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June 2015 Corporate Presentation – DTE Energy Co.

DTE Energy Co. · Jun 3, 2015 · 47 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. June 2015 Corporate Presentation – DTE Energy Co. – slide 1
    Business Update June 3, 2015
  2. June 2015 Corporate Presentation – DTE Energy Co. – slide 2
    Overview Long-Term Growth Update Summary 3
  3. June 2015 Corporate Presentation – DTE Energy Co. – slide 3
    DTE Energys growth is driven by strong, stable utilities and complementary non-utility businesses Strong, Stable and Growing Utilities Complementary Non-Utility Businesses Fully Regulated by Michigan Public Service Commission 80% of…
  4. June 2015 Corporate Presentation – DTE Energy Co. – slide 4
    Our system of priorities is fundamental to how we create value for our investors 5% - 6% Annual Attractive Strong EPS Growth Dividend Balance Sheet 5
  5. June 2015 Corporate Presentation – DTE Energy Co. – slide 5
    DTE Energy has earned Gallups Great Workplace Award for the third year in a row Winners recognized for extraordinary ability to create an engaged workforce culture Annual award granted to a handful of companies worldwide DTE…
  6. June 2015 Corporate Presentation – DTE Energy Co. – slide 6
    DTE Energy has achieved Highest in Customer Satisfaction With Business and Large Residential Natural Gas Service Providers in the Midwest* J.D. Power Gas Utility Residential J.D. Power Gas Utility Business Gas Customer Satisfaction…
  7. June 2015 Corporate Presentation – DTE Energy Co. – slide 7
    DTEs continuous improvement capability has enabled us to lead the industry in cost management 2008 to 2013 Change in O&M Costs 1st 2nd 3rd 4th 70% Quartile Quartile Quartile Quartile Electric Industry Avg. Peers* 25% DTE 0%…
  8. June 2015 Corporate Presentation – DTE Energy Co. – slide 8
    We remain committed to delivering 5% to 6% operating EPS* growth (dollars per share) Guidance midpoint 4.60 4.60 Operating EPS* 6.7% CAGR 2009 2014 4.09 3.94 3.75 3.64 3.33 EPS Dividend per share 5.4% CAGR 2009 2014…
  9. June 2015 Corporate Presentation – DTE Energy Co. – slide 9
    Our strong earnings growth opportunities coupled with our contingency planning gives us confidence in our ability to deliver 5% to 6% operating EPS* growth 10% - 15% 7% - 8% 5% - 7% 5% - 6% Non-Utilities Utilities…
  10. June 2015 Corporate Presentation – DTE Energy Co. – slide 10
    Overview Long-Term Growth Update Summary 11
  11. June 2015 Corporate Presentation – DTE Energy Co. – slide 11
    Michigans economy has been revitalized and the City of Detroit is continuing its economic rebirth Unemployment rate in Michigan Detroit metro area ranks 8th in lowest since 2001 the U.S. for number of new or expansion…
  12. June 2015 Corporate Presentation – DTE Energy Co. – slide 12
    Michigan energy policy reform taking shape in 2015 I am calling for the legislature to help us reform this system before the summer break, so that we can give ourselves as much time as possible to make a smooth transition. Governor…
  13. June 2015 Corporate Presentation – DTE Energy Co. – slide 13
    Michigans regulatory environment is viewed as constructive; we work hard to earn this every day Top Tier Source: Barclays, April 2015 14
  14. June 2015 Corporate Presentation – DTE Energy Co. – slide 14
    We will invest over 11 billion in capital projects to drive growth through 2019 (billions) 11.2 11.8 Power & Industrial Projects On-site energy, cogeneration 0.6 0.8 1.5 1.9 Gas Storage & Pipelines Gathering investments, NEXUS,…
  15. June 2015 Corporate Presentation – DTE Energy Co. – slide 15
    DTE will be transforming its generation mix by replacing coal with natural gas and renewables DTE Electric Generation Capacity (GW) 12.3 (3.5) 3.7 12.5 2015 acquisitions of 1 GW Nuclear / 2.2 20% Other of natural gas capacity…
  16. June 2015 Corporate Presentation – DTE Energy Co. – slide 16
    Our electric utility is investing 7.5 billion in three key areas through 2019 Targeting 5% - 6% growth 400 million 7.5 billion 1.4 billion Compliance Gas plant acquisition Generation asset 5.7 billion base renewal…
  17. June 2015 Corporate Presentation – DTE Energy Co. – slide 17
    Generation replacement will significantly increase DTE Electrics investment over the next 10 years (billions) DTE Electric Total Investment 9.0 7.5 New generation 6.0 investment 2010-2014 2015-2019 2020-2024 18
  18. June 2015 Corporate Presentation – DTE Energy Co. – slide 18
    DTE Electric expects to implement new rates in July 2015; final order by year end* (millions) 370 First electric general rate case in over 4 years 230 Primarily recovery of capital spend New rates of 230 million commencing…
  19. June 2015 Corporate Presentation – DTE Energy Co. – slide 19
    Our gas utility is making 1.6 billion of reliability and infrastructure investments through 2019 Targeting 7% - 8% growth 125 million 1.6 billion 600 million Compression Main renewal, meter move-out and pipeline integrity 825…
  20. June 2015 Corporate Presentation – DTE Energy Co. – slide 20
    DTE Gas system expansion supported by proposed NEXUS interconnects 125 million of NEXUS related investment at DTE Gas through 2017 Spend primarily for additional compression Supported by long-term transport agreement with NEXUS 21
  21. June 2015 Corporate Presentation – DTE Energy Co. – slide 21
    As we continue to grow, we are focusing on minimizing the customer rate impact Downward pressure DTE Electric Continuous Improvement 600 million* surcharge Surcharge Reductions reductions Revised Business Rates Business cost of…
  22. June 2015 Corporate Presentation – DTE Energy Co. – slide 22
    Gas Storage & Pipelines is developing an asset portfolio with multiple growth platforms Michigan Gathering DTE Gas DTE Storage Bluestone Pipeline Bluestone Gathering System Utica Marcellus Shale Shale Proposed…
  23. June 2015 Corporate Presentation – DTE Energy Co. – slide 23
    Gas Storage & Pipelines platforms drive growth through new projects and expansions Bluestone Pipeline Growth Strategy Millennium Pipeline Vector Pipeline Understand and anticipate opportunities Proposed NEXUS Pipeline in new…
  24. June 2015 Corporate Presentation – DTE Energy Co. – slide 24
    Gas Storage & Pipelines operating earnings* potential is 145 million by 2019 (millions) 10% - 15% CAGR 145 10 New Project Development (Other gathering and pipeline expansions) 20 Storage Platform 82 80 - 88 45 Gathering…
  25. June 2015 Corporate Presentation – DTE Energy Co. – slide 25
    Power & Industrial Projects is focused in three key business lines across the country Industrial Energy Services Renewable Energy Reduced Emissions Fuel 26
  26. June 2015 Corporate Presentation – DTE Energy Co. – slide 26
    Power & Industrial Projects is pursuing new opportunities in each business line in order to achieve growth aspirations On-site energy and utility services for industrial, commercial and institutional customers; 10-20 year contracts…
  27. June 2015 Corporate Presentation – DTE Energy Co. – slide 27
    Power & Industrial Projects is targeting 145 million of operating earnings* by 2019 through growth in each of its business lines (millions) 10% - 15% CAGR 145 New Project 20 Development / Acquisitions 90 - 100 35 Renewable…
  28. June 2015 Corporate Presentation – DTE Energy Co. – slide 28
    Overview Long-Term Growth Update Summary 29
  29. June 2015 Corporate Presentation – DTE Energy Co. – slide 29
    Summary Utility investments and strategic growth opportunities in our non-utility businesses expected to provide 5% - 6% annual EPS* growth going forward On track to achieve 2015 operating earnings guidance; strong first quarter…
  30. June 2015 Corporate Presentation – DTE Energy Co. – slide 30
    Contact Us DTE Energy Investor Relations www.dteenergy.com/investors (313) 235-8030 31
  31. June 2015 Corporate Presentation – DTE Energy Co. – slide 31
    Appendix
  32. June 2015 Corporate Presentation – DTE Energy Co. – slide 32
    DTE Energy First Quarter 2015 Operating Earnings Variance Operating Earnings* Drivers (millions, except EPS) 1Q 2014 1Q 2015 Change DTE Electric DTE Electric 136 136 - Rate base growth expense offset by lower O&M in 1Q 2015…
  33. June 2015 Corporate Presentation – DTE Energy Co. – slide 33
    We remain confident in our 2015 operating EPS* guidance (millions, except EPS) 1Q 2015 2015 Actuals* Guidance DTE Electric 136 554 - 570 DTE Gas 111 128 - 134 Gas Storage & Pipelines 27 80 - 88 Power & Industrial Projects 33…
  34. June 2015 Corporate Presentation – DTE Energy Co. – slide 34
    2015 Cash Flow and Capital Expenditure Guidance (billions) (millions) Cash Flow Summary Capital Expenditures Summary 2014 2015 2014 2015 Actual Guidance Actual Guidance Cash From Operations 1.8 1.7 DTE Electric Operational 1,187…
  35. June 2015 Corporate Presentation – DTE Energy Co. – slide 35
    Strong balance sheet remains a key priority and supports growth Leverage* Target 50% - 53% 2015 financing plan is on track Issued 200 million of equity YTD; 51% 53% targeting 800 to 900 million 2015 49% 51% 2017 DTE…
  36. June 2015 Corporate Presentation – DTE Energy Co. – slide 36
    Michigan economic indicators highlight continued growth over the next few years Gross State Product Increased Auto Production (billons) (000s) 443 2,746 2,817 437 2,479 2,604 431 2,433 424 2,242 414 408 2013 2014E 2015E…
  37. June 2015 Corporate Presentation – DTE Energy Co. – slide 37
    The Michigan Public Service Commission (MPSC) is the state regulator for electric and gas utilities The MPSC establishes fair and reasonable rates and administers fair terms and conditions of service for Michigans utility customers…
  38. June 2015 Corporate Presentation – DTE Energy Co. – slide 38
    DTE Electric filed a rate case in December 2014* (millions) Electric Base Rate Increase 21 (34) 61 (96) First electric general 414 rate case in over 4 4 370 years ROE request of 10.75% MPSC order expected by December…
  39. June 2015 Corporate Presentation – DTE Energy Co. – slide 39
    DTE Electric plans 7.5 billion of investments over the next 5 years (millions) 1,820 7,500 400 Environmental 1,561 1,400 1,460 1,460 1,460 New Generation 1,300 1,200 Other Projects* Distribution 900 Reliability…
  40. June 2015 Corporate Presentation – DTE Energy Co. – slide 40
    DTE Gas plans nearly 1.6 billion of investments over the next 5 years (millions) 350 360 1,550 125 NEXUS related 280 280 280 224 600 Gas Renewal 825 Base 2014A 2015E 2016E 2017E 2018E 2019E 2015E - 2019E Total…
  41. June 2015 Corporate Presentation – DTE Energy Co. – slide 41
    Recovery of DTE Gas capital investments will require periodic rate cases (billions) Capital Investment and Recovery 2015 - 2019 1.6 Periodic rate cases Customer growth / Continuous improvement Infrastructure recovery…
  42. June 2015 Corporate Presentation – DTE Energy Co. – slide 42
    The NEXUS project has reached major milestones 250 mile pipeline to provide natural gas from Marcellus and Utica shales to Michigan, Ohio, Chicago and Ontario 1.5 Bcf/d capacity; DTEs expected investment is 700 million Agreements…
  43. June 2015 Corporate Presentation – DTE Energy Co. – slide 43
    Gas Storage & Pipelines assets have expansion opportunities to accommodate increased demand Capacity Pipeline Assets Bcf/ d In-Service Millennium Pipeline 0.8 Future Expansion (planning phase) 0.2 - 0.5 2017+ Total Planned…
  44. June 2015 Corporate Presentation – DTE Energy Co. – slide 44
    First Quarter 2015 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 companys earnings from…
  45. June 2015 Corporate Presentation – DTE Energy Co. – slide 45
    First Quarter 2014 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 companys earnings from…
  46. June 2015 Corporate Presentation – DTE Energy Co. – slide 46
    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 companys earnings from…
  47. June 2015 Corporate Presentation – DTE Energy Co. – slide 47
    Reconciliation of Other Reported to Operating Earnings Use of Operating Earnings Information DTE Energy management believes that operating earnings provide a more meaningful representation of the companys earnings from ongoing…

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