 2017 Cash From Operations
Slide 13: Earnings impact of weather
Earnings impact of weather Cooling degree days Heating degree days Earnings impact of weather Weather Normal Electric Sales* DTE Electric service territory Variance from normal weather (GWh) Variance from normal weather 3Q 2016 3Q 2017 % change Actuals 823 590 (28%) Normal 580 580 0% Deviation from
Slide 14: Energy Trading reconciliation of operating earnings to economic net income
3rd quarter and September YTD Energy Trading reconciliation of operating earnings* to economic net income 14 3Q YTD 2016 2017 Operating Earnings $10 ($10) Accounting Adjustments** (9) 7 Economic Net Income $1 ($3) 2016 2017 Operating Earnings $26 $12 Accounting Adjustments** 5 7 Economic Net Income
Slide 15: 3rd quarter 2017 reconciliation of reported to operating earnings
Net Income (millions)* DTE Electric DTE Gas Gas Storage & Pipelines Power & Industrial Projects Corporate & Other Growth Segments Energy Trading DTE Energy $219 ($15) $36 $44 ($15) $269 $1 $270 3 2 5 5 (11) (11) $222 ($13) $36 $44 ($15) $274 ($10) $264 3rd quarter 2017 reconciliation of reported to
Slide 16: 3rd quarter 2016 reconciliation of reported to operating earnings
Net Income (millions)* DTE Electric DTE Gas Gas Storage & Pipelines Power & Industrial Projects Corporate & Other Growth Segments Energy Trading DTE Energy $285 ($4) $28 $34 ($1) $342 ($4) $338 1 1 1 14 14 $285 ($4) $28 $35 ($1) $343 $10 $353 3rd quarter 2016 reconciliation of reported to operating
Slide 17: Use of Operating Earnings Information
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 earnings from ongoing operations a