Third Quarter 2011 Earnings Conference Call November 4, 4 2011
Participants p Dave Meador, Executive Vice President and CFO Peter Oleksiak, Vice President, Controller & Investor Relations Nick Khouri, Vice President and Treasurer M kR Mark Rolling, lli Di Director t off IInvestor t R…
Overview Third Quarter 2011 Earnings Results Cash Flow and Capital Expenditures y Summary 4
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…
Overview DTE Energy 3Q 2011 operating earnings per share* of 1.07 vs. 0.96 in 3Q 2010; Detroit Edison results lower due primarily to higher O&M Power & Industrial earnings down following non-repeating earnings in 2010 Gas Storage &…
D t it Edi Detroit Edison Rate R t Order O d Summary S Base Rate Increase (millions) 82 (38) (34) 10.5% 10 5% allowed ll d ROE (29) 91 Modified revenue decoupling (20) 175 mechanism 123 Discontinuation of…
2011 Operating Earnings* Earnings Guidance YTD Prior Revised (millions, except EPS) Drivers Actual Guidance Guidance Detroit Edison 354 435 445 430 440 MichCon 69 110 115 110 115 110 115 110 115 Raising lower end of guidance…
Overview Third Quarter 2011 Earnings Results Cash Flow and Capital Expenditures y Summary 9
Third Quarter 2011 Operating Earnings Per Share* Share 1.07 Detroit Edison MichCon** Non-Utility Corporate & Other 0 92 0.92 (0 06) (0.06) 0 27 0.27 (0 06) (0.06) Gas Storage & Unconventional Power & Industrial…
Third Quarter Q 2011 Operating p g Earnings g Variance Operating Earnings* Drivers ( millions, except EPS) 3Q 2011 3Q 2010 Change Detroit Edison 157 165 (8) Detroit Edison Higher planned O&M Mi hC MichCon (11) (6) (5)…
Detroit Edison Variance Analysis y Detroit Edison Operating Earnings* Variance Drivers ( millions) Margin driven by higher rates offset by true-up of final rate order 165 1 ((8)) O&M reflects higher g p planned (1) 157…
Overview Third Quarter 2011 Earnings Results Cash Flow and Capital Expenditures y Summary 13
Targeted Financial Metrics Leverage* Target 50% - 52% A strong balance sheet continues to be a key 53% priority 51% 51% Leverage and cash flow metrics within targeted ranges, without new equity in 2011 2009 2010 2011E Issued…
YTD 2011 Cash Flow DTE Energy Cash Flow* Flow Drivers (billions) YTD 2011 YTD 2010 Cash C h from f operations ti comparable bl to t strong levels achieved in 2010 Cash From Operations 1.5 1.5 Increased capital spend…
YTD 2011 Capital Expenditures DTE Energy Capital Expenditures Drivers (millions) YTD 2011 YTD 2010 Detroit Edison Detroit Edison primarily driven by Operational 493 578 increased spending on wind projects and higher environmental…
Overview Third Quarter 2011 Earnings Results Cash Flow and Capital Expenditures Summary y 17
Summary Solid YTD earnings results Narrowing 2011 operating EPS* guidance to 3.50 - 3.70 Final order in Detroit Edison rate case Growth investments on track Balance sheet and cash flow metrics remain strong EEI…
Contact Us DTE Energy Investor Relations www.dteenergy.com/investors 313-235-8030 19
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)…
DTE Energy Trading Reconciliation of Operating Earnings* Earnings to Economic Net Income (millions) 10 46 Energy Trading Operating 36 E Earnings* i * ( millions, after-tax) Economic net income equals economic gross YTD 2011…
Barnett Shale Operating Metrics Reserves (Bcfe) Acreage Position (000s Acres) 2011 YTD Results 86 15 new wells on-line, 4 in progress 555 70 489 17 Production of 3.8 Bcfe Net 201 Proven Developed 16 56% increase in oil sales…
Reconciliation of YTD September 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 YTD September 30, 2010 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 Full Year 2011, 3Q 2011 and 3Q 2010 R Reported t d tto O Operating ti E Earnings i and d Use of Operating Earnings Information DTE Energy management believes that operating earnings provide a more meaningful…
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