Slide 1: Realizing Value for Shareholders: Sale of Barnett Shale Core Properties
Realizing Value for Shareholders: Sale of Barnett Shale Core Properties December 10, 2007
Slide 2: Safe Harbor Statement
Safe Harbor Statement The information contained herein is as of the date of this presentation. 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 "anti
Slide 3: Participants
Participants Tony Earley, Chairman and CEO Gerry Anderson, President and COO Dave Meador, Executive Vice President and CFO Lisa Muschong, Director of Investor Relations
Slide 4: Today's Announcements
Today's Announcements Selling Barnett Shale core properties Continuing development of Western Barnett acreage Increasing stock buyback plan
Slide 5: Barnett Non-Utility Monetization Plan Update
Barnett Non-Utility Monetization Plan Update Michigan Electric Utility Legislation Update
Slide 6: Overview
Overview Agreed to sell Barnett Shale core properties to Range Resources for ~$260 million of gross proceeds Properties sold include Interests in 59 wells (51 producing) 11,000 net acres 15 mmcfd net production Expect to close deal in January 2008 We have taken another significant step in executing
Slide 7: Value Proposition
Value Proposition Invested to Date Cash Flow to Date Net Sales Proceeds Core and Southern -130 -73 -73 -57 102 ($130) $55 $175 Net Cash Flow From Core Barnett ($millions) Strong value realized from sale of Barnett Shale core properties Gross proceeds of ~$260 million After tax proceeds of ~$175 mill
Slide 8: Development of Remaining Barnett Acreage Focused on Near-Term Value Creation
Development of Remaining Barnett Acreage Focused on Near-Term Value Creation Clay Zones of DTE Acreage Vertical Wells Horizontal Wells Dallas/ Ft Worth Metropolitan Area West 44,000 acres Core 11,000 acres Hood Johnson Erath Jack Somervell Hill Wise Tarrant Bosque Parker Denton Palo Pinto South 30,0
Slide 9: Barnett Shale Operating Metrics
Net Production Rate 9/30/07 Gross Producing Wells 9/30/07 108 Reserves 12/31/06 Probable Proven Acreage Position 9/30/07 Net Undeveloped Acres Net Developed Acres West 180 107 287 Barnett Shale Operating Metrics (Bcfe) (mmcf/day) 67 86 Core 153 8,000 West 36,000 44,000 5,000 6,000 Core 11,000 West C
Slide 10: Barnett Non-Utility Monetization Plan Update
Barnett Non-Utility Monetization Plan Update Michigan Electric Utility Legislation Update
Slide 11: Total Monetization Proceeds Expected to More than Double Original Plan
Total Monetization Proceeds Expected to More than Double Original Plan Original Guidance Mid-2007 Guidance Current Guidance At least $800 million Antrim Power & Industrial Peakers Monetization After-Tax Cash Proceeds Closed Closed Final Stages Core Barnett $1.7B Agreement Signed Closing delayed due
Slide 12: Sources and Uses of Monetization Proceeds and Synfuel Cash
Sources Uses East 1.4 0.7 West 0.95 1 0.2 0.7 Sources and Uses of Monetization Proceeds and Synfuel Cash Synfuel $900 (2007 - 2009) Monetization Proceeds ~$1,700 (2007 - 2008) Monetization Proceeds and Synfuel Cash Sources and Uses ~$2,600 ~$2,600 Debt Redemption $700 Share Repurchase* $1,000 Utilit
Slide 13: Michigan Electric Utility Legislation Update
Barnett Non-Utility Monetization Plan Update Michigan Electric Utility Legislation Update
Slide 14: Summary of Bills Introduced in Michigan House
Summary of Bills Introduced in Michigan House House Bill #5520: Gives the MPSC authority to approve generation asset sales over 200 MW HB 5521: Certificate of Need process for major capital investments in electric generation HB 5522: Cost-of-service based electric rates (deskewing) HB 5523: File and
Slide 15: DTE Energy's Investment Thesis
DTE Energy's Investment Thesis DTE Energy expects to create significant value for shareholders over the next five years and beyond 5-6% long-term utility earnings growth Well-run utilities engaged in a customer-focused investment program, operating in a constructive regulatory environment Potential
Slide 16: Appendix
Appendix DTE Energy s€
Slide 17: Western Barnett has Different Characteristics than the Core
Western Barnett has Different Characteristics than the Core Western Core Cost per horizontal well ~$1.5M ~$3M Reserves per well (Bcf) 1 - 1.5 2 - 4 Peak rate per well (Mcf/day) 500 - 1,000 800 - 3,000 Well spacing (acres)* 90-120 40-120 Western Barnett development is economically attractive Generall