Exhibit 99.1
Business and Financial Update
Dave Meador, Executive Vice President and CFO
Steve Kurmas, President & COO Detroit Edison
June 18-20, 2012
Safe Harbor Statement
The information contained herein is as of the date of this presentation. 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 2012 Forms 10-Q (which sections are incorporated herein by reference), and in conjunction with other SEC reports filed by DTE Energy and
Detroit Edison. Cautionary Note – The Securities and Exchange Commission permits oil and gas companies, in their filings with the SEC, to disclose only proved reserves that
a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. We use certain terms in this presentation such as “probable reserves” that the SEC’s guidelines strictly prohibit us from including in filings
with the SEC. You are urged to consider closely the disclosure in DTE Energy’s 2011 Form 10-K and 2012 Forms 10-Q, File No. 1-11607, available from our
offices or from our website at www.dteenergy.com. You can also obtain these Forms from the SEC by accessing its website at www.sec.gov or by calling 1-
800-SEC-0330. 2
• Overview
• Utility Growth
• Non-Utility Growth
• 2012 Guidance
| 3 |
|
DTE Energy is an Integrated Energy Company
Stable Complementary Non-Utility
Businesses
Strong, and
Growing Utilities
~80% of DTE Energy’s 2011 Earnings
Gas ~20% of DTE Energy’s 2011 Earnings
Detroit Edison
• Electric generation and
distribution
• 2.1 million customers
Storage & Pipelines
Power & Industrial Projects
Transport and store natural gas
MichCon
• Fully regulated by Michigan
Public Service Commission
(MPSC)
Energy Trading
Generate economic value and provide
t t i b fit
Own and operate energy related
assets
• Natural gas distribution
• 1.2 million customers
• Fully regulated by MPSC
Unconventional Gas Production
Production of shale natural gas and
oil in Texas
strategic benefits
| 4 |
|
DTE Energy Earnings & Dividend Growth
Targeting 5%—6% Long-Term Operating EPS Growth
From 2012 Guidance Midpoint
Guidance
$3.73
$3.80**
$3.60
$3.30
• ~7% CAGR EPS Growth from
2008 ? 2012
• Annualized dividend rate
$2.89 i d 5 5% $2 48
Dividend
$2.12 $2.12
$2.18
$2.32
increased 5.5% to 2.48 per
share (effective October 2012 dividend)
– CAGR of 5.4% since 2009
• Dividend Operating
EPS*
per share
growth supported by
underlying earnings growth
2008A 2009A 2010A 2011A 2012E 2013E 2014E 2015E
| 5 |
|
* Reconciliation to GAAP reported earnings included in the appendix |
** Midpoint of $3.65—$3.95 range
Michigan Economy Continues to Show Signs of
Improvement
Southeast Michigan Residential Building Permits
B i i t R b d*
Michigan Unemployment
Declining*
%
14
g Beginning to Rebound*
| 8 |
|
10
12
Lowest since
August 2008
| 8 |
|
10
| * |
|
Source: Bureau of Labor Statistics |
| 4 |
|
| 6 |
|
Dec-09 Jun-10 Dec-10 Jun-11 Dec-11 Apr-12
ts issued (000s)
| 6 |
|
Michigan Auto Production
Increasing*
600
800
Annual permi
| 2 |
|
| 4 |
|
ion (000’s)
200
400
Michigan
Detroit Edison
Territory
0
2006 2007 2008 2009 2010 2011
terly auto producti
| * |
|
Source: IHS Automotive 6 |
- Uptick in 2012 housing starts
2005 2006 2007 2008 2009 2010 2011 2012 (1Q 2012 housing permits up 34% over 1Q 2011)
Q1
| * |
|
Source: Census Bureau |
Quart
• Overview
• Utility Growth
• Non-Utility Growth
• 2012 Guidance
| 7 |
|
Detroit Edison
Investment Profile, 2012 – 2016
Base
Infrastructure*
Renewable Energy &
Energy Efficiency
Environmental
ast uctu e Compliance
~$4 billion
e gy c e cy
$900 million
Co p a ce
$1.3—$1.8 billion
• Investments to meet evolving
environmental requirements
• $255 million investment in 2012
• Investments to ensure reliability
of generation fleet and
distribution systems
• Renewable generation to meet
Michigan RPS
• $235 million investment in 2012
| 8 |
|
• $785 million investment in 2012
| * |
|
Includes AMI, Ludington expansion and other investments |
Detroit Edison
Dry Sorbent Injection (DSI)
DSI reduces emissions
to comply with MATS*
• DSI effective for Detroit Edison coal?fired fleet
o Allows majority of non?scrubbed units to
economically meet MATS standards
o Not economical for small portion of coal
fleet (~300MW)
• DSI not fundamental to supply stack position
for Detroit Edison coal units
o Combined cycle gas turbines make up only
11%** of MISO capacity
St Clair Power Plant
9 * MATS (Mercury and Air Toxics Standard).
** Source: SNL Financial
Detroit Edison
Renewable Energy Wind Development
Thumb Wind Parks
110 MW Wind
In-service 4Q 2012
~$250 million capital investment
Gratiot Wind Energy
212 MW Wind online March 2012
102 MW ( 64 turbines) owned and operated
New Wind Park (Huron County)
110 MW Wind
2013 Construction
~$250 million capital 10
) p
by Detroit Edison
$investment
MichCon
Investment Profile, 2012 – 2016
Base Capital Main Renewal Meter Move-out
$675 million $250 million $115 million
• Strengthen and expand
distribution system
• 660 mile main replacement over
10 years ($500 million total capital
• Move out ~25,000 meters per
year
• Transmission pipeline integrity
• $155 million investment in 2012
investment)
• $40 million investment in 2012
• Improves customer service
• $22 million investment in 2012
11
Rate case filed in April 2012 for $77 million
(includes infrastructure recovery mechanism, decoupling and 11% ROE)
• Overview
• Utility Growth
• Non-Utility Growth
• 2012 Guidance
12
Outlook for Natural Gas Demand & Supply
US Gas Supply and Demand 2015 Gas Supply Curve
| 6 |
|
$/MMBtu1
80
Bcf/d
Demand
Susquehanna Eagle
F d
| 4 |
|
NE Marcellus |
Fayetteville
60
New drilling
to fill shortfall
8-10 Bcf/d of
New drilling
q
wells Ford
40 2
Supply with no
new drilling
| 8 |
|
10 |
20
2011 2012 2013 2014 2015
Production decline and demand growth drive
d illi d f 8 10B f/d h
0 2 4 6
Bcf/d New Supply
0
Marcellus production low on supply stack;
I tl t iti i M ll i
13
new drilling needs of 8-10 Bcf/each year
1. Breakeven cost of new supply at after-tax 10% IRR
Source: DTE Energy analysis
Incremental opportunities in Marcellus region
Gas Storage & Pipelines
G thO t iti f M ll Shl D l t
Gas Storage & Pipelines
Solid Operating Earnings* Growth
Growth Opportunities from Marcellus Shale Development
Millennium Mainline Expansions
~$100
$57* $57-60
• First two expansions fully contracted
o $90 million investment (DTE $23 million)
o Expand capacity ~50% to 0.8 Bcf/d
• First expansion: expect FERC approval and
in service late ($millions)
2011A 2012E 2013E 2014E 2015E 2016E
begin construction in 2Q; in-2012
• Second expansion: FERC approval and
construction in 2013
• Future expansions economic to 1.5 Bcf/d
Expansion 2
Expansion 1
“Hancock Compressor”
“Minisink Compressor”
| * |
|
Reconciliation to GAAP reported earnings included in the appendix 14 |
Compressor
Gas Storage & Pipelines
Bluestone Pipeline & Gathering Update
Bluestone • $280 million investment
• Right-of-way and permitting nearly
complete
• Gathering system Project
Phase 1
construction underway;
portion in service
• Lateral construction to begin in 2Q
• Anchor customer began drilling in April
• In Phase 2
Initial
gathering
service 2012
15
• 180,000 acres within 5 miles of Bluestone
| • |
|
6 major producers in area; discussions underway |
Additional Gathering Opportunities
Power & Industrial Projects
Operating Earnings* Potential of $125 Million by 2016
($millions) ~$125 Renewable Energy
$45 $55
( )
~$35
~$25
New project
development
Renewable
Energy
gy
$38*
- ~$60 Reduced Emissions
Fuel Reduced Emissions Fuel
Wood-fired Plant, Mt. Poso
~$75 Industrial Energy
Services
Midwest Utility
Energy Services
~($70) Corporate allocations,
interest & overheads
Industrial 2011A 2012E 2013E 2014E 2015E 2016E
*Reconciliation to GAAP reported earnings included in the appendix 16
Steam & Chilled Water
Power & Industrial Projects
Reduced Emission Fuels Development Update
2012 Status
• Operations and volume on target at five
placed units
• Working to relocate four units
o Unit 1: Agreement executed;
relocation by 3Q
o Unit 2: Negotiations complete;
REF Facility at Monroe Power Plant
relocation in 4Q
o Units 3 & 4: In discussions with five
potential host utilities
Significant value and strong earnings
contribution for next 10 years
Earnings Outlook
• 2012: ~$30 million earnings contribution
l
17
• 2013?2021: Average annual earnings
contribution of ~$50 million
• Overview
• Utility Growth
• Non-Utility Growth
• 2012 Guidance
18
2012 Operating Earnings Guidance*
2011 2012 2012 Detroit Edison $443 $438 ? $448
Mi hC 110 110 (millions, except EPS) Actual* Guidance* Drivers
Full year rate order impact at lower ROE, 2011 one-time tax
items and increased earnings from renewable investments
Continued cost control to offset 1Q unfavorable weather; MichCon ? 115
Gas Storage & Pipelines 57 57 ? 60
Unconventional Gas
| (6) |
|
0 |
Modest incremental earnings from existing projects; more
significant growth begins in 2013 from new projects
Q ;
April rate case filing
Targeting Production
Power & Industrial
Projects
38 45 ? 55
Energy 52 30 ? 50
Incremental earnings from REF
monetization
Trading Unprecedented 1Q warm weather pressuring 2012 earnings;
Corporate & Other (61) (54)
DTE Energy $633 $626 ? $674
balance of year assumed at historical levels
Primarily lower interest expense
Operating EPS $3.73 $3.65 ? $3.95
Avg. Shares Outstanding 170 171
| * |
|
Reconciliation to GAAP reported earnings included in the appendix 19 |
2012 Capital Expenditures & Cash Flow Guidance
Capital Expenditures Cash Flow Summary
($ millions) ($ billions)
2011 2012
Actual Guidance
2011 2012
Actual Guidance
Detroit Edison
Cash From Operations $2.0 $1.9
Capital Spending ( 1.5) ( 1.9)
Free Cash Flow $0.5 $0.0
Operational $688 $785
Environmental 186 255
Renewables / EO 3 28 235
$1,202 $1,275
Asset Sales—0.3
Dividends ( 0.4) ( 0.4)
Net Cash $0.1 ($0.1)
MichCon
Operational $155 $155
Expansion 2 5 6 0
$ 180 $
215
Debt ($0.1) $0.1
Equity programs is non-cash
$146 $430
Total $1,528 $1,920
Non-Utility / Corporate &
Other
20
issued for employee benefit considered non and not included in financing activities
Strong Balance Sheet Supports Leverage*
Growth
• A strong balance sheet remains a key DTE priority
S i f diti t i 51% 50%
Target
50%—52%
51%
• Series of credit improvements in 2012
– Fitch upgraded Detroit Edison and MichCon
– Moody’s raised its outlook to Positive
• Leverage and 2010 2011 2012E
cash flow metrics within targeted ranges
Funds from Operations / Debt* • $1.4 billion of available liquidity as of March 31, 2012
24% 22%
Target
28% 22%—24%
2010 2011 2012E
21
*Debt excludes securitization, a portion of MichCon’s short-term debt, and considers 50% of the Trust Preferreds/Junior Subordinated Notes as equity
Investment Thesis
DTE Energy has a plan it believes will provide 5%—6%
long-term operating EPS growth, an attractive
dividend yield and a strong balance sheet
– Utility growth plan driven by mandated investments
– Constructive regulatory structure and continued
savings enable utilities to earn their authorized
5%-6% Average Annual EPS Growth
cost returns
– Plans in place to achieve operational excellence and
customer satisfaction that are distinctive in our
i d t ith f t ff d bilit
Attractive Dividend
industry, with a focus on customer affordability
– Meaningful, low-risk growth opportunities in nonutility
businesses continue to provide diversity in
earnings and geography
22
Contact Us
DTE Energy Investor Relations
www.dteenergy.com/investors
313-235-8030
23
Appendix
Mi hi P bli S i C i i (MPSC)
• The Michigan Public Service Commission is composed of three members
Michigan Public Service Commission appointed by the Governor with the advice and consent of the Senate.
• Commissioners are appointed to serve staggered six-year terms.
• No more than two Commissioners may represent the same political party.
• One commissioner is designated as chairman by the Governor.
Orjiakor Isiogu
Commissioner
Appointed: 9/9/07
Greg White
Commissioner
Appointed: 12/4/09
John Quackenbush
Chairman
Appointed: 9/15/11
Term Ends: 7/2/13
(Democrat)
Term Ends: 7/2/15
(Independent)
Source: MPSC website—www.michigan.gov/mpsc—Jan. 2010
25
Term Ends: 7/2/17
(Republican)
MichCon Rate Case Filing (U-16999)
Estimated Net Rate Request Rate Case Highlights
$27 $1 $77
($ millions)
Represents annual base rate growth of
~4%* since last rate increase; combined
with declining gas prices, annual bills
decreasing ~5%*
$49
• Lower Sales due to customer
conservation and lower midstream
revenues
• $377 million increase in rate base
• Other highlights
– 11% return on equity
– Modified revenue decoupling
mechanism
– Infrastructure recovery mechanism for
main renewal, meter move-out and
pipeline integrity
• Timing
– Filed: April 2012
– Staff Testimony: September 2012
26
– Self-implement: November 2012
– Proposal for decision: February 2013
– Final Order: By April 2013
*Projected annualized residential change from 2010 to 2013 (weather normalized)
Gas Storage & Pipeline: Overview
• Fully contracted (6 avg Vector Pipeline – 40%
year avg. term)
• 348 miles of pipe; 120,000 H.P. of
compression at five stations
Millennium Pipeline – 26.25%
Storage
Assets
• Fully contracted (> 10 year avg. term)
• 222 miles of pipe; 15,000 H.P. of
compression
Pipeline
Interests
• Fully contracted (6 year avg. term)
• 90 Bcf of storage capacity in Michigan
• 26 200 H P DTE Gas Storage
26,200 H.P. of compression
Michigan Gathering Assets
• Comprised of MichCon Lateral and
MichCon Gathering Companies
27
• Two systems: One designed to handle
liquid rich gas and the other for dry
production gas
B ttShl O ti Mti
Reserves (Bcfe) Acreage Position (000’s Acres)
Barnett Shale Operating Metrics
1Q 2012 Results
Net
Developed
Acres
17
88
17
87
186 Proven
559
201
555 • 9 new wells on-line, 6 in progress
• Production of 1.3 Bcfe (60% liquids)
• 58% increase in oil sales volume yearover-
year
Net
Undeveloped
Acres
1Q 2012
70 71
YE2011
Probable
(Unaudited)
354 373
over 2012 Goals
Gross Producing Wells Net Production (Bcfe)
224
YE2010 YE2011 • Prudently manage Barnett assets and
focus on developing liquids production
• Pursue monetization opportunities
215 6—7
5.1
YE2011 1Q 2012 YE2011 YE 2012E
28
Unconventional Gas: Barnett Shale Assets
Focused on Marble Falls Oil Play
Oil and NGLs* driving value
Revenue by product (%)
Oil 60%
• Focus on maturing Marble Falls oil play
• Wells confirming resource play
– Vertical wells initial production up to 250 bbls oil per day
l li id i h
2010 2011 2012E
NGL 30%
Gas 10%
plus liquids rich gas
– Potential upside with horizontal wells
– ~65,000 net acre Marble Falls position
• Well 6-24 Proved reserves by product (%)
Oil 11%
payback period of months at current prices
– Vertical well costs of $800k
– Attractive economics at current prices
NGL39%
Gas 50%
| * |
|
Natural gas liquids 29 |
2009 2010 2011
DTE Energy Trading Reconciliation of
Operating Earnings* to Economic Net Income
illi )
Energy Trading Operating
E i * Operating Earnings* to Economic Net Income
($ millions)
Economic net income equals economic gross margin*** minus O&M expenses and taxes
DTE Energy management Earnings*
Realized 1Q 2011 1Q 2012 $16 $20
($ millions, after-tax) ($2) $0 ($2) uses economic net income
as one of the performance
measures for external
communications with
analysts and investors
Internally, DTE Energy
Unrealized
O&M / Other
- (11)
| (14) |
|
(11) |
$2 ($2)
1Q 2012 Operating
Earnings*
Accounting
Adjustments**
1Q 2012
Economic Net Income
$22 $24
y gy
uses economic net income
as one of the measures to
review performance
against financial targets
and budget
$2
** statement effect of not non
1Q 2011
Economic Net Income
Accounting
Adjustments**
1Q 2011 Operating
Earnings*
| * |
|
Reconciliation to GAAP reported earnings included in the appendix |
Consists of the income recognizing changes in the fair market value of certain nonderivative
contracts including physical inventory and capacity contracts for transportation, transmission and
storage. These contracts are not MTM, instead are recognized for accounting purposes on an accrual basis
*** Economic gross margin is the change in net fair value of realized and unrealized purchase and sale contracts
including certain non-derivative contract costs
30
Continuous Improvement Efforts Offsetting Inflation and
Other Costs
Utility Operations and Maintenance Expense*
($ millions)
~$1,900
~$350
$1,635
$1,550 ~$1,590**
Target
$1,550
2005 2006 2007 2008 2009 2010 2011 2012E
*Excludes bad debt expense, energy efficiency and renewable energy 31
Utility O&M reduction of $85 million from 2005 to 2012E
**Includes $40 million of higher storm costs vs. 2010
Reconciliation of 1Q 2011 Reported to
O ti E i
Use of Operating Earnings Information – DTE Energy management believes that operating earnings provide a more meaningful representation of the company’s
earnings from ongoing operations and uses operating earnings as the primary performance measurement for external communications with analysts and investors.
Internally, DTE Energy uses operating earnings to measure performance against budget and to report to the Board of Directors.
Operating Earnings
1Q 2011
DTE Electric Gas
Gas
Storage & Unc. Gas
Power &
Indust. Energy Corporate
Net Income ($ millions)
Energy Utility Utility
g
Pipelines Prod. Projects
gy
Trading
p
& Other
Reported Earnings $176 $85 $83 $15 ($2) $10 $2 ($17)
Fermi 1 Asset Retirement Obligation 12 1 2————
Operating Earnings $188 $97 $83 $15 ($2) $10 $2 ($17)
1Q 2011
Gas
Power $EPS
DTE
Energy
Electric
Utility
Gas
Utility
Storage &
Pipelines Unc. Gas Prod.
&
Indust.
Projects
Energy
Trading
Corporate
& Other
Reported Earnings $1.04 $0.50 $0.49 $0.09 ($0.01) $0.06 $0.01 ($0.10)
Fermi 1 Asset Retirement Obligation 0.07 0.07————
Operating $1.11 $0.57 $0.49 $0.09 ($0.01) $0.06 $0.01 ($0.10)
32
Earnings
Reconciliation of 2011 Reported
t O ti E i
Use of Operating Earnings Information – DTE Energy management believes that operating earnings provide a more meaningful representation of the company’s
earnings from ongoing operations and uses operating earnings as the primary performance measurement for external communications with analysts and investors.
Internally, DTE Energy uses operating earnings to measure performance against budget and to report to the Board of Directors.
to Operating Earnings
2011
DTE Electric Gas
Gas
Storage & Unc. Gas
Power &
Indust. Energy Corporate
Net Income ($ millions)
Energy Utility Utility
g
Pipelines Prod. Projects
gy
Trading
p
& Other
Reported Earnings $711 $434 $110 $57 ($6) $38 $52 $26
Michigan Corporate Income Tax
Adjustment (87)———— (87)
Fermi 1 Asset Retirement Obligation 9 9————
Operating Earnings $633 $443 $110 $57 ($6) $38 $52 ($61)
2011
Gas
Power $EPS
DTE
Energy
Electric
Utility Gas Utility Storage & Pipelines Unc. Gas Prod.
&
Indust.
Projects
Energy
Trading
Corporate
& Other
Reported Earnings $4.18 $2.55 $0.65 $0.34 ($0.04) $0.22 $0.31 $0.15
Michigan Corporate Income Tax
Adjustment ( 0.50)———— (0.50)
Fermi 0 05 0 05
33
| 1 |
|
Asset Retirement Obligation 0.05 0.05———— |
Operating Earnings $3.73 $2.60 $0.65 $0.34 ($0.04) $0.22 $0.31 ($0.35)
Reconciliation of 2010 Reported
t O ti E i
Use of Operating Earnings Information – DTE Energy management believes that operating earnings provide a more meaningful representation of the company’s
earnings from ongoing operations and uses operating earnings as the primary performance measurement for external communications with analysts and investors.
Internally, DTE Energy uses operating earnings to measure performance against budget and to report to the Board of Directors.
to Operating Earnings
2010
DTE
Energy
Electric
Utility
Gas
Utility
Gas
Storage &
Pipelines
Unc. Gas
Prod.Power & Indust. Projects
Energy
Trading
Corporate
& Other
Net Income ($ millions)
gy y y p j g
Reported Earnings $630 $441 $127 $51 ($11) $85 $6 ($69)
Performance Excellence Process -
Cost to Achieve Deferral* (20)—(20)———-
Settlement with Detroit Thermal (3) ( 3)————
Operating Earnings $607 $438 $107 $51 ($11) $85 $6 ($69)
2010
Gas
Power $EPS DTE Energy
Electric Utility Gas Utility Storage & Pipelines Unc. Gas
Prod. & Indust.
Projects
Energy
Trading
Corporate
& Other
Reported Earnings $3.74 $2.62 $0.75 $0.30 ($0.06) $0.50 $0.04 ($0.41)
Performance Excellence Process -
Cost to Achieve Deferral* ( 0.12)—(0.12)———-
34
Settlement with Detroit Thermal ( 0.02) (0.02)————
Operating Earnings $3.60 $2.60 $0.63 $0.30 ($0.06) $0.50 $0.04 ($0.41)
| * |
|
Deferral of previously expensed cost to achieve as allowed for in June 3, 2010 MPSC order (case—U-15985) |
Reconciliation of 2009 Reported
to Operating Earnings
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.
FY 2009 Net DTE
Energy
Electric
Utility
Gas
Utility
Gas
Storage and
Pipelines
Unc. Gas
Prod.
Power &
Indust.
Projects
Energy
Trading
Corporate
& Other
Reported Earnings $532 $376 $80 $49 ($9) $31 $75 ($70)
Gain Income ($ millions)
on Sale—gathering and treating
assets (before goodwill allocation) ( 13)—( 13)———-
Goodwill allocation—gathering and
treating assets 13—13———-
Chrysler Bad Debt 5 4—— 1—-
General Motors Bad Debt 3———3—-
Antrim Hedge 3———— 3
Operating Earnings $543 $380 $80 $49 ($9) $35 $75 ($67)
FY 2009 DTE El t i G Gas St d U G Power & I d t E C t $EPS Energy Electric
Utility Gas Utility Storage and Pipelines Unc. Gas Prod.
Indust.
Projects Energy Trading Corporate & Other
Reported Earnings $3.24 $2.28 $0.49 $0.30 ($0.05) $0.19 $0.46 ($0.43)
Gain on Sale—gathering and treating
assets (before goodwill allocation) ( 0.08)—(0.08)———-
Goodwill allocation—gathering and
35
treating assets 0.08—0.08———- Chrysler Bad Debt 0.03 0.02—— 0.01—- General Motors Bad Debt 0.02———0.02—-
Antrim Hedge 0.01———— 0.01
Operating Earnings $3.30 $2.30 $0.49 $0.30 ($0.05) $0.22 $0.46 ($0.42)
Reconciliation of 2008 Reported to Operating Earnings
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.
FY 2008
DTE
Energy
Electric
Utility
Gas
Utility
Gas
Storage and
Pipelines
Unc. Gas
Prod.
Power &
Indust.
Projects
Energy
Trading
Corporate
& Other Synfuel
Reported Earnings $546 $331 $85 $38 $84 $40 $42 ($94) $20
| 6 |
|
4 1 1 |
Net Income ($ millions)
Performance Excellence Process———-
Core Barnett Sale (81)—— (81)—— -
Antrim hedge 13———— 13 -
Barnett Lease impairment 5—— 5—— -
Crete Sale—Tax True up 2———— 2 -
Synfuel Discontinued Operations (20)—————(20)
Operating Earnings $471 $331 $89 $38 $8 $41 $43 ($79) $ -
FY 2008
DTE Electric Gas Gas Storage and Unc. Gas
Power & Indust. Energy Corporate $EPS
Energy Utility Utility g Pipelines Prod. Projects
Gy Trading p
& Other Synfuel Reported Earnings $3.34 $2.03 $0.52 $0.23 $0.52 $0.25 $0.26 ($0.59) $0.12
Performance Excellence Process 0 ..05—0.03—- 0.01 0 .01—-
Core Barnett Sale ( 0.50)—— (0.50)———Antrim hedge 0.08———— 0.08 -
0 03 0 03
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Barnett Lease impairment 0.03—— .03—— -
Crete Sale—Tax True up 0.01———— 0.01 -
Synfuel Discontinued Operations ( 0.12)—————(0.12)
Operating Earnings $2.89 $2.03 $0.55 $0.23 $0.05 $0.26 $0.27 ($0.50) $ -
Reconciliation of Other Reported
to Operating Earnings
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 presentation, DTE Energy provides guidance for future period operating earnings. It is likely that
certain items that impact the company’s future period reported results will be excluded from operating
results. A reconciliation to the comparable future period reported earnings is 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.
There were no reported to operating earnings adjustments in 1Q 2012.
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