D T E B U S I N E S S U P D AT E AGA Financial Forum M AY 1 8 1 9 , 2 0 20 1
Safe harbor statement Certain information presented herein includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 with respect to the financial condition, results of operations, and…
Focusing on the well-being of our employees and communities and positioned to deliver on our financial targets during COVID-19 pandemic Shareholders Reaffirming 2020 operating EPS1 guidance Employees with Michigan starting to return…
Ensuring the health and safety of our employees while delivering reliable energy Successfully implemented work from home for over half of our employees Strategically sequestered crews to ensure healthy back-up support and orderly…
Providing community support, especially to the most vulnerable Providing resources to serve families basic needs, such as food, shelter and access to core medical services Assisting non-profit organizations and small businesses with…
Positioned to deliver on our financial targets with cost reductions and contingency planning Forecasted 2020 earnings pressure (60 million) Includes impact of: Earnings COVID-19 sales reduction and incremental costs pressure 1Q…
Potential 2020 operating earnings1 impact from electric sales scenarios is 30 50 million May start scenario Return-to-work assumptions Residential sales impacts Construction and outdoor industries: May 3% 4% annual sales increase…
Updated planning process includes daily review of contingency plan and lean actions across all business lines Robust planning Strong history of successfully Annually create detailed 5-year plan implementing earnings contingency plans…
Positioned to achieve our 2020 operating EPS 1 guidance (millions, except EPS) 2020 operating Assumptions underlying 2020 guidance earnings guidance Electric sales assume Michigans shelter- in-place order is lifted in May DTE…
Additional measures taken to further strengthen our liquidity position Liquidity Actions taken to increase liquidity (billions) 0.4 3.2 Issued 1.7 billion of long-term debt at DTE 0.4 Electric at extremely favorable rates 0.8…
Maintaining strong cash flow, balance sheet and credit profile (billions) Maintaining strong investment-grade credit rating and FFO1/Debt2 target at 18% Planned equity issuances 2020 2022 Metrics within targeted ranges 1.3…
Consistently earning authorized ROE in a constructive regulatory environment Ranking of U.S. regulatory jurisdictions1 DTE Electric ROE (Michigan in tier 1) Tier 1 8 10.3% 10.3% 10.1% 10.0% 10.0% Tier 2 9 2015 2016 2017 2018…
DTE Electric and DTE Gas regulatory update DTE Electric MPSC order on COVID-19 General rate case final order (U-20561) Received approval to begin deferring Effective: May 15, 2020 uncollectible expense in excess of amount in base rates…
Distinctive continuous improvement culture drives strong track record of cost management vs. peer average All 10,000+ employees engaged in CI to Average annual percentage change in surface and solve problems O&M costs 2008 2018…
Delivering premium results through disciplined planning and management Delivering total shareholder return2 well above History of exceeding operating EPS1 guidance industry average 6.30 463% 332% 2.90 77% 5-Year…
Increased dividend every year since 2010; 7% dividend growth through 20211 ( per share) Annualized dividend 6.1% CAGR Increased annualized dividend per 7.1% CAGR 4.05 share every year since 2010 6.1% average increase over that…
Clear line of sight for growth supported by investment in utility infrastructure and disciplined non-utility opportunities (billions) 2020 2024 DTE Energy investment 19 billion Electric: Distribution infrastructure, 12 cleaner…
Potential 2 billion upside to 5-year utility investment plan with visible infrastructure investment (billions) Utility investment plan 1.0 1.5 billion additional electric investments above 5-year plan Additional 2 opportunity…
DTE Electric: transformational investments in generation and distribution provide customers cleaner, more reliable energy (billions) 2020 2024 electric investment Transformational investments Cleaner energy 3 Delivering 80% carbon…
Steady march toward clean, reliable, affordable, home-grown energy Cleaner generation mix 1% 2% 17% 20% 25 30% Renewables 18% 20 25% Natural gas 20% 77% 20% Nuclear & other 45% 30% Coal 2005 2023E 2030E More than…
DTE Gas: replacing aging infrastructure reduces methane emissions while improving performance, cost and productivity (billions) 2020 2024 gas investment Transformational investments Main renewal Minimizing leaks to reduce costs…
Committed to methane reduction goal of 80% by 2040 Reduced methane emissions continuing reductions in to achieve goal by 2040 more than 20% since 2011 2020... Compressor station upgrades Main renewal program Continued…
Non-utility businesses complement utility growth and provide portfolio mix to manage business cycles Non-utility value creation Extension of our utility business core competencies Delivering higher than utility into other geographies…
GSP: highly contracted assets provide confidence in meeting our plans Percentage of revenue from demand-based contracts or MVCs/flowing gas Our assets are well-positioned Pipelines have long-term contracts and favorable future…
Majority of GSP growth secured; delivering higher operating earnings1 with increased certainty (millions) GSP operating earnings Continued organic growth from well- positioned platforms 9.5% CAGR Majority of future growth secured…
Longer-term demand increases will require continued production growth through new drilling U.S. natural gas demand forecast (Bcf/d) Longer-term natural gas supply/demand fundamentals remain 130 attractive; shorter-term gas prices +2%…
It is necessary to drill 19 Bcf/d of new natural gas supply on an annual basis to hold production flat Annual decline of US natural gas supply Given decline profiles of flowing wells, from currently-flowing wells (Bcf/d) new production…
As associated gas supply decreases due to lower oil prices, demand for other sources of dry gas increase The quality of the resource underlying our assets ensures gas will continue to flow on our systems 2021 2023 drilling supply…
P&I: achieving growth from high- quality platforms Industrial energy services Developing new cogeneration projects to improve customer environmental attributes and lower energy costs Renewable energy Expanding RNG business at…
Operating earnings1 are underpinned by RNG and cogeneration growth opportunities (millions) P&I operating earnings RNG and cogeneration projects drive long- term earnings 133 148 Backfill sunsetting REF projects with 125 135 new…
Environmental, social and governance efforts are key priorities Environmental Delivering clean and reliable energy to customers Transitioning towards net zero carbon emissions and 80% methane emissions reduction Protecting our…
Continuing to secure a greener future Net zero Wind 14 wind parks carbon emissions by 2050 Enough clean energy to power more than 500,000 homes Solar 31 solar parks 80% Lapeer solar park one of the largest parks east of the…
Continuing to secure a greener future for continuous generation Blue Water Energy Center Ludington Hydropower Plant 70% reduction1 in CO2 emissions 2nd largest pumped storage facility in the U.S. 95% reduction1 in SO2 and NOx…
Promoting environmental sustainability through stewardship and conservation Received Corporate Conservation Leadership award from the Wildlife Habitat Council for leadership in wildlife management 37 sites certified under the…
Commitment to strong culture provides a solid framework for success Safety National Safety Councils top 2% of companies surveyed in safety culture Employee engagement Top 3% in the world by Gallup; 7 consecutive Gallup Great…
Reaching a world class status in volunteerism and strengthening ties with communities where we live and serve 5,610 16m 101,618 1,335 volunteers value of in-kind hours nonprofits helped services since volunteered 2015 New…
Promoting employee resource groups creates an atmosphere of diversity and inclusion Black LGBTQ group Young professionals professionals group group Family Differently- Latinx oriented group abled group professionals…
Our award-winning commitment to being a top ESG employer in the country Superior corporate Company diversity Top quartile in Named as one of citizenship and customer satisfaction Americas best large community employers…
Outperforming industry average in ESG scores A 75 Continuing to make progress on ESG performance Improved MSCI rating from BBB to A BBB 50 Aspiring to be the best in the industry MSCI Sustainalytics DTE Energy Industry…
CONTACT US DTE Investor Relations www.dteenergy.com/investors 313.235.8030 40
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DTE Energy 70% 75% utility DTE Electric Electric generation and distribution DTE Gas Natural gas transmission, storage and distribution 25% 30% non-utility Gas Storage & Pipelines (GSP) Transport, store and gather natural…
Cash flow and capital expenditures guidance Cash flow Capital expenditures (billions) (millions) 2020 2020 guidance guidance Cash from operations1 3.0 DTE Electric Capital expenditures (4.5) Base infrastructure 680 Free cash flow…
Well-positioned platforms provide confidence in securing highly accretive growth Platforms Regulation Phase Growth Opportunities 2.2 2.7 billion of investment in 2020 2024 Blue Union Early Gathering build-outs 1.0 billion of growth…
Blue Union and LEAP asset additions to portfolio provide great value and growth Perryville Hub Premier assets in high-quality Haynesville Carthage Hub basin Southeast Power Markets Existing fully contracted gathering system Gulf…
2018 2019 reconciliation of reported to operating EPS (non-GAAP) Use of Operating Earnings Information DTE Energy management believes that operating earnings provide a more meaningful representation of the companys earnings from ongoing…
2008 reconciliation of reported to operating EPS (non-GAAP) Use of Operating Earnings Information DTE Energy management believes that operating earnings provide a more meaningful representation of the companys earnings from ongoing…
Reconciliation of reported to operating earnings (non-GAAP) Use of Operating Earnings Information Operating earnings exclude non-recurring items, certain mark-to-market adjustments and discontinued operations. DTE Energy management…
Adjusted EBITDA is a non-GAAP measure Adjusted EBITDA is calculated using net income, the most comparable GAAP measure and adding back expenses for interest, taxes, depreciation and amortization. Adjusted EBITDA also includes an…
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