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August 2015 Business Update – DTE Energy Co.

DTE Energy Co. · Aug 10, 2015 · 44 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. August 2015 Business Update – DTE Energy Co. – slide 1
    Business Update August 10-11, 2015
  2. August 2015 Business Update – DTE Energy Co. – slide 2
    Overview Long-Term Growth Update Summary 3
  3. August 2015 Business Update – 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. August 2015 Business Update – 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. August 2015 Business Update – 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. August 2015 Business Update – DTE Energy Co. – slide 6
    DTE Energy has made significant strides in improving customer satisfaction for both electric and gas customers JD Power Rank vs. Midwest Peers Residential Electric Residential Gas Business Electric Business Gas DTE 2015 DTE 2014 &…
  7. August 2015 Business Update – 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. August 2015 Business Update – DTE Energy Co. – slide 8
    We raised our 2015 operating EPS* guidance to a midpoint of 4.72 per share (dollars per share) 2015 Operating EPS Guidance Midpoint Growth segments 4.66 Total DTE Energy 4.72 4.72 4.60 Operating EPS* 6.7% CAGR 4.66 2009…
  9. August 2015 Business Update – 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. August 2015 Business Update – DTE Energy Co. – slide 10
    Overview Long-Term Growth Update Summary 11
  11. August 2015 Business Update – DTE Energy Co. – slide 11
    Economic indicators continue to improve in Michigan and the City of Detroit Lowest Michigan unemployment since 2001 7 most competitive state for job creation* Michigan has most new manufacturing jobs since 2009**…
  12. August 2015 Business Update – DTE Energy Co. – slide 12
    Governor Snyder appoints new commissioner to Michigan Public Service Commission Norm Saari appointed to a six year term beginning August 2, 2015 Norm has had a distinguished career in the utility industry as well as in public…
  13. August 2015 Business Update – DTE Energy Co. – slide 13
    Michigan leaders are working toward a constructive energy policy Retail Open Access (ROA) Options Current 10% cap with Fully 10% cap capacity requirements regulated Proposing... 10% ROA cap with capacity requirements…
  14. August 2015 Business Update – DTE Energy Co. – slide 14
    Michigans regulatory environment is viewed as constructive; we work hard to earn this every day Top Tier Source: Barclays, April 2015 15
  15. August 2015 Business Update – DTE Energy Co. – slide 15
    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,…
  16. August 2015 Business Update – DTE Energy Co. – slide 16
    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…
  17. August 2015 Business Update – DTE Energy Co. – slide 17
    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…
  18. August 2015 Business Update – DTE Energy Co. – slide 18
    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 19
  19. August 2015 Business Update – 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. August 2015 Business Update – DTE Energy Co. – slide 20
    DTE Gas system expansion supported by proposed NEXUS interconnect 125 million of NEXUS related investment at DTE Gas through 2017 Spend primarily for additional compression DTE Gas Supported by long-term DTE Gas service…
  21. August 2015 Business Update – DTE Energy Co. – slide 21
    As we continue to grow, we are focusing on minimizing the customer rate impact DTE Electric Downward pressure 600 million* surcharge reductions Continuous Improvement Surcharge Reductions New business cost of service rates…
  22. August 2015 Business Update – 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. August 2015 Business Update – 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. August 2015 Business Update – DTE Energy Co. – slide 24
    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; DTEs expected investment is 700…
  25. August 2015 Business Update – DTE Energy Co. – slide 25
    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 90 - 98 82 45 Gathering…
  26. August 2015 Business Update – DTE Energy Co. – slide 26
    Power & Industrial Projects is focused in three key business lines across the country Industrial Energy Services Renewable Energy Reduced Emissions Fuel 27
  27. August 2015 Business Update – DTE Energy Co. – slide 27
    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…
  28. August 2015 Business Update – DTE Energy Co. – slide 28
    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…
  29. August 2015 Business Update – DTE Energy Co. – slide 29
    Overview Long-Term Growth Update Summary 30
  30. August 2015 Business Update – DTE Energy Co. – slide 30
    Summary We are confident in this years 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 share, a…
  31. August 2015 Business Update – DTE Energy Co. – slide 31
    Contact Us DTE Energy Investor Relations www.dteenergy.com/investors (313) 235-8030 32
  32. August 2015 Business Update – DTE Energy Co. – slide 32
    Appendix
  33. August 2015 Business Update – DTE Energy Co. – slide 33
    DTE Energy Second Quarter 2015 Operating Earnings Variance (millions, except EPS) Operating Earnings* Drivers 2Q 2014 2Q 2015 Change DTE Electric DTE Electric 129 111 (18) Rate base growth expense and unfavorable weather,…
  34. August 2015 Business Update – DTE Energy Co. – slide 34
    We increased our 2015 operating earnings* guidance due to strong performance in the first half of the year (millions, except EPS) 2015 2015 2015 YTD 2Q Prior Revised Guidance Drivers Actuals Guidance Guidance DTE Electric 247 554 -…
  35. August 2015 Business Update – DTE Energy Co. – slide 35
    YTD 2015 Cash Flow and Capital Expenditures (billions) (millions) Cash Flow Summary Capital Expenditures Summary YTD YTD YTD YTD 2014 2015 2014 2015 Cash From Operations* 1.1 1.2 DTE Electric Operational 584 593 Capital…
  36. August 2015 Business Update – DTE Energy Co. – slide 36
    Strong balance sheet remains a key priority and supports growth Leverage* 2015 financing plan is on track Target 50% - 53% Issued 200 million of equity YTD; targeting 800 to 900 million 2015 - 51% 53% 2017 49% 51% DTE Energy…
  37. August 2015 Business Update – DTE Energy Co. – slide 37
    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…
  38. August 2015 Business Update – DTE Energy Co. – slide 38
    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…
  39. August 2015 Business Update – DTE Energy Co. – slide 39
    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…
  40. August 2015 Business Update – DTE Energy Co. – slide 40
    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…
  41. August 2015 Business Update – DTE Energy Co. – slide 41
    Gas Storage & Pipelines assets have expansion opportunities to accommodate increased demand Capacity Pipeline Assets Bcf/ d In-Service Millennium Pipeline 0.8 Expansion 0.2 - 0.5 2017+ Total Planned Capacity 1.0 - 1.3…
  42. August 2015 Business Update – DTE Energy Co. – slide 42
    Second Quarter 2015 and June Year to Date 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…
  43. August 2015 Business Update – DTE Energy Co. – slide 43
    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…
  44. August 2015 Business Update – DTE Energy Co. – slide 44
    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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