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Year End 2013 Earnings Conference Call – DTE Energy Co.

DTE Energy Co. · Feb 14, 2014 · 42 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. Year End 2013 Earnings Conference Call – DTE Energy Co. – slide 1
    Year End 2013 Earnings Conference Call February 14, 2014
  2. Year End 2013 Earnings Conference Call – DTE Energy Co. – slide 2
    Participants Gerry Anderson Chairman and CEO Peter Oleksiak Senior Vice President and CFO Anastasia Minor Executive Director, Investor Relations 3
  3. Year End 2013 Earnings Conference Call – DTE Energy Co. – slide 3
    2013 Accomplishments Long-Term Growth Update Financial Update 4
  4. Year End 2013 Earnings Conference Call – DTE Energy Co. – slide 4
    The success of our system of priorities continues to create value for investors 5% - 6% Annual EPS Growth Attractive Dividend Strong Balance Sheet 5
  5. Year End 2013 Earnings Conference Call – DTE Energy Co. – slide 5
    2013 Accomplishments Employee Engagement Higher employee engagement o Seventh consecutive year of improved Gallup scores moved from 78th to 85th percentile* in 2013 o Received Gallup Great Workplace Award o Achieved best safety…
  6. Year End 2013 Earnings Conference Call – DTE Energy Co. – slide 6
    2013 Accomplishments (continued) Political / Regulatory Continuing to play an active role in the review of Michigans energy policy Implemented rate minimization strategy Spent over 800 million with Michigan companies, exceeding our…
  7. Year End 2013 Earnings Conference Call – DTE Energy Co. – slide 7
    2013 Accomplishments Long-Term Growth Update Financial Update 8
  8. Year End 2013 Earnings Conference Call – DTE Energy Co. – slide 8
    We remain committed to delivering 5% to 6% operating EPS* growth (dollars) Operating EPS* Guidance 7.2% CAGR Midpoint 2008-2014 4.30 4.09 3.94 3.75 3.64 Dividend 3.33 per share 5.4% CAGR 2009-2013 2.83 (Annualized)…
  9. Year End 2013 Earnings Conference Call – DTE Energy Co. – slide 9
    DTE Energy has many catalysts for strong future growth opportunities Constructive REGULATORY Michigans economic recovery environment Long-term utility growth Long-term non-utility growth 10
  10. Year End 2013 Earnings Conference Call – DTE Energy Co. – slide 10
    Our electric utility is investing 6.7 billion in three key growth areas through 2018 Base Generation New Infrastructure Compliance Generation 5.6 billion 700 million 400 million Power plant reliability Environmental requirements…
  11. Year End 2013 Earnings Conference Call – DTE Energy Co. – slide 11
    Our gas utility is making 1.2 billion of reliability and pipeline integrity investments through 2018 Base Main Renewal, Meter Move-Out Infrastructure & Pipeline Integrity 700 million 500 million Strengthen and expand distribution…
  12. Year End 2013 Earnings Conference Call – DTE Energy Co. – slide 12
    Upward pressure on customer rates being minimized by cost control initiatives and surcharge reductions Reliability Lower Investments Surcharges Cost Structural Pressure Cost Reductions Environmental Continuous Investments…
  13. Year End 2013 Earnings Conference Call – DTE Energy Co. – slide 13
    Gas Storage & Pipelines is developing an asset portfolio with multiple growth platforms Pipeline Gathering Storage 14
  14. Year End 2013 Earnings Conference Call – DTE Energy Co. – slide 14
    Gas Storage & Pipelines has a portfolio of investment opportunities that drive earnings growth New project development NEXUS Bluestone lateral other gathering and expansion pipeline expansions Millennium expansion II Millennium…
  15. Year End 2013 Earnings Conference Call – DTE Energy Co. – slide 15
    Gas Storage & Pipelines operating earnings* potential of 130 million by 2018 (millions) 130 New Project 25 Development 20 Storage Platform 78 - 86 70 61 45 Gathering Platform 40 Pipeline Platform 2012A 2013A 2014E…
  16. Year End 2013 Earnings Conference Call – DTE Energy Co. – slide 16
    Power & Industrial Projects is focused in three key businesses lines Industrial Energy Services Renewable Energy Reduced Emissions Fuel Wood-fired Plant Cassville, WI On-site Energy Project Wood-fired Plant Reduced Emissions…
  17. Year End 2013 Earnings Conference Call – DTE Energy Co. – slide 17
    Power & Industrial Projects is targeting 155 million of operating earnings* by 2018 through growth in each of its business lines (millions) 155 New Project Development / 30 Acquisitions 35 Renewable Energy 75 - 85 Reduced 70…
  18. Year End 2013 Earnings Conference Call – DTE Energy Co. – slide 18
    2013 Accomplishments Long-Term Growth Update Financial Update 19
  19. Year End 2013 Earnings Conference Call – DTE Energy Co. – slide 19
    DTE Energy 2013 Operating Earnings Per Share* 4.09 DTE Electric DTE Gas Non-Utility Corporate & Other 2.76 0.80 0.78 (0.25) Gas Storage & Power & Industrial Energy Trading Pipelines Projects 0.40 0.40 (0.02) *…
  20. Year End 2013 Earnings Conference Call – DTE Energy Co. – slide 20
    DTE Energy 2013 Operating Earnings Variance Operating Earnings* Drivers (millions, except EPS) DTE Electric 2012 2013 Change Return to near normal weather in 2013 and higher DTE Electric 483 484 1 storm expense, offset by lower…
  21. Year End 2013 Earnings Conference Call – DTE Energy Co. – slide 21
    Energy Trading mark-to-market (MTM) operating earnings adjustment is timing related and will substantially reverse in 2014 (millions) Components of natural gas sale transaction Operating adjustment pertains to pipeline Producer…
  22. Year End 2013 Earnings Conference Call – DTE Energy Co. – slide 22
    We are raising our 2014 operating EPS* guidance from our previous early outlook (millions, except EPS) 2013 2014 Early 2014 Actuals* Outlook* Guidance* 2014 Guidance Drivers DTE Electric 484 515 - 525 520 - 530 Benefits…
  23. Year End 2013 Earnings Conference Call – DTE Energy Co. – slide 23
    DTE Energy 2013 Cash Flow Actuals Cash Flow Summary Drivers (billions) 2012 2013 2013 cash from operations favorable to Cash From Operations* 2.2 2.2 guidance by 300 million Capital Spending (2.1) (1.9) Free Cash Flow 0.1 0.3…
  24. Year End 2013 Earnings Conference Call – DTE Energy Co. – slide 24
    DTE Energy 2014 Cash Flow Guidance Cash Flow Summary Drivers (billions) 2013 2014 Actual Guidance 2014 cash from operations decreases due Cash From Operations* 2.2 1.6 to lower utility surcharge collections than Capital Spending…
  25. Year End 2013 Earnings Conference Call – DTE Energy Co. – slide 25
    Strong balance sheet remains a key priority and supports growth Leverage* Target Targeting zero equity issuances in 2014 50% - 52% Annual issuances of 200 million 49% 52% to 300 million in 2015 and 2016 2013 2014E 1.6…
  26. Year End 2013 Earnings Conference Call – DTE Energy Co. – slide 26
    Our business strategy is fundamental to how we create value for our investors Utility growth plan driven by environmental and renewable energy investments 5% - 6% Annual Meaningful, transparent, low-risk growth EPS Growth…
  27. Year End 2013 Earnings Conference Call – DTE Energy Co. – slide 27
    Contact Us DTE Energy Investor Relations www.dteenergy.com/investors (313) 235-8030 28
  28. Year End 2013 Earnings Conference Call – DTE Energy Co. – slide 28
    Appendix
  29. Year End 2013 Earnings Conference Call – DTE Energy Co. – slide 29
    DTE Electric Variance Analysis Operating Earnings* Variance Drivers (millions) Return to near normal weather in 2013 56 (26) 483 (41) (6) 484 Variance to normal weather 18 - 2012: 45 - 2013: 4 Other margin driven by…
  30. Year End 2013 Earnings Conference Call – DTE Energy Co. – slide 30
    DTE Gas Variance Analysis Operating Earnings* Variance Drivers (millions) Colder than normal weather in 2013 12 (19) 45 (10) Variance to normal weather 143 - 2012: (28) 115 - 2013: 17 Lower benefits expense due to plan…
  31. Year End 2013 Earnings Conference Call – DTE Energy Co. – slide 31
    DTE Energy 2014 Capital Expenditure Guidance Capital Expenditures Summary Drivers (millions) 2013 2014 Actual Guidance DTE Electric capital higher due to DTE Electric increased environmental, renewable energy, and reliability…
  32. Year End 2013 Earnings Conference Call – DTE Energy Co. – slide 32
    Utility rate strategies minimize new rate filings and their impacts on our customers DTE Electric DTE Gas Periodic rate cases to support Infrastructure Recovery Mechanism investment profile provides recovery of investments File…
  33. Year End 2013 Earnings Conference Call – DTE Energy Co. – slide 33
    Gas Storage & Pipelines platforms drive growth through new projects and expansions Pipeline Platform Gathering Platform Storage Platform Bluestone Pipeline Bluestone Gathering Washington 10 Bluestone Pipeline Bluestone Gathering…
  34. Year End 2013 Earnings Conference Call – DTE Energy Co. – slide 34
    Gas Storage & Pipelines assets have expansion opportunities to accommodate increased demand Pipeline Assets Capacity / d In-Service Millennium Pipeline 0.5 Bcf Expansion 1 and 2 0.3 Bcf 2014 Expansion 3 0.2 - 0.5 Bcf 2016 - 2017…
  35. Year End 2013 Earnings Conference Call – DTE Energy Co. – slide 35
    DTE Energy Trading Reconciliation of Operating Earnings* to Economic Net Income ( millions) 24 21 Operating Earnings* Economic net income equals economic gross (millions, after-tax) margin*** minus O&M (3) expenses and taxes.…
  36. Year End 2013 Earnings Conference Call – DTE Energy Co. – slide 36
    2013 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 operations…
  37. Year End 2013 Earnings Conference Call – DTE Energy Co. – slide 37
    2012 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 operations…
  38. Year End 2013 Earnings Conference Call – DTE Energy Co. – slide 38
    2011 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 operations…
  39. Year End 2013 Earnings Conference Call – DTE Energy Co. – slide 39
    2010 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 operations…
  40. Year End 2013 Earnings Conference Call – DTE Energy Co. – slide 40
    2009 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 operations…
  41. Year End 2013 Earnings Conference Call – DTE Energy Co. – slide 41
    2008 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. Year End 2013 Earnings Conference Call – DTE Energy Co. – slide 42
    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 operations…

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