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Business Update – DTE Energy Co.

DTE Energy Co. · Feb 19, 2015 · 44 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. Business Update – DTE Energy Co. – slide 1
    Business Update February 19, 2015
  2. Business Update – DTE Energy Co. – slide 2
    Overview Long-Term Growth Update Financial Update Summary 3
  3. Business Update – DTE Energy Co. – slide 3
    DTE Energys growth is driven by strong, stable utilities and complementary non-utility businesses Strong, Stable and Growing Utilities Complementary Non-Utility Businesses Fully Regulated by Michigan Public Service Commission 80% of…
  4. Business Update – DTE Energy Co. – slide 4
    Our business strategy is fundamental to how we create value for our investors Utility growth plan driven by infrastructure 5% - 6% Annual investments EPS Growth Strategic, transparent, low-risk growth opportunities in non-utility…
  5. Business Update – DTE Energy Co. – slide 5
    We achieved top performance across our priorities in 2014 Employee Higher employee engagement Engagement Ranked in the top-decile in Gallups* employee engagement survey Earned second Gallup Great Workplace award Top-quartile…
  6. Business Update – DTE Energy Co. – slide 6
    We achieved top performance across our priorities in 2014 (continued) Political / Constructive political and regulatory environment Regulatory Positive momentum on Michigans energy policy First electric rate case in four years…
  7. Business Update – DTE Energy Co. – slide 7
    Our strong earnings growth opportunities coupled with our contingency planning gives us confidence in our ability to deliver 5% 6% operating EPS* growth 10% - 15% 7% - 8% 5% - 7% 5% - 6% Non-Utilities Utilities…
  8. Business Update – DTE Energy Co. – slide 8
    We remain committed to delivering 5% to 6% operating EPS* growth (dollars per share) Guidance midpoint 4.60 4.60 Operating EPS* 6.7% CAGR 2009 2014 4.09 3.94 3.75 3.64 3.33 EPS Dividend per share 5.4% CAGR 2009 2014…
  9. Business Update – DTE Energy Co. – slide 9
    Overview Long-Term Growth Update Financial Update Summary 10
  10. Business Update – DTE Energy Co. – slide 10
    Michigan has returned to economic health, allowing the state to focus on beneficial energy policy changes Michigans economic health Detroits economic rebirth Brookings Institution Michigan leads nation ranked Michigan 4 in in…
  11. Business Update – DTE Energy Co. – slide 11
    The state has experienced leadership to drive successful changes in energy policy Senator Mike Nofs Representative Aric Nesbitt Valerie Brader Energy and Technology Energy Policy Deputy Legal Counsel and Committee Chair Committee…
  12. Business Update – DTE Energy Co. – slide 12
    Federal and state policy will lead to transformation of our generation mix by replacing coal with natural gas and renewables DTE Electric Generation Output EPA 20% Nuclear / Policy 20% other 10% Gas / 50% Renewables…
  13. Business Update – DTE Energy Co. – slide 13
    We will invest over 11 billion in capital projects to drive growth through 2019 (billions) 11.2 11.8 Power & Industrial Projects On-site energy, cogeneration 0.6 0.8 1.5 1.9 Gas Storage & Pipelines Gathering investments, NEXUS,…
  14. Business Update – DTE Energy Co. – slide 14
    Our electric utility is investing 7.5 billion in three key areas through 2019 Targeting 5% - 6% growth 400 million 7.5 billion 1.4 billion Compliance Gas plant acquisition Generation asset 5.7 billion base renewal…
  15. Business Update – DTE Energy Co. – slide 15
    Generation replacement will significantly increase DTE Electrics investment over the next 10 years (billions) DTE Electric Total Investment 9.0 7.5 New generation 6.0 investment 2010-2014 2015-2019 2020-2024 16
  16. Business Update – DTE Energy Co. – slide 16
    Our gas utility is making 1.6 billion of reliability and infrastructure investments through 2019 Targeting 7% - 8% growth 125 million 1.6 billion 600 million Compression Main renewal, meter move-out and pipeline integrity 825…
  17. Business Update – DTE Energy Co. – slide 17
    As we continue to grow, we continue to focus on minimizing the customer rate impact Downward pressure Continuous Improvement DTE Electric Surcharge Reductions 600 million* surcharge Revised Business Rates reductions Load Growth…
  18. Business Update – DTE Energy Co. – slide 18
    Gas Storage & Pipelines is developing an asset portfolio with multiple growth platforms Michigan Gathering DTE Gas DTE Storage Bluestone Pipeline Bluestone Gathering System Utica Marcellus Shale Shale Proposed…
  19. Business Update – DTE Energy Co. – slide 19
    Gas Storage & Pipelines platforms drive growth through new projects and expansions Bluestone Pipeline Growth Strategy Millennium Pipeline Vector Pipeline Understand and anticipate opportunities Proposed NEXUS Pipeline in new…
  20. Business Update – DTE Energy Co. – slide 20
    The NEXUS and Vector pipelines have taken important steps forward in recent months NEXUS GAS TRANSMISSION Agreements executed with LDCs and several key shippers; additional discussions underway Supplemental open season completed…
  21. Business Update – DTE Energy Co. – slide 21
    Gas Storage & Pipelines operating earnings* potential is 145 million by 2019 (millions) 10% - 15% 145 CAGR New Project Development 10 (Other gathering and pipeline expansions) 20 Storage Platform 82 80 - 88 45 Gathering…
  22. Business Update – DTE Energy Co. – slide 22
    Power & Industrial Projects is focused in three key business lines across the country Industrial Energy Services Renewable Energy Reduced Emissions Fuel 23
  23. Business Update – DTE Energy Co. – slide 23
    Power & Industrial Projects is pursuing new opportunities in each business line in order to achieve growth aspirations Industrial Energy Services On-site energy and utility services for industrial, commercial and institutional…
  24. Business Update – DTE Energy Co. – slide 24
    Power & Industrial Projects is targeting 145 million of operating earnings* by 2019 through growth in each business line (millions) 10% - 15% CAGR 145 New Project 20 Development / Acquisitions 90 - 100 35 Renewable Energy 90…
  25. Business Update – DTE Energy Co. – slide 25
    Overview Long-Term Growth Update Financial Update Summary 26
  26. Business Update – DTE Energy Co. – slide 26
    We raised our 2015 operating EPS* guidance from our previous early outlook (millions, except EPS) 2015 2014 2015 Early Drivers Actuals* Guidance Outlook DTE Electric 528 554 - 570 554 - 570 DTE Gas 140 128 - 134 128 - 134 Gas…
  27. Business Update – DTE Energy Co. – slide 27
    Strong balance sheet remains a key priority and supports growth Leverage* Target 50% - 53% Achieved target of zero equity issuance in 2014 51% 53% Targeting 200 million of equity 49% 51% issuance in 2015 and 800 to 900…
  28. Business Update – DTE Energy Co. – slide 28
    Overview Long-Term Growth Update Financial Update Summary 29
  29. Business Update – DTE Energy Co. – slide 29
    Summary Exceeded our operating EPS* growth target with historical growth of nearly 7% Targeting 5% to 6% operating EPS* growth 2015 growth segment guidance midpoint of 4.60 provides 5.5% EPS growth over 2014, with normal weather…
  30. Business Update – DTE Energy Co. – slide 30
    Contact Us DTE Energy Investor Relations www.dteenergy.com/investors (313) 235-8030 31
  31. Business Update – DTE Energy Co. – slide 31
    Appendix
  32. Business Update – DTE Energy Co. – slide 32
    DTE Energy 2015 Cash Flow Guidance (billions) Cash Flow Summary Drivers 2014 2015 Actual Guidance Cash from operations decreases due to elimination of securitization bond surcharge Cash From Operations 1.8 1.7 at DTE…
  33. Business Update – DTE Energy Co. – slide 33
    DTEEnergy DTE Energy 2015Capital 2015 Capital Expenditure Expenditure Guidance Guidance (millions) Capital Expenditures Summary Drivers 2014 2015 Actual Guidance DTE Electric capital higher due to increased generation and…
  34. Business Update – DTE Energy Co. – slide 34
    DTE Energy 2014 Operating Earnings* Variance (millions, except EPS) 2013 2014 Change Drivers DTE Electric 484 528 44 DTE Electric DTE Gas 143 140 (3) Revenue decoupling mechanism amortization and lower O&M Gas Storage & Pipelines…
  35. Business Update – DTE Energy Co. – slide 35
    DTE Electric plans 7.5 billion of investments over the next 5 years (millions) 1,820 7,500 400 Environmental 1,561 1,400 1,460 1,460 1,460 New Generation 1,300 1,200 Other Projects* Distribution 900 Reliability…
  36. Business Update – DTE Energy Co. – slide 36
    DTE Gas plans nearly 1.6 billion of investments over the next 5 years (millions) 350 360 1,550 125 NEXUS related 280 280 280 224 600 Gas Renewal 825 Base 2014A 2015E 2016E 2017E 2018E 2019E 2015E - 2019E Total…
  37. Business Update – DTE Energy Co. – slide 37
    DTEs continuous improvement capability has enabled us to lead the industry in cost management 2008 to 2013 Change in O&M Costs 1st 2nd 3rd 4th 70% Quartile Quartile Quartile Quartile Electric Industry Avg. Peers* 25% DTE 0%…
  38. Business Update – DTE Energy Co. – slide 38
    Utility regulatory timeline DTE Electric DTE Gas Filed expanded Filed cost of service rates 2014 Infrastructure Recovery and general rate case Mechanism (IRM) Revised business cost of service rates 2Q Self implement general…
  39. Business Update – DTE Energy Co. – slide 39
    Gas Storage & Pipelines assets have expansion opportunities to accommodate increased demand Capacity Pipeline Assets Bcf/ d In-Service Millennium Pipeline 0.8 Future Expansion (planning phase) 0.2 - 0.5 2017 + Total Planned…
  40. Business Update – DTE Energy Co. – slide 40
    DTE Energy Trading Reconciliation of Operating Earnings* to Economic Net Income (millions) 37 57 Economic net income Operating Earnings* equals economic gross (millions, after-tax) 20 margin*** minus O&M expenses and taxes 2014…
  41. Business Update – DTE Energy Co. – slide 41
    2014 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. Business Update – DTE Energy Co. – slide 42
    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…
  43. Business Update – DTE Energy Co. – slide 43
    2009 2014 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…
  44. Business Update – DTE Energy Co. – slide 44
    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…

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