Exhibit 99.2
DTE ENERGY COMPANY
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (UNAUDITED)
September 30 | December 31 | ||||||
2012 | 2011 | ||||||
(In millions) | |||||||
ASSETS | |||||||
Current Assets | |||||||
Cash and cash equivalents | $ | 59 | $ | 68 | |||
Restricted cash, principally Securitization | 69 | 147 | |||||
Accounts receivable (less allowance for doubtful accounts of $150 and $162, respectively) | |||||||
Customer | 1,164 | 1,317 | |||||
Other | 71 | 90 | |||||
Inventories | |||||||
Fuel and gas | 554 | 572 | |||||
Materials and supplies | 231 | 219 | |||||
Deferred income taxes | 58 | 51 | |||||
Derivative assets | 123 | 222 | |||||
Regulatory assets | 157 | 314 | |||||
Other | 244 | 196 | |||||
2,730 | 3,196 | ||||||
Investments | |||||||
Nuclear decommissioning trust funds | 1,029 | 937 | |||||
Other | 537 | 525 | |||||
1,566 | 1,462 | ||||||
Property | |||||||
Property, plant and equipment | 23,442 | 22,541 | |||||
Less accumulated depreciation, depletion and amortization | (9,038 | ) | (8,795 | ) | |||
14,404 | 13,746 | ||||||
Other Assets | |||||||
Goodwill | 2,020 | 2,020 | |||||
Regulatory assets | 4,299 | 4,539 | |||||
Securitized regulatory assets | 456 | 577 | |||||
Intangible assets | 67 | 73 | |||||
Notes receivable | 114 | 123 | |||||
Derivative assets | 63 | 74 | |||||
Other | 190 | 199 | |||||
7,209 | 7,605 | ||||||
Total Assets | $ | 25,909 | $ | 26,009 |
DTE ENERGY COMPANY
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (UNAUDITED) — (Continued)
September 30 | December 31 | ||||||
2012 | 2011 | ||||||
(In millions, except shares) | |||||||
LIABILITIES AND EQUITY | |||||||
Current Liabilities | |||||||
Accounts payable | $ | 724 | $ | 782 | |||
Accrued interest | 122 | 95 | |||||
Dividends payable | 107 | 99 | |||||
Short-term borrowings | 98 | 419 | |||||
Current portion long-term debt, including capital leases | 633 | 526 | |||||
Derivative liabilities | 146 | 158 | |||||
Other | 479 | 549 | |||||
2,309 | 2,628 | ||||||
Long-Term Debt (net of current portion) | |||||||
Mortgage bonds, notes and other | 6,526 | 6,405 | |||||
Securitization bonds | 302 | 479 | |||||
Junior subordinated debentures | 280 | 280 | |||||
Capital lease obligations | 12 | 23 | |||||
7,120 | 7,187 | ||||||
Other Liabilities | |||||||
Deferred income taxes | 3,273 | 3,116 | |||||
Regulatory liabilities | 990 | 1,019 | |||||
Asset retirement obligations | 1,683 | 1,591 | |||||
Unamortized investment tax credit | 58 | 65 | |||||
Derivative liabilities | 30 | 89 | |||||
Accrued pension liability | 1,216 | 1,298 | |||||
Accrued postretirement liability | 1,341 | 1,484 | |||||
Nuclear decommissioning | 156 | 148 | |||||
Other | 302 | 331 | |||||
9,049 | 9,141 | ||||||
Commitments and Contingencies | |||||||
Equity | |||||||
Common stock, without par value, 400,000,000 shares authorized, 172,073,378 and 169,247,282 shares issued and outstanding, respectively | 3,567 | 3,417 | |||||
Retained earnings | 3,969 | 3,750 | |||||
Accumulated other comprehensive loss | (147 | ) | (158 | ) | |||
Total DTE Energy Company Equity | 7,389 | 7,009 | |||||
Noncontrolling interests | 42 | 44 | |||||
Total Equity | 7,431 | 7,053 | |||||
Total Liabilities and Equity | $ | 25,909 | $ | 26,009 |
DTE ENERGY COMPANY
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
Nine Months Ended | |||||||
September 30 | |||||||
2012 | 2011 | ||||||
(In millions) | |||||||
Operating Activities | |||||||
Net income | $ | 535 | $ | 563 | |||
Adjustments to reconcile net income to net cash from operating activities: | |||||||
Depreciation, depletion and amortization | 747 | 752 | |||||
Deferred income taxes | 96 | 123 | |||||
Asset (gains) and losses, reserves and impairments, net | (7 | ) | — | ||||
Changes in assets and liabilities, exclusive of changes shown separately | 358 | 48 | |||||
Net cash from operating activities | 1,729 | 1,486 | |||||
Investing Activities | |||||||
Plant and equipment expenditures — utility | (1,008 | ) | (968 | ) | |||
Plant and equipment expenditures — non-utility | (214 | ) | (61 | ) | |||
Proceeds from sale of assets | 20 | 13 | |||||
Restricted cash for debt redemption, principally Securitization | 55 | 47 | |||||
Proceeds from sale of nuclear decommissioning trust fund assets | 48 | 69 | |||||
Investment in nuclear decommissioning trust funds | (61 | ) | (97 | ) | |||
Other | (24 | ) | (55 | ) | |||
Net cash used for investing activities | (1,184 | ) | (1,052 | ) | |||
Financing Activities | |||||||
Issuance of long-term debt | 495 | 908 | |||||
Redemption of long-term debt | (447 | ) | (1,161 | ) | |||
Short-term borrowings, net | (321 | ) | 126 | ||||
Issuance of common stock | 29 | — | |||||
Repurchase of common stock | — | (18 | ) | ||||
Dividends on common stock | (300 | ) | (289 | ) | |||
Other | (10 | ) | (19 | ) | |||
Net cash used for financing activities | (554 | ) | (453 | ) | |||
Net Decrease in Cash and Cash Equivalents | (9 | ) | (19 | ) | |||
Cash and Cash Equivalents at Beginning of Period | 68 | 65 | |||||
Cash and Cash Equivalents at End of Period | $ | 59 | $ | 46 |
THE DETROIT EDISON COMPANY
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30 | September 30 | ||||||||||||||
(In millions) | 2012 | 2011 | 2012 | 2011 | |||||||||||
Operating Revenues | $ | 1,542 | $ | 1,517 | $ | 4,029 | $ | 3,949 | |||||||
Operating Expenses | |||||||||||||||
Fuel and purchased power | 543 | 553 | 1,348 | 1,348 | |||||||||||
Operation and maintenance | 337 | 352 | 1,026 | 1,012 | |||||||||||
Depreciation and amortization | 219 | 215 | 607 | 619 | |||||||||||
Taxes other than income | 65 | 63 | 193 | 182 | |||||||||||
Asset (gains) and losses, net | — | (1 | ) | (1 | ) | 13 | |||||||||
1,164 | 1,182 | 3,173 | 3,174 | ||||||||||||
Operating Income | 378 | 335 | 856 | 775 | |||||||||||
Other (Income) and Deductions | |||||||||||||||
Interest expense | 70 | 74 | 204 | 218 | |||||||||||
Other income | (14 | ) | (9 | ) | (41 | ) | (30 | ) | |||||||
Other expenses | 12 | 14 | 27 | 26 | |||||||||||
68 | 79 | 190 | 214 | ||||||||||||
Income Before Income Taxes | 310 | 256 | 666 | 561 | |||||||||||
Income Tax Expense | 115 | 98 | 247 | 214 | |||||||||||
Net Income | $ | 195 | $ | 158 | $ | 419 | $ | 347 |
MICHIGAN CONSOLIDATED GAS COMPANY
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30 | September 30 | ||||||||||||||
(In millions) | 2012 | 2011 | 2012 | 2011 | |||||||||||
Operating Revenues | $ | 157 | $ | 156 | $ | 867 | $ | 1,074 | |||||||
Operating Expenses | |||||||||||||||
Cost of gas | 20 | 35 | 350 | 526 | |||||||||||
Operation and maintenance | 88 | 91 | 282 | 294 | |||||||||||
Depreciation and amortization | 23 | 22 | 69 | 66 | |||||||||||
Taxes other than income | 10 | 11 | 41 | 42 | |||||||||||
141 | 159 | 742 | 928 | ||||||||||||
Operating Income (Loss) | 16 | (3 | ) | 125 | 146 | ||||||||||
Other (Income) and Deductions | |||||||||||||||
Interest expense | 14 | 16 | 43 | 47 | |||||||||||
Interest income | (2 | ) | (1 | ) | (5 | ) | (5 | ) | |||||||
Other income | (2 | ) | (2 | ) | (7 | ) | (5 | ) | |||||||
Other expenses | 1 | 3 | 3 | 4 | |||||||||||
11 | 16 | 34 | 41 | ||||||||||||
Income (Loss) Before Income Taxes | 5 | (19 | ) | 91 | 105 | ||||||||||
Income Tax Expense (Benefit) | 2 | (8 | ) | 32 | 37 | ||||||||||
Net Income (Loss) | $ | 3 | $ | (11 | ) | $ | 59 | $ | 68 |
DTE Energy Debt/Equity Calculation
As of September 30, 2012
($ millions)
Short-term borrowings | $ | 98 | |
Current portion of long-term debt, including capital leases | 633 | ||
Mortgage bonds, notes and other | 6,526 | ||
Securitization bonds, excluding current portion | 302 | ||
Capital lease obligations | 12 | ||
Other adjustments | 276 | ||
less Securitization bonds, including current portion | (479 | ) | |
50% Junior Subordinated Debentures | 140 | ||
Total debt | 7,508 | ||
50% Junior Subordinated Debentures | 140 | ||
Total preferred/ other | 140 | ||
Equity | 7,389 | ||
Total capitalization | $ | 15,037 | |
Debt | 50 | % | |
Junior Subordinated Debentures | 1 | % | |
Common shareholders' equity | 49 | % | |
Total | 100 | % |
Sales Analysis - Q3 2012 | ||||||||||||||||||||
Electric Sales - Detroit Edison Service Area (GWh) | Electric Billings - Detroit Edison Service Area (000s) | |||||||||||||||||||
Q3 2012 | Q3 2011 | % Change | Q3 2012 | Q3 2011 | % Change | |||||||||||||||
Residential | 4,893 | 4,863 | 1 | % | Residential | $ | 736,043 | $ | 665,301 | 11 | % | |||||||||
Commercial | 4,601 | 4,759 | (3 | )% | Commercial | 515,457 | 478,457 | 8 | % | |||||||||||
Industrial | 2,707 | 2,606 | 4 | % | Industrial | 206,142 | 186,946 | 10 | % | |||||||||||
Other (a) | 238 | 252 | (6 | )% | Other (b) | 26,907 | 50,035 | (46 | )% | |||||||||||
12,439 | 12,480 | �� | 0 | % | $ | 1,484,549 | $ | 1,380,739 | 8 | % | ||||||||||
Choice | 1,372 | 1,394 | (2 | )% | Choice | 23,684 | 26,160 | (9 | )% | |||||||||||
TOTAL SALES | 13,811 | 13,874 | 0 | % | TOTAL | $ | 1,508,233 | $ | 1,406,899 | 7 | % | |||||||||
________________ | ________________ | |||||||||||||||||||
(a) 2011 excludes 530 GWh related to a wholesale contract terminated Dec 2011 | (b) 2011 includes $23,579k related to a wholesale contract terminated Dec 2011 |
Gas Sales - MichCon Service Area (MMcf) | Gas Billings - MichCon Service Area (000s) | |||||||||||||||||||
Q3 2012 | Q3 2011 | % Change | Q3 2012 | Q3 2011 | % Change | |||||||||||||||
Residential | 5,943 | 7,123 | (17 | )% | Residential | $ | 76,382 | $ | 85,932 | (11 | )% | |||||||||
Commercial | 1,250 | 1,531 | (18 | )% | Commercial | 14,532 | 17,442 | (17 | )% | |||||||||||
Industrial | 90 | 110 | (18 | )% | Industrial | 716 | 886 | (19 | )% | |||||||||||
7,283 | 8,764 | (17 | )% | $ | 91,630 | $ | 104,260 | (12 | )% | |||||||||||
End User Transportation* | 32,991 | 25,722 | 28 | % | End User Transportation* | 33,733 | 30,332 | 11 | % | |||||||||||
TOTAL SALES | 40,274 | 34,486 | 17 | % | TOTAL | $ | 125,363 | $ | 134,592 | (7 | )% | |||||||||
________________ | ________________ | |||||||||||||||||||
* Includes choice customers | * Includes choice customers |
Weather | ||||||||||||
Cooling Degree Days | Heating Degree Days | |||||||||||
Detroit Edison service territory | MichCon service territory | |||||||||||
Q3 2012 | Q3 2011 | % Change | Q3 2012 | Q3 2011 | % Change | |||||||
Actuals | 768 | 793 | (3)% | Actuals | 144 | 142 | 1% | |||||
Normal | 537 | 537 | Normal | 125 | 128 | |||||||
Deviation from normal | 43% | 48% | Deviation from normal | 15% | 11% | |||||||
Earnings Impact of Weather | |||||||
Variance from normal weather (millions, after-tax) | |||||||
Q3 2012 | Q3 2011 | ||||||
Detroit Edison* | $ | 40 | $ | — | |||
MichCon | 1 | 1 | |||||
________________ | |||||||
* Pre 2012 Detroit Edison earnings not affected by weather due to RDM mechanism |
Sales Analysis - YTD September 30, 2012 | ||||||||||||||||||||
Electric Sales - Detroit Edison Service Area (GWh) | Electric Billings - Detroit Edison Service Area (000s) | |||||||||||||||||||
YTD 2012 | YTD 2011 | % Change | YTD 2012 | YTD 2011 | % Change | |||||||||||||||
Residential | 12,180 | 12,358 | (1 | )% | Residential | $ | 1,823,316 | $ | 1,679,205 | 9 | % | |||||||||
Commercial | 12,734 | 12,750 | 0 | % | Commercial | 1,435,902 | 1,283,431 | 12 | % | |||||||||||
Industrial | 7,645 | 7,353 | 4 | % | Industrial | 596,550 | 520,634 | 15 | % | |||||||||||
Other (a) | 717 | 771 | (7 | )% | Other (b) | 79,710 | 148,199 | (46 | )% | |||||||||||
33,276 | 33,232 | 0 | % | $ | 3,935,478 | $ | 3,631,469 | 8 | % | |||||||||||
Choice | 3,938 | 4,104 | (4 | )% | Choice | 68,309 | 77,671 | (12 | )% | |||||||||||
TOTAL SALES | 37,214 | 37,336 | 0 | % | TOTAL | $ | 4,003,787 | $ | 3,709,140 | 8 | % | |||||||||
________________ | ________________ | |||||||||||||||||||
(a) 2011 excludes 1,572 GWh related to a wholesale contract terminated Dec 2011 | (b) 2011 includes $69,521k related to a wholesale contract terminated Dec 2011 |
Gas Sales - MichCon Service Area (MMcf) | Gas Billings - MichCon Service Area (000s) | |||||||||||||||||||
YTD 2012 | YTD 2011 | % Change | YTD 2012 | YTD 2011 | % Change | |||||||||||||||
Residential | 54,005 | 68,913 | (22 | )% | Residential | $ | 516,496 | $ | 677,691 | (24 | )% | |||||||||
Commercial | 12,296 | 17,204 | (29 | )% | Commercial | 110,741 | 162,262 | (32 | )% | |||||||||||
Industrial | 719 | 613 | 17 | % | Industrial | 5,676 | 5,105 | 11 | % | |||||||||||
67,020 | 86,730 | (23 | )% | $ | 632,913 | $ | 845,058 | (25 | )% | |||||||||||
End User Transportation* | 114,808 | 104,788 | 10 | % | End User Transportation* | 146,496 | 154,747 | (5 | )% | |||||||||||
TOTAL SALES | 181,828 | 191,518 | (5 | )% | TOTAL | $ | 779,409 | $ | 999,805 | (22 | )% | |||||||||
________________ | ________________ | |||||||||||||||||||
* Includes choice customers | * Includes choice customers |
Weather | ||||||||||||
Cooling Degree Days | Heating Degree Days | |||||||||||
Detroit Edison service territory | MichCon service territory | |||||||||||
YTD 2012 | YTD 2011 | % Change | YTD 2012 | YTD 2011 | % Change | |||||||
Actuals | 1,114 | 1,035 | 8% | Actuals | 3,322 | 4,416 | (25)% | |||||
Normal | 730 | 730 | Normal | 4,131 | 4,144 | |||||||
Deviation from normal | 53% | 42% | Deviation from normal | (20)% | 7% | |||||||
Earnings Impact of Weather | |||||||
Variance from normal weather (millions, after-tax) | |||||||
YTD 2012 | YTD 2011 | ||||||
Detroit Edison* | $ | 50 | $ | — | |||
MichCon | (25 | ) | 11 | ||||
________________ | |||||||
* Pre 2012 Detroit Edison earnings not affected by weather due to RDM mechanism |
Detroit Edison Temperature Normal Sales Analysis - September 30, 2012 | ||||||||||||||||||
Temperature Normal Electric Sales - Detroit Edison Service Area (GWh) | Temperature Normal Electric Sales - Detroit Edison Service Area (Includes Electric Choice) (GWh) | |||||||||||||||||
YTD 2012 | YTD 2011 | % Change | YTD 2012 | YTD 2011 | % Change | |||||||||||||
Residential | 11,478 | 11,484 | 0 | % | Residential | 11,479 | 11,485 | 0 | % | |||||||||
Commercial | 12,331 | 12,431 | (1 | )% | Commercial | 14,621 | 14,915 | (2 | )% | |||||||||
Industrial | 7,603 | 7,320 | 4 | % | Industrial | 9,163 | 8,872 | 3 | % | |||||||||
Other (a) | 717 | 771 | (7 | )% | Other (a) | 717 | 771 | (7 | )% | |||||||||
32,129 | 32,006 | 0 | % | 35,980 | 36,043 | 0 | % | |||||||||||
Choice | 3,851 | 4,036 | (5 | )% | ||||||||||||||
TOTAL SALES | 35,980 | 36,042 | 0 | % | ||||||||||||||
________________ | ||||||||||||||||||
(a) 2011 excludes 1,572 GWh related to a wholesale contract terminated Dec 2011 |