Dte Energy Company · NYSE:DTE
Dte Energy — Q3 2016 Earnings Presentation
21 slides from Dte Energy's earnings presentation, Oct 26, 2016
Slide 1: 3rd Quarter 2016 Earnings Conference Call
3rd Quarter 2016 Earnings Conference Call October 26, 2016
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, FERC, MPSC, NRC, and CFTC, as well as other applicable governmental proceedings and regulations, including any associated impact on rate structures; the
Slide 3: Participants
Participants • Peter Oleksiak – Senior Vice President and CFO • Barbara Tuckfield – Director, Investor Relations 3
Slide 4: We continue to make progress on many fronts
We continue to make progress on many fronts Strong year-to-date financial results − Raised 2016 operating EPS* guidance in September − Investing in infrastructure improvements − Updating cash and capital guidance Employee safety performance best in company’s history Midstream assets acquired in t
Slide 5: 3rd Quarter 2016 Operating Earnings Variance
3rd Quarter 2016 Operating Earnings* Variance (millions, except EPS) Operating Earnings Drivers 3Q 2015 3Q 2016 Change DTE Electric DTE Electric $ 214 $ 285 $ 71 • Primarily weather and rate implementation DTE Gas (11) (4) 7 DTE Gas Gas Storage & Pipelines 27 28 1 • Primarily main replacement surcha
Slide 6: We are confident in achieving our 2016 operating EPS guidance
We are confident in achieving our 2016 operating EPS* guidance (millions, except EPS) 2016 2016 YTD 3Q Guidance Actuals DTE Electric $547 $615 - $625 DTE Gas 96 135 - 141 Gas Storage & Pipelines 93 115 - 120 Power & Industrial Projects 73 90 - 100 Corporate & Other (31) (55) - (51) Growth segments**
Slide 7: We are updating our 2016 cash flow and capital expenditures guidance
We are updating our 2016 cash flow and capital expenditures guidance (billions) (millions) Cash Flow Summary Capital Expenditures Summary Prior Revised Prior Revised Guidance Guidance Guidance Guidance DTE Electric Cash From Operations* $1.8 $2.0 Distribution Infrastructure $610 $610 Capital Expendi
Slide 8: Strong balance sheet remains a key priority and supports growth
Strong balance sheet remains a key priority and supports growth Leverage* Target 50% - 53% • 2016 equity issuance not required due to stronger than 51% 52% planned earnings and cash flow 2014 2015 2016E • In early October, DTE Energy issued $1.0 billion of senior notes and $675 million of Funds from
Slide 9: Summary
Summary • Achieving our 2016 operating EPS* guidance... ...as a result of strong year-to-date performance • Investing in aging utility infrastructure... ...driving increased customer reliability • Executing on strategic growth opportunities at our non-utility businesses... ...as evidenced by the rec
Slide 10: Contact Us
Contact Us DTE Energy Investor Relations www.dteenergy.com/investors (313) 235-8030 10
Slide 11: Appendix
se DTE Energy: Appendix
Slide 12: DTE Electric Variance Analysis
DTE Electric Variance Analysis (millions) Operating Earnings* Variance Drivers $30 ($8) $285 • Warmer weather $49 Variance to normal weather - 3Q 2015: $4 $214 - 3Q 2016: $53 • August 1, 2016 rate implementation supporting infrastructure improvements to enhance customer reliability • Other consists
Slide 13: Weather and DTE Electric Weather Normal Sales
Weather and DTE Electric Weather Normal Sales Cooling degree days Heating degree days DTE Electric service territory DTE Gas service territory 3Q 2015 3Q 2016 % change 3Q 2015 3Q 2016 % change Actuals 605 823 36% Actuals 74 47 (36%) Normal 580 580 0% Normal 134 125 (7%) Deviation from normal 4% 42%
Slide 14: September YTD 2016 Cash Flow and Capital Expenditures
September YTD 2016 Cash Flow and Capital Expenditures (billions) (millions) Cash Flow Summary Capital Expenditures Summary YTD YTD YTD YTD 2015 2016 2015 2016 DTE Electric Cash From Operations* $1.5 $1.8 Distribution Infrastructure $433 $381 Capital Expenditures (1.7) (1.5) New Generation 261 101 Fr
Slide 15: 3rd Quarter Trading Reconciliation of Operating Earnings to Economic Net Income
3rd Quarter Trading Reconciliation of Operating Earnings* to Economic Net Income (millions) $10 ($9) • Economic net income Operating Earnings* equals economic gross (millions, after-tax) $1 margin*** minus O&M expenses and taxes 3Q 2016 3Q 2015 3Q 2016 Operating Accounting 3Q 2016 Economic • DTE Ene
Slide 16: September YTD Trading Reconciliation of Operating Earnings to Economic Net Income
September YTD Trading Reconciliation of Operating Earnings* to Economic Net Income (millions) $26 $5 $31 • Economic net income Operating Earnings* equals economic gross (millions, after-tax) margin*** minus O&M expenses and taxes YTD 2016 YTD 2015 YTD 2016 Operating Accounting YTD 2016 Economic • DT
Slide 17: 3rd Quarter 2016 Reconciliation of Reported to Operating Earnings
3rd Quarter 2016 Reconciliation of Reported to Operating Earnings 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 perfo
Slide 18: September YTD 2016 Reconciliation of Reported to Operating Earnings
September YTD 2016 Reconciliation of Reported to Operating Earnings 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 per
Slide 19: 3rd Quarter 2015 Reconciliation of Reported to Operating Earnings
3rd Quarter 2015 Reconciliation of Reported to Operating Earnings 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 perfo
Slide 20: September YTD 2015 Reconciliation of Reported to Operating Earnings
September YTD 2015 Reconciliation of Reported to Operating Earnings 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 per
Slide 21: Reconciliation of Other Reported to Operating Earnings
Reconciliation of Other Reported to Operating Earnings 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 meas