EX-99.2 3 k07145exv99w2.htm FINANCIAL INFORMATION exv99w2
 

Exhibit 99.2
Q2 2006 Supplemental Financial Information July 27, 2006

 


 

DTE Energy Company
Consolidated Statement of Financial Position
                 
    (Unaudited)        
    June 30     December 31  
    2006     2005  
(in Millions)
               
ASSETS
               
Current Assets
               
Cash and cash equivalents
  $ 76     $ 88  
Restricted cash
    127       122  
Accounts receivable
               
Customer (less allowance for doubtful accounts of $169 and $136, respectively)
    1,203       1,746  
Collateral held by others
    102       286  
Other
    295       363  
Accrued power and gas supply cost recovery revenue
    214       186  
Inventories
               
Fuel and gas
    516       522  
Materials and supplies
    149       146  
Deferred income taxes
    70       257  
Assets from risk management and trading activities
    618       806  
Other
    156       160  
 
           
 
    3,526       4,682  
 
           
 
               
Investments
               
Nuclear decommissioning trust funds
    679       646  
Other
    537       530  
 
           
 
    1,216       1,176  
 
           
 
               
Property
               
Property, plant and equipment
    18,661       18,660  
Less accumulated depreciation and depletion
    (7,603 )     (7,830 )
 
           
 
    11,058       10,830  
 
           
 
               
Other Assets
               
Goodwill
    2,057       2,057  
Regulatory assets
    2,063       2,074  
Securitized regulatory assets
    1,289       1,340  
Notes receivable
    241       409  
Assets from risk management and trading activities.
    327       316  
Prepaid pension assets
    187       186  
Other
    256       265  
 
           
 
    6,420       6,647  
 
           
 
               
Total Assets
  $ 22,220     $ 23,335  
 
           

 


 

DTE Energy Company
Consolidated Statement of Financial Position
                 
    (Unaudited)        
    June 30     December 31  
    2006     2005  
(in Millions, Except Shares)
               
LIABILITIES AND SHAREHOLDERS’ EQUITY
               
Current Liabilities
               
Accounts payable
  $ 1,004     $ 1,187  
Accrued interest
    114       115  
Dividends payable
    92       92  
Short-term borrowings
    790       943  
Gas inventory equalization
    52        
Current portion of long-term debt, including capital leases
    183       691  
Liabilities from risk management and trading activities
    539       1,089  
Other
    880       803  
 
           
 
    3,654       4,920  
 
           
 
               
Other Liabilities
               
Deferred income taxes
    1,293       1,396  
Regulatory liabilities
    741       715  
Asset retirement obligations
    1,129       1,091  
Unamortized investment tax credit
    125       131  
Liabilities from risk management and trading activities
    477       527  
Liabilities from transportation and storage contracts
    297       317  
Accrued pension liability
    342       284  
Deferred gains from asset sales
    82       188  
Minority interest
    43       92  
Nuclear decommissioning
    90       85  
Other
    717       740  
 
           
 
    5,336       5,566  
 
           
 
               
Long-Term Debt (net of current portion)
               
Mortgage bonds, notes and other
    5,728       5,234  
Securitization bonds
    1,238       1,295  
Equity-linked securities
    175       175  
Trust preferred-linked securities
    289       289  
Capital lease obligations
    85       87  
 
           
 
    7,515       7,080  
 
           
 
               
Shareholders’ Equity
               
Common stock, without par value, 400,000,000 shares authorized, 177,761,367 and 177,814,429 shares issued and outstanding, respectively
    3,468       3,483  
Retained earnings
    2,478       2,557  
Accumulated other comprehensive loss
    (231 )     (271 )
 
           
 
    5,715       5,769  
 
           
 
               
Total Liabilities and Shareholders’ Equity
  $ 22,220     $ 23,335  
 
           

 


 

DTE Energy Company
Consolidated Statement of Cash Flows (Unaudited)
                 
    Six Months Ended  
    June 30  
    2006     2005  
(in Millions)
               
Operating Activities
               
Net Income
  $ 103     $ 151  
Adjustments to reconcile net income to net cash from operating activities:
               
Depreciation, depletion and amortization
    446       424  
Deferred income taxes
    53       65  
Gain on sale of interests in synfuel projects
    (20 )     (100 )
Loss on sale of assets, net
    2       3  
Impairment of synfuel projects
    122        
Partners’ share of synfuel project losses
    (180 )     (149 )
Contributions from synfuel partners
    129       113  
Changes in assets and liabilities, exclusive of changes shown separately
    219       172  
 
           
Net cash from operating activities
    874       679  
 
           
 
               
Investing Activities
               
Plant and equipment expenditures — utility
    (552 )     (372 )
Plant and equipment expenditures — non-utility
    (145 )     (58 )
Acquisitions, net of cash acquired
    (27 )      
Proceeds from sale of interests in synfuel projects
    182       145  
Proceeds from sale of other assets
    34       18  
Restricted cash for debt redemptions
    (5 )     19  
Proceeds from sale of nuclear decommissioning trust fund assets
    99       112  
Investment in nuclear decommissioning trust funds
    (118 )     (130 )
Other investments
    (31 )     (38 )
 
           
Net cash used for investing activities
    (563 )     (304 )
 
           
 
               
Financing Activities
               
Issuance of long-term debt
    545       395  
Redemption of long-term debt
    (620 )     (639 )
Short-term borrowings, net
    (50 )     91  
Repurchase of common stock
    (10 )     (11 )
Dividends on common stock
    (182 )     (179 )
Other
    (6 )     (2 )
 
           
Net cash used for financing activities
    (323 )     (345 )
 
           
 
               
Net Increase (Decrease) in Cash and Cash Equivalents
    (12 )     30  
Cash and Cash Equivalents at Beginning of the Period
    88       56  
 
           
Cash and Cash Equivalents at End of the Period
  $ 76     $ 86  
 
           

 


 

The Detroit Edison Company
Consolidated Statement of Operations (unaudited)
                                 
    Three Months Ended     Six Months Ended  
    June 30     June 30  
(in Millions)   2006     2005     2006     2005  
                                 
Operating Revenues
  $ 1,175     $ 1,035     $ 2,225     $ 2,025  
 
                       
 
                               
Operating Expenses
                               
Fuel and purchased power
    409       343       718       644  
Operation and maintenance
    369       330       713       651  
Depreciation and amortization
    168       160       335       310  
Taxes other than income
    65       63       134       132  
 
                       
 
    1,011       896       1,900       1,737  
 
                       
 
                               
Operating Income
    164       139       325       288  
 
                       
 
                               
Other (Income) and Deductions
                               
Interest expense
    76       69       148       133  
Interest income
    (1 )           (1 )     (1 )
Other income
    (6 )     (7 )     (13 )     (13 )
Other expenses
    10       13       20       25  
 
                       
 
    79       75       154       144  
 
                       
 
                               
Income Before Income Taxes
    85       64       171       144  
 
                               
Income Tax Provision
    28       21       55       46  
 
                       
 
                               
Reported Earnings
  $ 57     $ 43     $ 116     $ 98  
 
                               
Adjustments
                               
Performance Excellence Process
    23             31        
Incremental non-recurring DTE2 project costs
          3             5  
Effective tax rate normalization
    1             1        
 
                       
 
    24       3       32       5  
 
                       
 
                               
Operating Earnings
  $ 81     $ 46     $ 148     $ 103  
 
                       
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     Six Months Ended  
    June 30     June 30  
(in Millions)   2006     2005     2006     2005  
Operating Revenues
  $ 229     $ 261     $ 1,092     $ 1,095  
 
                       
 
                               
Operating Expenses
                               
Cost of gas
    88       131       712       758  
Operation and maintenance
    110       96       229       215  
Depreciation and amortization
    24       24       47       50  
Taxes other than income
    13       13       28       26  
Asset (gains) and losses, net
    3             3       48  
 
                       
 
    238       264       1,019       1,097  
 
                       
 
                               
Operating Income (Loss)
    (9 )     (3 )     73       (2 )
 
                       
 
                               
Other (Income) and Deductions
                               
Interest expense
    15       13       32       28  
Interest income
    (2 )     (3 )     (4 )     (5 )
Other income
    (2 )           (4 )     (2 )
Other expenses
                1       2  
 
                       
 
    11       10       25       23  
 
                       
 
                               
Income (Loss) Before Income Taxes
    (20 )     (13 )     48       (25 )
 
                               
Income Tax Provision (Benefit)
    (7 )     37       11       38  
 
                       
 
                               
Reported Earnings (Loss)
  $ (13 )   $ (50 )   $ 37     $ (63 )
 
                               
Adjustments
                               
Effective tax rate normalization
    2       43       (2 )     51  
Performance Excellence Process
    2             4        
Incremental non-recurring DTE2 project costs.
          2             2  
April 2005 MPSC gas orders
          4             57  
 
                       
 
    4       49       2       110  
 
                       
 
                               
Operating Earnings (Loss)
  $ (9 )   $ (1 )   $ 39     $ 47  
 
                       
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.

 


 

(LOGO)
DTE Energy Debt/Equity Calculation
As of June 30, 2006
($ millions)
         
Short-term borrowings
    790  
Current portion of long-term debt, including capital leases
    183  
Mortgage bonds, notes and other
    5,728  
Securitization bonds
    1,238  
Capital lease obligations
    85  
Equity-linked securities
    175  
less MichCon short-term debt
    (122 )
less Securitization bonds, including current portion
    (1,345 )
 
     
Total debt
    6,732  
 
       
Trust preferred-linked securities
    289  
 
     
Total preferred/ other
    289  
 
       
Equity
    5,715  
 
       
 
     
Total capitalization
    12,736  
 
     
 
       
Debt
    52.9 %
Preferred
    2.3 %
Common shareholders’ equity
    44.9 %
 
     
 
       
Total
    100.0 %
 
     

 


 

(LOGO)
Sales Analysis — Q2 2006
Electric Sales — Detroit Edison Service Area (GWh)
                         
    Q2 2006     Q2 2005     % Change  
     
Residential
    3,514       3,766       -7 %
Commercial
    4,506       3,820       18 %
Industrial
    3,209       3,024       6 %
Other
    792       646       23 %
     
 
    12,021       11,256       7 %
Interconnection
    570       1,141       -50 %
Choice*
    984       1,996       -51 %
     
TOTAL SALES
    13,575       14,393       -6 %
     
 
*   Includes Dearborn Industrial Group sales
Gas Sales — MichCon Service Area (Mcf)
                         
    Q2 2006     Q2 2005     % Change  
     
Residential
    13,361,179       16,509,131       -19 %
Commercial
    3,747,549       5,017,774       -25 %
Industrial
    160,681       306,601       -48 %
     
 
    17,269,409       21,833,506       -21 %
End User Transportation*
    27,338,128       32,628,790       -16 %
     
TOTAL SALES
    44,607,537       54,462,296       -18 %
     
 
*   Includes choice customers
Electric Revenue — Detroit Edison Service Area ($000s)
                         
    Q2 2006     Q2 2005     % Change  
     
Residential
    380,178       338,297       12 %
Commercial
    411,570       326,309       26 %
Industrial
    207,966       166,384       25 %
Other
    42,830       30,730       39 %
     
 
    1,042,544       861,720       21 %
Interconnection
    34,487       76,490       -55 %
Choice*
    22,967       39,180       -41 %
     
TOTAL REVENUES
    1,099,998       977,390       13 %
     
 
*   Distribution charge, includes Dearborn Industrial Group revenues
Gas Revenue — MichCon Service Area ($000s)
                         
    Q2 2006     Q2 2005     % Change  
     
Residential
    167,355       185,175       -10 %
Commercial
    45,044       54,235       -17 %
Industrial
    1,785       3,082       -42 %
     
 
    214,184       242,492       -12 %
End User Transportation*
    26,837       27,861       -4 %
     
TOTAL REVENUES
    241,021       270,353       -11 %
     
 
*   Includes choice customers
Weather
Cooling Degree Days
Detroit Edison service territory
                         
    Q2 2006     Q2 2005     % Change  
     
Actuals
    225       301       -25 %
Normal
    193       193          
             
Deviation from normal
    17 %     56 %        
Heating Degree Days
MichCon service territory
                         
    Q2 2006     Q2 2005     % Change  
     
Actuals
    683       757       -10 %
Normal
    853       860          
             
Deviation from normal
    -20 %     -12 %