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Year End 2014 Earnings Conference Call – DTE Energy Co.

DTE Energy Co. · Feb 13, 2015 · 41 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. Year End 2014 Earnings Conference Call – DTE Energy Co. – slide 1
    Year End 2014 Earnings Conference Call February 13, 2015
  2. Year End 2014 Earnings Conference Call – DTE Energy Co. – slide 2
    Participants Gerry Anderson Chairman and CEO Peter Oleksiak Senior Vice President and CFO Anastasia Minor Executive Director, Investor Relations 3
  3. Year End 2014 Earnings Conference Call – DTE Energy Co. – slide 3
    2014 Accomplishments Energy Policy Update Long-Term Growth Update Financial Update Summary 4
  4. Year End 2014 Earnings Conference Call – DTE Energy Co. – slide 4
    Our system of priorities is fundamental to how we create value for our investors 5% - 6% Annual Attractive Strong EPS Growth Dividend Balance Sheet 5
  5. Year End 2014 Earnings Conference Call – 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. Year End 2014 Earnings Conference Call – 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. Year End 2014 Earnings Conference Call – DTE Energy Co. – slide 7
    2014 Accomplishments Energy Policy Update Long-Term Growth Update Financial Update Summary 8
  8. Year End 2014 Earnings Conference Call – DTE Energy Co. – slide 8
    Michigan continues to have a constructive political and regulatory environment Governor Rick Snyder Michigan Public Service Commission John Quackenbush Sally Talberg Greg White Chairman Commissioner Commissioner Term Ends:…
  9. Year End 2014 Earnings Conference Call – DTE Energy Co. – slide 9
    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…
  10. Year End 2014 Earnings Conference Call – DTE Energy Co. – slide 10
    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…
  11. Year End 2014 Earnings Conference Call – DTE Energy Co. – slide 11
    2014 Accomplishments Energy Policy Update Long-Term Growth Update Financial Update Summary 12
  12. Year End 2014 Earnings Conference Call – DTE Energy Co. – slide 12
    We remain committed to our 5%-6% operating EPS* growth target (per share) Operating EPS* 4.60 4.60 6.7% CAGR 2009 2014 4.09 3.94 3.75 3.64 3.33 EPS Dividend per 2.76 share 5.4% CAGR 2.62 2009 2014 (Annualized) 2.48…
  13. Year End 2014 Earnings Conference Call – 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. Year End 2014 Earnings Conference Call – DTE Energy Co. – slide 14
    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…
  15. Year End 2014 Earnings Conference Call – DTE Energy Co. – slide 15
    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…
  16. Year End 2014 Earnings Conference Call – DTE Energy Co. – slide 16
    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…
  17. Year End 2014 Earnings Conference Call – DTE Energy Co. – slide 17
    Gas Storage & Pipelines operating earnings* potential is 145 million by 2019 (millions) 145 10 New Project Development (Other gathering and pipeline expansions) 10% 15% 20 Storage Platform CAGR 80 - 88 45 Gathering Platform…
  18. Year End 2014 Earnings Conference Call – DTE Energy Co. – slide 18
    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…
  19. Year End 2014 Earnings Conference Call – DTE Energy Co. – slide 19
    Power & Industrial Projects is targeting 145 million of operating earnings* by 2019 through growth in each business line (millions) 10% - 15% 145 CAGR 20 New Project Development / Acquisitions 90 - 100 35 Renewable Energy 90…
  20. Year End 2014 Earnings Conference Call – DTE Energy Co. – slide 20
    2014 Accomplishments Energy Policy Update Long-Term Growth Update Financial Update Summary 21
  21. Year End 2014 Earnings Conference Call – DTE Energy Co. – slide 21
    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…
  22. Year End 2014 Earnings Conference Call – DTE Energy Co. – slide 22
    We are raising 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 -…
  23. Year End 2014 Earnings Conference Call – DTE Energy Co. – slide 23
    Growth segments provide 5.5% EPS growth with normal weather (per share) +5.5% 0.04 4.60 0.20 4.48 (0.12) 2014 Growth Weather Utility Non-Utility 2015 Growth Segment Performance Performance Segments Operating EPS*…
  24. Year End 2014 Earnings Conference Call – DTE Energy Co. – slide 24
    DTE Energy 2014 Cash Flow Actuals (billions) Cash Flow Summary Drivers 2013 2014 Cash from operations decreased due to lower surcharge collections and higher Cash From Operations* 2.2 1.8 purchased power costs at DTE…
  25. Year End 2014 Earnings Conference Call – DTE Energy Co. – slide 25
    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…
  26. Year End 2014 Earnings Conference Call – DTE Energy Co. – slide 26
    Strong balance sheet remains a key priority and supports growth Leverage* Target 50% - 53% Achieved target of zero equity issuance 51% 53% in 2014 49% 51% Targeting 200 million of equity issuance in 2015 and 800 - 900…
  27. Year End 2014 Earnings Conference Call – DTE Energy Co. – slide 27
    2014 Accomplishments Energy Policy Update Long-Term Growth Update Financial Update Summary 28
  28. Year End 2014 Earnings Conference Call – DTE Energy Co. – slide 28
    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…
  29. Year End 2014 Earnings Conference Call – DTE Energy Co. – slide 29
    Contact Us DTE Energy Investor Relations www.dteenergy.com/investors (313) 235-8030 Credit Suisse Energy Summit presentation is February 25 at 10:25 AM MT with Peter Oleksiak Senior Vice President and CFO Webcast access:…
  30. Year End 2014 Earnings Conference Call – DTE Energy Co. – slide 30
    Appendix
  31. Year End 2014 Earnings Conference Call – DTE Energy Co. – slide 31
    DTE Energy 2014 Operating Earnings Per Share* 4.60 DTE Electric DTE Gas Non-Utility Corporate & Other 2.98 0.79 1.09 (0.26) Gas Storage & Power & Industrial Energy Trading Pipelines Projects 0.46 0.51 0.12 *…
  32. Year End 2014 Earnings Conference Call – DTE Energy Co. – slide 32
    DTE Electric Variance Analysis (millions) Operating Earnings* Variance Drivers 17 528 Cooler than normal weather in 2014 41 484 (18) 27 (23) Variance to normal weather - 2013: 4 - 2014: (14) Revenue decoupling mechanism…
  33. Year End 2014 Earnings Conference Call – DTE Energy Co. – slide 33
    DTE Gas Variance Analysis (millions) Operating Earnings* Variance Drivers 19 (12) Colder than normal weather in 2014 (5) (5) 143 140 Variance to normal weather - 2013: 17 - 2014: 36 Higher O&M primarily driven by system…
  34. Year End 2014 Earnings Conference Call – DTE Energy Co. – slide 34
    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…
  35. Year End 2014 Earnings Conference Call – DTE Energy Co. – slide 35
    DTEEnergy DTE Energy 2015Capital 2015 CapitalExpenditure ExpenditureGuidance Guidance (millions) Capital Expenditures Summary Drivers 2014 2015 Actual Guidance DTE Electric capital higher due to increased generation and…
  36. Year End 2014 Earnings Conference Call – DTE Energy Co. – slide 36
    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…
  37. Year End 2014 Earnings Conference Call – DTE Energy Co. – slide 37
    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…
  38. Year End 2014 Earnings Conference Call – DTE Energy Co. – slide 38
    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…
  39. Year End 2014 Earnings Conference Call – DTE Energy Co. – slide 39
    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…
  40. Year End 2014 Earnings Conference Call – DTE Energy Co. – slide 40
    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…
  41. Year End 2014 Earnings Conference Call – DTE Energy Co. – slide 41
    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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