EXHIBIT 99.2
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DTE Energy Company
Consolidated Statements of Financial Position (Unaudited)
June 30, | December 31, | ||||||
2013 | 2012 | ||||||
(In millions) | |||||||
ASSETS | |||||||
Current Assets | |||||||
Cash and cash equivalents | $ | 46 | $ | 65 | |||
Restricted cash, principally Securitization | 112 | 122 | |||||
Accounts receivable (less allowance for doubtful accounts of $63 and $62, respectively) | |||||||
Customer | 1,314 | 1,336 | |||||
Other | 102 | 126 | |||||
Inventories | |||||||
Fuel and gas | 378 | 527 | |||||
Materials and supplies | 249 | 234 | |||||
Deferred income taxes | — | 21 | |||||
Derivative assets | 90 | 108 | |||||
Regulatory assets | 90 | 182 | |||||
Other | 115 | 194 | |||||
2,496 | 2,915 | ||||||
Investments | |||||||
Nuclear decommissioning trust funds | 1,080 | 1,037 | |||||
Other | 574 | 554 | |||||
1,654 | 1,591 | ||||||
Property | |||||||
Property, plant and equipment | 24,356 | 23,631 | |||||
Less accumulated depreciation, depletion and amortization | (9,166 | ) | (8,947 | ) | |||
15,190 | 14,684 | ||||||
Other Assets | |||||||
Goodwill | 2,018 | 2,018 | |||||
Regulatory assets | 3,790 | 4,235 | |||||
Securitized regulatory assets | 326 | 413 | |||||
Intangible assets | 138 | 135 | |||||
Notes receivable | 106 | 112 | |||||
Derivative assets | 27 | 39 | |||||
Other | 199 | 197 | |||||
6,604 | 7,149 | ||||||
Total Assets | $ | 25,944 | $ | 26,339 |
DTE Energy Company
Consolidated Statements of Financial Position (Unaudited) — (Continued)
June 30, | December 31, | ||||||
2013 | 2012 | ||||||
(In millions, except shares) | |||||||
LIABILITIES AND EQUITY | |||||||
Current Liabilities | |||||||
Accounts payable | $ | 808 | $ | 848 | |||
Accrued interest | 97 | 93 | |||||
Dividends payable | 229 | 107 | |||||
Short-term borrowings | 216 | 240 | |||||
Current portion long-term debt, including capital leases | 879 | 817 | |||||
Derivative liabilities | 90 | 125 | |||||
Gas inventory equalization | 73 | — | |||||
Other | 570 | 538 | |||||
2,962 | 2,768 | ||||||
Long-Term Debt (net of current portion) | |||||||
Mortgage bonds, notes and other | 6,116 | 6,220 | |||||
Securitization bonds | 201 | 302 | |||||
Junior subordinated debentures | 480 | 480 | |||||
Capital lease obligations | 9 | 12 | |||||
6,806 | 7,014 | ||||||
Other Liabilities | |||||||
Deferred income taxes | 3,280 | 3,191 | |||||
Regulatory liabilities | 954 | 1,031 | |||||
Asset retirement obligations | 1,784 | 1,719 | |||||
Unamortized investment tax credit | 51 | 56 | |||||
Derivative liabilities | 16 | 26 | |||||
Accrued pension liability | 1,355 | 1,498 | |||||
Accrued postretirement liability | 702 | 1,160 | |||||
Nuclear decommissioning | 164 | 159 | |||||
Other | 283 | 306 | |||||
8,589 | 9,146 | ||||||
Commitments and Contingencies | |||||||
Equity | |||||||
Common stock, without par value, 400,000,000 shares authorized, 174,960,000 and 172,351,680 shares issued and outstanding, respectively | 3,762 | 3,587 | |||||
Retained earnings | 3,945 | 3,944 | |||||
Accumulated other comprehensive loss | (155 | ) | (158 | ) | |||
Total DTE Energy Company Equity | 7,552 | 7,373 | |||||
Noncontrolling interests | 35 | 38 | |||||
Total Equity | 7,587 | 7,411 | |||||
Total Liabilities and Equity | $ | 25,944 | $ | 26,339 |
DTE Energy Company
Consolidated Statements of Cash Flows (Unaudited)
Six Months Ended June 30, | |||||||
2013 | 2012 | ||||||
(In millions) | |||||||
Operating Activities | |||||||
Net income | $ | 342 | $ | 305 | |||
Adjustments to reconcile net income to net cash from operating activities: | |||||||
Depreciation, depletion and amortization | 527 | 482 | |||||
Deferred income taxes | 123 | 81 | |||||
Asset (gains) and losses, reserves and impairments, net | — | (7 | ) | ||||
Changes in assets and liabilities, exclusive of changes shown separately | 275 | 300 | |||||
Net cash from operating activities | 1,267 | 1,161 | |||||
Investing Activities | |||||||
Plant and equipment expenditures — utility | (708 | ) | (708 | ) | |||
Plant and equipment expenditures — non-utility | (197 | ) | (131 | ) | |||
Proceeds from sale of assets | 15 | 15 | |||||
Restricted cash for debt redemption, principally Securitization | 10 | 15 | |||||
Proceeds from sale of nuclear decommissioning trust fund assets | 27 | 36 | |||||
Investment in nuclear decommissioning trust funds | (35 | ) | (44 | ) | |||
Other | (23 | ) | (15 | ) | |||
Net cash used for investing activities | (911 | ) | (832 | ) | |||
Financing Activities | |||||||
Issuance of long-term debt | 371 | 496 | |||||
Redemption of long-term debt | (515 | ) | (140 | ) | |||
Short-term borrowings, net | (24 | ) | (380 | ) | |||
Issuance of common stock | 19 | 20 | |||||
Dividends on common stock | (215 | ) | (199 | ) | |||
Other | (11 | ) | (9 | ) | |||
Net cash used for financing activities | (375 | ) | (212 | ) | |||
Net Increase (Decrease) in Cash and Cash Equivalents | (19 | ) | 117 | ||||
Cash and Cash Equivalents at Beginning of Period | 65 | 68 | |||||
Cash and Cash Equivalents at End of Period | $ | 46 | $ | 185 |
DTE Electric Company
Consolidated Statements of Operations (Unaudited)
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
(In millions) | |||||||||||||||
Operating Revenues | $ | 1,265 | $ | 1,289 | $ | 2,484 | $ | 2,487 | |||||||
Operating Expenses | |||||||||||||||
Fuel and purchased power | 435 | 428 | 807 | 805 | |||||||||||
Operation and maintenance | 343 | 334 | 674 | 689 | |||||||||||
Depreciation and amortization | 221 | 203 | 433 | 388 | |||||||||||
Taxes other than income | 63 | 60 | 133 | 128 | |||||||||||
Asset (gains) losses and reserves, net | 1 | (1 | ) | — | (1 | ) | |||||||||
1,063 | 1,024 | 2,047 | 2,009 | ||||||||||||
Operating Income | 202 | 265 | 437 | 478 | |||||||||||
Other (Income) and Deductions | |||||||||||||||
Interest expense | 68 | 65 | 134 | 134 | |||||||||||
Other income | (9 | ) | (11 | ) | (24 | ) | (27 | ) | |||||||
Other expenses | 6 | 9 | 12 | 15 | |||||||||||
65 | 63 | 122 | 122 | ||||||||||||
Income Before Income Taxes | 137 | 202 | 315 | 356 | |||||||||||
Income Tax Expense | 47 | 75 | 109 | 132 | |||||||||||
Net Income | $ | 90 | $ | 127 | $ | 206 | $ | 224 |
DTE Gas Company
Consolidated Statements of Operations (Unaudited)
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
(In millions) | |||||||||||||||
Operating Revenues | $ | 243 | $ | 209 | $ | 837 | $ | 710 | |||||||
Operating Expenses | |||||||||||||||
Cost of gas | 78 | 59 | 370 | 330 | |||||||||||
Operation and maintenance | 103 | 95 | 208 | 194 | |||||||||||
Depreciation and amortization | 24 | 23 | 47 | 46 | |||||||||||
Taxes other than income | 14 | 13 | 31 | 31 | |||||||||||
219 | 190 | 656 | 601 | ||||||||||||
Operating Income | 24 | 19 | 181 | 109 | |||||||||||
Other (Income) and Deductions | |||||||||||||||
Interest expense | 14 | 14 | 29 | 29 | |||||||||||
Interest income | (2 | ) | (1 | ) | (3 | ) | (3 | ) | |||||||
Other income | (2 | ) | (3 | ) | (4 | ) | (5 | ) | |||||||
Other expenses | 1 | 1 | 1 | 2 | |||||||||||
11 | 11 | 23 | 23 | ||||||||||||
Income Before Income Taxes | 13 | 8 | 158 | 86 | |||||||||||
Income Tax Expense | 5 | 3 | 56 | 30 | |||||||||||
Net Income | $ | 8 | $ | 5 | $ | 102 | $ | 56 |
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DTE Energy Debt/Equity Calculation
As of June 30, 2013
($ millions)
Short-term borrowings | $ | 216 | |
Current portion of long-term debt, including capital leases | 879 | ||
Mortgage bonds, notes and other | 6,116 | ||
Securitization bonds, excluding current portion | 201 | ||
Capital lease obligations | 9 | ||
Other adjustments | 294 | ||
less Securitization bonds, including current portion | (390 | ) | |
50% Junior Subordinated Debentures | 240 | ||
Total debt | 7,565 | ||
50% Junior Subordinated Debentures | 240 | ||
Common equity | 7,587 | ||
Total adjusted equity | 7,827 | ||
Total capitalization | $ | 15,392 | |
Debt | 49.1 | % | |
Adjusted equity | 50.9 | % | |
Total | 100 | % |
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Sales Analysis - Q2 2013 | ||||||||||||||||||||
Electric Sales - DTE Electric Service Area (GWh) | Electric Billings - DTE Electric Service Area (000s) | |||||||||||||||||||
Q2 2013 | Q2 2012 | % Change | Q2 2013 | Q2 2012 | % Change | |||||||||||||||
Residential | 3,345 | 3,587 | (7 | )% | Residential | $ | 532,433 | $ | 523,858 | 2 | % | |||||||||
Commercial | 4,158 | 4,247 | (2 | )% | Commercial | 477,319 | 481,778 | (1 | )% | |||||||||||
Industrial | 2,675 | 2,563 | 4 | % | Industrial | 210,984 | 202,742 | 4 | % | |||||||||||
Other | 216 | 221 | (2 | )% | Other | 26,870 | 26,338 | 2 | % | |||||||||||
10,394 | 10,618 | (2 | )% | $ | 1,247,606 | $ | 1,234,716 | 1 | % | |||||||||||
Choice | 1,287 | 1,312 | (2 | )% | Choice | 24,222 | 23,155 | 5 | % | |||||||||||
TOTAL SALES | 11,681 | 11,930 | (2 | )% | TOTAL REVENUES | $ | 1,271,828 | $ | 1,257,871 | 1 | % |
Gas Sales - DTE Gas Service Area (MMcf) | Gas Billings - DTE Gas Service Area (000s) | |||||||||||||||||||
Q2 2013 | Q2 2012 | % Change | Q2 2013 | Q2 2012 | % Change | |||||||||||||||
Residential | 14,192 | 11,269 | 26 | % | Residential | $ | 137,548 | $ | 118,469 | 16 | % | |||||||||
Commercial | 3,024 | 2,394 | 26 | % | Commercial | 28,406 | 23,214 | 22 | % | |||||||||||
Industrial | 85 | 393 | (78 | )% | Industrial | 637 | 3,155 | (80 | )% | |||||||||||
17,301 | 14,056 | 23 | % | $ | 166,591 | $ | 144,838 | 15 | % | |||||||||||
End User Transportation* | 32,043 | 33,804 | (5 | )% | End User Transportation* | 44,637 | 39,587 | 13 | % | |||||||||||
TOTAL SALES | 49,344 | 47,860 | 3 | % | TOTAL REVENUES | $ | 211,228 | $ | 184,425 | 15 | % | |||||||||
________________ | ________________ | |||||||||||||||||||
* Includes choice customers | * Includes choice customers |
Weather | ||||||||||||||||||
Cooling Degree Days | Heating Degree Days | |||||||||||||||||
DTE Electric service territory | DTE Gas service territory | |||||||||||||||||
Q2 2013 | Q2 2012 | % Change | Q2 2013 | Q2 2012 | % Change | |||||||||||||
Actuals** | 205 | 331 | (38 | )% | Actuals | 818 | 653 | 25 | % | |||||||||
Normal | 215 | 215 | — | % | Normal | 757 | 781 | (3 | )% | |||||||||
Deviation from normal | (5 | )% | 54 | % | Deviation from normal | 8 | % | (16 | )% |
Earnings Impact of Weather | |||||||
Variance from normal weather ($ millions, after-tax) | |||||||
Q2 2013 | Q2 2012 | ||||||
DTE Electric | $ | (2 | ) | $ | 21 | ||
DTE Gas | 4 | (2 | ) | ||||
________________ | |||||||
** 2013 CDDs adjusted/normalized to reflect actual customer response to weather; AMI usage data demonstrates non-linear response to weather variation |
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Sales Analysis - YTD June 30, 2013 | ||||||||||||||||||||
Electric Sales - DTE Electric Service Area (GWh) | Electric Billings - DTE Electric Service Area (000s) | |||||||||||||||||||
YTD 2013 | YTD 2012 | % Change | YTD 2013 | YTD 2012 | % Change | |||||||||||||||
Residential | 7,199 | 7,287 | (1 | )% | Residential | $ | 1,111,169 | $ | 1,087,273 | 2 | % | |||||||||
Commercial | 8,081 | 8,132 | (1 | )% | Commercial | 918,748 | 920,445 | — | % | |||||||||||
Industrial | 5,111 | 4,938 | 4 | % | Industrial | 397,238 | 390,408 | 2 | % | |||||||||||
Other | 468 | 479 | (2 | )% | Other | 53,334 | 52,803 | 1 | % | |||||||||||
20,859 | 20,836 | — | % | $ | 2,480,489 | $ | 2,450,929 | 1 | % | |||||||||||
Choice | 2,547 | 2,567 | (1 | )% | Choice | 47,242 | 44,625 | 6 | % | |||||||||||
TOTAL SALES | 23,406 | 23,403 | — | % | TOTAL REVENUES | $ | 2,527,731 | $ | 2,495,554 | 1 | % |
Gas Sales - DTE Gas Service Area (MMcf) | Gas Billings - DTE Gas Service Area (000s) | |||||||||||||||||||
YTD 2013 | YTD 2012 | % Change | YTD 2013 | YTD 2012 | % Change | |||||||||||||||
Residential | 59,749 | 48,062 | 24 | % | Residential | $ | 507,531 | $ | 440,114 | 15 | % | |||||||||
Commercial | 13,683 | 11,046 | 24 | % | Commercial | 113,142 | 96,209 | 18 | % | |||||||||||
Industrial | 302 | 628 | (52 | )% | Industrial | 2,274 | 4,960 | (54 | )% | |||||||||||
73,734 | 59,736 | 23 | % | $ | 622,947 | $ | 541,283 | 15 | % | |||||||||||
End User Transportation* | 87,607 | 81,818 | 7 | % | End User Transportation* | 129,798 | 112,763 | 15 | % | |||||||||||
TOTAL SALES | 161,341 | 141,554 | 14 | % | TOTAL REVENUES | $ | 752,745 | $ | 654,046 | 15 | % | |||||||||
________________ | ________________ | |||||||||||||||||||
* Includes choice customers | * Includes choice customers |
Weather | ||||||||||||||||||
Cooling Degree Days | Heating Degree Days | |||||||||||||||||
DTE Electric service territory | DTE Gas service territory | |||||||||||||||||
YTD 2013 | YTD 2012 | % Change | YTD 2013 | YTD 2012 | % Change | |||||||||||||
Actuals** | 205 | 347 | (41 | )% | Actuals | 4,046 | 3,178 | 27 | % | |||||||||
Normal | 215 | 215 | — | % | Normal | 3,898 | 4,006 | (3 | )% | |||||||||
Deviation from normal | (5 | )% | 61 | % | Deviation from normal | 4 | % | (21 | )% |
Earnings Impact of Weather | |||||||
Variance from normal weather ($ millions, after-tax) | |||||||
YTD 2013 | YTD 2012 | ||||||
DTE Electric | $ | (2 | ) | $ | 10 | ||
DTE Gas | 7 | (25 | ) | ||||
________________ | |||||||
** 2013 CDDs adjusted/normalized to reflect actual customer response to weather; AMI usage data demonstrates non-linear response to weather variation |
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DTE Electric Temperature Normal Sales Analysis - YTD June 30, 2013 | ||||||||||||||||||
Temperature Normal Electric Sales - DTE Electric Service Area (GWh) | Temperature Normal Electric Sales - DTE Electric Service Area (Includes Electric Choice) (GWh) | |||||||||||||||||
YTD 2013 | YTD 2012 | % Change | YTD 2013 | YTD 2012 | % Change | |||||||||||||
Residential | 7,224 | 7,218 | — | % | Residential | 7,224 | 7,218 | — | % | |||||||||
Commercial | 8,091 | 7,974 | 1 | % | Commercial | 9,576 | 9,465 | 1 | % | |||||||||
Industrial | 5,111 | 4,920 | 4 | % | Industrial | 6,173 | 5,961 | 4 | % | |||||||||
Other | 469 | 479 | (2 | )% | Other | 469 | 479 | (2 | )% | |||||||||
20,895 | 20,591 | 1 | % | TOTAL SALES | 23,442 | 23,123 | 1 | % | ||||||||||
Choice | 2,547 | 2,532 | 1 | % | ||||||||||||||
TOTAL SALES | 23,442 | 23,123 | 1 | % |