Dte Energy Company · NYSE:DTE
Dte Energy — Non-Deal Roadshow (March 2019)
35 slides from Dte Energy's roadshow presentation, Mar 29, 2019
Slide 1: DTE Business Update April 1-2, 2019
EXHIBIT 99.1 DTE Business Update April 1-2, 2019
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: Growth plan continues to deliver significant shareholder value
Growth plan continues to deliver significant shareholder value Broad utility Strong track record Distinctive focus Strong non-utility infrastructure for shareholders on culture growth agenda investment ✓ Decade-long record ✓ Elite workforce ✓ Doubling renewables, ✓ Expanding pipeline of beating guid
Slide 4: Environmental, social and governance efforts are key priorities
Environmental, social and governance efforts are key priorities Environmental Governance 50% clean energy by 11 out of 12 Board 2030 members are independent Carbon emissions reduced 80% Incentive plans tied to by 2040* safety and customer satisfaction targets Social Recognized by DiversityInc as a t
Slide 5: Our commitment to employees, customers and communities provide a solid framework for success
Our commitment to employees, customers and communities provide a solid framework for success Employee Safety Force for engagement growth National Safety Council’s top 2% of Ranked top 3% Ranked as one of companies surveyed in in the world the country's top safety culture corporate citizens by 6 cons
Slide 6: Distinctive continuous improvement culture results in strong track record of cost management
Distinctive continuous improvement culture results in strong track record of cost management All 10,000 employees engaged in CI to surface and solve problems Utility O&M* ✓ Controlling costs while improving the Flat customer experience ‒ Productivity enhancements ‒ Technology innovations ‒ Automatio
Slide 7: Michigan has a constructive regulatory environment
Michigan has a constructive regulatory environment MPSC Priorities** Ranking of U.S. regulatory ✓ jurisdictions* Promote Michigan’s economic growth and (Michigan in Tier 1) enhance the quality of life of the communities ✓ Support adoption of advanced technologies ✓ Tier 1 8 Modernize infrastructure
Slide 8: Growth fueled by investment in utility infrastructure and generation along with non-utility opportunities
Growth fueled by investment in utility infrastructure and generation along with non-utility opportunities (billions) DTE Energy Investment Electric $11.3 billion Distribution infrastructure, cleaner +43% generation, maintenance 7% - 8% operating earnings* growth $20 Gas $2.5 billion Base infrastruct
Slide 9: Focus on culture and commitment to customers has delivered strong returns for shareholders
Focus on culture and commitment to customers has delivered strong returns for shareholders Decade of exceeding guidance… …and delivering strong TSR results Operating EPS* Total Shareholder Return** (Annualized) $6.30 21% 17% 15% $3.30 13% 11% 11% 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 3-Y
Slide 10: DTE Electric providing customers with cleaner energy and strengthened distribution infrastructure
DTE Electric providing customers with cleaner energy and strengthened distribution infrastructure Delivering 50% clean energy by 2030 and Cleaner energy 80% carbon emissions reduction by 2040* Infrastructure redesign Addresses substation load growth and aging infrastructure Technology enhancement Ta
Slide 11: IRP filing supports steady march to creating clean, reliable, affordable, home-grown energy
IRP filing supports steady march to creating clean, reliable, affordable, home-grown energy Generation Mix IRP Filing ✓ 1% Consistent with EEI 5-year capital investment 2% 10% plan 17% 20% 7% 25-30% ✓ 17% 18% Accelerating carbon emissions reductions* 20-25% 32% by 2023, 50% by 2030, 80% by 2040 20%
Slide 12: Replacing coal with renewables and natural gas
Replacing coal with renewables and natural gas Planned Retirements River St. Trenton Belle Monroe Rouge Clair Channel River 2022 2030 2040 Planned Additions ✓ Quadrupling renewables by 2040 ✓ Increasing voluntary renewables up to 1,400 MW by 2030 ✓ Additional natural gas if needed A steady march tow
Slide 13: DTE Gas achieves fundamental shift in performance, cost and productivity by replacing aging infrastructure
DTE Gas achieves fundamental shift in performance, cost and productivity by replacing aging infrastructure Minimizes leaks, both reducing costs and Main renewal improving customer satisfaction Reduces manual meter reading, Technology enhancement improving both operational efficiencies and customer s
Slide 14: GSP continues growth track record
GSP continues growth track record Connecting high-quality markets to Pipeline world-class geology Gathering Serving among strongest geology in a growing basin Capitalizing on strategic location to serve Storage key markets and future power generation load growth • Acquiring Generation Pipeline, supp
Slide 15: Expanding strategic footprint in the most prolific dry gas geology in the country
Expanding strategic footprint in the most prolific dry gas geology in the country ✓ Transport, gather, store natural gas ✓ 2,000 miles of pipe and gathering lines ✓ 91 Bcf of storage Ontario Michigan Northeast Gathering Market Gas Storage Generation Pipeline Bluestone Midwest Birdsboro Link Lateral
Slide 16: P&I's focus on growth platforms drives continued success
P&I’s focus on growth platforms drives continued success Developing new cogeneration projects to Industrial Energy Services improve customer environmental attributes and lower energy costs Renewable Energy Expanding business to generate RNG at landfill and agricultural sites Reduced Emissions Fuel M
Slide 17: Appendix
Appendix 17
Slide 18: DTE Energy overview
DTE Energy overview 70% - 75% Utility 25% - 30% Non-utility DTE Electric Gas Storage & Pipelines (GSP) Electric generation and Transport, store and gather distribution natural gas DTE Gas Power & Industrial Projects (P&I) Natural gas transmission, storage Own and operate energy related and distribut
Slide 19: 2019 operating EPS guidance grows 6.4% from 2018 original guidance
2019 operating EPS* guidance grows 6.4% from 2018 original guidance (millions, except EPS) Operating EPS 2019 Operating Earnings +6.4% Guidance DTE Electric $698 - $712 $6.30 $6.15 DTE Gas 171 - 179 $5.78 Gas Storage & Pipelines 208 - 218 Power & Industrial Projects 119 - 134 Energy Trading 15 - 25
Slide 20: Maintaining strong cash flow and balance sheet
Maintaining strong cash flow and balance sheet Funds from Operations* / Debt** Target • Issuing $1.0 - $1.5 billion of equity in Target 19% 18% 18% 2019 - 2021 ‒ Up to $250 million of equity in 2019 using internal mechanisms • Supporting capital investments with 2018 2019E - 2021E strong cash from o
Slide 21: Cash flow and capital expenditures
Cash flow and capital expenditures (billions) (millions) Cash Flow Capital Expenditures 2018 2019 2018 2019 Actual Guidance Actual Guidance Cash From Operations* $2.7 $2.4 DTE Electric Capital Expenditures (3.4) (3.9) Base Infrastructure $781 $820 Free Cash Flow ($0.7) ($1.5) New Generation 333 490
Slide 22: Michigan Public Service Commission is the state regulator for electric and gas utilities
Michigan Public Service Commission is the state regulator for electric and gas utilities • Establishes rates and administers terms and conditions of service for Michigan’s utility customers • Composed of three members appointed by the Governor - One commissioner is designated as chairman - Each serv
Slide 23: Both utilities increase customer reliability with investment plans over the next 5 years
Both utilities increase customer reliability with investment plans over the next 5 years (billions) DTE Electric DTE Gas Targeting 7% - 8% Targeting 8% - 9% operating earnings* growth operating earnings* growth $11.3 $2.5 Cleaner generation Infrastructure Renewal Distribution infrastructure Base Bas
Slide 24: GSP is positioned for strong future growth
GSP is positioned for strong future growth Gas Storage & Pipelines • Pursuing growth in our core geography through additional expansions and strategic acquisitions • NEXUS acquiring Generation Pipeline ‒ Purchase price between $150 - $200 million ‒ 355 MMcf/d fully contracted, 24-inch, 23 mile pipel
Slide 25: Multiple platforms underpin long-term growth
Multiple platforms underpin long-term growth (millions) GSP Operating Earnings* • 5-year growth of 21% through 2019 $335 - $345 • 12% growth from 2019 guidance ‒ Continued pipeline expansions ‒ Investment around Link and NEXUS platforms $208 - $218 ‒ Strategic acquisitions • Strong development queue
Slide 26: Operating earnings post REF are underpinned by attractive growth opportunities
Operating earnings* post REF are underpinned by attractive growth opportunities (millions) P&I Operating Earnings • P&I growth opportunities stronger than previously anticipated, driving higher $119 - $134 $125 - $135 earnings in 5-year plan • Current project development queue is very strong • 5-yea
Slide 27: Energy Trading business provides valuable market insights and cash for reinvestment
Energy Trading business provides valuable market insights and cash for reinvestment (millions) • 20+ years of experience in the trading business Energy Trading Earnings* • Marketing capabilities support other business units ~$45 ‒ Moves GSP customers’ gas to $30 - $40 market ‒ Markets and originates
Slide 28: 2009 - 2010 full year reconciliation of reported to operating EPS (non-GAAP)
2009 - 2010 full year reconciliation of reported to operating EPS (non-GAAP) 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 pr
Slide 29: 2011 - 2012 full year reconciliation of reported to operating EPS (non-GAAP)
2011 - 2012 full year reconciliation of reported to operating EPS (non-GAAP) 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 pr
Slide 30: 2013 - 2014 full year reconciliation of reported to operating EPS (non-GAAP)
2013 - 2014 full year reconciliation of reported to operating EPS (non-GAAP) 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 pr
Slide 31: 2015 - 2016 full year reconciliation of reported to operating EPS (non-GAAP)
2015 - 2016 full year reconciliation of reported to operating EPS (non-GAAP) 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 pr
Slide 32: 2017 - 2018 full year reconciliation of reported to operating EPS (non-GAAP)
2017 - 2018 full year reconciliation of reported to operating EPS (non-GAAP) 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 pr
Slide 33: 2014 full year reconciliation of reported to operating earnings (non-GAAP)
2014 full year reconciliation of reported to operating earnings (non-GAAP) 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 prim
Slide 34: 2014 - 2018 Energy Trading reconciliation of operating earnings to economic earnings (non-GAAP)
2014 - 2018 Energy Trading reconciliation of operating earnings to economic earnings (non-GAAP) (millions) 2014 2015 2016 2017 2018 Reported earnings $122 ($22) ($45) $72 $39 Operating adjustments (102) 37 70 (52) 1 Operating earnings 20 15 25 20 40 • Economic earnings (non-GAAP) Accounting adjustme
Slide 35: Reconciliation of reported to operating earnings (non-GAAP)
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 repres