EX-99.2 3 k17792exv99w2.htm FINANCIAL INFORMATION DISTRIBUTED DATED AUGUST 13, 2007 exv99w2
 

Exhibit 99.2
Second Quarter 2007 Supplemental Financial Information August 13, 2007


 

DTE Energy Company
Consolidated Statement of Financial Position (unaudited)
 
                 
    June 30     December 31  
    2007     2006  
(in Millions)
               
ASSETS
               
Current Assets
               
Cash and cash equivalents
  $ 993     $ 147  
Restricted cash
    143       146  
Accounts receivable (less allowance for doubtful accounts of $179 and $170, respectively)
               
Customer
    1,391       1,427  
Customer Collateral held by others
    102       68  
Other
    205       442  
Accrued power and gas supply cost recovery revenue
    88       117  
Inventories
               
Fuel and gas
    530       562  
Materials and supplies
    180       153  
Deferred income taxes
    283       245  
Assets from risk management and trading activities
    273       461  
Other
    148       193  
 
           
 
    4,336       3,961  
 
           
 
               
Investments
               
Nuclear decommissioning trust funds
    794       740  
Other
    520       505  
 
           
 
    1,314       1,245  
 
           
 
               
Property
               
Property, plant and equipment
    19,024       19,224  
Less accumulated depreciation and depletion
    (7,564 )     (7,773 )
 
           
 
    11,460       11,451  
 
           
 
               
Other Assets
               
Goodwill
    2,043       2,057  
Regulatory assets
    3,112       3,226  
Securitized regulatory assets
    1,182       1,235  
Intangible assets
    72       72  
Notes receivable
    149       164  
Assets from risk management and trading activities
    94       164  
Prepaid pension assets
    75       71  
Other
    121       139  
 
           
 
    6,848       7,128  
 
           
 
               
Total Assets
  $ 23,958     $ 23,785  
 
           
 
The Consolidated Statement of Financial Position (Unaudited) should be read in conjunction with the Notes
to Consolidated Financial Statements appearing in Forms 10-K and 10-Q

 


 

DTE Energy Company
Consolidated Statement of Financial Position (unaudited)
 
                 
    June 30     December 31  
    2007     2006  
(in Millions, Except Shares)
               
LIABILITIES AND SHAREHOLDERS’ EQUITY
               
Current Liabilities
               
Accounts payable
  $ 1,344     $ 1,145  
Accrued interest
    116       115  
Dividends payable
    91       94  
Short-term borrowings
    801       1,131  
Gas inventory equalization
    145        
Current portion of long-term debt, including capital leases
    403       354  
Liabilities from risk management and trading activities
    263       437  
Deferred gains from asset sales
    288       208  
Other
    701       680  
 
           
 
    4,152       4,164  
 
           
Long-Term Debt (net of current portion)
               
Mortgage bonds, notes and other
    5,816       5,918  
Securitization bonds
    1,124       1,185  
Trust preferred-linked securities
    289       289  
Capital lease obligations
    75       82  
 
           
 
    7,304       7,474  
 
           
Other Liabilities
               
Deferred income taxes
    1,562       1,465  
Regulatory liabilities
    808       765  
Asset retirement obligations
    1,248       1,221  
Unamortized investment tax credit
    113       120  
Liabilities from risk management and trading activities
    411       259  
Liabilities from transportation and storage contracts
    137       157  
Accrued pension liability
    393       388  
Accrued postretirement liability
    1,424       1,414  
Deferred gains from asset sales
    16       36  
Nuclear decommissioning
    126       119  
Other
    328       312  
 
           
 
    6,566       6,256  
 
           
Commitments and Contingencies
               
 
Minority Interest
    47       42  
 
           
 
Shareholders’ Equity
               
Common stock, without par value, 400,000,000 shares authorized, 170,649,715 and 177,138,060 shares issued and outstanding, respectively
    3,311       3,467  
Retained earnings (less FIN 48 cumulative effect adjustment of $5 in 2007)
    2,700       2,593  
Accumulated other comprehensive loss
    (122 )     (211 )
 
           
 
    5,889       5,849  
 
           
Total Liabilities and Shareholders’ Equity
  $ 23,958     $ 23,785  
 
           

 


 

DTE Energy Company
Consolidated Statement of Cash Flows (Unaudited)
 
                 
    Six Months Ended  
    June 30  
    2007     2006  
(in Millions)
               
Operating Activities
               
Net Income
  $ 519     $ 103  
Adjustments to reconcile net income to net cash from operating activities:
               
Depreciation, depletion and amortization
    467       446  
Deferred income taxes
    (4 )     53  
Gain on sale of interests in synfuel projects
    (77 )     (20 )
Gain on sale of non-utility business
    (897 )      
Other asset (gains), losses and reserves, net
    10       2  
Impairment of synfuel projects
          122  
Partners’ share of synfuel project losses
    (115 )     (180 )
Contributions from synfuel partners
    101       129  
Cumulative effect of accounting change
          (1 )
Changes in assets and liabilities, exclusive of changes shown separately
    994       260  
 
           
Net cash from operating activities
    998       914  
 
           
Investing Activities
               
Plant and equipment expenditures — utility
    (480 )     (574 )
Plant and equipment expenditures — non-utility
    (141 )     (144 )
Acquisitions, net of cash acquired
          (27 )
Proceeds from sale of interests in synfuel projects
    221       163  
Refunds to synfuel partners
    (16 )      
Proceeds from sale of non-utility business
    1,258        
Proceeds from sale of other assets, net
    11       34  
Restricted cash for debt redemptions
    4       (5 )
Proceeds from sale of nuclear decommissioning trust fund assets
    124       99  
Investment in nuclear decommissioning trust funds
    (140 )     (118 )
Other investments
    (30 )     (31 )
 
           
Net cash from (used for) investing activities
    811       (603 )
 
           
Financing Activities
               
Issuance of long-term debt
          545  
Redemption of long-term debt
    (111 )     (620 )
Short-term borrowings, net
    (330 )     (50 )
Repurchase of common stock
    (333 )     (10 )
Dividends on common stock
    (187 )     (182 )
Other
    (2 )     (6 )
 
           
Net cash used for financing activities
    (963 )     (323 )
 
           
Net Increase (Decrease) in Cash and Cash Equivalents
    846       (12 )
Cash and Cash Equivalents at Beginning of the Period
    147       88  
 
           
Cash and Cash Equivalents at End of the Period
  $ 993     $ 76  
 
           
 
The Consolidated Statement of Cash Flows (Unaudited) should be read in conjunction with the Notes
to Consolidated Financial Statements appearing in Forms 10-K and 10-Q

 


 

The Detroit Edison Company
Consolidated Statement of Operations (unaudited)
                                 
    Three Months Ended     Six Months Ended  
    June 30     June 30  
(in Millions)   2007     2006     2007     2006  
 
                               
Operating Revenues
  $ 1,210     $ 1,175     $ 2,304     $ 2,225  
 
                       
 
                               
Operating Expenses
                               
Fuel and purchased power
    402       409       756       718  
Operation and maintenance
    380       369       728       714  
Depreciation and amortization
    198       168       380       335  
Taxes other than income
    69       65       141       134  
Asset (gains) and reserves, net
    (1 )           6        
 
                       
 
    1,048       1,011       2,011       1,901  
 
                       
 
                               
Operating Income
    162       164       293       324  
 
                       
 
                               
Other (Income) and Deductions
                               
Interest expense
    75       76       149       148  
Interest income
    (2 )     (1 )     (3 )     (1 )
Other income
    (7 )     (6 )     (18 )     (13 )
Other expenses
    6       10       15       20  
 
                       
 
    72       79       143       154  
 
                       
 
                               
Income Before Income Taxes
    90       85       150       170  
 
                               
Income Tax Provision
    30       28       50       55  
 
                       
 
                               
Income Before Accounting Change
    60       57       100       115  
 
                               
Cumulative Effect of Accounting Change
                      1  
 
                       
 
                               
Reported Earnings
    60       57       100       116  
 
                               
Adjustments
                               
Effective tax rate normalization
    1       1       2       1  
Regulatory asset surcharge
    3             6        
Performance Excellence Process
          23             31  
Detroit Thermal Reserve
                6        
 
                       
 
    4       24       14       32  
 
                       
Operating Earnings
  $ 64     $ 81     $ 114     $ 148  
 
                       
The Consolidated Statement of Operations (Unaudited) should be read in conjunction with the Notes to
Consolidated Financial Statements appearing in Forms 10-K and 10-Q.

 


 

MICHIGAN CONSOLIDATED GAS COMPANY
CONSOLIDATED STATEMENT OF OPERATIONS (UNAUDITED)
 
                                 
    Three Months Ended     Six Months Ended  
    June 30     June 30  
(in Millions)   2007     2006     2007     2006  
 
                               
Operating Revenues
  $ 305     $ 229     $ 1,166     $ 1,092  
 
                       
 
                               
Operating Expenses
                               
Cost of gas
    158       88       771       712  
Operation and maintenance
    111       110       220       229  
Depreciation and amortization
    24       24       45       47  
Taxes other than income
    15       13       29       28  
Asset (gains) and losses, net
          3       3       3  
 
                       
 
    308       238       1,068       1,019  
 
                       
 
                               
Operating Income (Loss)
    (3 )     (9 )     98       73  
 
                       
 
                               
Other (Income) and Deductions
                               
Interest expense
    12       15       27       32  
Interest income
    (5 )     (2 )     (7 )     (4 )
Other income
    (2 )     (2 )     (5 )     (4 )
Other expenses
    1             2       1  
 
                       
 
    6       11       17       25  
 
                       
 
                               
Income (Loss) Before Income Taxes
    (9 )     (20 )     81       48  
Income Tax Provision (Benefit)
    (2 )     (7 )     21       11  
 
                       
Reported Earnings (Loss)
    (7 )     (13 )     60       37  
 
                               
Adjustments
                               
Effective tax rate normalization
    3       2       (2 )     (2 )
Performance Excellence Process
    1       2       2       4  
 
                       
 
    4       4             2  
 
                       
 
                               
Operating Earnings (Loss)
  $ (3 )   $ (9 )   $ 60     $ 39  
 
                       
 
The Consolidated Statement of operations (Unaudited) should be read in conjunction with the
Notes to Consolidated Financial Statements appearing in Forms 10-K and 10-Q.

 


 

(DTE ENERGY LOGO)
DTE Energy Debt/Equity Calculation
As of June 30, 2007
($ millions)
             
   
Short-term borrowings
  $ 801  
   
Current portion of long-term debt, including capital leases
    403  
   
Mortgage bonds, notes and other
    5,816  
   
Securitization bonds
    1,124  
   
Capital lease obligations
    75  
   
less MichCon short-term debt
     
   
less Securitization bonds, including current portion
    (1,238 )
   
 
     
   
Total debt
    6,981  
   
 
       
   
Trust preferred-linked securities
    289  
   
 
     
   
Total preferred/ other
    289  
   
 
       
   
Equity
    5,889  
   
 
     
   
 
       
   
 
     
   
Total capitalization
  $ 13,159  
   
 
     
   
Debt
    53.0 %
   
Preferred
    2.2 %
   
Common shareholders’ equity
    44.8 %
   
 
     
   
 
       
   
Total
    100.0 %
   
 
     

 


 

(DTE ENERGY LOGO)
Sales Analysis — Q2 2007

Electric Sales — Detroit Edison Service Area (GWh)
                         
    Q2 2007   Q2 2006   % Change
Residential
    3,718       3,514       6 %
Commercial
    4,871       4,506       8 %
Industrial
    3,322       3,209       4 %
Other
    804       792       2 %
     
 
    12,715       12,021       6 %
Choice*
    524       984       -47 %
     
TOTAL SALES
    13,239       13,005       2 %
     
*   Includes Dearborn Industrial Group sales
Electric Revenue — Detroit Edison Service Area ($000s)
                         
    Q2 2007   Q2 2006   % Change
Residential
    398,757       380,178       5 %
Commercial
    440,434       411,570       7 %
Industrial
    214,972       207,966       3 %
Other
    42,914       42,830       0 %
     
 
    1,097,077       1,042,544       5 %
Choice*
    9,412       22,067       -57 %
     
TOTAL REVENUES
    1,106,489       1,064,611       4 %
     
*   Distribution charge, includes Dearborn Industrial Group revenues


Gas Sales — MichCon Service Area (Mcf)
                         
    Q2 2007   Q2 2006   % Change
Residential
    16,260,472       13,361,179       22 %
Commercial
    4,868,998       3,747,549       30 %
Industrial
    140,387       160,681       -13 %
     
 
    21,269,857       17,269,409       23 %
End User Transportation*
    23,832,347       27,338,128       -13 %
     
TOTAL SALES
    45,102,204       44,607,537       1 %
     
*   Includes choice customers
Gas Revenue — MichCon Service Area ($000s)
                         
    Q2 2007   Q2 2006   % Change
Residential
    189,088       167,356       13 %
Commercial
    54,065       45,044       20 %
Industrial
    1,445       1,785       -19 %
     
 
    244,598       214,185       14 %
End User Transportation*
    28,224       26,836       5 %
     
TOTAL REVENUES
    272,822       241,021       13 %
     
*   Includes choice customers


Weather

Cooling Degree Days
Detroit Edison service territory
                         
    Q2 2007   Q2 2006   % Change
Actuals
    277       225       23 %
Normal
    193       193       n/m  
             
 
                       
Deviation from normal
    43 %     17 %        
Heating Degree Days
MichCon service territory
                         
    Q2 2007   Q2 2006   % Change
Actuals
    784       683       15 %
Normal
    840       853          
             
 
                       
Deviation from normal
    -7 %     -20 %