EX-99.1 2 ex-991.htm EX-99.1 EX-99.1
Exhibit 99.1
    

DTE Energy reports second quarter 2012 results


DETROIT - DTE Energy (NYSE:DTE) today reported second quarter 2012 earnings of $146 million, or $0.86 per diluted share, compared with $202 million, or $1.19 per diluted share in 2011. Reported earnings in the second quarter of 2011 include an $88 million, or $0.52 per diluted share, adjustment to reduce income tax expense. This non-cash income tax benefit was the result of the enactment of the Michigan Corporate Income Tax in May of 2011 and the related remeasurement of deferred tax assets and liabilities at our non-utility businesses.

Operating earnings for the second quarter 2012 were $146 million, or $0.86 per diluted share, compared with 2011 operating earnings of $111 million, or $0.65 per diluted share. Operating earnings exclude non-recurring items and discontinued operations. Reconciliations of reported earnings to operating earnings are at the end of this news release.

“Record-setting high temperatures in our service territory provided an increase in demand at our electric utility,” said Gerard M. Anderson, DTE Energy chairman, president and CEO. “The hot weather and severe storms we've seen so far this summer are reminders of why DTE Energy's plan to invest $1.4 billion in our distribution system reliability over the next five years is so important.”

Anderson also highlighted new investments in renewable energy. “Last month, we started full commercial operation of the Gratiot County Wind Park, Michigan's largest wind project, which will provide the power to serve the equivalent of more than 50,000 homes. We have an additional four wind parks under construction in Michigan's thumb region that will more than double that capacity by the end of 2013. These are good examples of our ongoing commitment to invest in renewable energy.”

Reported earnings for the first six months ended June 30, 2012 were $302 million or $1.77 per diluted share versus $378 million or $2.23 per diluted share in 2011. Year-to-date operating earnings were $302 million or $1.77 per diluted share, compared with $299 million or $1.76 per diluted share in 2011.


Outlook for 2012

DTE Energy reiterated its 2012 operating earnings guidance of $3.65 to $3.95 per diluted share.

“Increased electricity usage so far this summer has boosted operating earnings and helped to offset the impact the warm first quarter had on our gas utility's earnings,” said David E. Meador, DTE Energy executive vice president and chief financial officer. “We remain on track to meet our financial goals for 2012.”
 
Meador also provided an update on DTE Energy's commitment to the State of Michigan as part of the Pure Michigan Business Connect initiative to increase spending on goods and services with Michigan-based suppliers. “We are off to a great start on our 2012 target of $575 million, with $346 million of Michigan spend through June,” said Meador. “This is an $81 million increase over year-to-date June 2011 and illustrates DTE Energy's commitment to be a force for growth and prosperity in our state.”

This earnings announcement, as well as a package of slides and supplemental information, is available at www.dteenergy.com.

DTE Energy plans to conduct a conference call with the investment community hosted by Meador at 9:00 a.m. EDT Friday, July 27, to discuss second quarter 2012 earnings results. Investors, the news media and the public may listen to a live internet broadcast of the call at www.dteenergy.com/investors. The telephone dial-in numbers are US/CAN Toll free: (800) 419-9895 or Int'l Toll: (913) 312-0643. The passcode is 4907918. The


internet broadcast will be archived on the company's website. An audio replay of the call will be available from noon today to August 10. To access the replay, dial (888) 203-1112 or (719) 457-0820 and enter passcode 4907918.

DTE Energy is a Detroit-based diversified energy company involved in the development and management of energy-related businesses and services nationwide. Its operating units include Detroit Edison, an electric utility serving 2.1 million customers in Southeastern Michigan, MichCon, a natural gas utility serving 1.2 million customers in Michigan, and other non-utility, energy businesses focused on gas storage and pipelines, unconventional gas production, power and industrial projects, and energy trading. Information about DTE Energy is available at www.dteenergy.com.

Use of Operating Earnings Information - DTE Energy management believes that operating earnings provide a more meaningful representation of the company's earnings from ongoing operations and uses operating earnings as the primary performance measurement for external communications with analysts and investors. Internally, DTE Energy uses operating earnings to measure performance against budget and to report to the Board of Directors.

In this release, DTE Energy discusses 2012 operating earnings guidance. It is likely that certain items that impact the company's 2012 reported results will be excluded from operating results. Reconciliations to the comparable 2012 reported earnings guidance are not provided because it is not possible to provide a reliable forecast of specific line items. These items may fluctuate significantly from period to period and may have a significant impact on reported earnings.

The information contained herein is as of the date of this release. DTE Energy expressly disclaims any current intention to update any forward-looking statements contained in this release as a result of new information or future events or developments. Words such as “anticipate,” “believe,” “expect,” “projected” and “goals” signify forward-looking statements. Forward-looking statements are not guarantees of future results and conditions but rather are subject to various assumptions, risks and uncertainties. This release contains forward-looking statements about DTE Energy's financial results and estimates of future prospects, and actual results may differ materially.

Many factors may impact forward-looking statements including, but not limited to, the following: impact of regulation by the FERC, MPSC, NRC and other applicable governmental proceedings and regulations, including any associated impact on rate structures; the amount and timing of cost recovery allowed as a result of regulatory proceedings, related appeals or new legislation; impact of electric and gas utility restructuring in Michigan, including legislative amendments and Customer Choice programs; economic conditions and population changes in our geographic area resulting in changes in demand, customer conservation, increased thefts of electricity and gas and high levels of uncollectible accounts receivable; environmental issues, laws, regulations, and the increasing costs of remediation and compliance, including actual and potential new federal and state requirements; health, safety, financial, environmental and regulatory risks associated with ownership and operation of nuclear facilities; changes in the cost and availability of coal and other raw materials, purchased power and natural gas; volatility in the short-term natural gas storage markets impacting third-party storage revenues; access to capital markets and the results of other financing efforts which can be affected by credit agency ratings; instability in capital markets which could impact availability of short and long-term financing; the timing and extent of changes in interest rates; the level of borrowings; the potential for losses on investments, including nuclear decommissioning and benefit plan assets and the related increases in future expense and contributions; the potential for increased costs or delays in completion of significant construction projects; the uncertainties of successful exploration of unconventional gas and oil resources and challenges in estimating gas and oil reserves with certainty; changes in and application of federal, state and local tax laws and their interpretations, including the Internal Revenue Code, regulations, rulings, court proceedings and audits; the effects of weather and other natural phenomena on operations and sales to customers, and purchases from suppliers; unplanned outages; the cost of protecting assets against, or damage due to, terrorism or cyber attacks; employee relations and the impact of collective bargaining agreements; the availability, cost, coverage and terms of insurance and stability of insurance providers; cost reduction efforts and the maximization of plant and distribution system performance; the effects of competition; changes in and application of accounting standards and financial reporting regulations; changes in federal or state laws and their interpretation with respect to regulation, energy policy and other business issues; binding arbitration, litigation and related appeals; and the risks discussed in our public filings with the Securities and Exchange Commission. New factors emerge from time to time. We cannot predict what factors may arise or how such factors may cause our results to differ materially from those contained in any forward-looking statement. Any forward-looking statements refer only as of the date on which such statements are made. We undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events. This presentation should also be read in conjunction with the “Forward-Looking Statements” sections in each of DTE Energy's and Detroit Edison's 2011 Forms 10-K and 10-Q (which sections are incorporated herein by reference), and in conjunction with other SEC reports filed by DTE Energy and Detroit Edison.

# # #

For further information, members of the media may call:

Scott Simons (313) 235-8808        Len Singer (313) 235-8809         

Analysts, for further information call:

Mark Rolling (313) 235-7663        Kurt Wasiluk (313) 235-7726    
                                    


DTE Energy Company
 
 
 
 
 
 
 
Consolidated Statements of Operations (Unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
Six Months Ended
 
June 30
 
June 30
(in Millions, Except per Share Amounts)
2012
 
2011
 
2012
 
2011
Operating Revenues
$
2,025

 
$
2,028

 
$
4,274

 
$
4,459

Operating Expenses
 
 
 
 
 
 
 
   Fuel, purchased power and gas
697

 
771

 
1,586

 
1,842

   Operation and maintenance
708

 
647

 
1,434

 
1,278

   Depreciation, depletion and amortization
250

 
248

 
482

 
493

   Taxes other than income
79

 
77

 
174

 
160

   Asset (gains) and losses, reserves and impairments, net
(3
)
 
(3
)
 
(8
)
 
8

 
1,731

 
1,740

 
3,668

 
3,781

Operating Income
294

 
288

 
606

 
678

Other (Income) and Deductions
 
 
 
 
 
 
 
   Interest expense
109

 
124

 
222

 
250

   Interest income
(3
)
 
(2
)
 
(5
)
 
(5
)
   Other income
(41
)
 
(18
)
 
(78
)
 
(39
)
   Other expenses
12

 
8

 
19

 
15

 
77

 
112

 
158

 
221

Income Before Income Taxes
217

 
176

 
448

 
457

Income Tax Expense (Benefit)
70

 
(24
)
 
143

 
79

Net Income
147

 
200

 
305

 
378

Less: Net Income (Loss) Attributable to Noncontrolling Interests
1

 
(2
)
 
3

 
—

Net Income Attributable to DTE Energy Company
$
146

 
$
202

 
$
302

 
$
378

Basic Earnings per Common Share
 
 
 
 
 
 
 
   Net Income Attributable to DTE Energy Company
$
0.86

 
$
1.19

 
$
1.77

 
$
2.23

Diluted Earnings per Common Share
 
 
 
 
 
 
 
   Net Income Attributable to DTE Energy Company
$
0.86

 
$
1.19

 
$
1.77

 
$
2.23

Weighted Average Common Shares Outstanding
 
 
 
 
 
 
 
   Basic
170

 
169

 
170

 
169

   Diluted
171

 
170

 
171

 
170

Dividends Declared per Common Share
$
0.59

 
$
0.59

 
$
1.18

 
$
1.15




DTE Energy Company
 
 
 
 
 
 
 
 
 
 
 
 
 
Segment Net Income (Unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended June 30
 
2012
 
2011
 
Reported
 
 
 
 
Operating
 
Reported
 
 
 
 
Operating
(in Millions)
Earnings
 
Adjustments
 
 
Earnings
 
Earnings
 
Adjustments
 
 
Earnings
Electric Utility
$
127

 
$
—

 
 
$
127

 
$
103

 
$
(3
)
A
 
$
100

Gas Utility
4

 
—

 
 
4

 
(3
)
 
—

 
 
(3
)
Non-utility Operations
 
 
 
 
 
 
 
 
 
 
 
 
 
  Gas Storage and Pipelines
17

 
—

 
 
17

 
14

 
—

 
 
14

  Unconventional Gas Production
(2
)
 
—

 
 
(2
)
 
(1
)
 
—

 
 
(1
)
  Power and Industrial Projects
10

 
—

 
 
10

 
5

 
—

 
 
5

  Energy Trading
4

 
—

 
 
4

 
12

 
—

 
 
12

       Total Non-utility operations
29

 
—

 
 
29

 
30

 
—

 
 
30

Corporate and Other
(14
)
 
—

 
 
(14
)
 
72

 
(88
)
B
 
(16
)
Net Income Attributable to DTE Energy Company
$
146

 
$
—

 
 
$
146

 
$
202

 
$
(91
)
 
 
$
111

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjustments key
 
 
 
 
 
 
 
 
 
 
 
 
 
A) Fermi 1 asset retirement obligation
B) Income tax adjustment due to enactment of the Michigan Corporate Income Tax in May 2011.


DTE Energy Company
 
 
 
 
 
 
 
 
 
 
 
 
 
Segment Diluted Earnings Per Share (Unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended June 30
 
2012
 
2011
 
Reported
 
 
 
 
Operating
 
Reported
 
 
 
 
Operating
(in Millions)
Earnings
 
Adjustments
 
 
Earnings
 
Earnings
 
Adjustments
 
 
Earnings
Electric Utility
$
0.74

 
$
—

 
 
$
0.74

 
$
0.61

 
$
(0.02
)
A
 
$
0.59

Gas Utility
0.02

 
—

 
 
0.02

 
(0.02
)
 
—

 
 
(0.02
)
Non-utility Operations
 
 
 
 
 
 
 
 
 
 
 
 
 
  Gas Storage and Pipelines
0.10

 
—

 
 
0.10

 
0.09

 
—

 
 
0.09

  Unconventional Gas Production
(0.01
)
 
—

 
 
(0.01
)
 
(0.01
)
 
—

 
 
(0.01
)
  Power and Industrial Projects
0.06

 
—

 
 
0.06

 
0.03

 
—

 
 
0.03

  Energy Trading
0.02

 
—

 
 
0.02

 
0.07

 
—

 
 
0.07

       Total Non-utility operations
0.17

 
—

 
 
0.17

 
0.18

 
—

 
 
0.18

Corporate and Other
(0.07
)
 
—

 
 
(0.07
)
 
0.42

 
(0.52
)
B
 
(0.10
)
Net Income Attributable to DTE Energy Company
$
0.86

 
$
—

 
 
$
0.86

 
$
1.19

 
$
(0.54
)
 
 
$
0.65

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjustments key
 
 
 
 
 
 
 
 
 
 
 
 
 
A) Fermi 1 asset retirement obligation
B) Income tax adjustment due to enactment of the Michigan Corporate Income Tax in May 2011.


DTE Energy Company
 
 
 
 
 
 
 
 
 
 
 
 
 
Segment Net Income (Unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Six Months Ended June 30
 
2012
 
2011
 
Reported
 
 
 
 
Operating
 
Reported
 
 
 
 
Operating
(in Millions)
Earnings
 
Adjustments
 
 
Earnings
 
Earnings
 
Adjustments
 
 
Earnings
Electric Utility
$
223

 
$
—

 
 
$
223

 
$
188

 
$
9

A
 
$
197

Gas Utility
56

 
—

 
 
56

 
80

 
—

 
 
80

Non-utility Operations
 
 
 
 
 
 
 
 
 
 
 
 
 
  Gas Storage and Pipelines
34

 
—

 
 
34

 
29

 
—

 
 
29

  Unconventional Gas Production
(3
)
 
—

 
 
(3
)
 
(3
)
 
—

 
 
(3
)
  Power and Industrial Projects
18

 
—

 
 
18

 
15

 
—

 
 
15

  Energy Trading
2

 
—

 
 
2

 
14

 
—

 
 
14

       Total Non-utility operations
51

 
—

 
 
51

 
55

 
—

 
 
55

Corporate and Other
(28
)
 
—

 
 
(28
)
 
55

 
(88
)
B
 
(33
)
Net Income Attributable to DTE Energy Company
$
302

 
$
—

 
 
$
302

 
$
378

 
$
(79
)
 
 
$
299

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjustments key
 
 
 
 
 
 
 
 
 
 
 
 
 
A) Fermi 1 asset retirement obligation
B) Income tax adjustment due to enactment of the Michigan Corporate Income Tax in May 2011.


DTE Energy Company
 
 
 
 
 
 
 
 
 
 
 
 
 
Segment Diluted Earnings Per Share (Unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Six Months Ended June 30
 
2012
 
2011
 
Reported
 
 
 
 
Operating
 
Reported
 
 
 
 
Operating
(in Millions)
Earnings
 
Adjustments
 
 
Earnings
 
Earnings
 
Adjustments
 
 
Earnings
Electric Utility
$
1.30

 
$
—

 
 
$
1.30

 
$
1.11

 
$
0.05

A
 
$
1.16

Gas Utility
0.33

 
—

 
 
0.33

 
0.48

 
—

 
 
0.48

Non-utility Operations
 
 
 
 
 
 
 
 
 
 
 
 
 
  Gas Storage and Pipelines
0.20

 
—

 
 
0.20

 
0.17

 
—

 
 
0.17

  Unconventional Gas Production
(0.02
)
 
—

 
 
(0.02
)
 
(0.02
)
 
—

 
 
(0.02
)
  Power and Industrial Projects
0.11

 
—

 
 
0.11

 
0.09

 
—

 
 
0.09

  Energy Trading
0.01

 
—

 
 
0.01

 
0.08

 
—

 
 
0.08

       Total Non-utility operations
0.30

 
—

 
 
0.30

 
0.32

 
—

 
 
0.32

Corporate and Other
(0.16
)
 
—

 
 
(0.16
)
 
0.32

 
(0.52
)
B
 
(0.20
)
Net Income Attributable to DTE Energy Company
$
1.77

 
$
—

 
 
$
1.77

 
$
2.23

 
$
(0.47
)
 
 
$
1.76

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjustments key
 
 
 
 
 
 
 
 
 
 
 
 
 
A) Fermi 1 asset retirement obligation
B) Income tax adjustment due to enactment of the Michigan Corporate Income Tax in May 2011.