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DTE Energy Company
Historical Operating Net Income
(Preliminary/Unaudited)
Historical Operating Net Income
(Preliminary/Unaudited)
(in $ millions, except per share amounts)
| 2004 | 2005 | |||||||||||||||||||||||||||||||||||||||
| Q1 | Q2 | Q3 | Q4 | Total | Q1 | Q2 | Q3 | Q4 | Total | |||||||||||||||||||||||||||||||
Electric Utility | $ | 38 | $ | 10 | $ | 62 | $ | 67 | $ | 177 | $ | 56 | $ | 46 | $ | 97 | $ | 73 | $ | 272 | ||||||||||||||||||||
Gas Utility | 57 | (28 | ) | (31 | ) | 27 | 25 | 48 | (2 | ) | (18 | ) | 45 | 73 | ||||||||||||||||||||||||||
Total Utilities | $ | 95 | ($18 | ) | $ | 31 | $ | 94 | $ | 202 | $ | 104 | $ | 44 | $ | 79 | $ | 118 | $ | 345 | ||||||||||||||||||||
Power & Industrial Projects | ||||||||||||||||||||||||||||||||||||||||
| Synfuels | $ | 41 | $ | 54 | $ | 51 | $ | 47 | $ | 193 | $ | 65 | $ | 18 | $ | 47 | $ | 143 | $ | 273 | ||||||||||||||||||||
| Power Generation | (4 | ) | (4 | ) | (6 | ) | (3 | ) | (17 | ) | (4 | ) | (3 | ) | (1 | ) | (4 | ) | (12 | ) | ||||||||||||||||||||
| All Other Projects | 1 | 6 | 6 | (1 | ) | 12 | 5 | 8 | 3 | 7 | 23 | |||||||||||||||||||||||||||||
| Corporate Overheads | (2 | ) | (3 | ) | (2 | ) | (2 | ) | (9 | ) | 1 | (3 | ) | (2 | ) | (1 | ) | (5 | ) | |||||||||||||||||||||
Total Power & Industrial Projects | $ | 36 | $ | 53 | $ | 49 | $ | 41 | $ | 179 | $ | 67 | $ | 20 | $ | 47 | $ | 145 | $ | 279 | ||||||||||||||||||||
Fuel Transportation & Marketing | ||||||||||||||||||||||||||||||||||||||||
| Coal Services | $ | 3 | $ | 5 | $ | 5 | $ | 7 | $ | 20 | $ | 5 | $ | 6 | $ | 5 | $ | 6 | $ | 22 | ||||||||||||||||||||
| Midstream | 3 | 4 | 4 | 6 | 17 | 8 | 5 | 9 | 7 | 29 | ||||||||||||||||||||||||||||||
| Energy Trading | 9 | (7 | ) | 12 | 30 | 44 | (22 | ) | (7 | ) | (140 | ) | 130 | (39 | ) | |||||||||||||||||||||||||
| Corporate Overheads | (3 | ) | (2 | ) | (3 | ) | (3 | ) | (11 | ) | (1 | ) | (4 | ) | (3 | ) | (2 | ) | (10 | ) | ||||||||||||||||||||
Total Fuel Transportation & Marketing | $ | 12 | $ | 0 | $ | 18 | $ | 40 | $ | 70 | ($10 | ) | $ | 0 | ($129 | ) | $ | 141 | $ | 2 | ||||||||||||||||||||
Unconventional Gas Production | $ | 1 | $ | 2 | $ | 2 | $ | 1 | $ | 6 | $ | 1 | $ | 0 | $ | 2 | $ | 1 | $ | 4 | ||||||||||||||||||||
Corporate & Other | ($7 | ) | $ | 23 | ($3 | ) | ($25 | ) | ($12 | ) | ($8 | ) | ($24 | ) | $ | 6 | ($27 | ) | ($53 | ) | ||||||||||||||||||||
Total Net Income | $ | 137 | $ | 60 | $ | 97 | $ | 151 | $ | 445 | $ | 154 | $ | 40 | $ | 5 | $ | 378 | $ | 577 | ||||||||||||||||||||
| Earnings Per Diluted Share | $ | 0.80 | $ | 0.35 | $ | 0.56 | $ | 0.86 | $ | 2.57 | $ | 0.88 | $ | 0.23 | $ | 0.03 | $ | 2.12 | $ | 3.27 | ||||||||||||||||||||
| Average Diluted Shares Outstanding | 170 | 174 | 174 | 175 | 173 | 175 | 175 | 177 | 178 | 176 | ||||||||||||||||||||||||||||||
DTE Energy Company
Consolidated Statement of Financial Position (Preliminary/Unaudited)
Consolidated Statement of Financial Position (Preliminary/Unaudited)
| December 31 | ||||||||
| 2005 | 2004 | |||||||
| (in Millions) | ||||||||
ASSETS | ||||||||
Current Assets | ||||||||
| Cash and cash equivalents | $ | 88 | $ | 56 | ||||
| Restricted cash | 122 | 126 | ||||||
| Accounts receivable Customer (less allowance for doubtful accounts of $136 and $129, respectively) | 1,288 | 880 | ||||||
| Accrued unbilled revenues | 458 | 378 | ||||||
| Other | 835 | 383 | ||||||
| Inventories Fuel and gas | 522 | 509 | ||||||
| Materials and supplies | 146 | 159 | ||||||
| Deferred income taxes | 257 | 94 | ||||||
| Assets from risk management and trading activities | 814 | 296 | ||||||
| Other | 160 | 115 | ||||||
| 4,690 | 2,996 | |||||||
Investments | ||||||||
| Nuclear decommissioning trust funds | 646 | 590 | ||||||
| Other | 530 | 558 | ||||||
| 1,176 | 1,148 | |||||||
Property | ||||||||
| Property, plant and equipment | 18,660 | 18,011 | ||||||
| Less accumulated depreciation and depletion | (7,830 | ) | (7,520 | ) | ||||
| 10,830 | 10,491 | |||||||
Other Assets | ||||||||
| Goodwill | 2,057 | 2,067 | ||||||
| Regulatory assets | 2,074 | 2,119 | ||||||
| Securitized regulatory assets | 1,340 | 1,438 | ||||||
| Notes receivable | 409 | 529 | ||||||
| Assets from risk management and trading activities | 333 | 125 | ||||||
| Prepaid pension assets | 186 | 184 | ||||||
| Other | 265 | 200 | ||||||
| 6,664 | 6,662 | |||||||
Total Assets | $ | 23,360 | $ | 21,297 | ||||
DTE Energy Company
Consolidated Statement of Financial Position (Preliminary/Unaudited)
Consolidated Statement of Financial Position (Preliminary/Unaudited)
| December 31 | ||||||||
| 2005 | 2004 | |||||||
| (in Millions, Except Shares) | ||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
Current Liabilities | ||||||||
| Accounts payable | $ | 1,187 | $ | 892 | ||||
| Accrued interest | 115 | 111 | ||||||
| Dividends payable | 92 | 90 | ||||||
| Accrued payroll | 34 | 33 | ||||||
| Income taxes | — | 16 | ||||||
| Short-term borrowings | 943 | 403 | ||||||
| Current portion of long-term debt, including capital leases | 691 | 514 | ||||||
| Liabilities from risk management and trading activities | 1,091 | 369 | ||||||
| Other | 769 | 581 | ||||||
| 4,922 | 3,009 | |||||||
Other Liabilities | ||||||||
| Deferred income taxes | 1,396 | 1,124 | ||||||
| Regulatory liabilities | 715 | 817 | ||||||
| Asset retirement obligations | 1,091 | 916 | ||||||
| Unamortized investment tax credit | 131 | 143 | ||||||
| Liabilities from risk management and trading activities | 550 | 224 | ||||||
| Liabilities from transportation and storage contracts | 317 | 387 | ||||||
| Accrued pension liability | 284 | 265 | ||||||
| Deferred gains from asset sales | 188 | 414 | ||||||
| Minority interest | 92 | 132 | ||||||
| Nuclear decommissioning | 85 | 77 | ||||||
| Other | 740 | 635 | ||||||
| 5,589 | 5,134 | |||||||
Long-Term Debt (net of current portion) | ||||||||
| Mortgage bonds, notes and other | 5,234 | 5,673 | ||||||
| Securitization bonds | 1,295 | 1,400 | ||||||
| Equity-linked securities | 175 | 178 | ||||||
| Trust preferred-linked securities | 289 | 289 | ||||||
| Capital lease obligations | 87 | 66 | ||||||
| 7,080 | 7,606 | |||||||
Commitments and Contingencies | ||||||||
Shareholders’ Equity | ||||||||
| Common stock, without par value, 400,000,000 shares authorized, 177,814,429 and 174,209,034 shares issued and outstanding, respectively | 3,483 | 3,323 | ||||||
| Retained earnings | 2,557 | 2,383 | ||||||
| Accumulated other comprehensive loss | (271 | ) | (158 | ) | ||||
| 5,769 | 5,548 | |||||||
Total Liabilities and Shareholders’ Equity | $ | 23,360 | $ | 21,297 | ||||
DTE Energy Company
Consolidated Statement of Cash Flows (Preliminary/Unaudited)
Consolidated Statement of Cash Flows (Preliminary/Unaudited)
| Year Ended December 31 | ||||||||
| 2005 | 2004 | |||||||
| (in Millions) | ||||||||
Operating Activities | ||||||||
| Net Income | $ | 537 | $ | 431 | ||||
| Adjustments to reconcile net income to net cash from operating activities: | ||||||||
| Depreciation, depletion and amortization | 872 | 744 | ||||||
| Deferred income taxes | 147 | 129 | ||||||
| Gain on sale of interests in synfuel projects | (367 | ) | (219 | ) | ||||
| Gain on sale of ITC and other assets, net | (38 | ) | (17 | ) | ||||
| Partners’ share of synfuel project losses | (318 | ) | (223 | ) | ||||
| Restructuring charges | 33 | — | ||||||
| Contributions from synfuel partners | 243 | 141 | ||||||
| Cumulative effect of accounting changes | 3 | — | ||||||
| Changes in assets and liabilities, exclusive of changes shown separately | (111 | ) | 9 | |||||
| Net cash from operating activities | 1,001 | 995 | ||||||
Investing Activities | ||||||||
| Plant and equipment expenditures — utility | (850 | ) | (815 | ) | ||||
| Plant and equipment expenditures — non-utility | (215 | ) | (89 | ) | ||||
| Acquisitions, net of cash acquired | (50 | ) | — | |||||
| Proceeds from sale of interests in synfuel projects | 349 | 221 | ||||||
| Proceeds from sale of ITC and other assets, net of cash divested | 60 | 104 | ||||||
| Restricted cash for debt redemptions | 4 | 5 | ||||||
| Other investments | (100 | ) | (107 | ) | ||||
| Net cash used for investing activities | (802 | ) | (681 | ) | ||||
Financing Activities | ||||||||
| Issuance of long-term debt | 869 | 736 | ||||||
| Redemption of long-term debt | (1,266 | ) | (759 | ) | ||||
| Short-term borrowings, net | 437 | 33 | ||||||
| Issuance of common stock | 172 | 41 | ||||||
| Repurchase of common stock | (13 | ) | — | |||||
| Dividends on common stock | (360 | ) | (354 | ) | ||||
| Other | (6 | ) | (9 | ) | ||||
| Net cash used for financing activities | (167 | ) | (312 | ) | ||||
Net Increase in Cash and Cash Equivalents | 32 | 2 | ||||||
Cash and Cash Equivalents at Beginning of the Period | 56 | 54 | ||||||
Cash and Cash Equivalents at End of the Period | $ | 88 | $ | 56 | ||||
The Detroit Edison Company
Consolidated Statement of Operations (Preliminary/unaudited)
Consolidated Statement of Operations (Preliminary/unaudited)
| Year Ended December 31 | ||||||||
| (in Millions) | 2005 | 2004 | ||||||
Operating Revenues | $ | 4,462 | $ | 3,568 | ||||
Operating Expenses | ||||||||
| Fuel and purchased power | 1,590 | 885 | ||||||
| Operation and maintenance | 1,308 | 1,395 | ||||||
| Depreciation and amortization | 640 | 523 | ||||||
| Taxes other than income | 241 | 249 | ||||||
| Asset (gains) and losses, net | (26 | ) | (1 | ) | ||||
| 3,753 | 3,051 | |||||||
Operating Income | 709 | 517 | ||||||
Other (Income) and Deductions | ||||||||
| Interest expense | 267 | 280 | ||||||
| Interest income | (3 | ) | — | |||||
| Other income | (27 | ) | (34 | ) | ||||
| Other expenses | 46 | 57 | ||||||
| 283 | 303 | |||||||
Income Before Income Taxes | 426 | 214 | ||||||
Income Tax Provision | 149 | 64 | ||||||
Income Before Accounting Change | 277 | 150 | ||||||
Cumulative Effect of Accounting Change | (3 | ) | — | |||||
Reported Earnings | 274 | 150 | ||||||
Cumulative Effect of Accounting Change | ||||||||
| Conditional Retirement Obligations (FIN 47) | 3 | — | ||||||
Adjustments | ||||||||
| Stranded Cost adjustment | — | 21 | ||||||
| Incremental non-recurring DTE2 project costs | 8 | 7 | ||||||
| Gain on sale of assets | (17 | ) | — | |||||
| Performance Excellence Process — cost to achieve | 4 | — | ||||||
Operating Earnings | $ | 272 | $ | 178 | ||||
The Consolidated Statement of Operations (Unaudited) should be read in conjunction with the Notes to Consolidated Financial Statements appearing in the Annual Report to Shareholders, Form 10K and 10Q.
Michigan Consolidated Gas Company
Consolidated Statement of Operations (Preliminary/unaudited)
Consolidated Statement of Operations (Preliminary/unaudited)
| Year Ended December 31 | ||||||||
| (in Millions) | 2005 | 2004 | ||||||
Operating Revenues | $ | 2,098 | $ | 1,645 | ||||
Operating Expenses | ||||||||
| Cost of gas | 1,455 | 1,048 | ||||||
| Operation and maintenance | 411 | 387 | ||||||
| Depreciation, depletion and amortization | 97 | 108 | ||||||
| Taxes other than income | 42 | 48 | ||||||
| Asset (gains) and losses, net | 48 | (2 | ) | |||||
| 2,053 | 1,589 | |||||||
Operating Income (Loss) | 45 | 56 | ||||||
Other (Income) and Deductions | ||||||||
| Interest expense | 57 | 57 | ||||||
| Interest income | (10 | ) | (9 | ) | ||||
| Other income | (4 | ) | (5 | ) | ||||
| Other expenses | 3 | 3 | ||||||
| 46 | 46 | |||||||
Income (Loss) Before Income Taxes | 1 | 10 | ||||||
Income Tax Provision (Benefit) | (14 | ) | (9 | ) | ||||
Reported Earnings | 13 | 19 | ||||||
Adjustments | ||||||||
| April 2005 MPSC gas orders | 57 | — | ||||||
| Incremental non-recurring DTE2 project costs | 5 | 4 | ||||||
| Performance Excellence Process — cost to achieve | 1 | — | ||||||
Operating Earnings | $ | 76 | $ | 23 | ||||
Consolidated Statement of Operations (Unaudited) should be read in conjunction with the Notes
to Consolidated Financial Statements appearing in the Annual Report to Shareholders, Form 10K and
10Q.
to Consolidated Financial Statements appearing in the Annual Report to Shareholders, Form 10K and
10Q.
DTE Energy Debt/Equity Calculation
As of December 31, 2005
($ millions)
($ millions)
| Short-term borrowings | 943 | |||
| Current portion long-term debt, including capital leases | 691 | |||
| Mortgage bonds, notes and other | 5,234 | |||
| Securitization bonds | 1,295 | |||
| Capital lease obligations | 87 | |||
| Equity-linked securities | 175 | |||
| less MichCon short-term debt | (424 | ) | ||
| less Securitization bonds, including current portion | (1,399 | ) | ||
Total debt | 6,602 | |||
| Trust preferred-linked securities | 289 | |||
Total preferred/ other | 289 | |||
Equity | 5,769 | |||
Total capitalization | 12,660 | |||
| Debt | 52.1 | % | ||
| Preferred | 2.3 | % | ||
| Common shareholders’ equity | 45.6 | % | ||
Total | 100.0 | % | ||