Barclays Capital 2011 CEO Energy Energy-Power Power Conference Gerry Anderson, President and CEO September 6, 2011
Overview y Growth Utility Non - Utility Growth 3
2011 Operating Earnings Guidance* Guidance (millions, except EPS) YTD 6/30/11 Actual Guidance Detroit Edison 197 435 445 Mi hC MichCon 80 110 115 110 115 Utilities expected to earn allowed ROE Utilities expected to earn allowed…
DTE Energy is an Integrated Energy Company Strong, Stable and Complementary Non-Utility Growing Utilities Businesses 80% 80% of DTE Energys Energy s 2010 Earnings 20% 20% of DTE Energys Energy s 2010 Earnings Detroit Edison Gas…
Growth and Value Creation DTE Energy Operating Earnings Per Share* CAGR = 6% 3.55 Targeting 5% - 6% 2.82 Long-Term Operating EPS Growth 2007A 2008A 2009A 2010A 2011E 2012E 2013E 2014E 2015E 6 * Reconciliation to…
Dividend Increase is Well Supported Dividend Yield (as of August 2011) 6% Recently increased dividend 5% 4.7% rate 5% to 2.35 per share 4% Dividend yield inline with peers p 3% Payout ratio inline with 60% 2% 70% target 1%…
Overview Utility y Growth Non - Utility Growth 8
Detroit Edison Investment Profile, Profile 2011 2013 Base Environmental Renewable Energy & Infrastructure ast uctu e Compliance Co p a ce Energy e gy Efficiency c e cy 2.1 - 2.3 billion 800 - 900 million 500 - 600 million…
Emissions Reductions Monroe Power Plant Monroe Power Plant Current environmental capital focused on Monroe C t i t l it l f d M Power Plant (3,100 MW, 45% of coalfired production) Near/MidTerm Plans: Complete scrubbers and SCR…
Detroit Edison Renewable Energy: 40 million Earnings Contribution by 2013 Gratiot County Wind Park 250 million 2011 Investment 212MW wind farm with partner Own 64 turbines ( 102MW) Own 64 turbines (102MW) Purchase output of 69…
Constructive Regulatory Environment Detroit Edison Rate Case Schedule Staff Briefs Final Order Recommendation Detroit Edison 361 million ((1 year from filing) y g) 157 illi 157 million Staff St ff 162 million 162 illi…
MichCon Investment Profile, Profile 2011 2013 Distribution, Transmission & Additional Growth 500 600 million Strengthen and expand distribution system Strengthen and expand distribution system Cast iron main renewal Investment…
Overview Utility Growth Non - Utility Growth 14
Gas Storage & Pipeline: Earnings Potential of 75 Million by 2015 Growth Driven by Bluestone Lateral and Gathering System and Millennium Mainline Expansions Solid Operating Earnings* Growth (millions) Gas Storage Millennium…
Strong Growth Potential in the Marcellus Shale Bluestone Growth Opportunities Initial investment (280 million) will serve Southwestern Energys production in Susquehanna County; anticipated inservice Q2 2012 Bluestone Significant…
Power & Industrial Projects: Earnings Potential of Over 100 Million by 2015 Operating Earnings Contribution by Project Type Illustrative Reduced Emissions Fuel 40 50** Steel Industry Fuels Higher Coke Pricing BN…
Reduced Emissions Fuel: Potential for Significant V l and Value d Strong St Earnings E i for f 10 Years Y Illustrative Project Returns (millions) Development Update High Case 400 Five units in service in Michigan; two more…
Unconventional Gas: Barnett Shale Assets F Focused d on Marble M bl Falls F ll Oil Play Pl Continuing to develop and prove up acreage Marble Falls Wells producing hydrocarbons throughout Jack Area of Activity County,…
Investment Thesis DTE Energy has a plan it believes will provide 5% - 6% long-term operating EPS growth, an attractive dividend yield and a strong balance sheet Utility growth plan driven by mandated investments Constructive…
Contact Us DTE Energy Investor Relations www.dteenergy.com/investors 313-235-8030 21
Appendix
2011 Capital Expenditures & Cash Flow Guidance Cash Flow Summary* y Capital p Expenditures p (billions) (millions) 2011 2011 Guidance Guidance Detroit Edison Cash From Operations 1.9 Operational 720 Capital Spending (1.7)…
Targeted Financial Metrics Leverage* Target 50% - 52% 53% 51% 51% A strong balance sheet continues to be a key priority 2009 2010 2011E Leverage and cash flow metrics within targeted ranges, without additional equity Funds…
Gas Storage & Pipeline: Overview Vector Pipeline 40% Fully contracted (6 year avg avg. term) 348 miles of pipe; 120,000 H.P. of compression at five stations Millennium Pipeline 26.25% Storage 100% contracted ( 10 year avg. term)…
Gas Storage Provides Stable Earnings Supported by Long Long-Term Term Contracts Storage Expiration Profile Tiered expiration dates with manageable renewal volumes 90 Bcf Fully contracted 6 year average term 95% 95% of revenues…
Unconventional Gas Valuation Reserves Value** Low Value High g Value (Bcfe) ( per mcfe) ( millions) ( millions) Proved 201* 1.50 - 2.00 300 400 Probable 354 0 25 - 1.00 0.25 1 00 100 350 Total 555 400 750 * SEC provedd…
Barnett Shale Operating Metrics Reserves (Bcfe) Acreage Position (000s Acres) 2011 YTD Results 77 13 new wells on-line, 1 in 555 70 489 progress 17 Net 201 16 Production of 2.4 Bcfe Proven Developed 234 Acres 60% increase in…
Detroit Edison Generation Portfolio Generating plants owned and in service as of December 31 31, 2010 Summer Net Rated Location by Capability County (MW) % Year in Service Fossil-fueled Steam-Electric Monroe Monroe 3,027 27.6…
DTE Energy Trading Reconciliation of YTD O ti E Operating i * tto E Earnings* i N Economic Nett IIncome (millions) 12 26 Energy Trading Operating E Earnings* i * 14 Economic net income (millions, after-tax) equals economic…
Power & Industrial Growth Opportunities: Waste Wood Renewable Overview Waste-Wood Woodland Stoneman (In Start-Up) Stockton (In Conversion) Woodland, California C Cassville, ill Wisconsin Wi i Stockton, Stockton California…
Reconciliation of YTD June 30, 2011 R Reported t d to t Operating O ti Earnings E i Use of Operating Earnings Information DTE Energy management believes that operating earnings provide a more meaningful representation of the…
Reconciliation of 2010 Reported t Operating to O ti Earnings E i Use of Operating Earnings Information DTE Energy management believes that operating earnings provide a more meaningful representation of the companys earnings from…
Reconciliation of 2009 Reported t Operating to O ti Earnings E i Use of Operating Earnings Information DTE Energy management believes that operating earnings provide a more meaningful representation of the companys earnings from…
Reconciliation of 2008 Reported t Operating to O ti Earnings E i Use of Operating Earnings Information DTE Energy management believes that operating earnings provide a more meaningful representation of the companys earnings from…
Reconciliation of 2007 Reported t Operating to O ti Earnings E i Use of Operating Earnings Information DTE Energy management believes that operating earnings provide a more meaningful representation of the companys earnings from…
Reconciliation of Other Reported t Operating to O ti Earnings E i Use of Operating Earnings Information DTE Energy management believes that operating earnings provide a more meaningful representation of the companys earnings from…
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