DTE - Earnings call transcript Q3 2020

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to the DTE Energy Third Quarter Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers’ presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded. [Operator Instructions] I would now like to hand the conference over to your speaker for today, Barbara Tuckfield, Director of Investor Relations. ahead. go Please

Barbara Tuckfield

good and Thank morning, you, everyone.

statements. get remind to we of presentation, to would on like to read the forward-looking reference the I everyone including the X Before Page started, safe statement harbor

will a and Our presentation also operating the of that measure. this references discuss presentation. to earnings reconciliation are CEO, provided refer the Norcia, earnings appendix morning non-GAAP of a With announced which to today's we operating Please GAAP this financial DTE earnings, transitions includes who predominantly is President to in utility. Jerry pure-play transaction the us morning into

on of also President independent Skaggs, Bob member President Senior and on We CFO And Company, XXXX a the midstream transaction. and of and finally, to now few say early quarter, the a outlook. our of Directors Company Ruud, the the provide words Midstream will our of of DTE guidance increased start benefits it this new XXXX call And Chairman-elect Midstream Dave and will Midstream you Slater, and an David Jerry over turn CEO-elect earnings new morning. take and our Executive the who company. COO an President I'll Vice have will Board of the to update through

Gerardo Norcia

is Barb, Well, everyone safe. morning, healthy staying joining hope everyone, and I and good us thanks, and thanks today. for

our and growth well-positioned positioning for DTE Energy. has will Board So I'll unlock the utility Directors and that it DTE creating we Midstream with shareholder start a as on with of growth from midstream demonstrate call, excellent company by pure-play independent and potential. On will value of spin-off how the announced This an a Slide predominantly management superior DTE spin-off visible to significant X. authorized this morning, discuss pursue plan

year. and This provide EPS XXth employees results, and want to a DTE us positions and giving continue the we creating increase for guidance leaders for be confidence uncertainty. operating to row. an XX,XXX XXXX our turmoil update year our the of success all exceed guidance which original at I with great on year tremendous the in very for a Now will to thank you to this strong, us

firing our delivering our and grit of customers, keeping people is on great a A the all It are of and the remarkable We investors. cylinders, and and DTE. thank for people safe you. communities, truly big of reflection certainly determination

our approved early an announcing dividend growth. X% providing strong XXXX outlook history of Board our dividend that also are XXXX, for We a and providing continuing for increase

of the with determined Now X alternatives, in business that decision on This Board best that in an end, follows evaluation portfolio long we was of Slide assets and after Haynesville strategic of a companies to comes spin for the We our various recognized to way thorough overview to the decision the after value. midstream to this of opportunities review optimize the significant basin. a our acquisition our create the down value. identify the separate maximize shareholder to spin And transaction. two

began the We of midstream, regulated as we to to own. Board about a a talking summer to midstream to high portfolio believe to with series while Because started acquisition to a pivot better-than-expected spin company. and result to pivot will a growth utility discussions has of was this midstream and value. and business continues predominantly records. DTE’s growth market shareholders. with when for our forward Through an It thrive and crystallized decision leadership a creation strategy is opportunities the spin and potential in Our the our which that significant This premier ongoing, proven the acquisition scaled pursue to midstream aggressive value entities of each continue preferences acquisition regulated pure-play provides natural and for a premium track great and we portfolio mix acquisition. create of of aligned value were prior our for two XXXX paths midstream on Haynesville pure-play XXXX, of discussions experienced utilities overall perform unlock business our the the yielded the its still utility. its agenda exceedingly assets, balance trends full mix with The well expected gas spin unlock with run well, investor growth

XXXX planned to with X% had dividends combined higher entities full current from the to pay an versus to than the expect at dividend we pre-spin. We X% increase XXXX XX% spin

believe strategically with assets With the for enhanced flexibility provides demand opportunity basins an high in separation and located greenfield a quality cash positions shareholders created industry solid flows We Midstream business decade, well and a and growth. acquisitions major in and strategic over continued connected our investment development has to has midstream markets. for midstream company. opportunities leader tremendous DTE with through For and an significant growth become premium

As the country. a industry, time most of substantial significant gas team development our amount creating at energy, and business. of a my the as time midstream the that my in and recognized you includes best amount of The have I of know, is midstream in involvement, a background one business the DTE of including dedicated

that with and this its to overall and am value how to way review So team to their is After our you midstream shareholders. full I is separation consideration important and for can and to me. business decision the enhance team achieve confident the allow potential Board, our best our the careful imagine

two our will future with be DTE future. operating for company investments them our As A an mix. into XX% and going I capital into well DTE’s earnings fully for plan both non-utility Separation five-year higher premium DTE even from XX% of beneficial regulated of our positioning midstream utilities. XX/XX percentage positions said, this earnings About the this operating will utility entities, hold a of is a truly remaining businesses. and of nearly

midstream will structures. DTE their the on provide rata of retain company. and new will details I'll new X, have Slide midstream DTE corporate the transaction. shares and of the to pro receive distinct structure shares shareholders DTE stock Turning company of a

mid-year complete XXXX We the regulatory the Energy subject registration Board. company. Board and Shaw midstream of will effective the to respected was Executive statement Slater, of Anderson, Lead of COO the David DTE industry. the continue will are President by Director. in XX being Bob the DTE’s final with to serve Ruth new CEO-elect Skaggs Independent Chairman Board CEO David and approvals. declared is well other of and company Form the current I Most Gerry with expect SEC continuing as approval, remain GSP familiar new you by and the is the to Executive of Chairman-elect spin midstream on as

he company you As Pipeline David executed and company have of to know, of as leaders the of The energy support the strong them. team extremely Columbia NiSource, a midstream is XX the CEO years Chairman many these each and in of have where successful two seasoned its to industry. Group experience went Bob on spin and Bob fortunate to along CEO. served become with really

move predominantly be Commission. This DTE Service utility. DTE Public Slide strong XX% Let's gas X. electric regulated growth of are will pure-play on DTE Energy profile of About discuss and and transaction the positions the by on Michigan to

the significant We five capital support over to will growth. utility the years next invest

X%, plan. our capital aligned $X five-year of targets. $XX capital billion, We five-year an billion investment plan growth DTE rate its are increase of substantially plan has been about growth base DTE and among aggressive target. long-term the to DTE’s our growth growing our X% rate with industry to is our ESG the and Electric, is over EPS X% long-term with the previous This earnings anticipated maintaining in over best utility strategically operating at past Gas. X% X% decade of we

preferences high-performing align regulated utilities. will DTE with profile separation for full investor's Our better

serve. communities providing will for We customers where being reliable of our and and to affordable will clean, in energy continue offer continue strong we growth live dividends. force record and a to safe, DTE competitive our the

investors we since increased dividend XXX than dividend each paid our more Our XXXX. years have year, have expect a and consecutive for

offers pure-play focused appeal and and the All-in-all, that of consistent will greater target growth investors our to We dividend financial with peers. on utility. pure-play ratio this payout utility a transaction remains characteristics strategic

our will the businesses. the strengths utility in Slide nation. to Let's of gas and move environments electric XX. has regulatory best of on Separation one core Michigan highlight the

Public the of to pandemic. during work to with to Commission distinctive closely have enabling DTE Michigan, year continue continue We record Michigan support us continuous the Service continues a superior culture, the very track management. past this to people particularly of improvement our

the in top excellence. satisfaction. Energy by am we DTE strong also the energy in with With Power. of say earning ranks top And in a have are residential a Gas, I efficiency We top-quartile energy certainly are J.D. XX both for utilities programs. proud companies to ranking to commitment customer DTE service a Midwest

with Moving DTE capital next I'll discuss slide, our beginning Electric. on the to plan

This We than XXXX. XX% be $XX carbon and expect years. of total electric billion in plan. by by about is to reduce be five the to support plan invest will in XX% billion net electric next our over renewables. of $X higher our About will That investment our company emissions XXXX zero previous the

in in We with automation technology an significant our and modernizing distribution are also system investments business. focusing our hardening, aging on distribution investment

future are We customers. grid building for flawless the our of a

long-term Our X% capital Electric for growth X% earnings plan at supports outlook rate. operating near-term to a robust DTE

investment opportunities next the Gas. discuss On will capital slide, I at DTE

capital and replace in plans a methane Gas for earnings strong of five and are the and aging to a innovative reduce products our Gas technology five-year replacement and to potential invest we that near-term footprint next investment, Overall, rate. upgrade and over the $X main the carbon operating supports infrastructure our long-term Over Along to X% emissions DTE plan. reduce plan billion will years, outlook growth pipeline integrity with our company. upside investing DTE gas and

greenhouse discuss slide, achieve our ESG to On next net zero our I further stewardship. emissions will gas to plans strengthen the

targets, quadruplet XXXX DTE to Electric, our are by committed As net XX% by we we at by a reduction I To XXXX. XXXX. XXXX these by emissions to double mentioned carbon renewable with zero and meet energy plan achieving

on drive energy Michigan This enables renewables are energy in We our to progressing invest program. voluntary to program future. also cleaner renewable a customers and

XX,XXX business than and more and customers, with have including customers GM, Michigan. Ford industrial residential enrolled large of We University

We greenhouse have with chain. across achieve comprehensive demand largest customers reductions from net commitments megawatts in of value with gas to XXXX. our emissions announced and DTE working programs This zero one Gas to country renewable plan customers. and plan the enable the XXX suppliers by of includes its unique the further our voluntary

utility growth So investment strong can DTE our as continued for you strong environmental profile a see, role. leadership positions and

to David Slater it David, company. opportunity the Now midstream you. and to to discuss over turn the I'll exciting with over new

David Slater

of had midstream everyone. years on few past know good the over we've business. morning, Thanks, Jerry, our and and I discussions you met I've most many

provides. transaction this Let say me opportunity that excited just I'm the about

We growth solid have and by as company will value. independent an our a decade benefit for business midstream significant achieved really over shareholders establishing unlocking

customers, our continue will our provide reaffirm and opportunities our relationships commitment We also partners. to to develop service our strong growth with excellent

you the will natural expanding that team premier for company success of As we company know, focus midstream an prolific demand have today. has are in growth leadership gas-focused the organic strategic most the centers. connected has The basins of value our greenfield to projects acquisitions combination businesses well-positioned on and continue company creation midstream key from to platforms. to gas enabled and creation an experienced we become independent This the been midstream

producers. cash portfolio This strong company value the enable Marcellus, Utica significant investor power only create growth a diverse electric to the have alignment C-Corp mid-cap, We offer new and midstream utilities, contracted gas-focused, our and customer generators, and will for gas a it's Haynesville base, positioned asset well shareholders. investment including The and and national industrials, portfolio better and in basins. flow generates with marketers, independent, long-term

and dividend We to a debt-to-EBITDA associated turn our the initial dividend. attractive and capital Xx platforms. balance dividend midstream ratio, strong and to And ability companies. will sheet accretive Xx balance sheet about structure talk coverage value XX midstream’s with let's pay high-quality target make policy Slide of will investments With support have competitive and a

regulated gathering. platforms; regulated As pipelines, business many comprised midstream the know, storage, is three of you and of

Blue Along is been organic economic U.S. highly strategic by and growth acquisitions. footprint, accretive business footprint extensive our growth with pipeline. will detail the through underpinned Generation Future by in Our connect counterparties, phase, strength contracts the early with the the which few in our Also over slides. the and our demand and platforms I NEXUS, basis key go the of LEAP, assets centers next includes more developed which Link development is most in is has driven in our Union, and

laterals market compression, gathering build-outs. systems, additional Additional opportunities include economic of and pipeline expansions continued

and Vector, of still high-quality but advanced stream stable cash Millennium, Storage platforms in a flows. other phase, Our Bluestone, Gas development like are a and more provide

and has adding organic platforms positioned on businesses. competitive focused gas development going pay deploy forward for to midstream So together capital a us shareholders and nicely value dividend growing midstream’s

and that growth annual since Now financial growth let's track consistently midstream results, turn to XX% average discuss business record. delivering operating Slide earnings XX has achieved The XXXX, adjusted midstream’s and annual contributed producing over are and XX% period. billion strong adjusted EBITDA is in be strong which is The $X EBITDA time has same Midstream significant XXXX. flow cash in about $XXX million. business since expected to XXXX,

assets that company. are creation for for You these of from can investors looking who unique superior see are value midstream a set the

Slide XX. Let's to move

continue centers, demand basins to plans they provide with assets the Utica counterparties perform the in have us history and we Marcellus, are Midstream’s success. Haynesville great are highlighted, midstream’s a continued have As to to dry in earlier shared attractive opportunity DTE’s most according key gas and connected year. of located which the to the

well Our XX storage portfolios for average pipeline on and years. are contracted

Our contracts, and success independent record shareholders. of the the counterparties to solid and the growth in long-term producers our from XX% major MVCs With revenue value contracts, for position has positions, gas. create an XXXX strength assets minimal XX% flowing are midstream premium our a at of opportunity markets provides have Over and and continue our of connected our is that $X.XX of maturities. solid company visible The of in near-term to over outlook. highly cash creation demand-based and flows hedged our company

like turn over it Ruud, financial to say Skaggs I few who discuss words. would DTE’s performance, will Dave to Bob a Before

Robert Skaggs

about and I'm joining honored To grateful least, reconnect the you for David. excited working are Also, we the us I'm glad Thanks, announcement. to the with everyone team. morning's investment be to very thanks and today. say with to this community.

and compelling and companies opportunity David both immediate DTE benefiting a investors. and full both delivering and for this the and for employees mentioned, their new potential, As company Jerry customers unlock spin midstream creates Energy to value long-term of

of performance As that, great new part turn to Slater this partner it company the David independent I with said, who team. Dave I'm his will thrilled midstream With be I'll Ruud, over excited discuss financial to for to now and and quarter. DTE’s

David Ruud

Bob, Thanks, morning, delivered our everyone. quarter, solid and the performances In of DTE third businesses. good across all

DTE expected and earnings our end the the to the at of end Electric, quarter, higher at GSP remember, Energy second you be we of As guidance Trading. at

to and that We more are have per operating we midpoint raising share. from our XXXX now guidance so accomplished EPS $X.XX $X per share

of the challenging delay rate time the our We DTE until with would have our continue keep case on Electric Michigan perform economic increase our are seeing customers. date year approval a customer further third rates this great we rate few Commission, residential the refund The first which made our filed Gas an We've XXXX, of Electric the the million Yesterday, of capital our which one-time progress are in are not our rates ranked And strong that amended increase for confident at recently includes plan. history rate utility XXXX and making Gas, to DTE In businesses an regulatory we steady rate keep we our innovative of customer of this forward MPSC performance Midwest plan renewable and and solid driven This usage Public DTE was satisfaction. one-time Service this we longer. a $XXX customers. plan would to voluntary progress and non-weather-related DTE unprecedented in recent defer is even during by on have the pandemic. this the our in these supports working regulatory position in non-utilities, next plan continuing response major and of will accounting are our successes where case economic ahead patterns for with increase solidify it additional will settlement as the filed result approval effective year have the It the At case of quarter, utilities, rates, received supporting treatment next the we times mentioned, received plan investment outcomes in we and customer impact one for based also on steady filing ROE approval MPSC received Jerry helped sales the approval rate renewables. our X.X%. plan. COVID-XX for energy in our year, gas no Earlier electricity Electric and plan If our residential our approved, August. DTE to increases. our

ahead into placed service budget. quarter schedule of team GSP LEAP under the in Our and

favorability experiencing positioning next O&M year also are we year. year, strong for our the results achieving a this work by With XXXX forward. increases It in we our that are some confidence pulling

XXXX, is minutes. quarter. our Again, by $X.XX great But our For from delivers early first, we $XXX more results let's Total $X.XX across share our midpoint. strong detail the strong explain that economic translates dividend was each for performance outlook businesses. increasing of supported quarter as in by by providing outlook This are the million. XXXX EPS had an This quarter were Overall, our move we mentioned, in a XX. X%. response I'll a quarter. operating midpoint per And at growth to DTE few share for into supported and third operating XXXX original savings in plan which earnings per we Slide are X% guidance this third segment, growth financial the

the of warmer sales, XXXX, primarily weather quarter. page million utilities. including breakdown a implementation Electric of appendix. find in can the review $XX higher our to EPS were the higher residential the and rates by reported reconciliation new due GAAP earnings with start the earnings I'll in to top DTE of than segment, detailed at You the our

to were increase Gas. lower costs. on The Operating year. O&M than Moving $XX infrastructure the mechanism recovery DTE is million driven higher earnings and earnings by primarily last

down XXXX, pipelines keep driven pipeline, which and on August primarily Let's earnings row. moving versus business were of Operating system of by the our quarter into the $XX million year LEAP X. Union storage up went page and gas the operation the Blue on the to third first of third service

steel-related is onsite On This and earnings you million can $X Power of RNG the offset energy the to segment. partially due see lower were Operating by our quarter new decrease and row, projects. Industrial lower than next third business XXXX. sales,

next Trading to our see at can On row, lower the you earnings $X performance. compared were operating due the year, portfolio our Energy to power million business mainly last

Finally, Corporate higher DTE primarily Overall, and $X.XX third due quarter in quarter by third timing of Other $XX than quarter-over-quarter, earned share XXXX. taxes. XXXX, to was $X.XX which per the favorable of is million the of

Now review our Slide to earnings guidance. operating move to let's XXXX XX

our As created through $X.XX operating we we for far, are we having guidance executed response a per proud pandemic the said, DTE economic our team working plan. DTE to strong EPS year our continue so raising $X share this deliver and customers. very an and per share. We're We midpoint how XXXX to is and very how is from of very effectively

of continued consistently has favorability team We've also And against non-utility our ahead plan. has from weather. plan. warm that to summer finally, achieved perform Our had

our from us XXXX is operating XXXX, pull which work future future of to O&M All also seeing us allowing achieve us have ahead factors well XXXX to into year to The EPS plans. guidance. these positions we favorability are increase this led

on to XX our Slide to discuss move XXXX early Let's outlook.

$X.XX business guidance strategic provides expecting EPS At our For and infrastructure will response businesses. does P&I. share will not DTE we anticipate project continued the of other generation plan operating early reflect XXXX and drive continued XXXX, original Electric, continue process. XXXX, Gas investments. growth savings will be outlook at main pipeline cleaner cogeneration separation driven This GSP RNG provided each We and growth guidance. improvement DTE are from continue through development in see economic distribution growth of growth investments. in our will of and renewal post-transaction impacts any will XXXX the In in areas. and each by across platforms, will and per its be outlook our later a portion X% growth midpoint gathering

plan Additionally, we the remain at with midstream. consistent spin-off our with expect needs DTE’s previous equity even to

our today, Now company I your comes from XX% DTE operating our up we will coming we take wrap utilities. earnings utility a The transaction described questions. two with things pure-play predominantly before over of

Our solid in reliable communities a a continuing and of service, and communities record also our excellent company we in are one best regulatory and to environments investors. we of track and growth live will where the nation, safe energy Michigan while continue customer to providing has being committed and for customers, serve. for the force deliver the

team. strong on our dividend to track thank we for our by opportunity guidance a year for today In I success increase investment consecutive the the puts announcement on you today's position and talented and and new With in positioned and and up for original has midstream XXXX, year. with midstream midstream for company. its a premier a believe its evidenced shareholders joining The team open with questions. X% be will line enhanced grow history that, next we gas-focused Additionally, leadership company for the midpoint experienced management can as in flexibility to building exceed of an us is XXXX DTE respected provide an XXth of for

Operator

Shar this you. Please Guggenheim question first go ahead. Thank Instructions] from comes morning Pourreza Partners. Our [Operator from

Shahriar Pourreza

Hey. Good morning, guys.

Gerardo Norcia

Good morning, Shar.

Shahriar Pourreza

sort to CapEx range. means the just segment it's pressure, higher us driver the X% remind put X% just guidance near-term can and congrats on What’s original the some on X% the you or GSP coming you're the key So GSP news could forward the consolidated midstream to X% of you the of alternatively to quarter the here. the light growth there's of of that for X% comment expectations how there? spin outlook, out splitting – by you dis-synergies some obviously electric, and some replacing dilution that earnings? post off in especially versus that Can sort issuances, of Can reiterating X% kind gas. today. Is first from equity questions X% and explained of Couple of

Gerardo Norcia

Dave to years. it's growth end it's XXXX be growth certainly, I'll our then and up to But our many years. we've our EPS add. Shar, And with off always we start the the described I’ll end ask investors to consistent on that X% is pretty Ruud X% pattern base. over And it robust high our very by other seen at post-spin, see plus as our and visible. utilities. driven that will driven capital investment utilities, But of strong we’ve of We opportunities quite our this and are year programs five at both years really which

So EPS driving that? to spend. the that's the you company do what's add fundamentally to X% Ruud, X% Dave growth to for want to

David Ruud

Hi, Jerry Shar. hi, and

to you Yes. the explained of in think X% utility The actually X% to growth I equity well. are at forward. between the for X% due see confident it we coming but you in, the the very X% very to is difference what going some

Jerry. Sorry,

Gerardo Norcia

as was in we to forecasted say, be I not so had equity to the going it'll prior. of incremental we're addition as that, spin, part Shar, equity seeing any needs

Shahriar Pourreza

good any split? from then the And it. Got synergies

Gerardo Norcia

Dave Ruud?

David Ruud

or corporate will There that the will no be synergies to the there's initial some to costs year work first long-term but have we after two. at through,

Shahriar Pourreza

Perfect. Okay.

been spin, HoldCo? like And of thinking sort attributed post-spin think and of about DTE amount of on implies about the agencies as How remains we're should for sort billion Xx seems guidance to spin. the It so on sort NewCo credit forma that debt the or metrics metrics pro a and credit debt-to-EBITDA sort the the that with sizable to could the to the what's feedback you debt GSP be of of it of you tact, $X today? it when guide stay contemplated, any kind can leverage of going in about we

Gerardo Norcia

Dave?

David Ruud

to balance expect do for that maintaining enhancing We're and credit ratings. committed to us. be separation We our at a strong the will Yes. committed sheet Sure. DTE maintaining

And still so rating. metrics flexibility our solid allow grade while that's investment maintaining going some to our for

At own our and that detail in pay their them with to spin you’re structure conversations debt-to-EBITDA come current agencies we providing coming more use be the and as Xx debt months. is it capital that But as raising way initial Yes, proceeds it DTE appreciates Shar we'll they DTE, will positive. amount. developed those in require debt, same the were down those yesterday at right, midstream the will work them to planned. and we’ll the will Our

Shahriar Pourreza

just sort that today's then P&I, thoughts of lastly given majority announcement. the your non-reg maybe any slated now your to value segment And that there the really remaining just is of non-regulated me Just here on having spin? on sort Curious, perfect. businesses, mix. get Okay, for thoughts curious to on for remaining the is is of Gerardo, and a

Gerardo Norcia

Shar, doing also, projects, cogeneration invest we carbon our complimentary P&I as industrial ESG is our we're agenda to on to actually reduce RNG the way with and in their of invest customers behalf projects. some of footprint

our XX% we part as of business will it overall. small non-utility, view So It a be utility, XX% but complimentary.

Shahriar Pourreza

Terrific. Congrats guys.

Gerardo Norcia

Thank you.

Operator

from Weisel next ahead. Scotiabank. comes Andrew go from question Our Please

Andrew Weisel

morning, Good Congrats. everyone. Hey.

Gerardo Norcia

Thank morning, Good Andrew. you.

Andrew Weisel

EPS long-term bit the about guidance go a to differently. want little I question, First

pointed guide to X% more better delivered past like continuing to that, consistently where X% that in That's you're or X%. So you've X%. you the than

upside Now of came midstream. lot it from a that like seems

conservatives the actual old end? X%, still So EPS some in it that or looking take forward, growth should we think more towards higher could the DTE fashioned might good there be that rate about of

Gerardo Norcia

DTE Andrew, delivering. the to my sense you'll promising better is of and that see under over continue

contingencies and really So work X% look looking have to but good. XXXX our out looking that's strong at X% and built we always to really is we've also that year. the mid, each starting but, target, than for we're of as I done on it's And some better we XXXX, target the because course,

you'll So that I'm seen that in the better confident DTE’s to see you've continue past.

Andrew Weisel

Terrific. That's great to hear.

Next on dividends.

own we've payout growth ratios. mean, payout comments or numbers Can mentioned you you rates utility about a all average and that? on what peer I be do put You maybe but average rate? to sheets, lot comp dividend consider a peer of got growth some ratio our

Gerardo Norcia

to take want you that? do Ruud, Dave

David Ruud

ratio, remain earnings on are to is about and of pure-play with dividend going that's We’ll at forward. which best which growth, be Sure. then where that XX% right payout range, consistent growth peers around kind in our the with going we is consistent

Andrew Weisel

invested you've over historically, really is utility M&A a of look about ton the And targets $X focus question kind year think your is, appealing years, ago. midstream billion see capital recent regulated in might of now been how a for including last most what in you you My but Haynesville into world? Helpful. about much the Great. Okay. so, as acquisition My question might regulated being do to you? if the that hasn't potentially yourselves of acquisitive

Gerardo Norcia

for And have $X utility investors. will $XX which organic plan. capital that large I'll that's plan we prior create mention Andrew, utility very again a a five-year right than billion program now, capital our our tremendous for investors, billion higher our is value

focused we're highly – to growth opportunities. organic I So on our going remain

So no in at this we time in thoughts M&A. or really have point of intentions terms

Andrew Weisel

Okay. can of sale if for utility the were to, given you approached about comment pure-play business one to were be the And potential the if new look? a you

Gerardo Norcia

got our at We've growth we're happy platform the utilities growth great agenda to and and pursue organic that.

Andrew Weisel

congrats good. Thank very Sounds and much, again. you

Gerardo Norcia

Andrew. Thanks

Operator

next comes from Bank of question ahead. Our Julien from Please Dumoulin-Smith America. go

Julien Dumoulin-Smith

once the congratulations. once Thank – morning, Good Hey. you for more time. And team. again,

Gerardo Norcia

Julien. morning, Good

Julien Dumoulin-Smith

of the me just bit think to follow-up credit I side, Hey, the on folks howdy. ask more little of a Perhaps cleanup here. a lot

be about what you said, would call we it you closer debt minimum asked try your Just And you this of Do to here? to to because that want about just indirectly target you're peers, your earlier, – at XX% FFO back XX%? think be think being on around thoughts some come now, this but this, been should to know a credit clear enhancing. specifically I extra might've new

Gerardo Norcia

Dave Ruud?

David Ruud

obviously with credit working agency. through and we're enhancing. that We Yes, the it in do think we're is discussions

– but FFO through the peers, that's in could so details yes, be down do opportunity our that's it work something have And think we as we line we to defined the with here. can move debt more to

Julien Dumoulin-Smith

at you'll this of and specifically perhaps forward Got your up that a because the And on moving basis? an provide think right? to rest it. it into think given you X% coming position well be roll of once pro you this step you When on P&I updated segment, you think leading to how more you'll asked back in When have well? do baseline, obviously do that downs close the is a When to current the forma provide base, sort you'll X%, you're about as a as least the I as holding view XX do credit or view, you here. updated off question an maybe X% X% thinking

Gerardo Norcia

want you that? to do Dave, take

David Ruud

Yes.

when plan a but forward, some will to in beginning this. XXXX it level of are played detail on things Our all sometime before is before pro they out, forma more roll the is on how will we'll this be get

Julien Dumoulin-Smith

it. Got

think think you down the the and So yet do about right? the it? baseline, ref When do wouldn't you include step that for

Gerardo Norcia

projections, P&I. Julian XXXX working and our on areas we EPS at to that does growth we've replacement X% when those rate, forward and X% include Well, our put been step-down the the

– to will X%... So our we X%

Julien Dumoulin-Smith

between stress only I discrepancy absolutely. on your fixated and utility your the the Sure, it consolidate been because questions has earlier growth.

So that's fixated could potentially there. item beyond you I'm on big why when move that

you very thank much. Well, Excellent. Okay. all

think it there. leave I'll I

Operator

Our next question comes Suisse. ahead. go Michael Please from Credit from Weinstein

Michael Weinstein

guys. Hi, morning. Good

Gerardo Norcia

Michael. morning, Good

Michael Weinstein

the sell Berkshire bit Hathaway, little about to… like a business similar another midstream talk buyer not just to why you Could

Gerardo Norcia

please. Go ahead,

Michael Weinstein

via Yes, other the that's spin, question.

Gerardo Norcia

examined opinion, for And a we pure-play to the more this investors created We series those a all and of our our greatest the we make of model. when in pivot we utility alternatives shareholder as spin, value through alternatives, that of amount looked going were looking found forward. Yes. at

Michael Weinstein

any is – a with compete And already debt-to-EBITDA level, that to stressed? traded publicly kind of under Xx there low that's also consequences? the sector sector enough Are midstream tax that's is

Gerardo Norcia

a And their pursue consequences. and and programs. Well a as designed the provide certainly, very capital is company spin. no growth debt growth, as strong dividend of to are tax-free the will strong there tax midstream level be provide tremendous to dividends well This competitive flexibility a be new

Michael Weinstein

to that's unchanged that it's enough forward? just How dividend questions. issue, any Shar’s said DTE just wondering follow-up on I is I'm that remain you've business? after enhancing, would the needs equity – at going but cash not And credit flow from this on Energy needs to equity change lost if

Gerardo Norcia

Dave do that? Ruud, to want you take

David Ruud

equity with help those or support we converts in, in that XXXX, enhancing, credit lack very additional need. We equity of see that the the our come the our there, plan we plan. the have equity additional previous mentioned you doing consistent still do piece but do The

Michael Weinstein

rate That's you you'll question. coming one next probably When up electric And the do think year. file Great. early case? next last

Gerardo Norcia

much our but on but delay next going as flexible quarter now. year, we're try we're at to We are to remain looking possible, going obviously baseline first as that's to and right that

Michael Weinstein

you right. All Thank Okay. very much.

Operator

go Storozynski Our Global. from Please Seaport from Angie next question comes ahead.

Angie Storozynski

Hi. Thank you. I questions. of have actually just a couple

first, CapEx. remember of about I impedes sort the how The affordability you your ability the utility issue previous grow EEI talked Conference, to guys

and year? growth since showing the increase this the so last us on side, potential this what's sizable side, on very gas changed electric Now you're

Gerardo Norcia

been the earlier pandemic Well, this at Angie, perspective sitting structure in to opportunities And get $X some while could I a addition us needed and billion as good the in cost we to room, fact what do, that, have we on as The was utilities. significant mentioned question. our we sidelines to in done looking but in, from both for revealed doing calls, years. for had pandemic created very many, create revealing we room. many affordability what And we affordability to

in that's affordability utilities. how room so capital few our that found plan the bring And into to a for we

Angie Storozynski

Okay. And understand CapEx with billion that the I waiting $X.X incremental forward spending? approved, on hasn't that the so been side, gas of what we're this additional

Gerardo Norcia

$X.X billion $X the The strong affordability in, opportunity of a electric position very billion our that. in we're company. which of is was at sort both initiatives display looking that plan. into we're trying utilities. the same at that's was the inventory company We've bring for $X that at the the is And investment plan something got gas billion in to to The

Angie Storozynski

the point? earnings as – out and what's the of starting Great. XXXX, that that The I is $X.XX reiterating, basis, the it understand basically like what's to GSP what's XXXX. X% other for stripping you're So the X% growth

Gerardo Norcia

to Dave, do you want that? take

David Ruud

the year to baseline. we're removed will is X% now based spend to next from What having GSP X% there X% for Yes. as the X% didn't as on be showing is we if – that based

Angie Storozynski

going on that be that Okay. or would expenses And something be like of to type reallocation not level any parent of there is that XXXX number?

David Ruud

through We those they're how to parent the level expected material… will be internally, have we've expenses and but to managed work not

Angie Storozynski

Okay. my midstream last spin-off. question And the about

the from have that XXXX perspective, associated of multiples tend at. multiple is Can set gathering us see we big about is with that And which percentage with assets disparity will of EBITDA – we multiples. – this multiple? business what to the this date investors the gathering you versus about give trading between So what pipeline be trade sense a [indiscernible] up meaningfully that lower the

Gerardo Norcia

do that? to you want take Slater, David

David Slater

disclosed we that's question. good what to Sure. XX% is have Yes, to good pipeline talk gathering about in a our the and and we've percentages. are And Angie, XX% about Can Jerry. income previously business, you. storage segment, in percentages XX% those

question. good a that's proxy for your So

Angie Storozynski

indicate so how with relatively billion, [indiscernible] is technical of has market on Well, a because it mind not. around $X would which a Okay. have that $X.X or pressure like would – stock math low simple – in that stock strong that's performed billion investors based your cap business

So why [indiscernible] small be. that values it's pressure that potential convinced cap relatively to you going and were given technical the market

Gerardo Norcia

plus with sort five strong utility our creates premiere for the opportunity Well, capital we utilities investors years. spin think will program have the inside invest growth structure regulated XX/XX in a of that first to of all that

when company dividend we for attractive midstream is think and it's well-capitalized, going current also strong in to investors midstream be to we peers very to it And, have its compare and investors investment growth. be going a Our DTE.

David Slater

add Jerry, to if maybe. I that could

Gerardo Norcia

Sure.

David Slater

opportunity a best country. dry predominantly it's support And laying over gas growth I in gas the and its investment a lot of and be think the going fundamentally very in midstream is there's natural basins areas. the Yes. space, portfolio Angie, to really unique those in fundamental

for are a looking think high-quality will very investment that opportunity investment, those be think it I for So this really investors midstream I attractive.

Angie Storozynski

Great. Thank you.

Operator

Steve Wolfe go from Please Research. from Our ahead. Fleishman next question comes

Steven Fleishman

congrats. Hey, Yes.

Gerardo Norcia

Steve. Good morning,

Steven Fleishman

Hey, Jerry.

sure to So I'm answer positioned you're this. not

on, and this. something said was this of came happy out being As going kind Elliott with about call

you any might've could characterize or just involvement comment So with had on to how they this that?

Gerardo Norcia

analysts started start pivot and we pivot it between and of started towards on few the Steve we investors So this culminated series potential that of talked feedback. a and But of lots by discussion saying And that Board and going to summer not to. I'll to we talk specifically was in to the just talk investors, of management comment really utility days. at get last a in the pure-play model XXXX. don't about talk looking and We I'm lots to

Steven Fleishman

company get a sense then the of just financials. new kind the on kind And Okay. of of thoughts

And for have able debt So more, be business fund had that cash FFO been somewhat credit, utility versus a regulated obviously flow the separated, from would meaningfully what a debt. I pure to this is to like that peers at utility. be at you be gas would it for if the XX% the you’ll assume regulated look largely that with FFO that largely your will what – lower the should you XX target at? to range you you've but plus

Gerardo Norcia

to Dave you want Ruud, take do that?

David Ruud

to in we actually in them range. when XX% that we our peers, see at down the Yes, look XX%

maintaining still are to our We ratings. committed

will this we're expect be be do with really enhancement that So we that, going to but careful credit us. for

Steven Fleishman

so the And of together out Okay. there business, kind had growth just on targets midstream for business. you midstream a then the lastly,

target? Could is growth it versus – income how business X.X% prior on midstream type I for it think is it XXXX, growth you'd like it you through said the that And of XXXX? net track XXXX? I thing. what was was with was just on comment through before guess tracking

Gerardo Norcia

So would Slater. then say nothing growth I Steve turn a business. has perspective fundamentally I'll start in over our I'll David to from changed and that it mainstream But

All pursuing to some of add out. opportunities organic color that more David Slater, that? to you the continue don’t we were play why

David Slater

and coming in that's great along. great just yesterday to that's and a I'd management going And changed excellent great reiterate be team that Sure, company operating new that's a team, business got nothing team a And leading absolutely between question. this Jerry. today. Steve, the We've has

described Corp, sector. new question As detailed C putting best-in-class basins earlier changed say expected I as to asking a in out we answer we'll of standing progress as be the lot the business. the guidance through are kind more certainly this fundamentals here. forward a the a suffice And of granularity If strengthening we the But just midstream move nothing's be process right absolutely in the up anything, in able it you're in now. detail guidance and forward in to

midstream that's feel in in it's we in – company as really investment the to investors vehicle centers. that midstream new There's space those Corp attached like and the for provide be today. this company strong exist really market particular basins of really positioned the about to this It doesn't some positive an another So not some really the around will going positioned sector company C country.

Steven Fleishman

Thank you. Great.

Operator

Chopra from from comes question Evercore Our ISI. next ahead. Durgesh Please go

Durgesh Chopra

Hey, Good morning. team.

Gerardo Norcia

Good morning.

Durgesh Chopra

Good morning.

tax Just implications of the spin. real quick follow-up the on

you XXXXs, believe tax its remind be impact… been a I it us, when to and are mid just could payer? expected Just you

Gerardo Norcia

Ruud? Dave

David Ruud

I XXXXs, Yes, and able that. you're was will to free sure don't get on that. mid to influence XXXX, We’ll spend. Currently it back be – tax it this is you right. to see We expect for

Durgesh Chopra

strong year, execution maybe then on on Okay, to sort you front perfect. guidance. COVID XXXX into and on terms one this expect are just we the assuming anything as What one then obviously well? if And of of quick in XXXX that impacts should O&M continue

Gerardo Norcia

I extremely would well. positioned is say XXXX

forward very we our know, years. plan for you conservatively As

potentially of the patterns or expenses. changes in significant loan to incremental accommodate contingency we’ve So sort any

I position So in really about feel XXXX. our good

Durgesh Chopra

perfect. guys. Okay, Thanks

Operator

next ahead. Burke Stephen Morgan Stanley. go Please from comes question from Our

Stephen Burke

Hey, good and morning, congratulations.

Gerardo Norcia

morning. you. Good Thank

Stephen Burke

sense needed physical maintenance, I flat the to about on especially business for business. and wanted you of to CapEx not How talk Would base do just flows think give a cash us about about EBITDA? running the gathering be you need to maintenance flat thinking but just I'm the the midstream business. keep keep CapEx, to the of the sort able the capital

Gerardo Norcia

it's start I'll system. new saying Well, by relatively a this

you will to CapEx to maintenance some that? But those dollars So at want color Slater, do best. add modest David be

David Slater

Jerry. Sure,

be number And that's company very capital foreseeable mature we midstream so the have as networks maintain. to providing that a companies this all approach some question. And more be other future. that'll generally more having spin that the new, systems to compare going a modest very after around you maintenance larger definitely as the required midstream that with small they're great we're especially You're exactly Steve but date, color right. And are of

Stephen Burke

Understood. Yes.

quality, the physical, us for economic through just sense, give not in guess business think low, gathering all you the a just thinking I more you on a but get the of credit that, maintenance As I'd love moving could assume nature which about But gathering little to business. the the I is that information the segment quality just given any That's the modify you for have? credit question credit pretty of comes a curious you notices and think ratings, of up in common to other terminate just that sort especially, how particular side agreements customer or on range protections terms on of of about customer quality credit just there. the sort gathering to

Gerardo Norcia

David?

David Slater

Steve. Yes. another question, excellent That's Sure.

in disclosed obligations in enhancement put really forward as the only those detail protect So agreements, lot and we we when but of there credit we our of we've the the not Haynesville on did a receivables, to this past that most one last clauses provided customers In have. the transaction year.

So hard-coded and DNA. be It's that all, do our let's that's sort my statement that. of into sort first would of

our back would it customers I of effect enhancing the our this bigger the business stepped credit – past of obviously side party. the profile with counter kind has gathering a Southwestern, in So But like of I Cabot, shared the as know and on of some we've Indigo, Antero. be of names

that monitor of in that at of with some the information us names have they quarter-by-quarter. And again, with are their lot that are closely portfolio. our share and a very those So we've looked of lot detail, credit a

And have in their strengthening with them current gas. of are cash benefiting flows It's natural strengthening no dry fundamental that monitoring So are good and all environment the those and in we're the significant before positions. customers all closely. these companies. maturities They

actually how profile just credit look at It's their strengthening. we see when their so and see long-term look to easy And trading. their at debt you – it's

credit strengthening a profile see customers. clearly can You gathering our across

Stephen Burke

helpful. for last really And just me. That's one

definition free there are you something any laid all of is cash date? cash some flow, the that EBITDA metrics that whether are going cash on beyond distributable later Just flow overall, a for flow, you out, flow, the about midstream that think or additional cash business to provide

David Slater

Yes.

up metrics. to midstream best-in-class. we're Those right, what would Steve. make And best-in-class of going exactly opportunity this company standing You're are call the I new, it with

through you So the forward details to share those to time down spending and we're work all with and going date look we to spin when get closer that. road

Stephen Burke

you all That's much. I so Thank Understood. had.

Operator

Capital Our from next James Please go question Thalacker ahead. from comes BMO Markets.

James Thalacker

very and good you morning. Thank much,

Gerardo Norcia

Good morning.

James Thalacker

determination Most the questions you P&I potentially a you and of two those my explore I divesting obviously and/or questions. quick retain business, was just pure-play, or businesses? and but is, as market what were becoming down the the to been both winding guess did at the answered, first energy looking real

Gerardo Norcia

start that for for alternatives shareholder We to all saying the when saw as ESG of remaining really biggest to platform, GSE. at we our our P&I shareholders, XX% with complimentary that value So spin create unlock James we our I'll mover agenda by utility value our our looked saw which will create the and business. to was incremental be

we've so decided time. And to pursue at this this in path point

James Thalacker

convertible more finance to then issue debt. have like times. guess, Okay. that could pure-play going business. of on teens. Great. outlook, was lot a The bunch mid just And that think XX%, been to incremental you the of a what equity you down And of either on question just, but I the guess, flexibility forward equity the you or But midstream it, XXXX know to seems us not in conversion, I utility, the also, was have you’ve I targeting sort a with top you a also should use of It basis? I probably be remind I for the in maybe done asked

thinking guidance, your equity was in period? provide you guess, could So some the much for how five-year about I you're now how plan

Gerardo Norcia

Ruud, Dave take do that? want to you

David Ruud

in appendix the of units on plan. And million. to in can in the and our next see that XXXX And Slide Sure. billion – was into deck it it convertible in million $XXX equity issuances, the showed year – that $X.X equity $XXX you was previous planned XX, then come

with what consistent seeing was that So we're forward. going

James Thalacker

$XXX that's you move, million $XXX I of to million we type going XXXX, is expect be or material guess, be issuances? [indiscernible] more of just to this going or something any sort beyond as But should equity,

Gerardo Norcia

see no our that no there equity plan those in In issuances major we forward, and years. are going

James Thalacker

Thank Great. much. you Okay. very

Operator

next Tonet Our comes question from JPMorgan. Please Jeremy from go ahead.

Jeremy Tonet

growth reason just far Just get that. of of this to trajectory feel there underpinned – see MDC? to contractually to remind is is in as for with growth earning earnings through type is think trying that growth a XXXX, just [Indiscernible] any us trying how as that EBITDA much but Thanks. to different growth

Gerardo Norcia

David, do you take that? to want

David Slater

time had Jerry. a going I Jeremy, hard hearing repeat little the Sure, your it. beginning question. to of just I'm

kind and I enhanced. of think you're of asking about EBITDA earnings that versus how growth growth, is much

So answer, you that's change the I'm going if it can I wrong. and got it question to

first reiterate, previously what disclosed. business to changed has just So off, from we've the nothing in

year So year performed resilient respect incredibly strong difficult well a to has sector business the and the this year, and the incredibly is difficult have in pandemic. been with to

business. gives me confidence of of of So lots durability that the the

growth, and growth in moving we income terms In tandem of growth. EBITDA the what with

answered I as be earlier, I again, think And a true we as progress statement. lot get guidance and I sort details spin to providing granular we'll think that's of a generally closer date. more best-in-class

that the So I answered trust question.

Jeremy Tonet

pretty with sounds Yes. see over it it unique growth sounds want seems – in contractually that's That's [indiscernible] helpful. like underpinned the And demand XX% contracts, to just it that it like like midstream does.

the say anything entity that's looking I you that really out surely strategic X% else in what comment don't of outlook, I just you space kind right anyone far as the near forward building unique talk average is on that's the then maybe organic peers helpful. [indiscernible] as can there is know towards itself, now. of Good there. that. growth, So And low-end don't can midstream about know the

you to going to things maybe these if just into want or doing get strong is you there for So guys base it that strategically? change seems a be sense you really some you're anything like to to going have to going what – stick could – flexibility and anything your there,

David Slater

a That's Yes. great Yes. question.

is the from people attached provide to all an centers these investor and – are at resources in vehicle going perspective country that market that in literally the for midstream they're the the to resources in the positioned investment best look off the exposure around the to you natural And company now, best two. the assets when attention year to First gas they're the an to right have basins want country. are next expect or in analysts the get positioned and the the across country assets great

up So sheet It's I going to with to setting in we alluded think we're And very healthy distinctive it. and sector. unique that investment believe the vehicle a have what that portfolio continue you we've to healthy a I'll a it balance we highly a is is dividend very to strategic forward intent and continued going flexibility accretive of information. that to around and a had, investments call assets on asymmetrical which the lot competitive where be value of make advantage have generating

again, in investor expected in base So significant spin approach the good plan no there's conversations detail laying strategic and as date, here forward. think I'm the with we don't out forward shift to more the But yes, looking I that's going near-term. having

for question. Thanks thanks. the Jeremy So

Jeremy Tonet

Thank you.

Operator

Please Jonathan go from Arnold comes question Vertical from next Our Research. ahead.

Jonathan Arnold

morning, Good Yes. guys.

Gerardo Norcia

morning. Good

Jonathan Arnold

you've of the question you referring during more that significant a off million that the on. alluding Jerry, the, $XX guess Or just is Are replacement XXXX couple. pathway base includes the the something that? you've you I been about about? origination maybe that to talked a you adjusted working year Just will REF, that mentioned original outlook to

Gerardo Norcia

been incorrect. year million so we've income, a the in that essentially new you're it's $XX No, originating

Jonathan Arnold

Okay.

So I there were just about case that maybe secondly I its XXXX. base case wasn't comment about in I saying material. your And think at. the a of else you delaying the lot a comment and made. wonder make something And was to just what you're want in recently the hinting filing was it there put context you you'd then, potentially if there next clarify, early made rate sure could there timing?

Gerardo Norcia

Great question. Sure.

for and of incremental pandemic company So strong our COVID sales that to some relates as the been driven portion by markets. due we've really had this year to year residential it has electric a and

in of we're those to of us deferring rate is So reconsider gives increase case. What does the XXXX a XXXX. offset to doing portion Jonathan filing earnings that that what in rate opportunity timing essentially the potential a is

about. really that's that's So what

Jonathan Arnold

Okay. And will Is good just still that suggestion a far a differ how roughly it of year? assumption? any

Gerardo Norcia

But Jonathan. say early It's we'll probably update we as you too to move to forward. continue

Jonathan Arnold

you. Thank Great.

Gerardo Norcia

before of like decision. to that see We'd out to XXXX play we a started portion make

Jonathan Arnold

much. you very Thank Okay.

Operator

Our from next from comes Fishman question David Sachs. Goldman go Please ahead.

David Fishman

Good morning.

Gerardo Norcia

morning. Good

David Fishman

tax on for spin taxpayer any ongoing when position much few is material there a is cash the plan? spin? there Does pull your this you know of impact your cash Or either? not Just I for itself might tax-free, impact a become as is questions the but regulated me. there five-year the forward [indiscernible] a to

Gerardo Norcia

Ruud? Dave

David Ruud

Yes.

the we'll on you going into more is look and let We’re and get And – know to that. that to there. we'll what impact have back you see to

we are taxpayers cash XXXX. You until weren't right,

David Fishman

Okay.

David Ruud

think don't will don't We of have much impact material have think it will this – a though. we

David Fishman

the maybe mentioned mix as rates? to you see so you're a XX/XX $XX broadly cogeneration? on to or and know. Good but still that And growing then RNG P&I, guess, the comment guys be pretty the could REF million Okay. you on there I for just really back enough regulated post shooting the of I versus longer-term, growth year, kind know for, much do you especially elevated maintain given what regulated P&I opportunity set unregulated expect a And you

Gerardo Norcia

still David cogen. Well, seeing And nearly P&I we're the to being that's RNG what a is is opportunity good there. that able we we to described, and now, see in grow which sectors

stages we're that's really about. front, right on We now one good have RNG that the in late feeling

will years. and next of it the return portfolio to But see at mix be going we're XX/XX our there, five see it forward. we a so continuing And activity but over nice that do very part small really

David Fishman

energy. Okay. still And then, I the guess, on clean

On talked XXXX. X.X about had by the you a renewables, gigawatt guys initially voluntary target

that like XXXX. of big by looks you was forward. gone out the for your pull conversations filings amount it long updated clearly that second How years, because five if over that a Your had kind next maybe went even XXXX, the seems half nearly you've of

maybe could how more bit us decade of out you the on kind is a little kind shaping color of there? little bit Just if give a whole

Gerardo Norcia

that have product time the tell Well, have very you this hard a has have renewables that program we to It's voluntary I on a shelf. been exciting. we keeping

customers industrial this residential usage portfolios a are power our We to our and – green and customers large up customers for it want also industrial quite selling their bit portfolios. product power even smaller really

able So as that look, to as the continue to you've to said, X.X continue hit to much sell and we're forward, but projections we've we had been into will but this pull we better gigawatts, go as ever our update market. market forward we'll in doing anticipated than when we

David Fishman

EEI is little or… more Got it. on this something a at And bit I get imagine to color

Gerardo Norcia

EEI, some tell an of what update provide those builds. sold that for you and that. more We'll build commission Yes. develop in We've filings continue we XXX can have to the going got but front we we update at pursue And market, to learn as we're megawatts you. and we'll more is now to

David Fishman

as touched know energy what say keeping of strategic the just kind for you of me. DTE business, part it. And then last the trading you would briefly as the business ongoing trading the with kind of Got upon energy rationale is this, a entity? I one

Gerardo Norcia

and we a grow. maker. to company it be certainly to David, we it's is what our business in really market that use part for small And look of very a our

manage customers. facilities, primary for with of So either behalf our or even use little the on in And risks really those we our and that for business. purpose with it example, that's to investments cogen of our ourselves RNG projects

David Fishman

Got it.

Okay. and Congratulations, thanks for questions. my taking

Gerardo Norcia

Thank you.

Operator

for today The final ahead. question Please have go comes from Levine we from Citi. time Ryan

Ryan Levine

morning. Good

Gerardo Norcia

morning. Good

Ryan Levine

event what the DTE today? to tax tax need portfolio midstream basis company to Midstream DTE current public triggering long avoid So DTE’s remain a in is shareholders? for a how would And

Gerardo Norcia

David?

David Ruud

– that of our tax we DTE Midstream. or haven't me, – in the don't said second I was released tax Well, excuse our we’ve basis What that basis think the was question? what half

Ryan Levine

shareholders? And a need to triggering long event a Would then willing company that? taxable Midstream for remain how you avoid to to public current disclose DTE also be would DTE

David Ruud

we'll think I have you get to that to on one. back

Gerardo Norcia

Yes.

David Ruud

[Indiscernible]

Ryan Levine

XXXX dividend Midstream about the this forma release then are in ratio Xx thinking the press defining Okay. new DTE are And setting pro dividend for how you coverage and how you policy, company? for a

Gerardo Norcia

Ruud? Dave

David Ruud

nailed coverage Yes. how a will over be totally about competitive we That's one consistent we the as plan but and cash that down company, Xx we distributable doing with flow peers that establish dividend companies. still be midstream other dividend with to ratio, and that's and established that's the to midstream defined do that talked

Ryan Levine

Okay. Thank you.

Operator

Q&A I This back concludes Mr. to for comments. Jerry like call, final would portion turn and today's the it of to Norcia

Gerardo Norcia

you. unlock I Thank start XXXX, DTE had finish to strong close today. everyone I'll XXXX. Well, and value a a joining very us for hope great at really safe. few the you, I healthy thank to Midstream well quarter in our to had solid believe positioned weeks by morning stay everyone are for and and shareholders we talking spin at great EEI. to will look forward all and future significant a for growth. I of you drive and a saying

Operator

you conference once today's Thank for participating. concludes call. this gentlemen, more and Ladies

disconnect. You may now

DTE Energy (DTE) 27 Oct 202020 Q3 Earnings call transcript