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Business Update – DTE Energy Co.

DTE Energy Co. · Apr 7, 2016 · 43 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. Business Update – DTE Energy Co. – slide 1
    Business Update April 5-6, 2016
  2. Business Update – DTE Energy Co. – slide 2
    Overview Long-Term Growth Update Financial Update Summary 3
  3. 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. Business Update – DTE Energy Co. – slide 4
    Our system of priorities is fundamental to how we create value for our shareholders 5% - 6% Annual Attractive Strong EPS Growth Dividend Balance Sheet 55
  5. Business Update – DTE Energy Co. – slide 5
    This focus on our priorities has provided successful results Earned third consecutive Gallup Great Workplace award; ranked in top 15% in Gallups* employee engagement survey Top quartile in residential customer satisfaction** for…
  6. Business Update – DTE Energy Co. – slide 6
    We remain confident about delivering our 5%-6% operating EPS* growth target 2015 Operating EPS 2016 Operating EPS (dollars per share) Total DTE Energy 4.82 Guidance Midpoint Growth segments 4.73 4.93 Initial guidance 4.60 4.93…
  7. Business Update – DTE Energy Co. – slide 7
    Overview Long-Term Growth Update Financial Update Summary 8
  8. Business Update – DTE Energy Co. – slide 8
    Energy legislation continues to be a priority for the state Key elements focus on: Retail open access capacity and reliability requirements Integrated resource planning Renewable energy and energy efficiency Focus of…
  9. Business Update – DTE Energy Co. – slide 9
    Distribution and generation infrastructure improvements drive capital investments through 2020 (billions) 13 0.6-0.9 P&I Cogeneration, on-site energy 2.0-2.6 GSP Gathering investments, NEXUS, pipeline expansions 10 1.6 Gas Base…
  10. Business Update – DTE Energy Co. – slide 10
    Electric generation and infrastructure renewal will significantly increase investment in the decade ahead (billions) DTE Electric Total Investment 9.7 8.2 New generation 7.1 Distribution infrastructure Maintenance and…
  11. Business Update – DTE Energy Co. – slide 11
    Over the next 10 years we plan to invest 6.5 billion to 10.5 billion in distribution infrastructure (billions) DTE Electric Total Investment 18 Potential Investment Base Case 10.5 New 6.5 generation Distribution…
  12. Business Update – DTE Energy Co. – slide 12
    Our generation mix shifts from coal to natural gas and renewables DTE Electric Capacity (GW) 12.4 (3.5) 3.3 - 4.5 12 - 13 15% 15% Nuclear / Other 10% 15%-30% Renewables 20% 30%-45% Gas 55% 25% Coal 2015 Coal Gas /…
  13. Business Update – DTE Energy Co. – slide 13
    Coal retirements will commence in the 5 year window and then accelerate after 2020 DTE Coal Retirement Timeline (Scenario*) 2015 125 MW 2016 - 2020 550 MW 2021 - 2025 1,825 MW 2026 - 2030 1,000 MW Total 3,500 MW…
  14. Business Update – DTE Energy Co. – slide 14
    Investment in our gas utility will increase significantly over the next 5 years (billions) DTE Gas Total Investment 1.6 NEXUS related 1.1 Infrastructure renewal Base infrastructure 2011-2015 2016-2020 15
  15. Business Update – DTE Energy Co. – slide 15
    Expanded main renewal program is focused on upgrading the gas system Replacing 4,000 miles of cast iron and unprotected steel main 600 million investment from 2016-2020 Renewal timeline cut in half, from 50 years to 25 years…
  16. Business Update – DTE Energy Co. – slide 16
    The DTE Gas system will be expanded to support the NEXUS interconnection 200 million of NEXUS related investment at DTE Gas through 2017 Spend primarily for additional compression DTE Gas Supported by long-term DTE Gas service…
  17. Business Update – DTE Energy Co. – slide 17
    We are managing customer affordability even with requested rate increases (dollars) Average Annual Residential Bill* Average Annual Residential Bill** DTE Electric DTE Gas 1,223 1,225 Flat 910 830 9% 2012 2013 2014 2015…
  18. Business Update – DTE Energy Co. – slide 18
    Gas Storage & Pipelines is well positioned around premium shale plays in North America Michigan Gathering DTE Gas DTE Storage Bluestone Gathering System Bluestone Pipeline Utica Marcellus Shale Shale NEXUS…
  19. Business Update – DTE Energy Co. – slide 19
    NEXUS project continues to progress and is located in the most economical geology in the country 1.5 Bcf/d pipeline; 250 miles of pipe 50% ownership with Spectra Energy GSP expected investment 1 billion DTE Project is on track:…
  20. Business Update – DTE Energy Co. – slide 20
    Strong results from the Utica and Marcellus region are increasing expectations for the basin Utica / SW Marcellus Supply Growth US Shale Basin Economics (Bcf/d) (NYMEX Gas Price Required for 15% After-Tax IRR) 30 Marcellus NE Core…
  21. Business Update – DTE Energy Co. – slide 21
    Contractual commitments materially expand the Millennium pipeline Valley Lateral BLUESTONE Expansion Millennium expansion: 200 MMcf/day FERC pre-filing 1Q16; in-service expected 2H18 Valley Lateral: 130 MMcf/day on new 8…
  22. Business Update – DTE Energy Co. – slide 22
    Gas Storage & Pipelines is focused on continued success in pipeline and gathering Near-Term Accelerated Marcellus development in 2015 delivered 30% year over Operating earnings* year earnings growth 2015 Actual 107 million…
  23. Business Update – DTE Energy Co. – slide 23
    Power & Industrial Projects serves its customers from 66 sites in 17 states Industrial Energy Services Renewable Energy Reduced Emissions Fuel 24
  24. Business Update – DTE Energy Co. – slide 24
    Power & Industrial Projects operates within three distinct business lines Industrial Energy Reduced Emissions Renewable Energy Services Fuel (REF) On-site utility services Wood-fired power Projects reduce for industrial and plants…
  25. Business Update – DTE Energy Co. – slide 25
    Power & Industrial Projects is focused on replacing REF earnings over the 5 year outlook Near-Term 2016 earnings in line with Operating earnings* 2015 actuals 2015 Actual 95 million Higher REF earnings offset by lower steel…
  26. Business Update – DTE Energy Co. – slide 26
    Overview Long-Term Growth Update Financial Update Summary 27
  27. Business Update – DTE Energy Co. – slide 27
    We are confident we will achieve our 2016 operating EPS* guidance (millions, except EPS) 2015 2016 Actuals Guidance Drivers DTE Electric 562 584 - 600 Infrastructure improvements DTE Gas 132 135 - 141 Infrastructure…
  28. Business Update – DTE Energy Co. – slide 28
    DTE Energy 2016 Cash Flow and Capital Guidance (billions) (millions) Cash Flow Summary Capital Expenditures Summary 2015 2016 2015 2016 Actual Guidance Actual Guidance Cash From Operations* 1.9 1.8 DTE Electric Capital Spending…
  29. Business Update – DTE Energy Co. – slide 29
    Extension of bonus depreciation is a key driver of lower planned equity issuances (millions) Planned Equity Issuances 2016-2018 Bonus depreciation provides a 800 total estimated cash benefit of 300 million to 400 million over the…
  30. Business Update – DTE Energy Co. – slide 30
    A strong balance sheet remains a key priority to support growth Leverage* Completed 2015 equity issuances of Target 50% - 53% 200 million Targeting 100 million equity 51% 52% issuance in 2016 Completed 2015 long term debt…
  31. Business Update – DTE Energy Co. – slide 31
    Overview Long-Term Growth Update Financial Update Summary 32
  32. Business Update – DTE Energy Co. – slide 32
    Summary Exceeded our operating EPS* growth target with historical growth of 6.5% Targeting 5% to 6% operating EPS* growth 2015 growth segments provided a 5.6% year over year increase Grow dividends in line with earnings…
  33. Business Update – DTE Energy Co. – slide 33
    Detroit is in the midst of a revitalization DTEEnergy DTE EnergyInvestor InvestorRelations Relations www.dteenergy.com/investors www.dteenergy.com/investors (313)235-8030 (313) 235-8030 34
  34. Business Update – DTE Energy Co. – slide 34
    Appendix
  35. Business Update – DTE Energy Co. – slide 35
    DTE is focused on retiring its aging coal fleet, with some facilities upwards of 60 years old Facility Year in Service Belle River 1984 & 1985 Monroe 1971, 1973 & 1974 River Rouge 1957 & 1958 St. Clair 1953, 1954, 1959, 1961 &…
  36. Business Update – DTE Energy Co. – slide 36
    DTE Electric plans 8.2 billion of investments over the next 5 years (millions) Targeting 6% - 7% growth 1,787 8,200 1,800 1,700 1,700 New 1,550 1,200 generation 1,450 Distribution 3,200 infrastructure Maintenance…
  37. Business Update – DTE Energy Co. – slide 37
    DTE Gas plans 1.6 billion of investments over the next 5 years (millions) Targeting 7% - 8% growth 430 1,600 375 200 NEXUS related 273 265 265 265 Main 600 Replacement* Base 800 infrastructure 2015A 2016E 2017E…
  38. Business Update – DTE Energy Co. – slide 38
    DTE rate case highlights DTE Electric Rate DTE Gas Rate DTE Electric Rate Case 2014 Case 2015 Case 2016 Approved by MPSC on Filed December 18, 2015 Filed February 1, 2016 December 11, 2015 Rate recovery: 243 million Requested rate…
  39. Business Update – DTE Energy Co. – slide 39
    Michigans economy continues to improve Lowest unemployment in Unemployment Rate 8.5% Michigan since 2001 7.1% 5.4% 5.0% 4.8% 2013 2014 2015 2016E 2017E 7th most competitive state for job creation* Gross State Product…
  40. Business Update – DTE Energy Co. – slide 40
    Gas Storage & Pipelines assets have expansion opportunities to accommodate increased demand Capacity Pipeline Assets Bcf/ d In-Service Millennium Pipeline 0.8 Expansion 1 0.2 2H 2018 Total Planned Capacity 1.0 Bluestone…
  41. Business Update – DTE Energy Co. – slide 41
    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 ongoing…
  42. Business Update – DTE Energy Co. – slide 42
    2011 2015 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…
  43. Business Update – DTE Energy Co. – slide 43
    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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