Exhibit 99.1
DTE Energy Company
Consolidated Statements of Financial Position (Unaudited)
Consolidated Statements of Financial Position (Unaudited)
June 30 | December 31 | |||||||
(in Millions) | 2009 | 2008 | ||||||
ASSETS | ||||||||
Current Assets | ||||||||
Cash and cash equivalents | $ | 42 | $ | 86 | ||||
Restricted cash | 69 | 86 | ||||||
Accounts receivable (less allowance for doubtful accounts of $293 and $265, respectively) | ||||||||
Customer | 1,164 | 1,666 | ||||||
Other | 117 | 166 | ||||||
Inventories | ||||||||
Fuel and gas | 258 | 333 | ||||||
Materials and supplies | 201 | 206 | ||||||
Deferred income taxes | 207 | 227 | ||||||
Derivative assets | 319 | 316 | ||||||
Other | 158 | 242 | ||||||
2,535 | 3,328 | |||||||
Investments | ||||||||
Nuclear decommissioning trust funds | 716 | 685 | ||||||
Other | 610 | 595 | ||||||
1,326 | 1,280 | |||||||
Property | ||||||||
Property, plant and equipment | 20,359 | 20,065 | ||||||
Less accumulated depreciation and depletion | (7,966 | ) | (7,834 | ) | ||||
12,393 | 12,231 | |||||||
Other Assets | ||||||||
Goodwill | 2,037 | 2,037 | ||||||
Regulatory assets | 4,145 | 4,231 | ||||||
Securitized regulatory assets | 937 | 1,001 | ||||||
Intangible assets | 58 | 70 | ||||||
Notes receivable | 117 | 115 | ||||||
Derivative assets | 155 | 140 | ||||||
Other | 192 | 157 | ||||||
7,641 | 7,751 | |||||||
Total Assets | $ | 23,895 | $ | 24,590 | ||||
DTE Energy Company
Consolidated Statements of Financial Position (Unaudited)
Consolidated Statements of Financial Position (Unaudited)
June 30 | December 31 | |||||||
(in Millions, Except Shares) | 2009 | 2008 | ||||||
LIABILITIES AND EQUITY | ||||||||
Current Liabilities | ||||||||
Accounts payable | $ | 611 | $ | 899 | ||||
Accrued interest | 117 | 119 | ||||||
Dividends payable | 87 | 86 | ||||||
Short-term borrowings | 201 | 744 | ||||||
Current portion long-term debt, including capital leases | 167 | 362 | ||||||
Derivative liabilities | 288 | 285 | ||||||
Other | 605 | 518 | ||||||
2,076 | 3,013 | |||||||
Long-Term Debt (net of current portion) | ||||||||
Mortgage bonds, notes and other | 6,739 | 6,458 | ||||||
Securitization bonds | 861 | 932 | ||||||
Trust preferred-linked securities | 289 | 289 | ||||||
Capital lease obligations | 54 | 62 | ||||||
7,943 | 7,741 | |||||||
Other Liabilities | ||||||||
Deferred income taxes | 2,025 | 1,958 | ||||||
Regulatory liabilities | 1,201 | 1,202 | ||||||
Asset retirement obligations | 1,378 | 1,340 | ||||||
Unamortized investment tax credit | 91 | 96 | ||||||
Derivative liabilities | 269 | 344 | ||||||
Liabilities from transportation and storage contracts | 103 | 111 | ||||||
Accrued pension liability | 798 | 871 | ||||||
Accrued postretirement liability | 1,413 | 1,434 | ||||||
Nuclear decommissioning | 119 | 114 | ||||||
Other | 300 | 328 | ||||||
7,697 | 7,798 | |||||||
Commitments and Contingencies | ||||||||
Shareholders’ Equity | ||||||||
Common stock, without par value, 400,000,000 shares authorized, 164,472,648 and 163,019,596 shares issued and outstanding, respectively | 3,214 | 3,175 | ||||||
Retained earnings | 3,072 | 2,985 | ||||||
Accumulated other comprehensive loss | (145 | ) | (165 | ) | ||||
Total DTE Energy Company Shareholders’ Equity | 6,141 | 5,995 | ||||||
Noncontrolling interests | 38 | 43 | ||||||
Total Equity | 6,179 | 6,038 | ||||||
Total Liabilities and Equity | $ | 23,895 | $ | 24,590 | ||||
DTEEnergy Company
Consolidated Statements of Cash Flows (Unaudited)
Consolidated Statements of Cash Flows (Unaudited)
Six Months Ended | ||||||||
June 30 | ||||||||
(in Millions) | 2009 | 2008 | ||||||
Operating Activities | ||||||||
Net income | $ | 263 | $ | 245 | ||||
Adjustments to reconcile net income to net cash from operating activities: | ||||||||
Depreciation, depletion and amortization | 472 | 440 | ||||||
Deferred income taxes | 88 | 180 | ||||||
Gain on sale of non-utility assets | — | (128 | ) | |||||
Other asset (gains), losses and reserves, net | 3 | 12 | ||||||
Gain on sale of interests in synfuel projects | — | (15 | ) | |||||
Contributions from synfuel partners | — | 30 | ||||||
Changes in assets and liabilities, exclusive of changes shown separately | 475 | 771 | ||||||
Net cash from operating activities | 1,301 | 1,535 | ||||||
Investing Activities | ||||||||
Plant and equipment expenditures — utility | (581 | ) | (544 | ) | ||||
Plant and equipment expenditures — non-utility | (32 | ) | (110 | ) | ||||
Proceeds from sale of interests in synfuel projects | — | 82 | ||||||
Refunds to synfuel partners | — | (96 | ) | |||||
Proceeds from sale of non-utility assets | — | 253 | ||||||
Proceeds from sale of other assets, net | 32 | 16 | ||||||
Restricted cash for debt redemptions | 17 | 54 | ||||||
Proceeds from sale of nuclear decommissioning trust fund assets | 182 | 106 | ||||||
Investment in nuclear decommissioning trust funds | (190 | ) | (124 | ) | ||||
Other investments | (38 | ) | (89 | ) | ||||
Net cash used for investing activities | (610 | ) | (452 | ) | ||||
Financing Activities | ||||||||
Issuance of long-term debt | 363 | 798 | ||||||
Redemption of long-term debt | (355 | ) | (154 | ) | ||||
Repurchase of long-term debt | — | (238 | ) | |||||
Short-term borrowings, net | (575 | ) | (984 | ) | ||||
Issuance of common stock | 18 | — | ||||||
Repurchase of common stock | — | (16 | ) | |||||
Dividends on common stock | (173 | ) | (172 | ) | ||||
Other | (13 | ) | (6 | ) | ||||
Net cash used for financing activities | (735 | ) | (772 | ) | ||||
Net Increase (Decrease) in Cash and Cash Equivalents | (44 | ) | 311 | |||||
Cash and Cash Equivalents Reclassified from Assets Held for Sale | — | 11 | ||||||
Cash and Cash Equivalents at Beginning of Period | 86 | 123 | ||||||
Cash and Cash Equivalents at End of Period | $ | 42 | $ | 445 | ||||
The Detroit Edison Company
Consolidated Statements of Operations (Unaudited)
Consolidated Statements of Operations (Unaudited)
Three Months Ended | Six Months Ended | |||||||||||||||
June 30 | June 30 | |||||||||||||||
(in Millions) | 2009 | 2008 | 2009 | 2008 | ||||||||||||
Operating Revenues | $ | 1,108 | $ | 1,173 | $ | 2,226 | $ | 2,326 | ||||||||
Operating Expenses | ||||||||||||||||
Fuel and purchased power | 372 | 415 | 712 | 817 | ||||||||||||
Operation and maintenance | 306 | 369 | 622 | 727 | ||||||||||||
Depreciation and amortization | 197 | 178 | 385 | 370 | ||||||||||||
Taxes other than income | 44 | 60 | 104 | 122 | ||||||||||||
919 | 1,022 | 1,823 | 2,036 | |||||||||||||
Operating Income | 189 | 151 | 403 | 290 | ||||||||||||
Other (Income) and Deductions | ||||||||||||||||
Interest expense | 84 | 71 | 163 | 147 | ||||||||||||
Interest income | (1 | ) | (1 | ) | (1 | ) | (2 | ) | ||||||||
Other income | (10 | ) | (11 | ) | (17 | ) | (23 | ) | ||||||||
Other expenses | (12 | ) | 12 | — | 23 | |||||||||||
61 | 71 | 145 | 145 | |||||||||||||
Income Before Income Taxes | 128 | 80 | 258 | 145 | ||||||||||||
Income Tax Provision | 49 | 29 | 101 | 53 | ||||||||||||
Net Income | $ | 79 | $ | 51 | $ | 157 | $ | 92 | ||||||||
MICHIGAN CONSOLIDATED GAS COMPANY
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
Three Months Ended | Six Months Ended | |||||||||||||||
June 30 | June 30 | |||||||||||||||
(in Millions) | 2009 | 2008 | 2009 | 2008 | ||||||||||||
Operating Revenues | $ | 289 | $ | 381 | $ | 1,048 | $ | 1,277 | ||||||||
Operating Expenses | ||||||||||||||||
Cost of gas | 136 | 210 | 639 | 854 | ||||||||||||
Operation and maintenance | 118 | 149 | 232 | 271 | ||||||||||||
Depreciation and amortization | 27 | 25 | 53 | 50 | ||||||||||||
Taxes other than income | 13 | 12 | 26 | 25 | ||||||||||||
Asset (gains) and losses, net | (1 | ) | — | (1 | ) | — | ||||||||||
293 | 396 | 949 | 1,200 | |||||||||||||
Operating Income (Loss) | (4 | ) | (15 | ) | 99 | 77 | ||||||||||
Other (Income) and Deductions | ||||||||||||||||
Interest expense | 16 | 14 | 32 | 30 | ||||||||||||
Interest income | (2 | ) | (2 | ) | (4 | ) | (4 | ) | ||||||||
Other income | (2 | ) | (4 | ) | (5 | ) | (6 | ) | ||||||||
Other expenses | 1 | 2 | 4 | 5 | ||||||||||||
13 | 10 | 27 | 25 | |||||||||||||
Income (Loss) Before Income Taxes | (17 | ) | (25 | ) | 72 | 52 | ||||||||||
Income Tax Provision (Benefit) | (5 | ) | (8 | ) | 21 | 15 | ||||||||||
Net Income (Loss) | $ | (12 | ) | $ | (17 | ) | $ | 51 | $ | 37 | ||||||
DTE Energy Debt/Equity Calculation
As of June 30, 2009
($ millions)
As of June 30, 2009
($ millions)
Short-term borrowings | $ | 201 | ||
Current portion of long-term debt, including capital leases | 167 | |||
Mortgage bonds, notes and other | 6,739 | |||
Securitization bonds, excluding current portion | 861 | |||
Capital lease obligations | 54 | |||
less MichCon short-term debt | (113 | ) | ||
less Securitization bonds, including current portion | (996 | ) | ||
Total debt | 6,913 | |||
Trust preferred-linked securities | 289 | |||
Total preferred/ other | 289 | |||
Equity | 6,141 | |||
Total capitalization | $ | 13,343 | ||
Debt | 51.8 | % | ||
Preferred | 2.2 | % | ||
Common shareholders’ equity | 46.0 | % | ||
Total | 100.0 | % | ||
Sales Analysis — Q2 2009
Electric Sales — Detroit Edison Service Area (GWh)
Q2 2009 | Q2 2008 | % Change | ||||||||||
Residential | 3,147 | 3,428 | -8 | % | ||||||||
Commercial | 4,536 | 4,913 | -8 | % | ||||||||
Industrial | 2,385 | 3,231 | -26 | % | ||||||||
Other | 782 | 787 | -1 | % | ||||||||
10,850 | 12,359 | -12 | % | |||||||||
Choice | 344 | 296 | 16 | % | ||||||||
TOTAL SALES | 11,194 | 12,655 | -12 | % | ||||||||
Electric Revenue — Detroit Edison Service Area ($000s)
Q2 2009 | Q2 2008 | % Change | ||||||||||
Residential | 383,943 | 375,200 | 2 | % | ||||||||
Commercial | 419,027 | 456,612 | -8 | % | ||||||||
Industrial | 183,181 | 224,016 | -18 | % | ||||||||
Other | 38,109 | 42,398 | -10 | % | ||||||||
1,024,260 | 1,098,226 | -7 | % | |||||||||
Choice | 8,662 | 3,694 | 134 | % | ||||||||
TOTAL REVENUES | 1,032,922 | 1,101,920 | -6 | % | ||||||||
Gas Sales — MichCon Service Area (Mcf)
Q2 2009 | Q2 2008 | % Change | ||||||||||
Residential | 14,068 | 13,849 | 2 | % | ||||||||
Commercial | 3,672 | 4,160 | -12 | % | ||||||||
Industrial | 140 | 149 | -6 | % | ||||||||
17,880 | 18,158 | -2 | % | |||||||||
End User | ||||||||||||
Transportation* | 21,436 | 22,517 | -5 | % | ||||||||
TOTAL SALES | 39,316 | 40,675 | -3 | % | ||||||||
* | Includes choice customers |
Gas Revenue — MichCon Service Area ($000s)
Q2 2009 | Q2 2008 | % Change | ||||||||||
Residential | 159,471 | 187,734 | -15 | % | ||||||||
Commercial | 40,820 | 53,993 | -24 | % | ||||||||
Industrial | 1,173 | 1,637 | -28 | % | ||||||||
201,464 | 243,364 | -17 | % | |||||||||
End User | ||||||||||||
Transportation* | 26,897 | 32,493 | -17 | % | ||||||||
TOTAL REVENUES | 228,361 | 275,857 | -17 | % | ||||||||
* | Includes choice customers |
Weather
Cooling Degree Days
Detroit Edison service territory
Detroit Edison service territory
Q2 2009 | Q2 2008 | % Change | ||||||||||
Actuals | 154 | 204 | -25 | % | ||||||||
Normal | 193 | 193 | ||||||||||
Deviation from normal | -20 | % | 6 | % |
Heating Degree Days
MichCon service territory
MichCon service territory
Q2 2009 | Q2 2008 | % Change | ||||||||||
Actuals | 827 | 774 | 7 | % | ||||||||
Normal | 865 | 865 | ||||||||||
Deviation from normal | -4 | % | -11 | % |
Earnings Impact of Weather
Variance from normal weather ($millions, after-tax)
Variance from normal weather ($millions, after-tax)
Q2 2009 | Q2 2008 | |||||||||
Detroit Edison | (14 | ) | (1 | ) | Colder weather reduced Detroit Edison’s earnings by $14M Q2 2009 | |||||
MichCon | (1 | ) | (3 | ) | Milder weather reduced MichCon’s earnings by $1M Q2 2009 |
Sales Analysis — YTD June 30, 2009
Electric Sales — Detroit Edison Service Area (GWh)
YTD 2009 | YTD 2008 | % Change | ||||||||||
Residential | 6,885 | 7,360 | -6 | % | ||||||||
Commercial | 8,959 | 9,275 | -3 | % | ||||||||
Industrial | 5,022 | 6,747 | -26 | % | ||||||||
Other | 1,599 | 1,619 | -1 | % | ||||||||
22,465 | 25,001 | -10 | % | |||||||||
Choice | 661 | 752 | -12 | % | ||||||||
TOTAL SALES | 23,126 | 25,753 | -10 | % | ||||||||
Electric Revenue — Detroit Edison Service Area ($000s)
YTD 2009 | YTD 2008 | % Change | ||||||||||
Residential | 830,966 | 805,252 | 3 | % | ||||||||
Commercial | 829,055 | 844,167 | -2 | % | ||||||||
Industrial | 380,231 | 454,889 | -16 | % | ||||||||
Other | 87,023 | 86,112 | 1 | % | ||||||||
2,127,275 | 2,190,420 | -3 | % | |||||||||
Choice | 19,788 | 15,038 | 32 | % | ||||||||
TOTAL REVENUES | 2,147,063 | 2,205,458 | -3 | % | ||||||||
Gas Sales — MichCon Service Area (Mcf)
YTD 2009 | YTD 2008 | % Change | ||||||||||
Residential | 64,259 | 65,587 | -2 | % | ||||||||
Commercial | 20,099 | 21,854 | -8 | % | ||||||||
Industrial | 735 | 549 | 34 | % | ||||||||
85,093 | 87,990 | -3 | % | |||||||||
End User | ||||||||||||
Transportation* | 63,041 | 66,773 | -6 | % | ||||||||
TOTAL SALES | 148,134 | 154,763 | -4 | % | ||||||||
* | Includes choice customers |
Gas Revenue — MichCon Service Area ($000s)
YTD 2009 | YTD 2008 | % Change | ||||||||||
Residential | 646,279 | 713,205 | -9 | % | ||||||||
Commercial | 200,592 | 233,273 | -14 | % | ||||||||
Industrial | 6,266 | 5,916 | 6 | % | ||||||||
853,137 | 952,394 | -10 | % | |||||||||
End User | ||||||||||||
Transportation* | 79,253 | 82,937 | -4 | % | ||||||||
TOTAL REVENUES | 932,390 | 1,035,331 | -10 | % | ||||||||
* | Includes choice customers |
Weather
Cooling Degree Days
Detroit Edison service territory
Detroit Edison service territory
YTD 2009 | YTD 2008 | % Change | ||||||||||
Actuals | 154 | 204 | -25 | % | ||||||||
Normal | 193 | 193 | ||||||||||
Deviation from normal | -20 | % | 6 | % |
Heating Degree Days
MichCon service territory
MichCon service territory
YTD 2009 | YTD 2008 | % Change | ||||||||||
Actuals | 4,224 | 4,155 | 2 | % | ||||||||
Normal | 4,171 | 4,199 | ||||||||||
Deviation from normal | 1 | % | -1 | % |
Earnings Impact of Weather
Variance from normal weather ($millions, after-tax)
Variance from normal weather ($millions, after-tax)
YTD 2009 | YTD 2008 | |||||||||
Detroit Edison | (12 | ) | — | Colder weather reduced Detroit Edison’s earnings by $12M YTD 2009 | ||||||
MichCon | 1 | (2 | ) | Colder weather increased MichCon’s earnings by $1M YTD 2009 |
DTE Energy Company
Reconciliation of Reported Earnings to Operating Earnings (Unaudited)
Reconciliation of Reported Earnings to Operating Earnings (Unaudited)
Three Months Ended | ||||||||||||
June 30, 2009 | ||||||||||||
Reported | Operating | Operating | ||||||||||
(in Millions) | Earnings | Adjustments | Earnings | |||||||||
Operating Revenues | $ | 1,688 | $ | 1,688 | ||||||||
Operating Expenses | ||||||||||||
Fuel, purchased power and gas | 577 | 577 | ||||||||||
Operation and maintenance | 595 | (14 | ) | 581 | ||||||||
Depreciation, depletion and amortization | 240 | 240 | ||||||||||
Taxes other than income | 61 | 61 | ||||||||||
Gain on sale of non-utility assets | — | — | ||||||||||
Other asset (gains) and losses, reserves and impairments, net | — | — | ||||||||||
1,473 | (14 | ) | 1,459 | |||||||||
Operating Income | 215 | 14 | 229 | |||||||||
Other (Income) and Deductions | ||||||||||||
Interest expense | 134 | 134 | ||||||||||
Interest income | (3 | ) | (3 | ) | ||||||||
Other income | (22 | ) | (2 | ) | (24 | ) | ||||||
Other expenses | (5 | ) | (5 | ) | ||||||||
104 | 2 | 106 | ||||||||||
Income Before Income Taxes | 111 | 16 | 127 | |||||||||
Income Tax Provision | 27 | 7 | 34 | |||||||||
Income from Continuing Operations | 84 | 9 | 93 | |||||||||
Discontinued Operations Income, net of tax | — | — | ||||||||||
Net Income | 84 | 9 | 93 | |||||||||
Less: Net Income Attributable to the Noncontrolling Interests From | ||||||||||||
Continuing operations | 1 | 1 | ||||||||||
Discontinued operations | — | — | ||||||||||
1 | 1 | |||||||||||
Net Income Attributable to DTE Energy Company | $ | 83 | $ | 9 | $ | 92 | ||||||
DTE Energy Company
Reconciliation of Reported Earnings to Operating Earnings (Unaudited)
Reconciliation of Reported Earnings to Operating Earnings (Unaudited)
Six Months Ended | ||||||||||||
June 30, 2009 | ||||||||||||
Reported | Operating | Operating | ||||||||||
(in Millions) | Earnings | Adjustments | Earnings | |||||||||
Operating Revenues | $ | 3,943 | $ | 3,943 | ||||||||
Operating Expenses | ||||||||||||
Fuel, purchased power and gas | 1,537 | 1,537 | ||||||||||
Operation and maintenance | 1,186 | (14 | ) | 1,172 | ||||||||
Depreciation, depletion and amortization | 472 | 472 | ||||||||||
Taxes other than income | 141 | 141 | ||||||||||
Gain on sale of non-utility assets | — | — | ||||||||||
Other asset (gains) and losses, reserves and impairments, net | (3 | ) | (3 | ) | ||||||||
3,333 | (14 | ) | 3,319 | |||||||||
Operating Income | 610 | 14 | 624 | |||||||||
Other (Income) and Deductions | ||||||||||||
Interest expense | 266 | 266 | ||||||||||
Interest income | (6 | ) | (6 | ) | ||||||||
Other income | (46 | ) | (2 | ) | (48 | ) | ||||||
Other expenses | 9 | 9 | ||||||||||
223 | 2 | 225 | ||||||||||
Income Before Income Taxes | 387 | 16 | 403 | |||||||||
Income Tax Provision | 124 | 7 | 131 | |||||||||
Income from Continuing Operations | 263 | 9 | 272 | |||||||||
Discontinued Operations Income, net of tax | — | — | ||||||||||
Net Income | 263 | 9 | 272 | |||||||||
Less: Net Income Attributable to the Noncontrolling Interests From | ||||||||||||
Continuing operations | 2 | 2 | ||||||||||
Discontinued operations | — | — | ||||||||||
2 | 2 | |||||||||||
Net Income Attributable to DTE Energy Company | $ | 261 | $ | 9 | $ | 270 | ||||||