2nd Quarter 2014 Earnings Conference Call July 25, 2014
Participants Peter Oleksiak Senior Vice President and CFO Jeff Jewell Vice President and Controller Mark Rolling Vice President and Treasurer Anastasia Minor Executive Director, Investor Relations 3
Overview Second Quarter 2014 Earnings Results Cash Flow and Balance Sheet Metrics Summary 4
Our business strategy is fundamental to how we create value for our investors Utility growth plan driven by infrastructure investments 5% - 6% Annual Strategic, transparent, low-risk growth EPS Growth opportunities in non-utility…
DTE raised its annualized dividend over 5% to 2.76 marking the fifth consecutive year of an increase in line with our stated long-term earnings targets (dollars) Operating EPS* Guidance 7.2% CAGR Midpoint 2008-2014 4.30 4.09…
DTE has delivered total shareholder return above market indices Historical Total Shareholder Return CAGR* 25% 21% 19% 19% 19% 17% 14% 14% 12% 11% 8% 7% YTD 3 YR 5 YR 10 YR DTE S&P500 Utilities S&P500 * As of June…
We see strong opportunities in our growth segments that support our 5-6% EPS growth outlook Utility Utility investments more than double depreciation levels driven by Replacement of aging coal plants and energy policy reform Main…
We remain confident in our 2014 operating earnings* guidance (millions, except EPS) 2014 YTD 2014 Actuals Guidance DTE Electric 265 520 - 530 DTE Gas 125 120 - 126 DTE Gas performance providing contingency for Gas Storage &…
Overview Second Quarter 2014 Earnings Results Cash Flow and Balance Sheet Metrics Summary 10
DTE Energy Second Quarter 2014 Operating Earnings Per Share* 0.73 DTE Electric DTE Gas Non-Utility Corporate & Other 0.73 (0.02) 0.12 (0.10) Gas Storage & Power & Industrial Energy Trading Pipelines Projects 0.10 0.07…
DTE Energy Second Quarter 2014 Operating Earnings Variance Operating Earnings* Drivers (millions, except EPS) 2Q 2013 2Q 2014 Change DTE Electric DTE Electric 89 129 40 Primarily revenue decoupler amortization and 2Q 2013 O&M…
DTE Electric Variance Analysis Operating Earnings* Variance Drivers (millions) Favorable weather in Q2 2014 10 4 129 Variance to normal weather 21 - 2Q 2013: (2) - 2Q 2014: 3 5 89 Revenue decoupler mechanism (RDM)…
DTE Gas Variance Analysis Operating Earnings* Variance Drivers (millions) Warmer weather in 2Q 2014 vs. 8 (3) 2Q 2013 Variance to normal weather (6) - 2Q 2013: 4 - 2Q 2014: 1 O&M primarily timing and increased…
Contingency exists for potential weather variability and O&M reinvestment 2014 Operating EPS* Guidance Range Uses for contingency include: Balance of year weather 0.27 (0.27) 28% fewer CDDs July month to date 4.20 - 4.40 vs.…
Overview Second Quarter 2014 Earnings Results Cash Flow and Balance Sheet Metrics Summary 16
DTE Energy YTD 2014 Cash Flow Cash Flow Summary Drivers (billions) YTD 2013 YTD 2014 Free cash flow lower due primarily to Cash From Operations* 1.3 1.1 higher fuel and power purchases and Capital Spending (0.9) (1.1) increased…
DTE Energy YTD 2014 Capital Expenditures Capital Expenditures Drivers (millions) YTD 2013 YTD 2014 DTE Electric DTE Electric higher due to planned outages Operational 419 584 at fossil and nuclear generation, distribution…
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 to 49% 52% 300 million in 2015 and 2016 2013 2014E 1.4 billion…
Overview Second Quarter 2014 Earnings Results Cash Flow and Balance Sheet Metrics Summary 20
Summary We are on track to meet our operating earnings* guidance in 2014 with contingency for balance of year unfavorable weather and utility reinvestment Raised annualized dividend over 5% marking the fifth consecutive year of…
Contact Us DTE Energy Investor Relations www.dteenergy.com/investors (313) 235-8030 22
Appendix
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…
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…
DTE Energy Trading Reconciliation of Operating Earnings* to Economic Net Income (millions) 21 11 Economic net income Operating Earnings* (10) equals economic gross (millions, after-tax) margin*** minus O&M expenses and taxes. 2Q…
DTE Energy Trading Reconciliation of Operating Earnings* to Economic Net Income (millions) 23 21 Economic net income Operating Earnings* equals economic gross (millions, after-tax) margin*** minus O&M (2) expenses and taxes. YTD…
Second Quarter and June Year To Date 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…
2008 2013 Full Year 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…
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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