Slide 1: 3rd Quarter 2016 Earnings Conference Call
3rd Quarter 2016 Earnings Conference Call October 26, 2016 EXHIBIT 99.2
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
• Peter Oleksiak – Senior Vice President and CFO • Barbara Tuckfield – Director, Investor Relations Participants 3
Slide 4: We continue to make progress on many fronts
* Reconciliation to GAAP reported earnings included in the appendix 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 Midstr
Slide 5: 3rd Quarter 2016 Operating Earnings Variance
3Q 2015 3Q 2016 Change DTE Electric 214$ 285$ 71$ DTE Gas (11) (4) 7 Gas Storage & Pipelines 27 28 1 Power & Industrial Projects 32 35 3 Corporate & Other (9) (1) 8 Growth segments** 253$ 343$ 90$ Growth segments operating EPS 1.40$ 1.91$ 0.51$ Energy Trading (1) 10 11 DTE Energy 252$ 353$ 101$ Oper
Slide 6: We are confident in achieving our 2016 operating EPS guidance
** Total DTE Energy excluding Energy Trading We are confident in achieving our 2016 operating EPS* guidance 2016 YTD 3Q Actuals DTE Electric DTE Gas Gas Storage & Pipelines Power & Industrial Projects Corporate & Other Growth segments** Growth segments operating EPS Energy Trading DTE Energy Operati
Slide 7: Updated 2016 cash flow and capital expenditures guidance
Capital Expenditures Summary Prior Guidance Revised Guidance DTE Electric Distribution Infrastructure $610 $610 New Generation 150 150 Maintenance & Other 790 790 $1,550 $1,550 DTE Gas Base Infrastructure $220 $220 NEXUS Related 110 110 Main Replacement** 100 100 $430 $430 Non-Utility $520 – 720 $1,
Slide 8: Strong balance sheet remains a key priority and supports growth
25% 21% 2014 2015 2016E 51% 52% 2014 2015 2016E Leverage* Funds from Operations** / Debt* Target 50% - 53% Target 20% + Strong balance sheet remains a key priority and supports growth 8 • 2016 equity issuance not required due to stronger than planned earnings and cash flow • In early October, DTE En
Slide 9: 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 recent acqu
Slide 10: Contact Us
DTE Energy Investor Relations www.dteenergy.com/investors (313) 235-8030 Contact Us 10
Slide 11: Appendix
Appendix
Slide 12: DTE Electric Variance Analysis
Drivers • Warmer weather Variance to normal weather - 3Q 2015: $4 - 3Q 2016: $53 • August 1, 2016 rate implementation supporting infrastructure improvements to enhance customer reliability • Other consists primarily of rate base growth (depreciation, property tax and interest) Operating Earnings* Va
Slide 13: Weather and sales actuals vs normal
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% Deviation from normal (45%) (62%) YTD 2015 YTD 2016 % change YTD 2015 YTD 2016 % change Actuals 835 1,098 31% Actuals 4,564 3,802 (17%) Normal
Slide 14: September YTD 2016 Cash Flow and Capital Expenditures
Capital Expenditures Summary YTD 2015 YTD 2016 DTE Electric Distribution Infrastructure $433 $381 New Generation 261 101 Maintenance & Other 591 517 $1,285 $999 DTE Gas Base Infrastructure $134 $138 NEXUS Related - 45 Main Replacement** 61 85 $195 $268 Non-Utility $219 $274 Total $1,699 $1,541 (mill
Slide 15: 3rd Quarter Trading Reconciliation of Operating Earnings to Economic Net Income
3Q 2016 Economic Net Income Accounting Adjustments** 3Q 2016 Operating Earnings* ($1) $14 • Economic net income equals economic gross margin*** minus O&M expenses and taxes • DTE Energy management uses economic net income as one of the performance measures for external communications with analysts a
Slide 16: September YTD Trading Reconciliation of Operating Earnings to Economic Net Income
YTD 2016 Economic Net Income Accounting Adjustments** YTD 2016 Operating Earnings* $14 $53 • Economic net income equals economic gross margin*** minus O&M expenses and taxes • DTE Energy management uses economic net income as one of the performance measures for external communications with analysts
Slide 17: 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 performance measurement for external communications with analysts and i
Slide 18: September YTD 2016 Reconciliation of Reported to Operating Earnings
September YTD 2016 Reconciliation of Reported to Operating Earnings 18 ** Total tax impact of adjustments to reported EPS: $0.23 * Total tax impact of adjustments to reported earnings: $42m Use of Operating Earnings Information – DTE Energy management believes that operating earnings provide a more
Slide 19: 3rd Quarter 2015 Reconciliation of Reported to Operating Earnings
3rd Quarter 2015 Reconciliation of Reported to Operating Earnings 19 ** Total tax impact of adjustments to reported EPS: ($0.05) * Total tax impact of adjustments to reported earnings: ($8)m Use of Operating Earnings Information – DTE Energy management believes that operating earnings provide a more
Slide 20: September YTD 2015 Reconciliation of Reported to Operating Earnings
September YTD 2015 Reconciliation of Reported to Operating Earnings 20 YTD September Actual DTE Electric DTE Gas Gas Storage and Pipelines Power and Industrial Projects Corporate and Other Growth Segments Energy Trading DTE Energy Reported Earnings 449$ 93$ 79$ 73$ (47)$ 647$ -$ 647$ PSCR disallowan
Slide 21: Use of Operating Earnings Information
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 and i