Dte Energy Company · NYSE:DTE
Dte Energy — Corporate Update (August 2017)
26 slides from Dte Energy's corporate update, Aug 15, 2017
Slide 1: Business Update August 16, 2017
Click to edit Master title style EXHIBIT 99.1 Business Update August 16, 2017
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, the FERC, the MPSC, the NRC, and for DTE Energy, the CFTC, as well as other applicable governmental proceedings and regulations, including any associate
Slide 3: Overview, Long-Term Growth Update, Summary
3 • Overview • Long-Term Growth Update • Summary
Slide 4: DTE business segments overview
4 DTE Electric • Electric generation and distribution • 2.2 million customers • Fully regulated Growth driven by infrastructure investments aimed at improving customer reliability Growth driven by strategic opportunities 75%-80% Utility 20%-25% Non-Utility DTE Gas • Natural gas transmission, storage
Slide 5: Our business strategy is fundamental to creating value for investors
5 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 cost savings enable utilities to earn their authorized returns Dist
Slide 6: Overview, Long-Term Growth Update, Summary
6 • Overview • Long-Term Growth Update • Summary
Slide 7: 2017-2021 Capital Plan
7 2017 – 2021 Plan 2012 – 2016 $12 billion $13.5 billion 2017 – 2021 Capital Plan Electric ................ $8.4 billion Distribution infrastructure, new generation, replacement Gas ...................... $1.8 billion Base infrastructure, NEXUS related, main replacement GSP ......... $2.2 to $2.8 bi
Slide 8: DTE Electric Investment
8 DTE Electric Investment New generation • Replace remaining coal with cleaner energy Distribution infrastructure • Move electric reliability to 1st quartile Replacement and other • Reduce costs through productivity and efficiency improvements 2012 – 2016 2017 – 2021 $7.4 billion $8.4 billion $9.8 b
Slide 9: DTE Gas Investment
9 DTE Gas Investment Base infrastructure • Transmission, compression, distribution, storage Main replacement • Strengthen gas infrastructure by reducing planned main replacement cycle by half NEXUS related 2012 – 2016 2017 – 2021 $1.4 billion $1.8 billion 2022 – 2026 $1.7 billion DTE Gas’ infrastruc
Slide 10: Gas Storage & Pipelines Growth Platforms
10 Growth Platforms Purposefully located in the best geology in North America ‒ Millennium Pipeline ‒ Bluestone Pipeline & Gathering ‒ Link* Lateral & Gathering ‒ NEXUS Pipeline Michigan Assets Strategically located between Chicago and Ontario, Canada trading hubs ‒ Vector Pipeline ‒ Storage ‒ G
Slide 11: Power & Industrial Projects business lines
11 Renewable Energy Industrial Energy Services Reduced Emissions Fuel (REF) • Wood-fired power plants • Landfill gas to energy conversion • On-site utility services for industrial and commercial customers • Coke and pulverized coal for steel customers • Projects to reduce emissions from coal-fired p
Slide 12: Overview, Long-Term Growth Update, Summary
12 • Overview • Long-Term Growth Update • Summary
Slide 13: Summary
13 * Reconciliation of operating earnings (non-GAAP) to reported earnings included in the appendix • On track to achieve 2017 operating EPS* guidance given strong first-half financial performance • Driving utility growth through infrastructure investments focused on improving reliability and the cus
Slide 14: Appendix
14 Appendix
Slide 15: Increased 2017 operating EPS guidance
15 (millions, except EPS) * Reconciliation of operating earnings (non-GAAP) to reported earnings included in the appendix ** Total DTE Energy excluding Energy Trading DTE Electric DTE Gas Gas Storage & Pipelines Power & Industrial Projects Corporate & Other Growth segments** Growth segments operatin
Slide 16: Consistently provide value to shareholders
16 * Source: Bloomberg (as of 6/30/2017) 2011 2012 2013 2014 2015 2016 2017 Annualized Dividend per Share $2.35 $3.30 Total Shareholder Return* (dollars per share) Targeting ~7% dividend increases in 2018 and 2019 113% 238% 79% 140% DTE Energy S&P 500 Utilities 10-YR5-YR Top quartile Top quartile of
Slide 17: Cash flow and balance sheet remain strong
17 * Debt excludes a portion of DTE Gas’ short-term debt and considers 50% of the junior subordinated notes and 100% of the convertible equity units as equity ** Funds from Operations (FFO) is calculated using operating earnings 21% 2016 2017-2019E 51% 2016 2017-2019E Leverage* Funds from Operations
Slide 18: Cash flow and capital expenditures guidance
18 2016 Actual 2017 Guidance DTE Electric Distribution infrastructure $567 $690 New generation 131 45 Replacement & other 805 725 $1,503 $1,460 DTE Gas Base infrastructure $177 $200 NEXUS related 94 90 Main replacement 124 145 $395 $435 Non-Utility $1,533 $900 - $1,100 Total $3,431 $2,795 - $2,995 2
Slide 19: Committed to cleaner energy and reducing carbon emissions
19 Committed to providing cleaner energy to customers and reducing carbon emissions by over 80% Carbon emissions reduction goals • Retiring aging coal-fired plants - ending use of coal by 2040 • Adding 3,500 megawatts of natural gas-fired energy capacity to supply 24/7 power and ensure reliability •
Slide 20: Michigan's regulatory environment is constructive
20 Minimal regulatory lag Solid ROEs Unique recovery mechanisms Source: Barclays, February 2017 Top Tier Michigan’s regulatory environment is one of the most constructive in the United States
Slide 21: Regulatory update
21 DTE Gas DTE Electric • Expect to file late 2017 / early 2018 • General rate case - April 2017 (U-18255) – Requested rate recovery: $231 million; 10.5% ROE Staff testimony: August 2017 Cross examination: October 2017 Self implementation: November 2017 Briefs: November 2017 Final order: b
Slide 22: Positive trends continue with Michigan's economy
22Source: IHS 15.0 15.5 16.4 22.7 23.5 2013 2014 2015 2016 2017E Housing Start Ups (000s) Lowest unemployment in Michigan since 2000 7th top state for business* Michigan has the highest number of manufacturing jobs since 2007** $407 $414 $421 $429 $437 2013 2014 2015 2016 2017E Gross State Product (
Slide 23: DTE Electric plans $8.4 billion of investments over 5 years
23 * Includes power reliability, existing generation maintenance, AMI, Ludington expansion and other investments ** Includes working capital and rate base associated with surcharges Targeting 6% - 7% growth(millions) $15.6B ~$20.9BYE Rate Base** $704M ~$923MDepreciation 2016A 2017E 2018E 2019E 2020E
Slide 24: DTE Gas planned $1.8 billion investments over 5 years
24 2016A 2017E 2018E 2019E 2020E 2021E 2017E - 2021E Total Base infrastructure Main replacement* NEXUS related $1,800 $100 $700 $1,000 $3.7B ~$5.1B - $5.2BYE Rate Base** $104M ~$154MDepreciation ** Includes working capital $395 $435 $375 $330 $330 $330 * Includes main renewal, meter move-out and pip
Slide 25: Use of Operating Earnings Information
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
26 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 operation