Dte Energy Company · NYSE:DTE
Dte Energy — Q2 2022 Earnings Presentation
20 slides from Dte Energy's earnings presentation, Jul 28, 2022
Slide 1: DTE Q2 2022 Earnings Conference Call
D T E 2 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 J U LY 2 8 , 2 0 2 2
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, President and CEO Dave Ruud – Senior Vice President and CFO Barbara Tuckfield – Director of Investor Relations 3
Slide 4: DTE is delivering another successful year
DTE is delivering another successful year ✓ Continuing to deliver for our team, customers, communities and investors ✓ Significant milestones in electric generation transition, including placing new natural gas plant in service ✓ Progressing on infrastructure renewal to provide safe, reliable power
Slide 5: 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 Received Best Employers Award for outstanding commitment to advancing employee well-being through comprehensive and innovative benefits and Our Team initiatives Addressing o
Slide 6: Strong operational and financial start to 2022; raising operating EPS guidance midpoint
Strong operational and financial start to 2022; raising operating EPS 1 guidance midpoint Progress across all businesses • DTE Electric: Began commercial operations at Blue Water Energy Center; finalizing agreements on over $1 billion of new Operating EPS guidance MIGreenPower investments • DTE Gas:
Slide 7: Transformational investments in generation and distribution provide customers cleaner, more reliable energy
Transformational investments in generation and distribution provide customers cleaner, more reliable energy Focusing on the grid of the future and continuing decarbonization efforts Utility capital investment (billions) • $18 billion utility 5-year capital investment; over $40 billion investment >$4
Slide 8: 2Q 2022 operating earnings variance
2Q 2022 operating earnings1 variance (millions, except EPS) 2021 2022 Variance Primary drivers Higher rate base costs, cooler weather, O&M expense timing DTE Electric $238 $186 ($52) and shift toward pre-COVID residential sales partially offset by accelerated deferred tax amortization in 2022 Higher
Slide 9: Raising 2022 operating EPS guidance
Raising 2022 operating EPS1 guidance (millions, except EPS) Current guidance Revised guidance Primary drivers DTE Electric $918 - $932 $927 - $937 Warmer than normal summer weather DTE Gas 232 - 238 237 - 241 Cooler than normal winter weather DTE Vantage 90 - 95 90 - 95 Energy Trading 15 - 25 20 - 3
Slide 10: Well positioned to continue delivering strong results
Well positioned to continue delivering strong results Total shareholder return2 ✓ Strong operational and financial start to 2022 253% ✓ Raising 2022 operating EPS1 guidance midpoint to $6.00 which provides over 8% growth from 2021 original guidance midpoint ✓ Robust investment plan to support cleane
Slide 11: Visit us: DTE Investor Relations 2021 ESG Report
VISIT US: DTE INVESTOR RELATIONS 2021 ESG REPORT
Slide 12: Appendix
Appendix DTE
Slide 13: Weather impact on sales
Weather impact on sales DTE Electric DTE Gas Cooling degree days Heating degree days % YTD YTD % % YTD YTD % 2Q 2021 2Q 2022 2Q 2021 2Q 2022 Change 2021 2022 Change Change 2021 2022 Change Actuals 308 300 (3%) 308 300 (3%) Actuals 788 815 3% 3,839 4,204 10% Normal 233 246 6% 233 246 6% Normal 797 79
Slide 14: Cash flow and capital expenditures actuals
Cash flow and capital expenditures actuals Cash flow Capital expenditures (billions) YTD 2021 YTD 2022 (millions) YTD 2021 YTD 2022 Cash from operations1 $1.9 $1.1 DTE Electric Capital expenditures (1.9) (1.6) Base infrastructure $327 $569 Free cash flow $0.0 ($0.5) New generation 701 28 Dividends (
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: 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 17: 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 18: 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 19: 2Q 2021 and 2Q 2022 reconciliation of reported to operating earnings (non-GAAP)
2Q 2021 and 2Q 2022 reconciliation of reported to operating earnings (non- GAAP) and operating EPS (non-GAAP) (Earnings per share2) Adjustments key A) Certain adjustments resulting from derivatives being marked-to-market without revaluing the underlying non-derivative contracts and assets — recorded
Slide 20: Reconciliation of reported to operating earnings (non-GAAP) 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