Slide 1: Business Update September 9-10, 2015
Business Update September 9-10, 2015 EXHIBIT 99.1
Slide 2: Safe Harbor Statement
Safe Harbor Statement The information contained herein is as of the date of this presentation. Many factors may 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 proceedin
Slide 3: Overview, Long-Term Growth Update, Financial Update, Summary
• Overview • Long-Term Growth Update • Financial Update • Summary 3
Slide 4: DTE Energy's growth is driven by strong, stable utilities and complementary non-utility businesses
DTE Energy’s growth is driven by strong, stable utilities and complementary non-utility businesses DTE Electric Electric generation and distribution DTE Gas Natural gas transmission, storage and distribution Complementary Non-Utility Businesses Strong, Stable and Growing Utilities Fully Regulated by
Slide 5: 5% - 6% Annual EPS Growth, Attractive Dividend, Strong Balance Sheet
5% - 6% Annual EPS Growth Attractive Dividend Strong Balance Sheet Our system of priorities is fundamental to how we create value for our investors 5
Slide 6: DTE Energy has earned Gallup's Great Workplace Award for the third year in a row
DTE Energy has earned Gallup’s Great Workplace Award for the third year in a row 6 2013, 2014, 2015 • Winners recognized for extraordinary ability to create an engaged workforce culture • Annual award granted to a handful of companies worldwide • DTE Energy is the only utility company to ever receiv
Slide 7: DTE Energy has made significant strides in improving customer satisfaction
DTE Energy has made significant strides in improving customer satisfaction for both electric and gas customers 7 Residential Electric Residential Gas Business Electric Business Gas DTE 2015 DTE 2014 DTE 2014 DTE 2014 & 2015 Final DTE 2015 Final DTE 2014 Rank #2 Rank #3 Rank #1 Rank #7 JD Power Rank
Slide 8: Earnings growth opportunities give confidence in 5% to 6% operating EPS growth
Our strong earnings growth opportunities coupled with our contingency planning gives us confidence in our ability to deliver 5% to 6% operating EPS* growth Utility Earnings Growth Non-Utility Earnings Growth DTE Earnings Growth Share Dilution Contingency DTE EPS Growth Non-Utilities 5% - 7% 5% - 6%
Slide 9: We raised our 2015 operating EPS guidance to a midpoint of $4.72 per share
* Reconciliation to GAAP reported earnings included in the appendix (dollars per share) We raised our 2015 operating EPS* guidance to a midpoint of $4.72 per share $3.33 $3.64 $3.75 $3.94 $4.09 $4.60 $2.12 $2.24 $2.35 $2.48 $2.62 $2.76 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Operating
Slide 10: Overview, Long-Term Growth Update, Financial Update, Summary
• Overview • Long-Term Growth Update • Financial Update • Summary 10
Slide 11: Economic indicators continue to improve in Michigan and the City of Detroit
Economic indicators continue to improve in Michigan and the City of Detroit 11 Detroit Metro #8 in number of new or expansion projects* Lowest Michigan unemployment since 2001 #7 most competitive state for job creation* Michigan has most new manufacturing jobs since 2009** * Source: Site Selection m
Slide 12: Michigan leaders are working toward a constructive energy policy
Michigan leaders are working toward a constructive energy policy 12 Governor Rick Snyder Representative Aric Nesbitt Proposing... • Fully regulated market • Long-term, comprehensive generation plan • 10 month rate case completion Proposing... • 10% ROA cap with one-time election and capacity require
Slide 13: We will invest over $11 billion in capital projects to drive growth through 2019
We will invest over $11 billion in capital projects to drive growth through 2019 (billions) 13 ~$11.2 – $11.8 $0.6 – $0.8 $1.5 – $1.9 $1.6 $7.5 Power & Industrial Projects Gas Storage & Pipelines DTE Gas DTE Electric On-site energy, cogeneration Gathering investments, NEXUS, additional pipeline expa
Slide 14: DTE will be transforming its generation mix by replacing coal with natural gas and renewables
DTE will be transforming its generation mix by replacing coal with natural gas and renewables DTE Electric Generation Capacity (GW) Coal Retirements 2030 Scenario* ~6.7 2015* 14 Gas / Renewables Additions ~3.4 ~2.2 ~12.3 (~3.5) ~3.7 ~12.5 • 2015 acquisitions of ~1 GW of natural gas capacity allow us
Slide 15: Generation replacement will significantly increase DTE Electric's investment over the next 10 years
Generation replacement will significantly increase DTE Electric’s investment over the next 10 years DTE Electric Total Investment ~$7.5 ~$9.0 2015-2019 2020-2024 ~$6.0 2010-2014 New generation investment (billions) 15
Slide 16: Our gas utility is making $1.6 billion of reliability and infrastructure investments
Our gas utility is making $1.6 billion of reliability and infrastructure investments through 2019 Strengthen and expand infrastructure Main renewal, meter move-out and pipeline integrity Compression Targeting 7% - 8% growth Base Infrastructure Infrastructure Renewal Nexus Related Total $825 million
Slide 17: Focusing on minimizing the customer rate impact as we continue to grow
$ * Includes ~$300 million surcharge reduction for renewable energy, power supply cost recovery (PSCR) and choice incentive mechanism implemented 1Q 2014 and net reduction of ~$300 million due to elimination of securitization surcharge and PSCR increase in 1Q 2015 As we continue to grow, we are focu
Slide 18: DTE's continuous improvement capability has enabled us to lead the industry in cost management
DTE’s continuous improvement capability has enabled us to lead the industry in cost management * Source: SNL Financial, FERC Form 1; major US Electric Utilities with O&M > $800 million; excluding fuel and purchased power ** Source: SNL Financial, FERC Form 2; gas distribution companies with greater
Slide 19: Gas Storage & Pipelines is developing an asset portfolio with multiple growth platforms
DTE Gas DTE Storage Proposed NEXUS Pipeline Marcellus Shale Bluestone Pipeline Utica Shale Michigan Gathering Bluestone Gathering System Gas Storage & Pipelines is developing an asset portfolio with multiple growth platforms 19
Slide 20: Gas Storage & Pipelines platforms drive growth through new projects and expansions
Gas Storage & Pipelines platforms drive growth through new projects and expansions Pipeline Platform Gathering Platform Storage Platform • Bluestone Pipeline • Millennium Pipeline • Vector Pipeline • Proposed NEXUS Pipeline • Bluestone Gathering • Michigan Gathering • 91 Bcf of working capacity • St
Slide 21: Gas Storage & Pipelines' operating earnings potential is $145 million by 2019
Gas Storage & Pipelines’ operating earnings* potential is $145 million by 2019 2013A 2014A 2015E 2016E 2017E 2018E 2019E * Reconciliation to GAAP reported earnings included in the appendix Pipeline Platform** Gathering Platform Storage Platform New Project Development (Other gathering and pipeline e
Slide 22: Power & Industrial Projects is focused in three key business lines
Power & Industrial Projects is focused in three key business lines across the country Industrial Energy Services Renewable Energy Reduced Emissions Fuel 22
Slide 23: Power & Industrial Projects is pursuing new opportunities in each business line
Power & Industrial Projects is pursuing new opportunities in each business line in order to achieve growth aspirations 23 • On-site energy and utility services for industrial, commercial and institutional customers; 10-20 year contracts • Coke and pulverized coal for steel customers; 10-15 year cont
Slide 24: Power & Industrial Projects is targeting $145 million of operating earnings by 2019
Power & Industrial Projects is targeting $145 million of operating earnings* by 2019 through growth in each of its business lines 2013A 2014A 2015E 2016E 2017E 2018E 2019E ~$145 $35 $70 $85 ($65) $20 $70 New Project Development / Acquisitions Renewable Energy Reduced Emissions Fuel Industrial Energy
Slide 25: Overview, Long-Term Growth Update, Financial Update, Summary
• Overview • Long-Term Growth Update • Financial Update • Summary 25
Slide 26: We increased our 2015 operating earnings guidance due to strong first half performance
We increased our 2015 operating earnings* guidance due to strong performance in the first half of the year (millions, except EPS) 26 * Reconciliation to GAAP reported earnings included in the appendix ** Total DTE Energy excluding Energy Trading 2015 Prior Guidance 2015 Revised Guidance 2015 YTD 2Q
Slide 27: Overview, Long-Term Growth Update, Financial Update, Summary
• Overview • Long-Term Growth Update • Financial Update • Summary 27
Slide 28: Summary
Summary * Reconciliation to GAAP reported earnings included in the appendix 28 • We are confident in this year’s performance as we increased our 2015 operating EPS* guidance midpoint to $4.66 for our growth segments and $4.72 for DTE Energy • We increased our annual dividend 16 cents to $2.92 per sh
Slide 29: Contact Us
Contact Us DTE Energy Investor Relations www.dteenergy.com/investors (313) 235-8030 29
Slide 30: Appendix
Appendix
Slide 31: 2015 Cash Flow and Capital Expenditures Guidance
2015 Cash Flow and Capital Expenditures Guidance (billions) 31 Capital Expenditures Summary Cash Flow Summary (millions) 2014 2015 Actual Guidance Cash From Operations* $1.8 $1.7 Capital Spending (2.1) (2.6) Free Cash Flow ($0.3) ($0.9) Asset Sales & Other - 0.1 Dividends (0.5) (0.5) Net Cash ($0.8)
Slide 32: Strong balance sheet remains a key priority and supports growth
Leverage* 49% 51% 23% 25% Strong balance sheet remains a key priority and supports growth * Debt excludes securitization, a portion of DTE Gas’ short-term debt, and considers 50% of the Junior Subordinated Notes as equity Funds from Operations** / Debt* Target 50% - 53% Target 20% - 22% 5 ** Funds f
Slide 33: The Michigan Public Service Commission is the state regulator for electric and gas utilities
The Michigan Public Service Commission (MPSC) is the state regulator for electric and gas utilities 33 Sally Talberg Commissioner Appointed: 7/3/13 Term Ends: 7/2/19 Norm Saari Commissioner Appointed: 8/2/15 Term Ends: 7/2/21 Source: State of Michigan website - www.michigan.gov/ • The MPSC establish
Slide 34: Our electric utility is investing $7.5 billion in three key areas through 2019
Our electric utility is investing $7.5 billion in three key areas through 2019 $5.7 billion Distribution infrastructure renewal Power plant reliability Compliance Gas plant acquisition Generation asset base renewal $1.4 billion $400 million $7.5 billion Targeting 5% - 6% growth Base Infrastructure N
Slide 35: DTE Electric plans $7.5 billion of investments over the next 5 years
DTE Electric plans $7.5 billion of investments over the next 5 years 2014A 2015E 2016E 2017E 2018E 2019E Base New Generation Other Projects* Environmental Distribution Reliability 2015E - 2019E Total $13.3B ~$17.5B YE Rate Base** $595M ~$820M Depreciation * Includes AMI, Ludington expansion and othe
Slide 36: DTE Gas plans nearly $1.6 billion of investments over the next 5 years
DTE Gas plans nearly $1.6 billion of investments over the next 5 years 2014A 2015E 2016E 2017E 2018E 2019E 2015E - 2019E Total Base Gas Renewal NEXUS related $224 $280 $350 $360 $280 $280 $1,550 $125 $600 $825 $3.1B ~$4.4B - $4.5B YE Rate Base* $99M ~$130M Depreciation * Includes working capital (mi
Slide 37: Gas Storage & Pipelines assets have expansion opportunities to accommodate increased demand
Gas Storage & Pipelines assets have expansion opportunities to accommodate increased demand Pipeline Assets Capacity Bcf/ d In-Service Millennium Pipeline 0.8 Expansion 0.2 - 0.5 2017+ Total Planned Capacity 1.0 - 1.3 Bluestone Pipeline (bi-directional)* 0.9 Expansion #3 0.1 2Q 2016 Total Planned Ca
Slide 38: Next major milestone for NEXUS is FERC filing expected in 4Q 2015
FERC filing 4Q 2015 Next major milestone for NEXUS is FERC filing expected in 4Q 2015 • ~250 mile pipeline to provide natural gas from Marcellus and Utica shales to Michigan, Ohio, Chicago and Ontario • 1.5 Bcf/d capacity; DTE’s expected investment is ~$700 million • Tap and interconnect agreements
Slide 39: Second Quarter 2015 and June Year to Date Reconciliation of Reported to Operating Earnings
Second Quarter 2015 and June Year to Date Reconciliation of Reported to Operating Earnings 39 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 e
Slide 40: 2009 – 2014 Full Year Reconciliation of Reported to Operating Earnings
2009 – 2014 Full Year 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
Slide 41: 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