Dte Energy Company · NYSE:DTE
Dte Energy — Merrill Lynch Global Power and Gas Leaders Conference 2005
15 slides from Dte Energy's conference presentation, Sep 27, 2005
Slide 1: DTE Energy's Integrated Business Strategy
DTE Energy's Integrated Business Strategy Merrill Lynch Global Power and Gas Leaders Conference Gerard Anderson President September 27, 2005
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: DTE Energy Is an Integrated Energy Company
Power and Industrial Projects Unconventional Gas Production Fuel Transportation and Marketing Detroit Edison MichCon DTE Energy Is an Integrated Energy Company Strong, Stable and Growing Utilities Complementary Non-Utility Growth Businesses $8 billion equity market capitalization $21 billion assets
Slide 4: Detroit Edison and MichCon Form a Strong and Stable Utility Base
Stable regulatory foundation Recent rate increases Electric rate restructuring case proceeding constructively Continued full cost recovery for natural gas, electric fuel supply, purchased power and transmission New cost tracking mechanisms Operational improvements from DTE Operating System Stepped u
Slide 5: Utilities Have Good Near and Long-Term Growth Potential
Utilities Have Good Near and Long-Term Growth Potential Base Electric Environmental Gas System Expansion / Safety Base Gas Total bars 0 800 1410 1615 0 other 800 600 205 48 1663 Utility Asset Base Growth 2005-2010 ($ millions) * Assumes earning 11% ROE on 50% equity 2005 utility guidance (midpoint)
Slide 6: DTE Energy Is an Integrated Energy Company
Power and Industrial Projects Unconventional Gas Production Fuel Transportation and Marketing Detroit Edison MichCon DTE Energy Is an Integrated Energy Company Strong, Stable and Growing Utilities Complementary Non-Utility Growth Businesses $8 billion equity market capitalization $21 billion assets
Slide 7: DTE Has Developed a Meaningful Unconventional Gas Position
DTE Has Developed a Meaningful Unconventional Gas Position Most active operator in the play 15 year track record 290,000 acres 1,925 wells producing 22 Bcf per year Antrim Shale 75,000 acres - recently acquired 18,000 acres Among 10 largest acreage positions in the play ~50 operating wells Working t
Slide 8: Antrim Shale: Our Approach Going Forward and Recent Examples
Antrim Shale: Our Approach Going Forward and Recent Examples Active Leasing and Drilling Program Remarket Existing Production Apply New Technologies DTE Energy's Antrim Shale Operations Continue to build base of undeveloped acreage Currently at 80,000 acres Added ~19,000 acres over last 12 months -
Slide 9: Barnett Shale: Our Approach Going Forward and Recent Examples
Barnett Shale: Our Approach Going Forward and Recent Examples Drilling wells to prove- out holdings Shooting 3-D seismic Plan to drill 10-20 wells by year-end Plan to add 5,000 - 10,000 additional acres by year end Approach Recent Examples Prove out existing acreage and prudently add to position See
Slide 10: Unconventional Gas Investments Expected to Provide Attractive Returns
Unconventional Gas Investments Expected to Provide Attractive Returns 2005E 2006 2007 2008 Antrim 10 15 21 31 Barnett 0 13 37 48 Unconventional Gas Net Income Potential ($ millions) $70-80 Barnett Antrim $25-30 $50-60 $10 Expected growth expenditures of $400M from 2005-2008, generating incremental n
Slide 11: The Power and Industrial Segment Provides Private Utility Services
The Power and Industrial Segment Provides Private Utility Services Creates value by providing reliable and efficient operations and optimized fuel inputs Manages risk through contract structuring Long-term contracts Fuel cost pass through Non-recourse debt Currently own and operate 25 sites in the a
Slide 12: We Focused on Building Scale in the Power and Industrial Segment
We Focused on Building Scale in the Power and Industrial Segment We see significant near-term growth opportunities via acquisitions Agreed to acquire six sites in recent $35-40M transaction with DQE Expect to close on a second ~$25M multi-site acquisition Also expect to close on a ~$20M biomass ener
Slide 13: Power and Industrial Investments Expected to Provide Attractive Returns
Power and Industrial Investments Expected to Provide Attractive Returns Power and Industrial Net Income Potential* ($ millions) $80 $45 $65 $48 * Excluding synfuels, power generation, PepTec and Energy Services overheads Expected growth expenditures of $450-500M from 2005-2008, generating incrementa
Slide 14: DTE Energy Investment Thesis
DTE Energy Investment Thesis Well-run utilities in a constructive regulatory environment provide a stable and strong base Significant opportunities for utility and non-utility earnings growth Internally generated cash available to fund growth while maintaining balance sheet strength Large and sustai
Slide 15: For Additional Information
For Additional Information www.dteenergy.com/investors Investor Relations 313-235-8030
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