Exhibit 99.1
AGA Financial Forum
Gerry Anderson, Chairman, President and CEO
Jerry Norcia, Chief Operating Officer and President of MichCon
May 7-8, 2012
Safe Harbor Statement
The information contained herein is as of the date of this presentation. Many factors may impact forward-looking statements including, but not limited to, the following: impact of regulation by the FERC, MPSC, NRC and 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; impact of electric and gas utility restructuring in Michigan, including legislative amendments and Customer Choice programs; economic conditions and population changes in our geographic area resulting in changes in demand, customer conservation, increased thefts of electricity and gas and high levels of uncollectible accounts receivable; 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; access to capital markets and the results of other financing efforts which can be affected by credit agenc y 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 losses on investments, including nuclear decommissioning and benefit plan assets and the related increases in future expense and contributions; the potential for increased costs or delays in completion of significant construction projects; the uncertainties of successful exploration of unconventional gas and oil resources and challenges in estimating gas and oil reserves with certainty; 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, terrorism or cyber attacks; employee relations and the impact of collective bargaining agreements; 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; binding arbitration, litigation and related appeals; 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 our results to differ materially from those contained in any forward-looking statement. Any forward-looking statements refer 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” sections in each of DTE Energy’s and Detroit Edison’s 2011 Forms 10-K and 2012 Forms 10-Q (which sections are incorporated herein by reference), and in conjunction with other SEC reports filed by DTE Energy and Detroit Edison.
Cautionary Note – The Securities and Exchange Commission permits oil and gas companies, in their filings with the SEC, to disclose only proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. We use certain terms in this presentation such as “probable reserves” that the SEC’s guidelines strictly prohibit us from including in filings with the SEC. You are urged to consider closely the disclosure in DTE Energy’s 2011 Form 10-K and 2012 Forms 10-Q, File No. 1-11607, available from our offices or from our website at www.dteenergy.com. You can also obtain these Forms from the SEC by accessing its website at www.sec.gov or by calling 1-800-SEC-0330.
2 |
|
Overview
Business Update
– Detroit Edison
– Power & Industrial Projects
– MichCon and Gas Storage & Pipelines
3 |
|
DTE Energy is an Integrated Energy Company
Strong, Stable and Growing Utilities
~80% of DTE Energy’s 2011 Earnings
Electric generation and distribution 2.1 million customers Fully regulated by Michigan Public Service Commission (MPSC)
Natural gas distribution 1.2 million customers Fully regulated by MPSC
Complementary Non-Utility Businesses
~20% of DTE Energy’s 2011 Earnings
Gas Storage & Pipelines
Transport and store natural gas
Power & Industrial Projects
Own and operate energy related assets
Energy Trading
Generate economic value and provide strategic benefits
Unconventional Gas Production
Production of shale natural gas and oil in Texas
Detroit Edison MichCon
4 |
|
DTE Energy Earnings & Dividend Growth
Targeting 5%—6% Long-Term Operating EPS Growth From 2012 Guidance Midpoint
~7% CAGR EPS Growth from 2008—2011 Annualized dividend growth of ~5% over past 3 years Payout ratio of ~62% at midpoint of 2012 guidance Dividend growth supported by underlying earnings growth
Guidance
$3.80**
$3.73
$3.60
$3.30
Operating $2.89
EPS*
$2.32
$2.18
$2.12 $2.12
5%-6% EPS CAGR Payout Target 60% -70%
Dividend
per share
2008A 2009A 2010A 2011A 2012E 2013E 2014E 2015E
* Reconciliation to GAAP reported earnings included in the appendix
** Midpoint of $3.65—$3.95 range
5
Michigan Economy Continues to Show Signs of Improvement
% Michigan Unemployment
14 Declining*
12
Lowest since
10 August 2008
8
6
4
Dec-09 Jun-10 Dec-10 Jun-11 Dec-11 Mar-12
* Source: Bureau of Labor Statistics
Michigan Auto Production
(000’s) 800 Increasing*
Quarterly auto production (00’s)
600 400
Michigan
Detroit Edison
Territory
2005 2006 2007 2008 2009 2010 2011 2012
Q1
* Source: IHS Automotive
Southeast Michigan Residential Building Permits
Beginning to Rebound*
10
Annual permits issued (000s)
2
0
2006 2007 2008 2009 2010 2011
Uptick in 2012 housing starts
(1Q 2012 housing permits up 34% over 1Q 2011)
* Source: Census Bureau
6
Actions being taken to offset 1Q 2012 weather
24% Fewer HDDs 1Q 2012*
Jan-Mar*
HDD’s
3,500
Normal
3,230**
3,000
2,500
2,000
1,500
1,000
1962 1967 1972 1977 1982 1987 1992 1997 2002 2007 2012*
MichCon:($23) million weather impact
Energy Trading: warm weather resulted in slight loss
*Data source: National Oceanic and Atmospheric Administration – Jan-Mar 2012 vs. normal for Metro Detroit
**Normal HDDs based on 30 year weather (1971-2000)
HDDs (Heating Degree Days) = number of degrees a day’s average temperature is below 65°
Actions to Offset Weather
O&M
Procurement and contract management
Further expansion of continuous improvement capabilities
Revenue
Storage opportunities at Gas
Storage & Pipelines and MichCon
Potential upside at Power & Industrial Projects
7 |
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Impact of Low Gas Price on DTE Energy’s Business Segments
Regulated Utilities Unconventional Gas Production
Lower fuel and purchased power costs for ~90% of 2012 Barnett/Marble Falls revenue gas and electric customers from NGLs and oil
Monetization tied to oil play
Power & Industrial Projects
New opportunities for onsite co-generation Gas Storage & Pipelines projects
Bluestone anchor customer has begun aggressive drilling plan
Marcellus well positioned on the supply curve
Energy Trading
Expect little long-term impact on earnings due to diversity of strategies
8 |
|
Outlook for Natural Gas Demand & Supply
US Gas Supply and Demand
Bcf/d
80 |
|
Demand
60 |
| New drilling |
to fill shortfall
40 |
|
Supply with no
new drilling
20 |
|
2011 2012 2013 2014 2015
Production decline and demand growth drive new drilling needs of 8-10 Bcf/d each year
1. Source: Breakeven DTE Energy cost of new analysis supply at after-tax 10% IRR
2015 Gas Supply Curve
$/MMBtu1
6 |
|
4 |
| NE Marcellus |
Fayetteville
Susquehanna Eagle
wells Ford
2 |
|
8-10 Bcf/d of
New drilling
0
0 2 4 6 8 10
Bcf/d New Supply
Marcellus production low on supply stack;
Incremental opportunities in Marcellus region
9
Overview
Business Update
– Detroit Edison
– Power & Industrial Projects
– MichCon and Gas Storage & Pipelines
Detroit Edison
Investment Profile, 2012 – 2016
Base Environmental Renewable Energy &
Infrastructure* Compliance Energy Efficiency
~$4 billion $1.3—$1.8 billion $900 million
Investments to ensure reliability Investments to meet evolving Renewable generation to meet
of generation fleet and environmental requirements Michigan RPS
distribution systems $235 million investment in 2012
$255 million investment in 2012
$785 million investment in 2012
* |
| Includes AMI, Ludington expansion and other investments |
11
Detroit Edison
Dry Sorbent Injection (DSI)
DSI reduces emissions to comply with MATS*
St Clair Power Plant
DSI effective for Detroit Edison coal-fired fleet o Allows majority of non-scrubbed units to economically meet MATS standards o Not economical for small portion of coal fleet (~300MW)
DSI not fundamental to supply stack position for Detroit Edison coal units o Combined cycle gas turbines make up only 11%** of MISO capacity
* |
| MATS (Mercury and Air Toxics Standard). |
** Source: SNL Financial
12
Detroit Edison
Renewable Energy Wind Development
Thumb Wind Parks
110 MW Wind
In-service 4Q 2012
~$250 million capital investment
New Wind Park (Huron County)
Gratiot Wind Energy 110 MW Wind
212 MW Wind online March 2012 2013 Construction
102 MW (64 turbines) owned and operated ~$250 million capital investment
by Detroit Edison
13
Overview
Business Update
– Detroit Edison
– Power & Industrial Projects
– MichCon and Gas Storage & Pipelines
14
Power & Industrial Projects
Earnings Potential of $125 Million by 2016
Earnings* potential of $125 million by 2016
($millions)
~$125
~$25 New project
development
~$35 Renewable
Energy
$45—$55
~$60 Reduced Emissions
$38* Fuel
~$75 Industrial Energy
Services
~($70) Corporate allocations,
interest & overheads
2011A 2012E 2013E 2014E 2015E 2016E
Renewable Energy
Wood-fired Plant, Mt. Poso
Reduced Emissions Fuel
Midwest Utility
Industrial Energy Services
Steam & Chilled Water
*Reconciliation to GAAP reported earnings included in the appendix
15
Power & Industrial Projects
Reduced Emission Fuels Development Update
2012 Status
Operations and volume on target at five placed units
Working to relocate four units o Unit 1: Negotiations complete; relocation by 3Q o Unit 2: Late stage negotiations o Units 3 & 4: In discussions with five potential host utilities
Earnings Outlook
2012: ~$30 million earnings contribution
2013-2021: Average annual earnings contribution of ~$50 million
REF Facility at Monroe Power Plant
Significant value and strong earnings contribution for next 10 years
16
Overview
Business Update
– Detroit Edison
– Power & Industrial Projects
– MichCon and Gas Storage & Pipelines
17
MichCon
Investment Profile, 2012 – 2016
Base Capital $675 million
Main Renewal $250 million
Meter Move-out $115 million
Strengthen and expand distribution system
Transmission pipeline integrity $155 million investment in 2012
660 mile main replacement over
10 years ($500 million total capital investment) $40 million investment in 2012
Move out ~25,000 meters per year
Improves customer service $22 million investment in 2012
Rate case filed in April 2012 for $77 million
(includes infrastructure recovery mechanism, decoupling and 11% ROE)
18
MichCon
Natural Gas Vehicles (NGV)
MichCon NGVs
CNG Fueling Station
CNG** Dispensed by MichCon
000’s GGE**
2,000
1,200
500
150 250
2009 2010 2011 2012E 2013E
* |
| Source—U.S. Department of Energy (Alternative Fuel Price Report – January 2012) |
**CNG is compressed natural gas; GGE is gasoline gallon equivalent
Nationwide Average Fuel Prices*
CNG** $2.13
Gasoline $3.37
Diesel $3.46
Biodiesel $4.14
Propane $4.26
Ethanol $4.44
Price in GGE**
MichCon NGV Program
18 compressed natural gas fueling stations in Michigan
Over 170 vehicles added to MichCon fleet since 2010
19
Gas Storage & Pipelines
Growth Opportunities from Marcellus Shale Development
Gas Storage & Pipelines Solid Operating Earnings* Growth
($millions) ~$100
$57* $57-60
2011A 2012E 2013E 2014E 2015E 2016E
Millennium Mainline Expansions
First two expansions fully contracted o $90 million investment (DTE $23 million) o Expand capacity ~50% to 0.8 Bcf/d First expansion: expect FERC approval and begin construction in 2Q; in-service late 2012
Second expansion: FERC approval and construction in 2013 Future expansions economic to 1.5 Bcf/d
* |
| Reconciliation to GAAP reported earnings included in the appendix |
Expansion 2 “Minisink Compressor”
Expansion 1 “Hancock Compressor”
20
Gas Storage & Pipelines
Bluestone Pipeline & Gathering Update
Phase 1
Phase 2Bluestone Project $280 million investment
Right-of-way and permitting nearly complete
Gathering system construction underway; portion in service Lateral construction to begin in 2Q Anchor customer began drilling in April
In service 2012
Additional Gathering Opportunities
180,000 acres within 5 miles of Bluestone 6 major producers in area; discussions underway
21
Investment Thesis
DTE Energy has a plan it believes will provide 5%—6% long-term operating EPS growth, an attractive dividend yield and a strong balance sheet
– Utility growth plan driven by mandated investments
– Constructive regulatory structure and continued cost savings enable utilities to earn their authorized returns
– Plans in place to achieve operational excellence and customer satisfaction that are distinctive in our industry, with a focus on customer affordability
– Meaningful, low-risk growth opportunities in non-utility businesses continue to provide diversity in earnings and geography
5%-6% Average Annual EPS Growth
Attractive Dividend
22
Contact Us
DTE Energy Investor Relations www.dteenergy.com/investors 313-235-8030
23
Appendix
2012 Operating Earnings Guidance*
2011 2012 2012 Drivers
(millions, except EPS) Actual* Guidance*
Full year rate order impact at lower ROE, 2011 one-time tax
Detroit Edison $443 $438—$448 items and increased earnings from renewable investments
Continued cost control to offset 1Q unfavorable weather;
MichCon 110 110—115 April rate case filing
Modest incremental earnings from existing projects; more
Gas Storage & Pipelines 57 57—60 significant growth begins in 2013 from new projects
Unconventional Gas(6) 0 Targeting monetization
Production
Power & Industrial 38 45—55 Incremental earnings from REF
Projects
Energy Trading 52 30—50 Unprecedented 1Q warm weather pressuring 2012 earnings;
balance of year assumed at historical levels
Corporate & Other(61)(54) Primarily lower interest expense
DTE Energy $633 $626—$674
Operating EPS $3.73 $3.65—$3.95
Avg. Shares Outstanding 170 171
* |
| Reconciliation to GAAP reported earnings included in the appendix |
25
2012 Capital Expenditures & Cash Flow Guidance
Capital Expenditures Cash Flow Summary
($ millions)($ billions)
2011 2012
Actual Guidance 2011 2012
Actual Guidance
Detroit Edison
Operational $688 $785 Cash From Operations $2.0 $1.9
Environmental 186 255
Capital Spending(1.5)(1.9)
Renewables / EO 328 235
Free Cash Flow $0.5 $0.0
$1,202 $1,275
MichCon
Operational $155 $155 Asset Sales—0.3
Expansion 25 60 Dividends(0.4)(0.4)
$180 $215 Net Cash $0.1($0.1)
Non-Utility / Corporate &
Other $146 $430 Debt($0.1) $0.1
Total $1,528 $1,920
Equity issued for employee benefit programs is considered non-cash
and not included in financing activities
26
Strong Balance Sheet Supports Growth
Leverage*
Target
50%—52% • A strong balance sheet remains a key DTE priority
51% 51% 50%
• Series of credit improvements in 2012
– Fitch upgraded Detroit Edison and MichCon
2010 2011 2012E – Moody’s raised its outlook to Positive
• Leverage and cash flow metrics within targeted ranges
Funds from Operations / Debt* • $1.4 billion of available liquidity as of March 31, 2012
Target
22%—24%
28% 24% 22%
2010 2011 2012E
*Debt excludes securitization, a portion of MichCon’s short-term debt, and considers 50% of the Trust Preferreds/Junior Subordinated Notes as equity
27
Continuous Improvement Efforts Offsetting Inflation and
Other Costs
Utility Operations and Maintenance Expense*
($ millions)
~$1,900
~$350
$1,635 Target
$1,550 ~$1,590** $1,550
2005 2006 2007 2008 2009 2010 2011 2012E
Utility O&M reduction of $85 million from 2005 to 2012E
*Excludes bad debt expense, energy efficiency and renewable energy
**Includes $40 million of higher storm costs vs. 2010
28
Michigan Public Service Commission (MPSC)
The Michigan Public Service Commission is composed of three members appointed by the Governor with the advice and consent of the Senate.
Commissioners are appointed to serve staggered six-year terms.
No more than two Commissioners may represent the same political party.
One commissioner is designated as chairman by the Governor.
John Quackenbush Orjiakor Isiogu Greg White
Chairman Commissioner Commissioner
Appointed: 9/15/11 Appointed: 9/9/07 Appointed: 12/4/09
Term Ends: 7/2/17 Term Ends: 7/2/13 Term Ends: 7/2/15
(Republican)(Democrat)(Independent)
Source: MPSC website—www.michigan.gov/mpsc—Jan. 2010
29
MichCon Rate Case Filing (U-16999)
Estimated Net Rate Request
($ millions)
$27 $1 $77
$49
*Projected annualized residential change from 2010 to 2013 (weather normalized)
Rate Case Highlights
Represents annual base rate growth of ~4%* since last rate increase; combined with declining gas prices, annual bills decreasing ~5%*
Lower Sales due to customer conservation and lower midstream revenues
$377 million increase in rate base
Other highlights
– 11% return on equity
– Modified revenue decoupling mechanism
– Infrastructure recovery mechanism for main renewal, meter move-out and pipeline integrity
Timing
– Filed: April 2012
– Self-implement: November 2012
– Final Order: By April 2013
30
Gas Storage & Pipeline: Overview
Vector Pipeline – 40%
Fully contracted (6 year avg. term)
348 miles of pipe; 120,000 H.P. of compression at five stations
Millennium Pipeline – 26.25%
Fully contracted (> 10 year avg. term) 222 miles of pipe; 15,000 H.P. of compression
DTE Gas Storage
Fully contracted (6 year avg. term)
90 Bcf of storage capacity in Michigan
26,200 H.P. of compression
Michigan Gathering Assets
Comprised of MichCon Lateral and
MichCon Gathering Companies
Two systems: One designed to handle liquid rich gas and the other for dry production gas
Storage Assets
Pipeline Interests
31
Barnett Shale Operating Metrics
Reserves (Bcfe) Acreage Position (000’s Acres)
555 559 87 88
17 |
| 17 Net |
201 186 Proven Developed
Acres
70 |
| 71 Net |
354 373 Probable Undeveloped
(Unaudited) Acres
YE2010 YE2011 YE2011 1Q 2012
Gross Producing Wells Net Production (Bcfe)
224
215 6—7
5.1
YE2011 1Q 2012 YE2011 YE 2012E
1Q 2012 Results
9 new wells on-line, 6 in progress Production of 1.3 Bcfe (60% liquids) 58% increase in oil sales volume year-over-year
2012 Goals
Prudently manage Barnett assets and focus on developing liquids production
Pursue monetization opportunities
32
Unconventional Gas: Barnett Shale Assets Focused on Marble Falls Oil Play
Oil and NGLs* driving value
Revenue by product (%)
Oil 60%
NGL 30%
Gas 10%
2010 2011 2012E
Proved reserves by product (%)
Oil 11%
NGL39%
Gas 50%
2009 2010 2011
* |
| Natural gas liquids |
Focus on maturing Marble Falls oil play
Wells confirming resource play
– Vertical wells initial production up to 250 bbls oil per day plus liquids rich gas
– Potential upside with horizontal wells
– ~65,000 net acre Marble Falls position
Well payback period of 6-24 months at current prices
– Vertical well costs of $800k
– Attractive economics at current prices
33
DTE Energy Trading Reconciliation of Operating Earnings* to Economic Net Income
Operating Earnings* to Economic Net Income
($ millions)
$0
($2)($2)
1Q 2012 Operating Accounting 1Q 2012
Earnings* Adjustments** Economic Net Income
$22 $24
$2
1Q 2011 Operating Accounting 1Q 2011
Earnings* Adjustments** Economic Net Income
Economic net income equals economic gross margin*** minus O&M expenses and taxes DTE Energy management uses economic net income as one of the performance measures for external communications with analysts and investors Internally, DTE Energy uses economic net income as one of the measures to review performance against financial targets and budget
* |
| Reconciliation to GAAP reported earnings included in the appendix |
** Consists of the income statement effect of not recognizing changes in the fair market value of certain non-derivative contracts including physical inventory and capacity contracts for transportation, transmission and storage. These contracts are not MTM, instead are recognized for accounting purposes on an accrual basis *** Economic gross margin is the change in net fair value of realized and unrealized purchase and sale contracts including certain non-derivative contract costs
Energy Trading Operating
Earnings*
($ millions, after-tax)
1Q 2011 1Q 2012
Realized $16 $20
Unrealized -(11)
O&M / Other(14)(11)
$2($2)
34
Reconciliation of 1Q 2011 Reported to Operating Earnings
Use of Operating Earnings Information – DTE Energy management believes that operating earnings provide a more meaningful representation of the company’s earnings from ongoing operations and uses operating earnings as the primary performance measurement for external communications with analysts and investors. Internally, DTE Energy uses operating earnings to measure performance against budget and to report to the Board of Directors.
1Q 2011 Net Income ($ millions)
Gas Power &
DTE Electric Gas Storage & Unc. Gas Indust. Energy Corporate
Energy Utility Utility Pipelines Prod. Projects Trading & Other
Reported Earnings $176 $85 $83 $15($2) $10 $2($17)
Fermi 1 Asset Retirement Obligation 12 12————
Operating Earnings $188 $97 $83 $15($2) $10 $2($17)
1Q 2011 $EPS
Gas Power &
DTE Electric Gas Storage & Unc. Gas Indust. Energy Corporate
Energy Utility Utility Pipelines Prod. Projects Trading & Other
Reported Earnings $1.04 $0.50 $0.49 $0.09($0.01) $0.06 $0.01($0.10)
Fermi 1 Asset Retirement Obligation 0.07 0.07————
Operating Earnings $1.11 $0.57 $0.49 $0.09($0.01) $0.06 $0.01($0.10)
35
Reconciliation of 2011 Reported
to Operating Earnings
Use of Operating Earnings Information – DTE Energy management believes that operating earnings provide a more meaningful representation of the
earnings from ongoing operations and uses operating earnings as the primary performance measurement for external communications with analysts and
Internally, DTE Energy uses operating earnings to measure performance against budget and to report to the Board of Directors.
2011 Net Income ($ millions)
Gas Power &
DTE Electric Gas Storage & Unc. Gas Indust. Energy Corporate
Energy Utility Utility Pipelines Prod. Projects Trading & Other
Reported Earnings $711 $434 $110 $57($6) $38 $52 $26
Michigan Corporate Income Tax
Adjustment(87)————(87)
Fermi 1 Asset Retirement Obligation 9 9————
Operating Earnings $633 $443 $110 $57($6) $38 $52($61)
2011 $EPS
Gas Power &
DTE Electric Gas Storage & Unc. Gas Indust. Energy Corporate
Energy Utility Utility Pipelines Prod. Projects Trading & Other
Reported Earnings $4.18 $2.55 $0.65 $0.34($0.04) $0.22 $0.31 $0.15
Michigan Corporate Income Tax
Adjustment(0.50)————(0.50)
Fermi 1 Asset Retirement Obligation 0.05 0.05————
Operating Earnings $3.73 $2.60 $0.65 $0.34($0.04) $0.22 $0.31($0.35)
36
Reconciliation of 2010 Reported
to Operating Earnings
Use of Operating Earnings Information – DTE Energy management believes that operating earnings provide a more meaningful representation of the company’s
earnings from ongoing operations and uses operating earnings as the primary performance measurement for external communications with analysts and investors.
Internally, DTE Energy uses operating earnings to measure performance against budget and to report to the Board of Directors.
2010 Net Income ($ millions)
Gas Power &
DTE Electric Gas Storage & Unc. Gas Indust. Energy Corporate
Energy Utility Utility Pipelines Prod. Projects Trading & Other
Reported Earnings $630 $441 $127 $51($11) $85 $6($69)
Performance Excellence Process -
Cost to Achieve Deferral*(20) -(20)———-
Settlement with Detroit Thermal(3)(3)————
Operating Earnings $607 $438 $107 $51($11) $85 $6($69)
2010 $EPS
Gas Power &
DTE Electric Gas Storage & Unc. Gas Indust. Energy Corporate
Energy Utility Utility Pipelines Prod. Projects Trading & Other
Reported Earnings $3.74 $2.62 $0.75 $0.30($0.06) $0.50 $0.04($0.41)
Performance Excellence Process -
Cost to Achieve Deferral*(0.12) -(0.12)———-
Settlement with Detroit Thermal(0.02)(0.02)————
Operating Earnings $3.60 $2.60 $0.63 $0.30($0.06) $0.50 $0.04($0.41)
* |
| Deferral of previously expensed cost to achieve as allowed for in June 3, 2010 MPSC order (case—U-15985) |
37
Reconciliation of 2009 Reported
to Operating Earnings
Use of Operating Earnings Information – DTE Energy management believes that operating earnings provide a more meaningful representation of the company’s
earnings from ongoing operations and uses operating earnings as the primary performance measurement for external communications with analysts and investors.
Internally, DTE Energy uses operating earnings to measure performance against budget and to report to the Board of Directors.
FY 2009 Net Income ($ millions)
Gas Power &
DTE Electric Gas Storage and Unc. Gas Indust. Energy Corporate
Energy Utility Utility Pipelines Prod. Projects Trading & Other
Reported Earnings $532 $376 $80 $49($9) $31 $75($70)
Gain on Sale—gathering and treating
assets (before goodwill allocation)(13) -(13)———-
Goodwill allocation—gathering and
treating assets 13—13———-
Chrysler Bad Debt 5 4—— 1—-
General Motors Bad Debt 3———3—-
Antrim Hedge 3———— 3
Operating Earnings $543 $380 $80 $49($9) $35 $75($67)
FY 2009 $EPS
Gas Power &
DTE Electric Gas Storage and Unc. Gas Indust. Energy Corporate
Energy Utility Utility Pipelines Prod. Projects Trading & Other
Reported Earnings $3.24 $2.28 $0.49 $0.30($0.05) $0.19 $0.46($0.43)
Gain on Sale—gathering and treating
assets (before goodwill allocation)(0.08) -(0.08)———-
Goodwill allocation—gathering and
treating assets 0.08—0.08———-
Chrysler Bad Debt 0.03 0.02—— 0.01—-
General Motors Bad Debt 0.02———0.02—-
Antrim Hedge 0.01———— 0.01
Operating Earnings $3.30 $2.30 $0.49 $0.30($0.05) $0.22 $0.46($0.42) 38
38
Reconciliation of 2008 Reported
to Operating Earnings
Use of Operating Earnings Information – DTE Energy management believes that operating earnings provide a more meaningful representation of the company’s
earnings from ongoing operations and uses operating earnings as the primary performance measurement for external communications with analysts and investors.
Internally, DTE Energy uses operating earnings to measure performance against budget and to report to the Board of Directors.
FY 2008 Net Income ($ millions)
Gas Power &
DTE Electric Gas Storage and Unc. Gas Indust. Energy Corporate
Energy Utility Utility Pipelines Prod. Projects Trading & Other Synfuel
Reported Earnings $546 $331 $85 $38 $84 $40 $42($94) $20
Performance Excellence Process 6—4—- 1 1—-
Core Barnett Sale(81)——(81)—— -
Antrim hedge 13———— 13 -
Barnett Lease impairment 5—— 5—— -
Crete Sale—Tax True up 2———— 2 -
Synfuel Discontinued Operations(20)———— -(20)
Operating Earnings $471 $331 $89 $38 $8 $41 $43($79) $ -
FY 2008 $EPS
Gas Power &
DTE Electric Gas Storage and Unc. Gas Indust. Energy Corporate
Energy Utility Utility Pipelines Prod. Projects Trading & Other Synfuel
Reported Earnings $3.34 $2.03 $0.52 $0.23 $0.52 $0.25 $0.26($0.59) $0.12
Performance Excellence Process 0.05—0.03—- 0.01 0.01—-
Core Barnett Sale(0.50)——(0.50)—— -
Antrim hedge 0.08———— 0.08 -
Barnett Lease impairment 0.03—— 0.03—— -
Crete Sale—Tax True up 0.01———— 0.01 -
Synfuel Discontinued Operations(0.12)———— -(0.12)
Operating Earnings $2.89 $2.03 $0.55 $0.23 $0.05 $0.26 $0.27($0.50) $ -
39 |
|
39
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 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. These items may fluctuate significantly from period to period and may have a significant impact on reported earnings.
There were no reported to operating earnings adjustments in 1Q 2012.
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