Dte Energy Company · NYSE:DTE
Dte Energy — Q1 2024 Earnings Presentation
17 slides from Dte Energy's earnings presentation, Apr 25, 2024
Slide 1: 1Q 2024 Earnings Conference Call
1Q 2024 Earnings Conference Call April 25, 2024
Slide 2: Safe harbor statement
Safe harbor statement The information contained herein is as of the date of this document. 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 “anticipa
Slide 3: Participants
Participants Jerry Norcia – Chairman and CEO Joi Harris – President and COO Dave Ruud – Executive Vice President and CFO Barbara Tuckfield – Director of Investor Relations 3
Slide 4: Highly engaged team committed to delivering best-in-class results for our stakeholders
Highly engaged team committed to delivering best-in-class results for our stakeholders Continuing best-in-class engagement, health and safety of our employees ✓ Received Gallup Great Workplace Award for 12th consecutive year Addressing our customers’ most vital needs ✓ DTE Gas celebrates 175 years o
Slide 5: Achieving success across all businesses
Achieving success across all businesses DTE Electric • Received approval to construct a 220 MW, 880 MWh battery energy storage system at the site of the former Trenton Channel power plant; expected to be operational in 2026, will be the largest standalone battery energy storage project in the Great
Slide 6: Executing customer-focused capital investment plan to improve reliability and transitioning to cleaner generation
Executing customer-focused capital investment plan to improve reliability and transitioning to cleaner generation Capital investment plan focused on building the grid of the future, improving reliability and transitioning to cleaner generation • Distribution Grid Plan outlines detailed roadmap to in
Slide 7: Rate case underpins next step in our $9 billion grid reliability and $7 billion cleaner generation investment
Rate case underpins next step in our $9 billion grid reliability and $7 billion cleaner generation investment commitment while maintaining affordability Committed to improve reliability… …while transitioning to cleaner generation and keeping bill • Creating a more reliable grid over the next five ye
Slide 8: 1Q 2024 operating earnings variance
1Q 2024 operating earnings1 variance (millions, except EPS) 2023 2024 Variance Primary drivers Lower storm costs and rate implementation partially offset by DTE Electric $101 $194 $93 higher rate base costs and 2023 one-time O&M cost reductions Warmer weather, higher rate base costs and 2023 one-tim
Slide 9: Maintaining strong cash flows, balance sheet and credit profile
Maintaining strong cash flows, balance sheet and credit profile Strong balance sheet supports robust customer-focused investment agenda • Customer-focused capital investment plan is supported by consistent, healthy cash flows • Targeting minimal equity issuances of $0 - $100 million annually through
Slide 10: Increased utility investment focused on improved reliability and cleaner generation; well-positioned for long-term growth
Increased utility investment focused on improved reliability and cleaner generation; well-positioned for long-term growth ✓ Highly engaged team committed to delivering best-in-class results for our Operating EPS guidance midpoint customers, communities and investors ✓ Customer-focused capital invest
Slide 11: Appendix
Appendix 11
Slide 12: Weather impact on sales
Weather impact on sales DTE Electric DTE Gas Cooling degree days1 Heating degree days3 % % 1Q 2023 1Q 2024 1Q 2023 1Q 2024 Change Change Actuals - - 0% Actuals 2,822 2,743 (3%) Normal - - 0% Normal 3,235 3,236 0% Deviation Deviation 0% 0% (13%) (15%) from normal from normal Operating earnings2 impac
Slide 13: 2024 operating EPS guidance midpoint provides 7% growth over 2023 original guidance midpoint
2024 operating EPS1 guidance midpoint provides 7% growth over 2023 original guidance midpoint (millions, except EPS) 2024 guidance DTE Electric $1,100 - $1,120 DTE Gas 295 - 305 DTE Vantage 125 - 135 Energy Trading 30 - 40 Corporate & Other (195) - (185) DTE Energy $1,355 - $1,415 Operating EPS $6.5
Slide 14: Cash flow and capital expenditures guidance
Cash flow and capital expenditures guidance Cash flow Capital expenditures (billions) (millions) 2024 2024 guidance guidance Cash from operations1 $3.3 DTE Electric Capital expenditures (4.7) Base infrastructure $630 Free cash flow ($1.4) New generation 1,200 Dividends (0.8) Distribution infrastruct
Slide 15: Cash flow and capital expenditures
Cash flow and capital expenditures Cash flow Capital expenditures (billions) (millions) 1Q 2023 1Q 2024 1Q 2023 1Q 2024 DTE Electric Cash from operations1 $0.9 $1.0 Base infrastructure $299 $249 Capital expenditures (0.9) (1.4) New generation 81 256 Free cash flow $0.0 ($0.4) Distribution infrastruc
Slide 16: 1Q 2023 and 1Q 2024 reconciliation of reported to operating earnings (non-GAAP)
1Q 2023 and 1Q 2024 reconciliation of reported to operating earnings (non- GAAP) and operating EPS (non-GAAP) (Earnings per share2) Adjustments key A) One-time costs resulting from the voluntary separation incentive program - recorded in Operating Expenses - Operation and maintenance B) Certain adju
Slide 17: Reconciliation of reported to operating earnings (non-GAAP) Definition of net zero
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 meaningful representati