EXHIBIT 99.2
Full Year 2007 Supplemental Financial Information Feb. 21, 2007 |
DTE Energy Company
Consolidated Statements of Financial Position (unaudited)
Consolidated Statements of Financial Position (unaudited)
December | December | |||||||
31 | 31 | |||||||
(in Millions) | 2007 | 2006 | ||||||
ASSETS | ||||||||
Current Assets | ||||||||
Cash and cash equivalents | $ | 123 | $ | 147 | ||||
Restricted cash | 140 | 146 | ||||||
Accounts receivable (less allowance for doubtful accounts of $182 and $170, respectively) | ||||||||
Customer | 1,621 | 1,427 | ||||||
Collateral held by others | 56 | 68 | ||||||
Other | 448 | 442 | ||||||
Accrued power and gas supply cost recovery revenue | 76 | 117 | ||||||
Inventories | ||||||||
Fuel and gas | 429 | 562 | ||||||
Materials and supplies | 204 | 153 | ||||||
Deferred income taxes | 535 | 245 | ||||||
Assets from risk management and trading activities | 195 | 461 | ||||||
Other | 196 | 193 | ||||||
Current assets held for sale | 83 | — | ||||||
4,106 | 3,961 | |||||||
Investments | ||||||||
Nuclear decommissioning trust funds | 824 | 740 | ||||||
Other | 446 | 505 | ||||||
1,270 | 1,245 | |||||||
Property | ||||||||
Property, plant and equipment | 18,809 | 19,224 | ||||||
Less accumulated depreciation and depletion | (7,342 | ) | (7,773 | ) | ||||
11,467 | 11,451 | |||||||
Other Assets | ||||||||
Goodwill | 2,037 | 2,057 | ||||||
Regulatory assets | 2,786 | 3,226 | ||||||
Securitized regulatory assets | 1,124 | 1,235 | ||||||
Intangible assets | 25 | 72 | ||||||
Notes receivable | 87 | 164 | ||||||
Assets from risk management and trading activities | 207 | 164 | ||||||
Prepaid pension assets | 152 | 71 | ||||||
Other | 118 | 139 | ||||||
Noncurrent assets held for sale | 545 | — | ||||||
7,081 | 7,128 | |||||||
Total Assets | $ | 23,924 | $ | 23,785 | ||||
The Consolidated Statements of Financial Position (Unaudited) should be read in conjunction with the
Notes to Consolidated Financial Statements appearing in the Forms 10-K and 10-Q.
Notes to Consolidated Financial Statements appearing in the Forms 10-K and 10-Q.
2
DTE Energy Company
Consolidated Statements of Financial Position (unaudited)
Consolidated Statements of Financial Position (unaudited)
December | December | |||||||
31 | 31 | |||||||
(in Millions, Except Shares) | 2007 | 2006 | ||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
Current Liabilities | ||||||||
Accounts payable | $ | 1,161 | $ | 1,145 | ||||
Accrued interest | 112 | 115 | ||||||
Dividends payable | 87 | 94 | ||||||
Short-term borrowings | 1,084 | 1,131 | ||||||
Current portion of long-term debt, including capital leases | 454 | 354 | ||||||
Liabilities from risk management and trading activities | 282 | 437 | ||||||
Deferred gains and reserves | 400 | 208 | ||||||
Other | 566 | 680 | ||||||
Current liabilities associated with assets held for sale | 48 | — | ||||||
4,194 | 4,164 | |||||||
Long-Term Debt (net of current portion) | ||||||||
Mortgage bonds, notes and other | 5,576 | 5,918 | ||||||
Securitization bonds | 1,065 | 1,185 | ||||||
Trust preferred-linked securities | 289 | 289 | ||||||
Capital lease obligations | 41 | 82 | ||||||
6,971 | 7,474 | |||||||
Other Liabilities | ||||||||
Deferred income taxes | 1,972 | 1,465 | ||||||
Regulatory liabilities | 1,227 | 765 | ||||||
Asset retirement obligations | 1,277 | 1,221 | ||||||
Unamortized investment tax credit | 108 | 120 | ||||||
Liabilities from risk management and trading activities | 452 | 259 | ||||||
Liabilities from transportation and storage contracts | 126 | 157 | ||||||
Accrued pension liability | 68 | 388 | ||||||
Accrued postretirement liability | 1,094 | 1,414 | ||||||
Deferred gains from asset sales | 15 | 36 | ||||||
Nuclear decommissioning | 134 | 119 | ||||||
Other | 303 | 312 | ||||||
Noncurrent liabilities associated with assets held for sale | 82 | — | ||||||
6,858 | 6,256 | |||||||
Commitments and Contingencies | ||||||||
Minority Interest | 48 | 42 | ||||||
Shareholders’ Equity | ||||||||
Common stock, without par value, 400,000,000 shares authorized, 162,232,095 and 177,138,060 shares issued and outstanding, respectively | 3,176 | 3,467 | ||||||
Retained earnings | 2,790 | 2,593 | ||||||
Accumulated other comprehensive loss | (113 | ) | (211 | ) | ||||
5,853 | 5,849 | |||||||
Total Liabilities and Shareholders’ Equity | $ | 23,924 | $ | 23,785 | ||||
The Consolidated Statements of Financial Position (Unaudited) should be read in conjunction with the
Notes to Consolidated Financial Statements appearing in the Forms 10-K and 10-Q.
Notes to Consolidated Financial Statements appearing in the Forms 10-K and 10-Q.
3
DTE Energy Company
Consolidated Statements of Cash Flows (Unaudited)
Consolidated Statements of Cash Flows (Unaudited)
Year Ended | ||||||||
December 31 | ||||||||
(in Millions) | 2007 | 2006 | ||||||
Operating Activities | ||||||||
Net Income | $ | 971 | $ | 433 | ||||
Adjustments to reconcile net income to net cash from operating activities: | ||||||||
Depreciation, depletion and amortization | 926 | 1,014 | ||||||
Deferred income taxes | 144 | 28 | ||||||
Gain on sale of non-utility business | (900 | ) | — | |||||
Other asset (gains), losses and reserves, net | (9 | ) | (11 | ) | ||||
Gain on sale of interests in synfuel projects | (248 | ) | (38 | ) | ||||
Impairment of synfuel projects | 4 | 77 | ||||||
Partners’ share of synfuel project losses | (188 | ) | (251 | ) | ||||
Contributions from synfuel partners | 229 | 197 | ||||||
Cumulative effect of accounting change | — | (1 | ) | |||||
Changes in assets and liabilities, exclusive of changes shown separately | 196 | 8 | ||||||
Net cash from operating activities | 1,125 | 1,456 | ||||||
Investing Activities | ||||||||
Plant and equipment expenditures — utility | (1,035 | ) | (1,126 | ) | ||||
Plant and equipment expenditures — non-utility | (264 | ) | (277 | ) | ||||
Acquisitions, net of cash acquired | — | (42 | ) | |||||
Proceeds from sale of interests in synfuel projects | 447 | 246 | ||||||
Refunds to synfuel partners | (115 | ) | — | |||||
Proceeds from sale of non-utility business | 1,262 | — | ||||||
Proceeds from sale of other assets, net | 85 | 67 | ||||||
Restricted cash for debt redemptions | 6 | (21 | ) | |||||
Proceeds from sale of nuclear decommissioning trust fund assets | 286 | 253 | ||||||
Investment in nuclear decommissioning trust funds | (323 | ) | (284 | ) | ||||
Other investments | (19 | ) | (10 | ) | ||||
Net cash from (used for) investing activities | 330 | (1,194 | ) | |||||
Financing Activities | ||||||||
Issuance of long-term debt | 50 | 612 | ||||||
Redemption of long-term debt | (393 | ) | (687 | ) | ||||
Short-term borrowings, net | (47 | ) | 291 | |||||
Issuance of common stock | — | 17 | ||||||
Repurchase of common stock | (708 | ) | (61 | ) | ||||
Dividends on common stock | (364 | ) | (365 | ) | ||||
Other | (6 | ) | (10 | ) | ||||
Net cash used for financing activities | (1,468 | ) | (203 | ) | ||||
Net Increase (Decrease) in Cash and Cash Equivalents | (13 | ) | 59 | |||||
Cash and Cash Equivalents Reclassified to Assets Held for Sale | (11 | ) | — | |||||
Cash and Cash Equivalents at Beginning of the Period | 147 | 88 | ||||||
Cash and Cash Equivalents at End of the Period | $ | 123 | $ | 147 | ||||
The Consolidated Statements of Cash Flows (Unaudited) should be read in conjunction with the Notes to Consolidated Financial Statements appearing in Forms 10-K and 10-Q.
4
The Detroit Edison Company
Consolidated Statements of Operations (unaudited)
Consolidated Statements of Operations (unaudited)
Year Ended | ||||||||
December 31 | ||||||||
(in Millions) | 2007 | 2006 | ||||||
Operating Revenues | $ | 4,900 | $ | 4,737 | ||||
Operating Expenses | ||||||||
Fuel and purchased power | 1,686 | 1,566 | ||||||
Operation and maintenance | 1,422 | 1,337 | ||||||
Depreciation and amortization | 764 | 812 | ||||||
Taxes other than income | 277 | 252 | ||||||
Asset (gains) and reserves, net | 8 | (6 | ) | |||||
4,157 | 3,961 | |||||||
Operating Income | 743 | 776 | ||||||
Other (Income) and Deductions | ||||||||
Interest expense | 294 | 278 | ||||||
Interest income | (7 | ) | (4 | ) | ||||
Other income | (40 | ) | (35 | ) | ||||
Other expenses | 30 | 55 | ||||||
277 | 294 | |||||||
Income Before Income Taxes | 466 | 482 | ||||||
Income Tax Provision | 149 | 162 | ||||||
Income Before Accounting Change | 317 | 320 | ||||||
Cumulative Effect of Accounting Change | — | 1 | ||||||
Reported Earnings | 317 | 321 | ||||||
Adjustments | ||||||||
Detroit Thermal reserve | 17 | — | ||||||
Regulatory asset surcharge | 6 | — | ||||||
Stranded cost and PSCR disallowance | — | 38 | ||||||
Cumulative effect of accounting change | — | (1 | ) | |||||
23 | 37 | |||||||
Operating Earnings | $ | 340 | $ | 358 | ||||
The Consolidated Statement of Operations (Unaudited) should be read in conjunction with the Notes to Consolidated Financial Statements appearing in Forms 10-K and 10-Q.
5
MICHIGAN CONSOLIDATED GAS COMPANY
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
Year Ended | ||||||||
December 31 | ||||||||
(in Millions) | 2007 | 2006 | ||||||
Operating Revenues | $ | 1,842 | $ | 1,811 | ||||
Operating Expenses | ||||||||
Cost of gas | 1,139 | 1,127 | ||||||
Operation and maintenance | 422 | 421 | ||||||
Depreciation and amortization | 93 | 95 | ||||||
Taxes other than income | 55 | 53 | ||||||
Asset (gains) and losses, net | (3 | ) | — | |||||
1,706 | 1,696 | |||||||
Operating Income | 136 | 115 | ||||||
Other (Income) and Deductions | ||||||||
Interest expense | 60 | 67 | ||||||
Interest income | (10 | ) | (12 | ) | ||||
Other income | (12 | ) | (8 | ) | ||||
Other expenses | 4 | 4 | ||||||
42 | 51 | |||||||
Income Before Income Taxes | 94 | 64 | ||||||
Income Tax Provision | 23 | 12 | ||||||
Reported Earnings | 71 | 52 | ||||||
Adjustments | ||||||||
Performance Excellence Process | 6 | 16 | ||||||
December 2007 GCR disallowance | 6 | — | ||||||
12 | 16 | |||||||
Operating Earnings | $ | 83 | $ | 68 | ||||
6
DTE Energy Debt/Equity Calculation
As of December 31, 2007
($ millions)
As of December 31, 2007
($ millions)
Short-term borrowings | $ | 1,084 | ||
Current portion of long-term debt, including capital leases | 454 | |||
Mortgage bonds, notes and other | 5,576 | |||
Securitization bonds | 1,065 | |||
Capital lease obligations | 41 | |||
less MichCon short-term debt | (455 | ) | ||
less Securitization bonds, including current portion | (1,185 | ) | ||
Total debt | 6,580 | |||
Trust preferred-linked securities | 289 | |||
Total preferred/ other | 289 | |||
Equity | 5,853 | |||
Total capitalization | $ | 12,722 | ||
Debt | 51.7 | % | ||
Preferred | 2.3 | % | ||
Common shareholders’ equity | 46.0 | % | ||
Total | 100.0 | % | ||
7
Sales Analysis – 2007
Electric Sales — Detroit Edison Service Area (GWh)
2007 | 2006 | % Change | ||||||||||
Residential | 16,147 | 15,769 | 2 | % | ||||||||
Commercial | 19,332 | 17,948 | 8 | % | ||||||||
Industrial | 13,338 | 13,235 | 1 | % | ||||||||
Other | 3,300 | 3,228 | 2 | % | ||||||||
52,117 | 50,180 | 4 | % | |||||||||
Choice* | 2,239 | 3,603 | -38 | % | ||||||||
TOTAL SALES | 54,356 | 53,783 | 1 | % | ||||||||
* | Includes Dearborn Industrial Group sales |
Electric Revenue — Detroit Edison Service Area ($000s)
2007 | 2006 | % Change | ||||||||||
Residential | 1,739,309 | 1,670,697 | 4 | % | ||||||||
Commercial | 1,722,637 | 1,602,777 | 7 | % | ||||||||
Industrial | 853,446 | 835,296 | 2 | % | ||||||||
Other | 181,612 | 165,679 | 10 | % | ||||||||
4,497,004 | 4,274,449 | 5 | % | |||||||||
Choice* | 45,766 | 83,813 | -45 | % | ||||||||
TOTAL REVENUES | 4,542,770 | 4,358,262 | 4 | % | ||||||||
* | Distribution charge, includes Dearborn Industrial Group revenues |
Gas Sales — MichCon Service Area (Mcf)
2007 | 2006 | % Change | ||||||||||
Residential | 111,500,802 | 102,759,921 | 9 | % | ||||||||
Commercial | 32,314,757 | 31,278,460 | 3 | % | ||||||||
Industrial | 1,368,896 | 1,217,010 | 12 | % | ||||||||
145,184,455 | 135,255,391 | 7 | % | |||||||||
End User Transportation* | 131,793,468 | 135,850,307 | -3 | % | ||||||||
TOTAL SALES | 276,977,923 | 271,105,698 | 2 | % | ||||||||
* | Includes choice customers |
Gas Revenue — MichCon Service Area ($000s)
2007 | 2006 | % Change | ||||||||||
Residential | 1,127,063 | 1,212,498 | -7 | % | ||||||||
Commercial | 321,452 | 366,381 | -12 | % | ||||||||
Industrial | 13,127 | 13,493 | -3 | % | ||||||||
1,461,642 | 1,592,372 | -8 | % | |||||||||
End User Transportation* | 139,742 | 134,929 | 4 | % | ||||||||
TOTAL REVENUES | 1,601,384 | 1,727,301 | -7 | % | ||||||||
* | Includes choice customers |
Weather
Cooling Degree Days
Detroit Edison service territory
Detroit Edison service territory
2007 | 2006 | % Change | ||||||||||
Actuals | 944 | 836 | 13 | % | ||||||||
Normal | 736 | 736 | ||||||||||
Deviation from normal | 28 | % | 14 | % |
Heating Degree Days
MichCon service territory
MichCon service territory
2007 | 2006 | % Change | ||||||||||
Actuals | 6,257 | 5,779 | 8 | % | ||||||||
Normal | 6,667 | 6,671 | ||||||||||
Deviation from normal | -6 | % | -13 | % |
8
Sales Analysis — Q4 2007
Electric Sales — Detroit Edison Service Area (GWh)
Q4 2007 | Q4 2006 | % Change | ||||||||||
Residential | 3,806 | 3,536 | 8 | % | ||||||||
Commercial | 4,986 | 4,508 | 11 | % | ||||||||
Industrial | 3,364 | 3,176 | 6 | % | ||||||||
Other | 839 | 841 | 0 | % | ||||||||
12,995 | 12,061 | 8 | % | |||||||||
Choice* | 629 | 722 | -13 | % | ||||||||
TOTAL SALES | 13,624 | 12,783 | 7 | % | ||||||||
* | Includes Dearborn Industrial Group sales |
Electric Revenue — Detroit Edison Service Area ($000s)
Q4 2007 | Q4 2006 | % Change | ||||||||||
Residential | 410,328 | 375,094 | 9 | % | ||||||||
Commercial | 446,154 | 402,351 | 11 | % | ||||||||
Industrial | 205,487 | 202,239 | 2 | % | ||||||||
Other | 50,295 | 40,499 | 24 | % | ||||||||
1,112,264 | 1,020,183 | 9 | % | |||||||||
Choice* | 12,149 | 15,419 | -21 | % | ||||||||
TOTAL REVENUES | 1,124,413 | 1,035,602 | 9 | % | ||||||||
* | Distribution charge, includes Dearborn Industrial Group revenues |
Gas Sales — MichCon Service Area (Mcf)
Q4 2007 | Q4 2006 | % Change | ||||||||||
Residential | 33,891,991 | 33,418,677 | 1 | % | ||||||||
Commercial | 9,838,467 | 8,974,517 | 10 | % | ||||||||
Industrial | 359,755 | 284,327 | 27 | % | ||||||||
44,090,213 | 42,677,521 | 3 | % | |||||||||
End User Transportation* | 34,000,028 | 37,243,007 | -9 | % | ||||||||
TOTAL SALES | 78,090,241 | 79,920,528 | -2 | % | ||||||||
* | Includes choice customers |
Gas Revenue — MichCon Service Area ($000s)
Q4 2007 | Q4 2006 | % Change | ||||||||||
Residential | 331,421 | 333,234 | -1 | % | ||||||||
Commercial | 95,147 | 88,981 | 7 | % | ||||||||
Industrial | 3,366 | 2,712 | 24 | % | ||||||||
429,934 | 424,927 | 1 | % | |||||||||
End User Transportation* | 38,205 | 38,963 | -2 | % | ||||||||
TOTAL REVENUES | 468,139 | 463,890 | 1 | % | ||||||||
* | Includes choice customers |
Weather
Cooling Degree Days
Detroit Edison service territory
Detroit Edison service territory
Q4 2007 | Q4 2006 | % Change | ||||||||||
Actuals | 54 | 3 | 1700 | % | ||||||||
Normal | 6 | 6 | ||||||||||
Deviation from normal | 800 | % | -50 | % |
Heating Degree Days
MichCon service territory
MichCon service territory
Q4 2007 | Q4 2006 | % Change | ||||||||||
Actuals | 2,149 | 2,097 | 2 | % | ||||||||
Normal | 2,355 | 2,353 | ||||||||||
Deviation from normal | -9 | % | -11 | % |
9