Form 8-K DTE ENERGY CO For: Apr 26 Filed by: DTE Electric Co
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_____________________________
FORM 8-K
_____________________________
Current Report
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): April 26, 2017
Commission File Number | Exact Name of Registrant as Specified in its Charter, State of Incorporation, Address of Principal Executive Offices and Telephone Number | IRS Employer Identification No. |
1-11607 | DTE Energy Company (a Michigan corporation) One Energy Plaza Detroit, Michigan 48226-1279 313-235-4000 | 38-3217752 |
1-2198 | DTE Electric Company (a Michigan corporation) One Energy Plaza Detroit, Michigan 48226-1279 313-235-4000 | 38-0478650 |
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 under the Securities Act (17 CFR 230.405) or Rule 12b-2 under Exchange Act (17 CFR 240.12b-2).
Emerging growth company o
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o
Item 2.02. Results of Operations and Financial Condition.
DTE Energy Company (DTE Energy) is furnishing the Securities and Exchange Commission (SEC) with its earnings release issued April 26, 2017, announcing financial results for the quarter ended March 31, 2017. A copy of the earnings release and the slide presentation, including supplemental financial information, are furnished as Exhibits 99.1 and 99.2 and incorporated herein by reference. In its earnings release and the slide presentation discussed below, DTE Energy reaffirms its 2017 operating earnings guidance range of $5.15 - $5.46 per share.
Item 7.01. Regulation FD Disclosure.
DTE Energy is furnishing the SEC with its slide presentation issued April 26, 2017. A copy of the slide presentation is furnished as Exhibit 99.2 and incorporated herein by reference.
In its earnings release, slide presentation and this filing, DTE Energy discusses 2017 operating earnings guidance. It is likely that certain items that impact the company's 2017 reported results will be excluded from operating results. Reconciliations to the comparable 2017 reported earnings guidance are not provided because it is not possible to provide a reliable forecast of specific line items (i.e. future non-recurring items, certain mark-to-market adjustments and discontinued operations). These items may fluctuate significantly from period to period and may have a significant impact on reported earnings.
In accordance with General Instruction B.2 of Form 8-K, the information in this Current Report on Form 8-K, including Exhibits 99.1 and 99.2, shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, nor shall they be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth in such a filing.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits
99.1 Earnings Release of DTE Energy Company dated April 26, 2017.
99.2 Slide Presentation of DTE Energy Company dated April 26, 2017.
Forward-Looking Statements:
This Form 8-K contains forward-looking statements that are subject to various assumptions, risks and uncertainties. It should be read in conjunction with the “Forward-Looking Statements” section in DTE Energy's and DTE Electric Company's (DTE Electric) 2016 Form 10-K and 2017 10-Q (which section is incorporated by reference herein), and in conjunction with other SEC reports filed by DTE Energy and DTE Electric that discuss important factors that could cause DTE Energy's and DTE Electric's actual results to differ materially. DTE Energy and DTE Electric expressly disclaim any current intention to update any forward-looking statements contained in this report as a result of new information or future events or developments.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrants have duly caused this report to be signed on their behalf by the undersigned hereunto duly authorized.
Date: April 26, 2017 | |
DTE ENERGY COMPANY (Registrant) | |
/s/ Peter B. Oleksiak Peter B. Oleksiak Senior Vice President and Chief Financial Officer | |
DTE ELECTRIC COMPANY (Registrant) | |
/s/ Peter B. Oleksiak Peter B. Oleksiak Senior Vice President and Chief Financial Officer | |
EXHIBIT INDEX
Exhibit
Number Description
99.1 Earnings Release of DTE Energy Company dated April 26, 2017.
99.2 Slide Presentation of DTE Energy Company dated April 26, 2017.
EXHIBIT 99.1
April 26, 2017
DTE Energy reports first quarter 2017 results
• | Company manages largest storm in its history |
• | Company begins commercial operation of 50MW Pinnebog wind park |
• | MDOT partnership lights up Michigan freeways, bridges with 13,000 LED lights, saving taxpayers $2 million annually beginning in 2017 |
• | Company earns fifth consecutive Gallup award for workplace excellence |
DETROIT - DTE Energy (NYSE: DTE) today reported first quarter 2017 earnings of $400 million, or $2.23 per diluted share, compared with $247 million, or $1.37 per diluted share in 2016. Reported earnings were higher driven in large part by DTE Energy’s businesses outside of its utilities. The combined reported earnings at the utilities were flat.
Operating earnings for the first quarter 2017 were $322 million, or $1.79 per diluted share, compared with 2016 operating earnings of $274 million, or $1.52 per diluted share. Operating earnings exclude non-recurring items, certain mark-to-market adjustments and discontinued operations and are reconciled to Reported earnings, prepared in accordance with generally accepted accounting principles (GAAP), at the end of this news release.
The company experienced the largest weather event in its more than 100-year history in early March when unseasonably warm temperatures combined with sustained tropical storm force winds gusting to 70 mph pounded Michigan for 12 hours. With 800,000 customers impacted, thousands of DTE employees along with out-of-state crews from seven states worked around the clock to restore customers.
“Given the size of this wind storm, I couldn’t be more proud of our employees and the out-of-state crews who worked so hard to restore power to our customers. We will continue to make investments to strengthen and automate our system to prevent future outages and improve the speed of our restoration efforts for customers,” said Gerry Anderson, DTE chairman and CEO.
Anderson also noted the following recent company accomplishments:
• | DTE began commercial operation of its 50 megawatt Pinnebog Wind Park in Huron County, generating enough energy to power 22,000 homes. This brings the number of DTE owned or operated wind parks to 13 across Michigan. This year, the company will finish work on a $100 million solar project in Lapeer, which is the largest utility owned array in Michigan. Once this project is completed, DTE Energy's entire renewable |
energy portfolio, including solar, wind and biomass, will be large enough to power 450,000 homes, or a city more than four times the size of Ann Arbor, Michigan.
• | DTE Energy partnered with the Michigan Department of Transportation (MDOT) to re-light Michigan roads. The six-month project involved DTE installing more than 13,000 LED lights above Michigan freeways and overpasses. The lighting upgrade is expected to save MDOT and Michigan residents an estimated $2 million in energy costs annually beginning this year. |
• | DTE Energy customers will see the cost of natural gas drop nearly 9 percent in their April gas bills due to the downward trend of natural gas prices. Over the past 10 years, residential customers’ overall natural gas bills have dropped by 27 percent, or about $300 annually, as the cost for the natural gas DTE buys has declined. |
• | In 2016, DTE Energy gas crews replaced 140 miles of cast iron gas lines with new polyethylene lines. We are on track to meet this goal again in 2017. In total, the effort, which enhances the company’s natural gas infrastructure by increasing reliability, employs more than 300 people, either at DTE or in other Michigan-based companies. |
• | DTE was recognized again by the Gallup organization as a Gallup Great Workplace for the fifth consecutive year. This award is given to only a handful of companies worldwide for their extraordinary ability to create a highly engaged workplace culture. DTE remains the only utility company ever recognized by the Gallup organization. |
Outlook for 2017
DTE reiterated its 2017 operating earnings per share guidance of $5.15 - $5.46.
"While our winter was warmer than expected and we experienced a historic wind storm, our continued focus on operational cost savings will allow us to achieve our financial goals and improve service levels for our customers,” said Peter Oleksiak, DTE Energy senior vice president and CFO.
This earnings announcement and the presentation slides are available at www.dteenergy.com/investors.
DTE Energy plans to conduct a conference call with the investment community hosted by Anderson at 9 a.m. ET today to discuss first quarter 2017 earnings results. Investors, the news media and the public may listen to a live internet broadcast of the call at www.dteenergy.com/investors. The telephone dial-in numbers are U.S. and Canada toll free: (888) 505-4377 or International toll: (719) 325-2390. The passcode is 9327084. The webcast will be archived on the DTE Energy website at www.dteenergy.com/investors. An audio replay of the call will be available from noon today to May 10, 2017. To access the replay, dial US and Canada toll free (888) 203-1112 or International toll (719) 457-0820 and enter passcode 9327084.
About DTE Energy
DTE Energy (NYSE: DTE) is a Detroit-based diversified energy company involved in the development and management of energy-related businesses and services nationwide. Its operating units include an electric utility serving 2.2 million customers in Southeastern Michigan and a natural gas utility serving 1.3 million customers in Michigan. The DTE Energy portfolio includes non-utility energy businesses focused on power and industrial projects, natural gas pipelines, gathering and storage, and energy marketing and trading. Information about DTE Energy is available at dteenergy.com, twitter.com/dte_energy and facebook.com/dteenergy.
Use of Operating Earnings Information - DTE Energy management believes that operating earnings provide a more meaningful representation of the company’s earnings from ongoing operations and uses operating earnings as the primary performance measurement for external communications with analysts and investors. Internally, DTE Energy uses operating earnings to measure performance against budget and to report to the Board of Directors.
In this release, DTE Energy discusses 2017 operating earnings guidance. It is likely that certain items that impact the company's 2017 reported results will be excluded from operating results. Reconciliations to the comparable 2017 reported earnings guidance are not provided because it is not possible to provide a reliable forecast of specific line items (i.e. future non-recurring items, certain mark-to-market movements and discontinued operations). These items may fluctuate significantly from period to period and may have a significant impact on reported earnings.
The information contained herein is as of the date of this release. DTE Energy expressly disclaims any current intention to update any forward-looking statements contained in this release as a result of new information or future events or developments. Words such as “anticipate,” “believe,” “expect,” “projected,” “aspiration” and “goals” signify forward-looking statements. Forward-looking statements are not guarantees of future results and conditions but rather are subject to various assumptions, risks and uncertainties. This release contains forward-looking statements about DTE Energy’s financial results and estimates of future prospects, and actual results may differ materially.
Many factors impact forward-looking statements including, but not limited to, the following: impact of regulation by the EPA, the FERC, the MPSC, the NRC, and for DTE Energy, the CFTC, as well as other applicable governmental proceedings and regulations, including any associated impact on rate structures; the amount and timing of cost recovery allowed as a result of regulatory proceedings, related appeals, or new legislation, including legislative amendments and retail access programs; economic conditions and population changes in our geographic area resulting in changes in demand, customer conservation, and thefts of electricity and, for DTE Energy, natural gas; environmental issues, laws, regulations, and the increasing costs of remediation and compliance, including actual and potential new federal and state requirements; health, safety, financial, environmental, and regulatory risks associated with ownership and operation of nuclear facilities; changes in the cost and availability of coal and other raw materials, purchased power, and natural gas; volatility in the short-term natural gas storage markets impacting third-party storage revenues related to DTE Energy; impact of volatility of prices in the oil and gas markets on DTE Energy's gas storage and pipelines operations; impact of volatility in prices in the international steel markets on DTE Energy's power and industrial projects operations; volatility in commodity markets, deviations in weather, and related risks impacting the results of DTE Energy's energy trading operations; changes in the financial condition of DTE Energy's significant customers and strategic partners; the potential for losses on investments, including nuclear decommissioning and benefit plan
assets and the related increases in future expense and contributions; access to capital markets and the results of other financing efforts which can be affected by credit agency ratings; instability in capital markets which could impact availability of short and long-term financing; the timing and extent of changes in interest rates; the level of borrowings; the potential for increased costs or delays in completion of significant capital projects; changes in, and application of, federal, state, and local tax laws and their interpretations, including the Internal Revenue Code, regulations, rulings, court proceedings, and audits; the effects of weather and other natural phenomena on operations and sales to customers, and purchases from suppliers; unplanned outages; the cost of protecting assets against, or damage due to, cyber crime and terrorism; employee relations and the impact of collective bargaining agreements; the risk of a major safety incident at an electric distribution or generation facility and, for DTE Energy, a gas storage, transmission, or distribution facility; the availability, cost, coverage, and terms of insurance and stability of insurance providers; cost reduction efforts and the maximization of plant and distribution system performance; the effects of competition; changes in and application of accounting standards and financial reporting regulations; changes in federal or state laws and their interpretation with respect to regulation, energy policy, and other business issues; contract disputes, binding arbitration, litigation, and related appeals; implementation of new information systems; and the risks discussed in our public filings with the Securities and Exchange Commission. New factors emerge from time to time. We cannot predict what factors may arise or how such factors may cause results to differ materially from those contained in any forward-looking statement. Any forward-looking statements speak only as of the date on which such statements are made. We undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events. This presentation should also be read in conjunction with the Forward-Looking Statements section of the joint DTE Energy and DTE Electric 2016 Form 10-K and 2017 Form 10-Q (which section is incorporated by reference herein), and in conjunction with other SEC reports filed by DTE Energy and DTE Electric.
For further information, members of the media may call:
Stephanie Beres, DTE Energy, 313.235.5555
Analysts, for further information call:
Barbara Tuckfield, DTE Energy, 313. 235.1018
Joyce Leslie, DTE Energy, 313.235.3209
DTE Energy Company | |||||||
Consolidated Statements of Operations (Unaudited) | |||||||
Three Months Ended | |||||||
March 31, | |||||||
2017 | 2016 | ||||||
(In millions, except per share amounts) | |||||||
Operating Revenues | |||||||
Utility operations | $ | 1,718 | $ | 1,664 | |||
Non-utility operations | 1,518 | 902 | |||||
3,236 | 2,566 | ||||||
Operating Expenses | |||||||
Fuel, purchased power, and gas — utility | 529 | 565 | |||||
Fuel, purchased power, and gas — non-utility | 1,180 | 776 | |||||
Operation and maintenance | 600 | 516 | |||||
Depreciation and amortization | 249 | 229 | |||||
Taxes other than income | 109 | 99 | |||||
2,667 | 2,185 | ||||||
Operating Income | 569 | 381 | |||||
Other (Income) and Deductions | |||||||
Interest expense | 125 | 113 | |||||
Interest income | (3 | ) | (11 | ) | |||
Other income | (64 | ) | (52 | ) | |||
Other expenses | 7 | 8 | |||||
65 | 58 | ||||||
Income Before Income Taxes | 504 | 323 | |||||
Income Tax Expense | 110 | 83 | |||||
Net Income | 394 | 240 | |||||
Less: Net Loss Attributable to Noncontrolling Interests | (6 | ) | (7 | ) | |||
Net Income Attributable to DTE Energy Company | $ | 400 | $ | 247 | |||
Basic Earnings per Common Share | |||||||
Net Income Attributable to DTE Energy Company | $ | 2.23 | $ | 1.38 | |||
Diluted Earnings per Common Share | |||||||
Net Income Attributable to DTE Energy Company | $ | 2.23 | $ | 1.37 | |||
Weighted Average Common Shares Outstanding | |||||||
Basic | 179 | 179 | |||||
Diluted | 179 | 180 | |||||
Dividends Declared per Common Share | $ | 0.825 | $ | 0.73 | |||
DTE Energy Company | |||||||||||||||||||||||||
Segment Net Income (Unaudited) | |||||||||||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||||||||
2017 | 2016 | ||||||||||||||||||||||||
Reported Earnings | Adjustments | Operating Earnings | Reported Earnings | Adjustments | Operating Earnings | ||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||
DTE Electric | $ | 106 | $ | — | $ | 106 | $ | 127 | $ | — | $ | 127 | |||||||||||||
DTE Gas | 107 | — | 107 | 87 | — | 87 | |||||||||||||||||||
Non-utility operations | |||||||||||||||||||||||||
Gas Storage and Pipelines | 45 | — | 45 | 30 | — | 30 | |||||||||||||||||||
Power and Industrial Projects | 30 | — | 30 | 17 | 4 | B | 21 | ||||||||||||||||||
Energy Trading | 96 | (78 | ) | A | 18 | (7 | ) | 23 | A | 16 | |||||||||||||||
Total Non-utility operations | 171 | (78 | ) | 93 | 40 | 27 | 67 | ||||||||||||||||||
Corporate and Other | 16 | — | 16 | (7 | ) | — | (7 | ) | |||||||||||||||||
Net Income Attributable to DTE Energy Company | $ | 400 | $ | (78 | ) | $ | 322 | $ | 247 | $ | 27 | $ | 274 | ||||||||||||
Adjustments key | |||||||||||||||||||||||||
A) Certain adjustments resulting from derivatives being marked-to-market without revaluing the underlying non-derivative contracts and assets — recorded in Operating Expenses — Fuel, purchased power, and gas — non-utility (net of tax of $50M in 2017 and $15M in 2016) | |||||||||||||||||||||||||
B) Closure of Shenango coke battery due to impacts from downturn in North American steel industry — recorded in Operating Expenses — Asset (gains) losses and impairments (net of tax $2M) | |||||||||||||||||||||||||
DTE Energy Company | |||||||||||||||||||||||||
Segment Diluted Earnings Per Share (Unaudited) | |||||||||||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||||||||
2017 | 2016 | ||||||||||||||||||||||||
Reported Earnings | Adjustments(1) | Operating Earnings | Reported Earnings | Adjustments(1) | Operating Earnings | ||||||||||||||||||||
DTE Electric | $ | 0.59 | $ | — | $ | 0.59 | $ | 0.71 | $ | — | $ | 0.71 | |||||||||||||
DTE Gas | 0.60 | — | 0.60 | 0.48 | — | 0.48 | |||||||||||||||||||
Non-utility operations | |||||||||||||||||||||||||
Gas Storage and Pipelines | 0.25 | — | 0.25 | 0.17 | — | 0.17 | |||||||||||||||||||
Power and Industrial Projects | 0.17 | — | 0.17 | 0.09 | 0.02 | B | 0.11 | ||||||||||||||||||
Energy Trading | 0.53 | (0.44 | ) | A | 0.09 | (0.04 | ) | 0.13 | A | 0.09 | |||||||||||||||
Total Non-utility operations | 0.95 | (0.44 | ) | 0.51 | 0.22 | 0.15 | 0.37 | ||||||||||||||||||
Corporate and Other | 0.09 | — | 0.09 | (0.04 | ) | — | (0.04 | ) | |||||||||||||||||
Net Income Attributable to DTE Energy Company | $ | 2.23 | $ | (0.44 | ) | $ | 1.79 | $ | 1.37 | $ | 0.15 | $ | 1.52 | ||||||||||||
(1) Per share amounts for the adjustments are based on the after-tax effect for each item, divided by the diluted weighted average common shares outstanding, as noted on the Consolidated Statements of Operations (Unaudited) | |||||||||||||||||||||||||
Adjustments key — see previous page | |||||||||||||||||||||||||
Click to edit Master title style
1st Quarter 2017
Earnings Conference Call
April 26, 2017
EXHIBIT 99.2
Safe Harbor Statement
Many factors impact forward-looking statements including, but not limited to, the following: impact of regulation by the EPA, the FERC, the
MPSC, the NRC, and for DTE Energy, the CFTC, as well as other applicable governmental proceedings and regulations, including any
associated impact on rate structures; the amount and timing of cost recovery allowed as a result of regulatory proceedings, related appeals, or
new legislation, including legislative amendments and retail access programs; economic conditions and population changes in our geographic
area resulting in changes in demand, customer conservation, and thefts of electricity and, for DTE Energy, natural gas; environmental issues,
laws, regulations, and the increasing costs of remediation and compliance, including actual and potential new federal and state requirements;
health, safety, financial, environmental, and regulatory risks associated with ownership and operation of nuclear facilities; changes in the cost
and availability of coal and other raw materials, purchased power, and natural gas; volatility in the short-term natural gas storage markets
impacting third-party storage revenues related to DTE Energy; impact of volatility of prices in the oil and gas markets on DTE Energy's gas
storage and pipelines operations; impact of volatility in prices in the international steel markets on DTE Energy's power and industrial projects
operations; volatility in commodity markets, deviations in weather, and related risks impacting the results of DTE Energy's energy trading
operations; changes in the financial condition of DTE Energy's significant customers and strategic partners; the potential for losses on
investments, including nuclear decommissioning and benefit plan assets and the related increases in future expense and contributions; access
to capital markets and the results of other financing efforts which can be affected by credit agency ratings; instability in capital markets which
could impact availability of short and long-term financing; the timing and extent of changes in interest rates; the level of borrowings; the potential
for increased costs or delays in completion of significant capital projects; changes in, and application of, federal, state, and local tax laws and
their interpretations, including the Internal Revenue Code, regulations, rulings, court proceedings, and audits; the effects of weather and other
natural phenomena on operations and sales to customers, and purchases from suppliers; unplanned outages; the cost of protecting assets
against, or damage due to, cyber crime and terrorism; employee relations and the impact of collective bargaining agreements; the risk of a major
safety incident at an electric distribution or generation facility and, for DTE Energy, a gas storage, transmission, or distribution facility; the
availability, cost, coverage, and terms of insurance and stability of insurance providers; cost reduction efforts and the maximization of plant and
distribution system performance; the effects of competition; changes in and application of accounting standards and financial reporting
regulations; changes in federal or state laws and their interpretation with respect to regulation, energy policy, and other business issues; contract
disputes, binding arbitration, litigation, and related appeals; implementation of new information systems; and the risks discussed in our public
filings with the Securities and Exchange Commission. New factors emerge from time to time. We cannot predict what factors may arise or how
such factors may cause results to differ materially from those contained in any forward-looking statement. Any forward-looking statements speak
only as of the date on which such statements are made. We undertake no obligation to update any forward-looking statement to reflect events or
circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events. This presentation should also
be read in conjunction with the Forward-Looking Statements section of the joint DTE Energy and DTE Electric 2016 Form 10-K and 2017 Form
10-Q (which section is incorporated by reference herein), and in conjunction with other SEC reports filed by DTE Energy and DTE Electric.
2
• Gerry Anderson – Chairman and CEO
• Jerry Norcia – President and COO
• Peter Oleksiak – Senior Vice President and CFO
• Barbara Tuckfield – Investor Relations Director
Participants
3
• Overview
• Long-Term Growth Update
• 1st Quarter 2017 Financial Update and Summary
4
* Reconciliation of operating EPS (non-GAAP) to reported earnings included in the appendix
2017 has started strong and we are confident in
achieving our operating EPS* guidance
5
• On track to achieve 2017 operating
EPS guidance range of $5.15 to $5.46
‒ Faced largest storm in company’s
100+ year history
‒ Experienced third warmest 1st
quarter
• Filed electric rate case on April 19th
• Gas Storage & Pipelines (GSP)
‒ NEXUS in-service date will not
affect 2017 guidance, 2018 plan or
5-7% EPS growth target
‒ Continued portfolio growth
• Power & Industrial Projects (P&I)
‒ Closed one project and are
finalizing two more
During the largest weather event in our history, we
executed a safe and efficient restoration effort
6
The weather event impacted
800,000 (nearly 40%) of our
electric customers and affected
every county in our service territory
• Deployed over 3,000 linemen
and support crews
• Smart meter technology proved
valuable in delineating storm
tracking restoration real-time
• Recent process changes also
enabled faster restoration
1998 2008 1991 2017
Largest Number of Customer Outages Due to
Weather Events
500 500
670
800
(thousands)
• Overview
• Long-Term Growth Update
• 1st Quarter 2017 Financial Update and Summary
7
• NEXUS Pipeline
‒ Targeting year-end 2017 in-service date with second quarter FERC
certificate
‒ Earnings not affected by in-service date
• Millennium Pipeline
‒ Expansion received favorable FERC environmental assessment
0.2 Bcf/d of firm transportation service
In-service 2H 2018
• Link* Lateral & Gathering
‒ Renegotiated agreement with key shipper
Significantly extends contract duration
Materially increases volumes
GSP continues to make progress across its portfolio
* Includes Appalachia Gathering System (AGS) and 55% of Stonewall Gas Gathering (SGG)
• Lateral Pipeline Projects
‒ Birdsboro Pipeline: 14-mile lateral to serve new power plant in
Pennsylvania
Targeting in-service 2Q 2018
‒ Advanced discussions for similar growth opportunities
8
• Acquisition of existing landfill gas
plant
‒ Closed April 24, 2017
• Construction of new landfill gas
plant
‒ Permitting and right-of-way
complete
‒ Expect to begin operations
1H 2018
• Construction of combined heat and
power (CHP) plant
‒ Expect approval mid-2017
‒ In-service 2H 2019
• Projects cover approximately one-
third of earnings growth needed to
achieve 2021 target
9
Landfill
Gas
P
roj
e
ct
s
Industrial
CH
P
P
lan
t
P&I expanding portfolio with landfill gas and
combined heat and power projects
• Overview
• Long-Term Growth Update
• 1st Quarter 2017 Financial Update and Summary
10
1Q 2016 1Q 2017 Change
DTE Electric 127$ 106$ (21)$
DTE Gas 87 107 20
Gas Storage & Pipelines 30 45 15
Power & Industrial Projects 21 30 9
Corporate & Other (7) 16 23
Growth segments** 258$ 304$ 46$
Growth segments operating EPS 1.43$ 1.70$ 0.27$
Energy Trading 16$ 18$ 2$
DTE Energy 274$ 322$ 48$
Operating EPS 1.52$ 1.79$ 0.27$
Avg. Shares Outstanding 179.5 179.5
* Reconciliation of operating earnings (non-GAAP) to reported earnings included in the appendix
DTE Electric
• Warmer weather, storm expenses and
higher O&M offset by rate
implementation
DTE Gas
• Rate implementation offset by warmer
weather
Gas Storage & Pipelines
• Pipeline and gathering earnings and
timing of expenses
Power & Industrial Projects
• REF volumes and steel-related earnings
offset by lower renewable earnings
Corporate & Other
• Accounting change for stock-based
compensation and timing of taxes
** Total DTE Energy excluding Energy Trading
(millions, except EPS)
Primary Drivers Operating Earnings
Operating Earnings* Variance
11
• Confident we will achieve our 2017 operating EPS* guidance given our solid
first quarter results
• Utility growth plan driven by infrastructure investments focused on improving
reliability and the customer experience
• Strategic and sustainable growth in non-utility businesses continues
• On track to deliver strong EPS and dividend growth that drive premium total
shareholder return
Summary
* Reconciliation of operating earnings (non-GAAP) to reported earnings included in the appendix 12
DTE Energy Investor Relations
www.dteenergy.com/investors
(313) 235-8030
Contact Us
Appendix
• Warmer weather
Variance to normal weather
– 2016: ($8)
– 2017: ($13)
• O&M primarily planned outage
projects and timing
$127
$106
($5)
($6)
($15)
($23)
Primary Drivers Operating Earnings* Variance
(millions)
1Q 2016
Operating
Earnings
1Q 2017
Operating
Earnings
Weather Storm Rate
Implementation
O&M /
Other
* Reconciliation of operating earnings (non-GAAP) to reported earnings also included in the appendix
DTE Electric Variance Analysis
15
$28
Rate
Base
1Q 2016 1Q 2017
DTE Electric
Distribution Infrastructure $111 $156
New Generation 13 9
Replacement & Other 191 243
$315 $408
DTE Gas
Base Infrastructure $58 $75
NEXUS Related 2 22
Main Replacement 19 28
$79 $125
Non-Utility $57 $134
Total $451 $667
1Q 2016 1Q 2017
Cash From Operations $0.7 $0.8
Capital Expenditures (0.5) (0.7)
Free Cash Flow $0.2 $0.1
Asset Sales & Other - -
Dividends (0.1) (0.1)
Net Cash $0.1 $0.0
Debt Financing:
Issuances - $0.5
Redemptions (0.1) (0.5)
Change in Debt ($0.1) $0.0
Capital Expenditures Cash Flow
(billions) (millions)
Cash Flow and Capital Expenditures
16
Cooling degree days
** Includes choice of 1,164 1Q 2016 and 1,204 1Q 2017
Heating degree days
Earnings impact of weather Earnings impact of weather
Weather Normal Electric Sales*
DTE Electric service territory
Variance from normal weather
(GWh)
Variance from normal weather
1Q 2016 1Q 2017 % change
Actuals - -
Normal - -
Deviation from normal 0% 0%
1Q 2016 1Q 2017 % change
Actuals 2,917 2,793 (4%)
Normal 3,321 3,263 (2%)
Deviation from normal (12%) (14%)
($ millions, after-tax) 1Q
2016 ($8)
2017 ($13)
($ millions, after-tax) 1Q
2016 ($14)
2017 ($21)
DTE Gas service territory
($ per share) 1Q
2016 ($0.04)
2017 ($0.07)
($ per share) 1Q
2016 ($0.08)
2017 ($0.12)
1Q 2016 1Q 2017 % change
Residential 3,712 3,690 (0.6%)
Commercial 4,846 4,852 0.1%
Industrial 2,878 2,882 0.1%
Other 78 79 1.3%
TOTAL SALES** 11,514 11,503 (0.1%)
Weather and DTE Electric Weather Normal Sales
DTE Electric DTE Gas
DTE Electric service territory
17 * Includes adjustments for temperature normalization and customer outages due to weather
DTE Gas DTE Electric
• Expect rate case filing in 1-2 years
• 4Q 2016 order
– $122 million
– 10.1% ROE
• Annual rate cases 2018+
• 1Q 2017 order
– $184 million
– 10.1% ROE
• Filed rate case April 19, 2017
– Requested rate recovery: $231
million
– Test year: November 1, 2017 to
October 31, 2018
– Self implementation: November
2017
– Return on Equity: 10.5%
– Rate Base: $15.4 billion
– Rate of Return: 5.57%
18
Regulatory Update – Electric and Gas
2017
Guidance
DTE Electric
DTE Gas
Gas Storage & Pipelines
Power & Industrial Projects
Corporate & Other
Growth segments**
Growth segments operating EPS
Energy Trading
DTE Energy
Operating EPS*
Avg. Shares Outstanding
$610 - $624
143 - 151
140 - 150
90 - 100
(64) - (60)
$919 - $965
$5.12 - $5.38
$5 - $15
$924 - $980
179.5
$5.15 - $5.46
1Q 2017
Actuals
$106
107
45
30
16
$304
$1.70
$18
$322
179.5
$1.79
(millions, except EPS)
* Reconciliation of operating earnings (non-GAAP) to reported earnings also included in the appendix
** Total DTE Energy excluding Energy Trading
Operating EPS* guidance supports 5% - 7% growth
19
2017
Guidance
DTE Electric
Distribution Infrastructure $690
New Generation 45
Replacement & Other 725
$1,460
DTE Gas
Base Infrastructure $200
NEXUS Related 90
Main Replacement 145
$435
Non-Utility $900 - $1,100
Total $2,795 - $2,995
2017
Guidance
Cash From Operations $1.9
Capital Expenditures (3.0)
Free Cash Flow ($1.1)
Asset Sales & Other -
Dividends (0.6)
Net Cash ($1.7)
Debt Financing:
Issuances $1.7
Redemptions -
Change in Debt $1.7
Capital Expenditures Cash Flow
(billions) (millions)
Cash flow and capital expenditures guidance
support growth target
20
21%
2016 2017-2019E
51%
2016 2017-2019E
Leverage*
Funds from Operations** / Debt*
Target
50% - 53%
Target
20% +
* Debt excludes a portion of DTE Gas’ short-term debt and considers 50% of the junior subordinated notes and 100% of the convertible equity units as equity
** Funds from Operations (FFO) is calculated using operating earnings
• No equity issuances planned for 2017
‒ Acquisition related equity of $675
million in late 2019 (through
convertible equity units)
‒ No additional equity planned
through 2019
• $2 billion of available liquidity at
March 31, 2017
Cash flow and balance sheet remain strong
21
$16
$18
• Economic net income
equals economic gross
margin*** minus O&M
expenses and taxes
• DTE Energy management
uses economic net income
as one of the performance
measures for external
communications with
analysts and investors
• Internally, DTE Energy
uses economic net income
as one of the measures to
review performance
against financial targets
and budget
Operating Earnings*
Realized
Unrealized
O&M / Other
1Q 2016 1Q 2017
$31 $38
(7) (4)
(11) (13)
(millions, after-tax)
$16 $18
$2
$18 $1 $19
*** Economic gross margin is the change in net fair value of realized and unrealized purchase and sale contracts including certain non-derivative contract costs
** Consists of 1) the income statement effect of not recognizing changes in the fair market value of certain non-derivative contracts including physical inventory and capacity contracts
for transportation, transmission and storage. These contracts are not marked-to-market, instead are recognized for accounting purposes on an accrual basis; 2) operating
adjustments for unrealized marked-to-market changes of certain derivative contracts
* Reconciliation of operating earnings (non-GAAP) to reported earnings also included in the appendix
1Q 2017 Economic
Net Income
Accounting
Adjustments**
1Q 2017
Operating Earnings*
1Q 2016
Operating Earnings*
1Q 2016 Economic
Net Income
Accounting
Adjustments**
(millions)
1st Quarter 2017 Energy Trading Reconciliation
of Operating Earnings* to Economic Net Income
22
1Q 2017 Net Income (millions)*
After-tax items:
DTE
Electric DTE Gas
Gas
Storage &
Pipelines
Power &
Industrial
Projects
Corporate
& Other
Growth
Segments
Energy
Trading
DTE
Energy
Reported Earnings $106 $107 $45 $30 $16 $304 $96 $400
Certain mark-to-
market transactions
– – – – – – (78) (78)
Operating Earnings $106 $107 $45 $30 $16 $304 $18 $322
1st Quarter 2017 Reconciliation of Reported to
Operating Earnings (non-GAAP)
23
Use of Operating Earnings Information – DTE Energy management believes that operating earnings provide a more meaningful representation of the company’s earnings from ongoing
operations and uses operating earnings as the primary performance measurement for external communications with analysts and investors. Internally, DTE Energy uses operating
earnings to measure performance against budget and to report to the Board of Directors. Operating earnings are presented both with and without Energy Trading. The term “Growth
Segments” refers to DTE Energy without Energy Trading and represents the business segments that management expects to generate earnings growth going forward.
1Q 2017 EPS**
After-tax items:
DTE
Electric DTE Gas
Gas
Storage &
Pipelines
Power &
Industrial
Projects
Corporate
& Other
Growth
Segments
Energy
Trading
DTE
Energy
Reported Earnings $0.59 $0.60 $0.25 $0.17 $0.09 $1.70 $0.53 $2.23
Certain mark-to-
market transactions
– – – – – – (0.44) (0.44)
Operating Earnings $0.59 $0.60 $0.25 $0.17 $0.09 $1.70 $0.09 $1.79
* Total tax impact of adjustments to reported earnings: ($50m)
** Total tax impact of adjustments to reported EPS: ($0.28)
1Q 2016 Net Income (millions)*
After-tax items:
DTE
Electric DTE Gas
Gas
Storage &
Pipelines
Power &
Industrial
Projects
Corporate
& Other
Growth
Segments
Energy
Trading
DTE
Energy
Reported Earnings $127 $87 $30 $17 ($7) $254 ($7) $247
Plant closure – – – 4 – 4 – 4
Certain mark-to-
market transactions
– – – – – – 23 23
Operating Earnings $127 $87 $30 $21 ($7) $258 $16 $274
1st Quarter 2016 Reconciliation of Reported to
Operating Earnings (non-GAAP)
24
* Total tax impact of adjustments to reported earnings: $17m
** Total tax impact of adjustments to reported EPS: $0.10
1Q 2016 EPS**
After-tax items:
DTE
Electric DTE Gas
Gas
Storage &
Pipelines
Power &
Industrial
Projects
Corporate
& Other
Growth
Segments
Energy
Trading
DTE
Energy
Reported Earnings $0.71 $0.48 $0.17 $0.09 ($0.04) $1.41 ($0.04) $1.37
Plant closure – – – 0.02 – 0.02 – 0.02
Certain mark-to-
market transactions
– – – – – – 0.13 0.13
Operating Earnings $0.71 $0.48 $0.17 $0.11 ($0.04) $1.43 $0.09 $1.52
Use of Operating Earnings Information – DTE Energy management believes that operating earnings provide a more meaningful representation of the company’s earnings from ongoing
operations and uses operating earnings as the primary performance measurement for external communications with analysts and investors. Internally, DTE Energy uses operating
earnings to measure performance against budget and to report to the Board of Directors. Operating earnings are presented both with and without Energy Trading. The term “Growth
Segments” refers to DTE Energy without Energy Trading and represents the business segments that management expects to generate earnings growth going forward.
Use of Operating Earnings Information – Operating earnings exclude non-recurring items, certain mark-to-
market adjustments and discontinued operations. DTE Energy management believes that operating
earnings provide a more meaningful representation of the company’s earnings from ongoing operations
and uses operating earnings as the primary performance measurement for external communications with
analysts and investors. Internally, DTE Energy uses operating earnings to measure performance against
budget and to report to the Board of Directors.
In this presentation, DTE Energy provides guidance for future period operating earnings. It is likely that
certain items that impact the company’s future period reported results will be excluded from operating
results. A reconciliation to the comparable future period reported earnings is not provided because it is not
possible to provide a reliable forecast of specific line items (i.e. future non-recurring items, certain mark-to-
market adjustments and discontinued operations). These items may fluctuate significantly from period to
period and may have a significant impact on reported earnings.
Reconciliation of Reported to Operating Earnings
(non-GAAP)
25