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,…
Business update Environmental, social and governance (ESG) update 3
Continuing track record of delivering premium shareholder returns Strong operational and financial performance in 1 2019; well-positioned for future growth 5% 7% operating EPS1 growth through 2024 from 2 2020 base 3 7% dividend…
Delivering premium operating EPS 1 results through disciplined planning and management History of exceeding operating EPS guidance Robust planning Annually create detailed 5-year plan 6.30 Includes earnings contingency across…
New slide Increased dividend every year since 2010; 7% dividend growth targeted 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…
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…
New slide Increased liquidity by 50% from the beginning of the year, which is greater than 2x our remaining 2020 financing needs Liquidity Financial strength and culture of cash control (billions) Strong liquidity position Liquidity…
Pension plan is well funded Pension details No funding required in 2020 88% qualified funded status at year-end 2019 Asset allocation is conservative 42% fixed income 35% equity 23% other Rate of return and discount rate changes…
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…
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…
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%…
Integrated resource plan provides a roadmap for future investments Cleaner energy plan on-track Majority of investment has been approved through regulatory process including the Blue Water Energy Center gas plant and 450 MW wind…
Changes in customer sales can be mitigated with proven contingency and lean plans Annualized utility sensitivities (millions) We have a strong history of successfully Impact on implementing contingency plans including Sensitivity…
Our culture of continuous improvement and cost control allowed us to deliver on plan during the last economic downturn 2008/2009 recession pressured electric sales DTE response delivered results above targets 2008/2009 recession…
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 River St.…
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…
New slide 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 into other geographies Delivering higher…
GSP: high-quality assets with revenue certainty is the foundation for long-term growth 85% of total revenue covered by fixed Pipeline revenue contracts and flowing gas Connecting world-class supply basins to high-quality markets…
New slide Majority of GSP growth secured; delivering higher operating earnings1 with increased certainty (millions) GSP operating earnings Focusing on continued organic growth 9.5% CAGR from well-positioned platforms Majority of…
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 dynamics…
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 US natural gas supply Given decline profiles of flowing wells, from currently-flowing wells (Bcf/d) new…
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…
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…
Business update Environmental, social and governance (ESG) update 29
Environmental, social and governance efforts are key priorities Environmental Net zero carbon emissions by 2050 80% carbon emissions reduction by 2040 80% methane emissions reduction by 2040 Providing renewable natural gas from…
New slide Continuing to secure a greener future Ludington Hydropower Plant Wind 14 wind parks Enough clean energy to power more than 500,000 homes Solar 31 solar parks Lapeer solar park one of the largest parks east of the…
New slide 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…
New slide 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…
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…
New slide 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…
New slide 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…
New slide 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…
CONTACT US DTE Investor Relations www.dteenergy.com/investors 313.235.8030 38
Appendix 39
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…
Positioned for continued growth from strong 2020 guidance Operating EPS1 2020 operating EPS guidance midpoint provides 7.5% growth from 2019 original guidance 7.5% Well-positioned for 5% 7% operating EPS growth through 2024…
2020 operating earnings1 guidance (millions, except EPS) 2020 operating earnings guidance DTE Electric 759 - 773 DTE Gas 185 - 193 Gas Storage & Pipelines 277 - 293 Power & Industrial Projects 133 - 148 Energy Trading 15 -…
Maintaining strong cash flow, balance sheet and credit profile (billions) 2.4 billion of available liquidity as of Planned equity issuances March 2020 2020 2022 Maintaining strong investment-grade credit 1.3 rating and…
Cash flow and capital expenditures 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 (1.5)…
DTE Electric and DTE Gas regulatory update DTE Electric DTE Gas General rate case filed July 2019 (U-20561) General rate case filed November 2019 May 2020: effective (U-20642) Rate recovery: 351 million October 2020: effective ROE:…
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…
New slide 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…
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