EX-99.2 3 k09581exv99w2.htm FINANCIAL INFORMATION exv99w2
 

Exhibit 99.2
Q3 2006 Supplemental Financial Information Nov. 1, 2006


 

DTE Energy Company
Consolidated Statement of Financial Position
 
                 
    (Unaudited)        
    September 30     December 31  
    2006     2005  
(in Millions)                
ASSETS
               
Current Assets
               
Cash and cash equivalents
  $ 65     $ 88  
Restricted cash
    93       122  
Accounts receivable
               
Customer (less allowance for doubtful accounts of $159 and $136, respectively)
    1,152       1,746  
Collateral held by others
    248       286  
Other
    209       363  
Accrued power and gas supply cost recovery revenue
    178       186  
Inventories
               
Fuel and gas
    661       522  
Materials and supplies
    148       146  
Deferred income taxes
    143       257  
Assets from risk management and trading activities
    575       806  
Other
    238       160  
 
           
 
    3,710       4,682  
 
           
 
               
Investments
               
Nuclear decommissioning trust funds
    709       646  
Other
    501       530  
 
           
 
    1,210       1,176  
 
           
 
               
Property
               
Property, plant and equipment
    18,380       18,187  
Less accumulated depreciation and depletion
    (7,578 )     (7,663 )
 
           
 
    10,802       10,524  
 
           
 
               
Other Assets
               
Goodwill
    2,057       2,057  
Regulatory assets
    1,991       2,074  
Securitized regulatory assets
    1,264       1,340  
Intangible assets
    456       400  
Notes receivable
    226       409  
Assets from risk management and trading activities
    262       316  
Prepaid pension assets
    184       186  
Other
    154       171  
 
           
 
    6,594       6,953  
 
           
 
               
Total Assets
  $ 22,316     $ 23,335  
 
           
 


 

DTE Energy Company
Consolidated Statement of Financial Position
                 
    (Unaudited)        
    September 30     December 31  
    2006     2005  
(in Millions, Except Shares)                
LIABILITIES AND SHAREHOLDERS’ EQUITY
               
Current Liabilities
               
Accounts payable
  $ 909     $ 1,187  
Accrued interest
    128       115  
Dividends payable
    92       92  
Short-term borrowings
    884       943  
Current portion of long-term debt, including capital leases
    362       691  
Liabilities from risk management and trading activities
    648       1,089  
 
           
Other
    810       803  
 
           
 
    3,833       4,920  
 
           
Other Liabilities
               
Deferred income taxes
    1,363       1,396  
Regulatory liabilities
    753       715  
Asset retirement obligations
    1,158       1,091  
Unamortized investment tax credit
    122       131  
Liabilities from risk management and trading activities
    333       527  
Liabilities from transportation and storage contracts
    288       317  
Accrued pension liability
    376       284  
Deferred gains from asset sales
    72       188  
Minority interest
    41       92  
Nuclear decommissioning
    94       85  
Other
    737       740  
 
           
 
    5,337       5,566  
 
           
 
               
Long-Term Debt (net of current portion)
               
Mortgage bonds, notes and other
    5,724       5,234  
Securitization bonds
    1,185       1,295  
Equity-linked securities
          175  
Trust preferred-linked securities
    289       289  
Capital lease obligations
    84       87  
 
           
 
    7,282       7,080  
 
           
 
               
Commitments and Contingencies
               
 
               
Shareholders’ Equity
               
 
               
Common stock, without par value, 400,000,000 shares authorized, 177,964,872 and 177,814,429 shares issued and outstanding, respectively
    3,480       3,483  
Retained earnings
    2,574       2,557  
Accumulated other comprehensive loss
    (190 )     (271 )
 
           
 
    5,864       5,769  
 
           
 
               
Total Liabilities and Shareholders’ Equity
  $ 22,316     $ 23,335  
 
           


 

DTE Energy Company
Consolidated Statement of Cash Flows (Unaudited)
 
                 
    Nine Months Ended  
    September 30  
    2006     2005  
(in Millions)                
Operating Activities
               
Net Income
  $ 291     $ 155  
Adjustments to reconcile net income to net cash from operating activities:
               
Depreciation, depletion and amortization
    801       663  
Deferred income taxes
    24       121  
Gain on sale of interests in synfuel projects
    (72 )     (180 )
Gain on sale of assets, net
    (1 )     (31 )
Impairment of synfuel projects
    124        
Partners’ share of synfuel project losses
    (191 )     (241 )
Contributions from synfuel partners
    155       177  
Changes in assets and liabilities, exclusive of changes shown separately (Note 1)
    43       (71 )
 
           
Net cash from operating activities
    1,174       593  
 
           
 
               
Investing Activities
               
Plant and equipment expenditures — utility
    (830 )     (564 )
Plant and equipment expenditures — non-utility
    (214 )     (145 )
Acquisitions, net of cash acquired
    (27 )      
Proceeds from sale of interests in synfuel projects
    203       251  
Proceeds from sale of other assets
    41       56  
Restricted cash for debt redemptions
    29       30  
Proceeds from sale of nuclear decommissioning trust fund assets
    136       159  
Investment in nuclear decommissioning trust funds
    (163 )     (188 )
Other investments
    (6 )     (80 )
 
           
Net cash used for investing activities
    (831 )     (481 )
 
           
 
               
Financing Activities
               
Issuance of long-term debt
    545       623  
Redemption of long-term debt
    (672 )     (1,059 )
Short-term borrowings, net
    44       472  
Issuance of common stock
    9       172  
Repurchase of common stock
    (10 )     (12 )
Dividends on common stock
    (274 )     (268 )
Other
    (8 )     (5 )
 
           
Net cash used for financing activities
    (366 )     (77 )
 
           
 
               
Net Increase (Decrease) in Cash and Cash Equivalents
    (23 )     35  
Cash and Cash Equivalents at Beginning of the Period
    88       56  
 
           
Cash and Cash Equivalents at End of the Period
  $ 65     $ 91  
 
           
 


 

The Detroit Edison Company
Consolidated Statement of Operations (unaudited)
 
                                 
    Three Months Ended     Nine Months Ended  
    September 30     September 30  
(in Millions)   2006     2005     2006     2005  
 
                               
Operating Revenues
  $ 1,460     $ 1,409     $ 3,685     $ 3,434  
 
                       
 
                               
Operating Expenses
                               
Fuel and purchased power
    539       604       1,257       1,248  
Operation and maintenance
    277       325       990       976  
Depreciation and amortization
    308       174       643       484  
Taxes other than income
    64       68       198       200  
Asset (gains) and losses, net
    (1 )     (26 )     (1 )     (26 )
 
                       
 
    1,187       1,145       3,087       2,882  
 
                       
 
                               
Operating Income
    273       264       598       552  
 
                       
 
                               
Other (Income) and Deductions
                               
Interest expense
    60       68       208       201  
Interest income
    (1 )     (1 )     (2 )     (2 )
Other income
    (9 )     (17 )     (22 )     (47 )
Other expenses
    9       20       29       62  
 
                       
 
    59       70       213       214  
 
                       
 
                               
Income Before Income Taxes
    214       194       385       338  
 
                               
Income Tax Provision
    73       80       128       126  
 
                       
 
                               
Reported Earnings
  $ 141     $ 114     $ 257     $ 212  
 
                               
Adjustments
                               
Performance Excellence Process
    (31 )                  
Incremental non-recurring DTE2 project costs
          3             8  
Effective tax rate normalization
    (3 )     (3 )     (2 )     (3 )
Gain on sale of assets
          (17 )           (17 )
September 2006 MPSC electric order
    38             38        
 
                       
 
    4       (17 )     36       (12 )
 
                       
 
                               
Operating Earnings
  $ 145     $ 97     $ 293     $ 200  
 
                       
 
The Consolidated Statement of Operations (Unaudited) should be read in conjunction with the Notes to Consolidated Financial Statements appearing in the Annual Report to Shareholders, Form 10K and 10Q.


 

Michigan Consolidated Gas Company
Consolidated Statement of Operations (unaudited)
                                 
    Three Months Ended     Nine Months Ended  
    September 30     September 30  
(in Millions)   2006     2005     2006     2005  
 
                               
Operating Revenues
  $ 167     $ 206     $ 1,259     $ 1,301  
 
                       
 
                               
Operating Expenses
                               
Cost of gas
    56       100       768       858  
Operation and maintenance
    91       93       320       308  
Depreciation and amortization
    24       23       71       73  
Taxes other than income
    13       9       41       35  
Asset (gains) and losses, net
    (3 )                 48  
 
                       
 
    181       225       1,200       1,322  
 
                       
 
                               
Operating Income (Loss)
    (14 )     (19 )     59       (21 )
 
                               
Other (Income) and Deductions
                               
Interest expense
    17       14       49       42  
Interest income
    (2 )     (3 )     (6 )     (8 )
Other income
    (2 )     (1 )     (6 )     (3 )
Other expenses
          1       1       3  
 
                       
 
    13       11       38       34  
 
                       
 
                               
Income (Loss) Before Income Taxes
    (27 )     (30 )     21       (55 )
 
                               
Income Tax Provision (Benefit)
    (8 )     (189 )     3       (151 )
 
                       
 
                               
Reported Earnings (Loss)
  $ (19 )   $ 159     $ 18     $ 96  
 
                               
Adjustments
                               
Effective tax rate normalization
    5       (181 )     3       (130 )
Performance Excellence Process
    7             11        
Incremental non-recurring DTE2 project costs.
          2             4  
April 2005 MPSC gas orders
                      57  
 
                       
 
    12       (179 )     14       (69 )
 
                       
 
                               
Operating Earnings (Loss)
  $ (7 )   $ (20 )   $ 32     $ 27  
 
                       
The Consolidated Statement of Operations (Unaudited) should be read in conjunction with the Notes to Consolidated Financial Statements appearing in the Annual Report to Shareholders, Form 10K and 10Q.


 

(DTE ENERGY)
DTE Energy Debt/Equity Calculation
As of Sept. 30, 2006
($ millions)
         
Short-term borrowings
    884  
Current portion of long-term debt, including capital leases
    362  
Mortgage bonds, notes and other
    5,724  
Securitization bonds
    1,185  
Capital lease obligations
    84  
less MichCon short-term debt
    (254 )
less Securitization bonds, including current portion
    (1,296 )
 
     
Total debt
    6,689  
 
       
Trust preferred-linked securities
    289  
 
     
Total preferred/ other
    289  
 
       
Equity
    5,864  
 
       
 
     
Total capitalization
    12,842  
 
     
 
       
Debt
    52.1 %
Preferred
    2.2 %
Common shareholders’ equity
    45.7 %
 
     
 
       
Total
    100.0 %
 
     


 

(DTE ENERGY LOGO)
Sales Analysis — Q3 2006

Electric Sales — Detroit Edison Service Area (GWh)
                         
    Q3 2006   Q3 2005   % Change
     
Residential
    4,883       5,555       -12 %
Commercial
    4,927       4,462       10 %
Industrial
    3,695       3,197       16 %
Other
    814       691       18 %
     
 
    14,319       13,905       3 %
Interconnection
    1,023       1,111       -8 %
Choice*
    534       1,697       -69 %
     
TOTAL SALES
    15,876       16,713       -5 %
     
 
*   Includes Dearborn Industrial Group sales
Electric Revenue — Detroit Edison Service Area ($000s)
                         
    Q3 2006   Q3 2005   % Change
     
Residential
    529,454       508,444       4 %
Commercial
    444,827       376,134       18 %
Industrial
    240,020       187,559       28 %
Other
    44,448       34,172       30 %
     
 
    1,258,749       1,106,309       14 %
Interconnection
    66,152       139,351       -53 %
Choice*
    15,355       32,915       -53 %
     
TOTAL REVENUES
    1,340,256       1,278,575       5 %
     
 
*   Distribution charge, includes Dearborn Industrial Group revenues


Gas Sales — MichCon Service Area (Mcf)
                         
    Q3 2006   Q3 2005   % Change
     
Residential
    7,814,094       7,262,523       8 %
Commercial
    2,171,363       2,413,047       -10 %
Industrial
    230,837       201,249       15 %
     
 
    10,216,294       9,876,819       3 %
 
                       
End User Transportation*
    27,815,723       34,491,497       -19 %
     
TOTAL SALES
    38,032,017       44,368,316       -14 %
     
 
*   Includes choice customers
Gas Revenue — MichCon Service Area ($000s)
                         
    Q3 2006   Q3 2005   % Change
     
Residential
    104,066       102,002       2 %
Commercial
    26,294       30,857       -15 %
Industrial
    2,322       2,188       6 %
     
 
    132,682       135,047       -2 %
 
                       
End User Transportation*
    24,149       24,268       0 %
     
TOTAL REVENUES
    156,831       159,315       -2 %
     
 
*   Includes choice customers


Weather

Cooling Degree Days
Detroit Edison service territory
                         
    Q3 2006   Q3 2005   % Change
     
Actuals
    640       775       -17 %
Normal
    537       537          
             
 
                       
Deviation from normal
    19 %     44 %        
Heating Degree Days
MichCon service territory
                         
    Q3 2006   Q3 2005   % Change
     
Actuals
    148       58       155 %
Normal
    177       179          
             
 
                       
Deviation from normal
    -16 %     -68 %