Dte Energy Company · NYSE:DTE
Dte Energy — Q3 2021 Earnings Presentation
22 slides from Dte Energy's earnings presentation, Oct 27, 2021
Slide 1: DTE 3Q 2021 Earnings Conference Call
DTE 3Q 2021 EARNINGS CONFERENCE CALL OCTOBER 27, 2021
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 – President and CEO Dave Ruud – Senior Vice President and CFO Barbara Tuckfield – Director Investor Relations 3
Slide 4: Focusing on our team, customers and communities while delivering for investors
Focusing on our team, customers and communities while delivering for investors Ensuring the health and safety of our employees Our Team Recognized as a Gallup Great Workplace for the ninth consecutive year Addressing our customers’ most vital needs Investing an additional $70 million to combat extre
Slide 5: Continuing strength in 2021; solidifying future growth with updated plan
Continuing strength in 2021; solidifying future growth with updated plan DTE delivers premium total ✓ Delivering strong results in 2021 and raising 2021 operating EPS1 shareholder return2 guidance midpoint 281% ✓ Strong 2022 early outlook midpoint provides 6% operating EPS growth from 2021 original
Slide 6: Increased utility investment in 5-year plan supports 5% - 7% operating EPS growth
Increased utility investment in 5-year plan supports 5% - 7% operating EPS1 growth through 2026 (billions) Capital investment increased in 5-year plan DTE 5-year investment plan 2022 - 2026 $18 $17 $3.1 DTE Gas DTE Electric $3.0 $15 $15 ~$19.5 billion $14 DTE Electric DTE Gas $3.1 2021 - 2025 2022 -
Slide 7: DTE Electric: transformational investments in generation and distribution
DTE Electric: transformational investments in generation and distribution provide customers cleaner, more reliable energy Cleaner generation • Accelerating carbon reduction plan DTE Electric investment (billions) − Ceasing coal use at Belle River Power Plant and reducing carbon emissions by 50% by 2
Slide 8: DTE Gas: replacing aging infrastructure to reduce greenhouse gas emissions
DTE Gas: replacing aging infrastructure to reduce greenhouse gas emissions DTE Gas investment (billions) Main renewal • Minimizes leaks, both reducing costs and improving customer $3.1+ satisfaction Additional $3.0 opportunity Base infrastructure $1.5 Base • Enhances transmission, compression, distr
Slide 9: DTE Vantage: strategic focus on decarbonization solutions for customers
DTE Vantage (formerly Power & Industrial Projects): strategic focus on decarbonization solutions for customers Renewable natural gas (RNG) DTE Vantage operating earnings1 • Commenced construction on new Wisconsin RNG project and secured (millions) additional project in New York $147 - $163 $160 - $1
Slide 10: 3Q 2021 operating earnings variance
3Q 2021 operating earnings1 variance (millions, except EPS) 2020 2021 Variance Primary drivers Cooler weather in 2021 and higher storm costs partially DTE Electric $398 $342 ($56) offset by higher commercial sales Higher O&M and rate base growth costs partially offset DTE Gas (20) (30) (10) by rate
Slide 11: Strong performance provides confidence to achieve higher end of increased operating EPS guidance
Strong performance provides confidence to achieve higher end of increased operating EPS1 guidance (millions, except EPS) 2021 current guidance 2021 revised guidance DTE Electric $853 - $867 $853 - $867 • Bias toward higher end of revised DTE Gas 202 - 212 202 - 212 guidance given strong performance
Slide 12: 2022 early outlook midpoint provides 6% growth over 2021 original guidance
2022 early outlook midpoint provides 6% growth over 2021 original guidance (millions, except EPS) 2021 original guidance 2022 early outlook Primary drivers Distribution and cleaner generation DTE Electric $826 - $840 $915 - $929 investments Continued main renewal and other DTE Gas 202 - 212 227 - 23
Slide 13: Maintaining strong cash flow, balance sheet and credit profile; raising dividend 7% in 2022
Maintaining strong cash flow, balance sheet and credit profile; raising dividend 7% in 2022 • Expect minimal equity issuances outside of convertible equity units • Strong investment-grade credit rating Planned equity issuances − Targeting ~16% FFO1 / Debt2 2022 - 2024 (billions) • Increasing 2022 an
Slide 14: Visit us: DTE Investor Relations 2021 ESG Report
VISIT US: DTE INVESTOR RELATIONS 2021 ESG REPORT
Slide 15: Appendix
Appendix DTE
Slide 16: Weather impact on sales
Weather impact on sales DTE Electric DTE Gas Cooling degree days Heating degree days % YTD YTD % % YTD YTD % 3Q 2020 3Q 2021 3Q 2020 3Q 2021 Change 2020 2021 Change Change 2020 2021 Change Actuals 697 683 (2%) 956 991 4% Actuals 135 71 (47%) 3,982 3,910 (2%) Normal 635 635 0% 868 868 0% Normal 115 1
Slide 17: 2021 cash flow and capital expenditures guidance
2021 cash flow and capital expenditures guidance Cash flow Capital expenditures (billions) Current (millions) Current guidance guidance Cash from operations1 $2.7 DTE Electric Capital expenditures (3.9) Base infrastructure $1,030 Free cash flow ($1.2) New generation 950 Dividends (0.8) Distribution
Slide 18: Cash flow and capital expenditures actuals
Cash flow and capital expenditures actuals Cash flow Capital expenditures (billions) YTD 2020 YTD 2021 (millions) YTD 2020 YTD 2021 Cash from operations1 $2.8 $2.4 DTE Electric Capital expenditures (3.5) (2.8) Base infrastructure $676 $422 Free cash flow ($0.7) ($0.4) New generation 631 785 Dividend
Slide 19: Environmental, social and governance efforts are key priorities
Environmental, social and governance efforts are key priorities; aspiring to be the best in the industry Environmental Transitioning towards net zero greenhouse gas emissions Delivering clean and reliable energy to customers Protecting our natural resources Social Focusing on the diversity, safety,
Slide 20: Marching toward net zero carbon emissions with an accelerated plan
Marching toward net zero carbon emissions with an accelerated plan Cleaner generation mix1 (MWh %) 3% 2% 1% 4% 4% Storage 17% 16% 25% - 30% Renewables 22% 20% - 25% Natural Gas 20% 77% 20% Nuclear 38% 25% - 30% Coal 2005 2023E 2028E River St. Trenton Belle Accelerating Monroe Rouge Clair Channel Riv
Slide 21: 3Q 2020 and 3Q 2021 reconciliation of reported to operating earnings
3Q 2020 and 3Q 2021 reconciliation of reported to operating earnings (non- GAAP) and 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
Slide 22: Reconciliation of reported to operating earnings
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 represe