c DTE 1Q 2020 EARNINGS CONFERENCE CALL APRIL 28, 2020 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,…
Participants Jerry Norcia President and CEO Peter Oleksiak Senior Vice President and CFO Dave Ruud Senior Vice President, Corp. Strategy & Development Barbara Tuckfield Director Investor Relations 3
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 to…
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…
1Q 2020 operating earnings1 variance (millions, except EPS) 1Q 2019 1Q 2020 Variance Primary drivers Warmer weather, non-qualified benefit plan DTE Electric 147 94 (53) investment losses and higher depreciation rates offset by rate…
Positioned to achieve our 2020 operating EPS1 guidance (millions, except EPS) 2020 operating earnings guidance Assumptions underlying 2020 guidance Electric sales assume Michigans shelter- DTE Electric 759 - 773 in-place order is…
Additional measures taken to further strengthen our liquidity position Liquidity Financial strength and culture of cash control (billions) 0.4 3.2 Metrics within targeted ranges 0.4 Strong liquidity position 0.8 Issued 1.7…
Maintaining strong cash flow, balance sheet and credit profile (billions) Maintaining strong investment-grade Planned equity issuances credit rating and FFO1/Debt2 target at 18% 2020 2022 Targeting lower end of range for 2020…
High-quality utilities progressing on 15 billion 5-year capital investment plan with potential 2 billion upside DTE Electric DTE Energy investment Utility investment 2020 - 2024 2020 - 2024 Received IRP order and filed updated…
GSP is well positioned for value creation Gas Storage & Pipelines Percentage of revenue from demand-based Progressing on LEAP construction with an contracts or MVCs/flowing gas expected 3rd quarter in-service date Business is…
P&I operating earnings1 are underpinned by RNG and cogeneration growth Power & Industrial Projects RNG and cogeneration projects drive long- term growth Wisconsin RNG and Ford Motor projects fully operational Originated over 50…
Our strategies and operating model create extraordinary value for our people, customers, communities and shareholders Providing support during the COVID-19 pandemic Strong track record of operating EPS 1 growth Ensuring the health and…
CONTACT US DTE Investor Relations www.dteenergy.com/investors 313.235.8030 18
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Clear line of sight for growth supported by investment in utility infrastructure and disciplined non-utility opportunities 2020 2024 DTE Energy investment 19 billion 15 Electric: Distribution infrastructure, 12 cleaner…
Contributing to local economy; invested 11.4 billion in Michigan businesses since 2010 (billions) Investing in Michigan businesses 2.1 Driving economic growth in Michigan Invested over 11.4 billion since 2010 Creating 34,000…
DTE Electric variance analysis (millions) Operating earnings1 variance 147 (24) Warmer weather in 2020 - variance to normal weather (35) 1Q 2019: 6 17 (11) 1Q 2020: (18) 94 Non-qualified benefit plan investment losses from…
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…
Cash flow and capital expenditures actuals Cash flow Capital expenditures (billions) (millions) 1Q 2019 1Q 2020 1Q 2019 1Q 2020 Cash from operations1 0.8 1.0 DTE Electric Capital expenditures (0.7) (1.3) Base infrastructure 178…
Weather impact on sales Cooling degree days DTE Electric service area Heating degree days DTE Gas service area 1Q 2019 1Q 2020 % Change 1Q 2019 1Q 2020 % Change Actuals - - 0% Actuals 3,420 2,890 (15%) Normal - - 0% Normal 3,245 3,288…
DTE Electric and DTE Gas regulatory update DTE Electric DTE Gas General rate case filed July 2019 General rate case filed November 2019 (U-20561) (U-20642) Effective: May 2020 Effective: October 2020 Rate recovery: 351 million…
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 attractive; shorter-term gas prices 130 +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 U.S. natural gas supply Given decline profiles of flowing wells, new from currently-flowing wells (Bcf/d)…
Our assets are well-positioned in low cost resource basins The quality of the resource underlying our assets will ensure that gas will continue to flow on our 2021 2023 drilling supply curve (Bcf/d) systems Additionally, our…
2020 Energy Trading reconciliation of operating earnings 1 to economic net income (millions) Energy Trading reconciliation Economic net income equals economic gross margin3 minus O&M expenses and taxes 1Q 2019 1Q 2020 DTE Energy…
2019 2020 reconciliation of reported to operating earnings (non-GAAP) Use of Operating Earnings Information DTE Energy management believes that operating earnings provide a more meaningful representation of the companys earnings from…
2019 2020 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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