DETROIT, July 25, 2018 /PRNewswire/ -- DTE Energy (NYSE:
DTE) today reported second quarter 2018 earnings of $234 million, or $1.29 per diluted share, compared with
$177 million, or $0.99 per diluted share in 2017.
Operating earnings for the second quarter 2018 were $247 million, or $1.36 per diluted share, compared with 2017
operating earnings of $191 million,
or $1.07 per diluted share. Operating
earnings exclude non-recurring items, certain mark-to-market
adjustments and discontinued operations. Reconciliations of
reported earnings to operating earnings are included at the end of
this news release.
"Our financial performance this quarter was strong across all
businesses. The strength at our non-utility businesses has put us
in a position to raise our 2018 earnings guidance. Additionally, in
the first half of the year we laid the foundation for exciting
investments and initiatives ahead of us that will transform both
our company and our communities," said DTE Energy Chairman and CEO
Gerry Anderson.
Anderson noted the following accomplishments:
- Accelerated plans for cleaner energy in Michigan: DTE Energy is accelerating its
plans to produce cleaner energy in Michigan, targeting at least a 50 percent
Clean Energy Goal by 2030 - achieved through a combination of
investments in renewable energy and energy efficiency.
- Received approval for the construction of a state-of-the-art
1,100 megawatt baseload natural gas power plant in St. Clair County: Michigan regulators
approved DTE Energy's request to build a highly-efficient natural
gas power plant to help replace three coal-fired plants expected to
retire by 2023. This plant is a key step forward in ensuring
reliability and increasing generation fleet flexibility for future
renewable investments. It also represents a significant step
in the company's plan to reduce carbon emissions by more than 80
percent by 2050.
- Became one of first energy companies in nation to issue
green bonds: The $525 million in
bonds will finance green investments, including low-carbon projects
like renewable energy and energy efficiency. DTE Energy is among
the first investment-grade energy companies in the nation - and the
first company in Michigan - to
issue green bonds.
- Started construction on new, low-emission energy
infrastructure to power Ford Motor Company's Research and
Engineering Center: DTE Energy will design, build, operate and
maintain this unique energy and environmental sustainability
project.
- Ranked as a best employer nationally: DTE Energy is
ranked on Indeed's list of top employers in 2018 and one of 10
Michigan-based companies included in Forbes' Best Employer
rankings.
- Continued support of Michigan businesses: DTE Energy spent
nearly $828 million with
Michigan-based companies in the
first half of this year, exceeding its commitment to the Pure
Michigan Business Connect local supplier initiative. This includes
$285 million spent in the city of Detroit. The company's seven-year effort to
increase spending with Michigan
suppliers has supported the creation of nearly 16,000 Michigan jobs.
Outlook for 2018
DTE Energy increases 2018 operating EPS guidance from
$5.57 - $5.99 to $5.94 -
$6.32.
"We delivered solid second quarter financial results across all
of our business units, with considerable strength at our
non-utility businesses," said Peter
Oleksiak, DTE Energy senior vice president and CFO. "The
strong performance at our non-utilities has put us in a great
position to increase guidance for 2018."
This earnings announcement and presentation slides are available
at dteenergy.com/investors.
The company will conduct a conference call to discuss earnings
results at 9 a.m. ET. Investors, the
news media and the public may listen to a live internet broadcast
of the call at dteenergy.com/investors. The telephone
dial-in numbers are U.S. and Canada toll free: (888) 505-4377 or
international toll: (719) 325-2390. The passcode is 9327084. The
webcast will be archived on the DTE Energy website at dteenergy.com/investors. An audio
replay of the call will be available from noon today to noon
Wednesday, August 8. To access the replay, dial U.S. and
Canada toll free (888) 203-1112 or
international toll (719) 457-0820 and enter the passcode
9327084.
About DTE Energy
DTE Energy (NYSE:DTE) is a
Detroit-based diversified energy
company involved in the development and management of
energy-related businesses and services nationwide. Its operating
units include an electric utility serving 2.2 million customers in
Southeastern Michigan and a
natural gas utility serving 1.3 million customers in Michigan. The DTE Energy portfolio includes
non-utility energy businesses focused on power and industrial
projects, natural gas pipelines, gathering and storage, and energy
marketing and trading. Information about DTE Energy is
available at dteenergy.com,
twitter.com/dte_energy and
facebook.com/dteenergy.
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 2018 operating earnings
guidance. It is likely that certain items that impact the company's
2018 reported results will be excluded from operating results.
Reconciliations to the comparable 2018 reported earnings guidance
are not provided because it is not possible to provide a reliable
forecast of specific line items (i.e. future non-recurring items,
certain mark-to-market adjustments and discontinued operations).
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," "may," "could," "projected," "aspiration," "plans" 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 impact forward-looking statements including, but
not limited to, the following: impact of regulation by the EPA, the
FERC, the MPSC, the NRC, and for DTE Energy, the CFTC, as well as
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, including
legislative amendments and retail access programs; economic
conditions and population changes in our geographic area resulting
in changes in demand, customer conservation, and thefts of
electricity and, for DTE Energy, natural gas; 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; the cost of protecting assets against, or damage due
to, cyber crime and terrorism; volatility in the short-term natural
gas storage markets impacting third-party storage revenues related
to DTE Energy; impact of volatility of prices in the oil and gas
markets on DTE Energy's gas storage and pipelines operations;
impact of volatility in prices in the international steel markets
on DTE Energy's power and industrial projects operations;
volatility in commodity markets, deviations in weather, and related
risks impacting the results of DTE Energy's energy trading
operations; changes in the cost and availability of coal and other
raw materials, purchased power, and natural gas; advances in
technology that produce power or reduce power consumption; changes
in the financial condition of DTE Energy's significant customers
and strategic partners; the potential for losses on investments,
including nuclear decommissioning and benefit plan assets and the
related increases in future expense and contributions; 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 increased costs or delays in
completion of significant capital projects; 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; employee relations and
the impact of collective bargaining agreements; the risk of a major
safety incident at an electric distribution or generation facility
and, for DTE Energy, a gas storage, transmission, or distribution
facility; 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; contract disputes,
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 results to
differ materially from those contained in any forward-looking
statement. Any forward-looking statements speak 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 section of the joint DTE Energy and DTE Electric 2017
Form 10-K and 2018 Form 10-Q (which section is incorporated by
reference herein), and in conjunction with other SEC reports filed
by DTE Energy and DTE Electric.
DTE Energy
Company
|
Segment Net Income
(Unaudited)
|
|
|
|
Three Months Ended
June 30,
|
|
2018
|
|
2017
|
|
Reported
Earnings
|
|
Adjustments
|
|
Operating
Earnings
|
|
Reported
Earnings
|
|
Adjustments
|
|
Operating Earnings
|
|
(In
millions)
|
DTE
Electric
|
$
|
163
|
|
|
$
|
—
|
|
|
|
$
|
163
|
|
|
$
|
138
|
|
|
$
|
10
|
|
B
|
|
$
|
148
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DTE
Gas
|
14
|
|
|
—
|
|
|
|
14
|
|
|
1
|
|
|
—
|
|
|
|
1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-utility
operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gas Storage and
Pipelines
|
60
|
|
|
—
|
|
|
|
60
|
|
|
40
|
|
|
—
|
|
|
|
40
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Power and Industrial
Projects
|
43
|
|
|
—
|
|
|
|
43
|
|
|
30
|
|
|
—
|
|
|
|
30
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Energy
Trading
|
(5)
|
|
|
13
|
|
A
|
|
8
|
|
|
—
|
|
|
4
|
|
A
|
|
4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Non-utility
operations
|
98
|
|
|
13
|
|
|
|
111
|
|
|
70
|
|
|
4
|
|
|
|
74
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate and
Other
|
(41)
|
|
|
—
|
|
|
|
(41)
|
|
|
(32)
|
|
|
—
|
|
|
|
(32)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income
Attributable to DTE Energy Company
|
$
|
234
|
|
|
$
|
13
|
|
|
|
$
|
247
|
|
|
$
|
177
|
|
|
$
|
14
|
|
|
|
$
|
191
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments
key
|
A)
|
Certain adjustments
resulting from derivatives being marked-to-market without revaluing
the underlying non-derivative contracts and assets — recorded
in Operating Expenses — Fuel, purchased power, and gas —
non-utility (net of tax of $4M in 2018 and $2M in 2017)
|
B)
|
MPSC disallowance of
power supply recovery costs related to a customer settlement —
recorded in Operating Revenues — Utility operations and Other
(Income) and Deductions — Interest expense (net of tax of
$6M)
|
DTE Energy
Company
|
Segment Diluted
Earnings Per Share (Unaudited)
|
|
|
|
Three Months Ended
June 30,
|
|
2018
|
|
2017
|
|
Reported
Earnings
|
|
Adjustments(1)
|
|
Operating
Earnings
|
|
Reported
Earnings
|
|
Adjustments(1)
|
|
Operating
Earnings
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DTE
Electric
|
$
|
0.90
|
|
|
$
|
—
|
|
|
|
$
|
0.90
|
|
|
$
|
0.77
|
|
|
$
|
0.06
|
|
B
|
|
$
|
0.83
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DTE
Gas
|
0.08
|
|
|
—
|
|
|
|
0.08
|
|
|
0.01
|
|
|
—
|
|
|
|
0.01
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-utility
operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gas Storage and
Pipelines
|
0.33
|
|
|
—
|
|
|
|
0.33
|
|
|
0.22
|
|
|
—
|
|
|
|
0.22
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Power and Industrial
Projects
|
0.24
|
|
|
—
|
|
|
|
0.24
|
|
|
0.17
|
|
|
—
|
|
|
|
0.17
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Energy
Trading
|
(0.03)
|
|
|
0.07
|
|
A
|
|
0.04
|
|
|
—
|
|
|
0.02
|
|
A
|
|
0.02
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Non-utility
operations
|
0.54
|
|
|
0.07
|
|
|
|
0.61
|
|
|
0.39
|
|
|
0.02
|
|
|
|
0.41
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate and
Other
|
(0.23)
|
|
|
—
|
|
|
|
(0.23)
|
|
|
(0.18)
|
|
|
—
|
|
|
|
(0.18)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income
Attributable to DTE Energy Company
|
$
|
1.29
|
|
|
$
|
0.07
|
|
|
|
$
|
1.36
|
|
|
$
|
0.99
|
|
|
$
|
0.08
|
|
|
|
$
|
1.07
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Per share amounts for
the adjustments are based on the after-tax effect for each item,
divided by the diluted weighted average common shares
outstanding,
as noted on the Consolidated Statements of Operations
(Unaudited)
|
|
Adjustments key — see previous
page
|
DTE Energy
Company
|
Segment Net Income
(Unaudited)
|
|
|
|
Six Months Ended
June 30,
|
|
2018
|
|
2017
|
|
Reported
Earnings
|
|
Adjustments
|
|
Operating
Earnings
|
|
Reported
Earnings
|
|
Adjustments
|
|
Operating
Earnings
|
|
(In
millions)
|
DTE
Electric
|
$
|
303
|
|
|
$
|
8
|
|
A
|
|
$
|
305
|
|
|
$
|
244
|
|
|
$
|
10
|
|
E
|
|
$
|
254
|
|
|
|
|
1
|
|
B
|
|
|
|
|
|
|
|
|
|
|
|
|
(7)
|
|
C
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DTE
Gas
|
118
|
|
|
8
|
|
A
|
|
125
|
|
|
108
|
|
|
—
|
|
|
|
108
|
|
|
|
|
1
|
|
B
|
|
|
|
|
|
|
|
|
|
|
|
|
(2)
|
|
C
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-utility
operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gas Storage and
Pipelines
|
122
|
|
|
—
|
|
|
|
122
|
|
|
85
|
|
|
—
|
|
|
|
85
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Power and Industrial
Projects
|
88
|
|
|
(3)
|
|
C
|
|
85
|
|
|
60
|
|
|
—
|
|
|
|
60
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Energy
Trading
|
26
|
|
|
(17)
|
|
D
|
|
9
|
|
|
96
|
|
|
(74)
|
|
D
|
|
22
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Non-utility
operations
|
236
|
|
|
(20)
|
|
|
|
216
|
|
|
241
|
|
|
(74)
|
|
|
|
167
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate and
Other
|
(62)
|
|
|
5
|
|
A
|
|
(57)
|
|
|
(16)
|
|
|
—
|
|
|
|
(16)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income
Attributable to DTE Energy Company
|
$
|
595
|
|
|
$
|
(6)
|
|
|
|
$
|
589
|
|
|
$
|
577
|
|
|
$
|
(64)
|
|
|
|
$
|
513
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments
key
|
|
|
A)
|
True-up of
remeasurement of deferred taxes as a result of the enactment of the
Tax Cuts and Jobs Act of 2017 — recorded in Income Tax
Expense
|
B)
|
Implementation costs
related to a new customer billing system, net of authorized
regulatory deferral — recorded in Operating Expenses — Operation
and
maintenance (net of tax of $1M and $0M for DTE Electric and DTE
Gas, respectively)
|
C)
|
One-time benefits
expense reimbursement — recorded in Operating Expenses — Operation
and maintenance (net of tax of $(2M), $(1M), and $(1M) for
DTE Electric, DTE Gas, and Power and Industrial Projects,
respectively)
|
D)
|
Certain adjustments
resulting from derivatives being marked-to-market without revaluing
the underlying non-derivative contracts and assets — recorded
in Operating Expenses — Fuel, purchased power, and gas —
non-utility (net of tax of $(6M) in 2018 and $47M in
2017)
|
E)
|
MPSC
disallowance of power supply recovery costs related to a customer
settlement — recorded in Operating Revenues — Utility operations
and Other
(Income) and Deductions — Interest expense (net of tax of
$6M)
|
DTE Energy
Company
|
Segment Diluted
Earnings Per Share (Unaudited)
|
|
|
|
Six Months Ended
June 30,
|
|
2018
|
|
2017
|
|
Reported
Earnings
|
|
Adjustments(1)
|
|
Operating
Earnings
|
|
Reported
Earnings
|
|
Adjustments(1)
|
|
Operating
Earnings
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DTE
Electric
|
$
|
1.68
|
|
|
$
|
0.04
|
|
A
|
|
$
|
1.69
|
|
|
$
|
1.36
|
|
|
$
|
0.06
|
|
E
|
|
$
|
1.42
|
|
|
|
|
0.01
|
|
B
|
|
|
|
|
|
|
|
|
|
|
|
|
(0.04)
|
|
C
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DTE
Gas
|
0.65
|
|
|
0.04
|
|
A
|
|
0.69
|
|
|
0.60
|
|
|
—
|
|
|
|
0.60
|
|
|
|
|
0.01
|
|
B
|
|
|
|
|
|
|
|
|
|
|
|
|
(0.01)
|
|
C
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-utility
operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gas Storage and
Pipelines
|
0.68
|
|
|
—
|
|
|
|
0.68
|
|
|
0.47
|
|
|
—
|
|
|
|
0.47
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Power and Industrial
Projects
|
0.49
|
|
|
(0.02)
|
|
C
|
|
0.47
|
|
|
0.33
|
|
|
—
|
|
|
|
0.33
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Energy
Trading
|
0.14
|
|
|
(0.09)
|
|
D
|
|
0.05
|
|
|
0.54
|
|
|
(0.41)
|
|
D
|
|
0.13
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Non-utility
operations
|
1.31
|
|
|
(0.11)
|
|
|
|
1.20
|
|
|
1.34
|
|
|
(0.41)
|
|
|
|
0.93
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate and
Other
|
(0.35)
|
|
|
0.03
|
|
A
|
|
(0.32)
|
|
|
(0.09)
|
|
|
—
|
|
|
|
(0.09)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income
Attributable to DTE Energy Company
|
$
|
3.29
|
|
|
$
|
(0.03)
|
|
|
|
$
|
3.26
|
|
|
$
|
3.21
|
|
|
$
|
(0.35)
|
|
|
|
$
|
2.86
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Per share amounts for
the adjustments are based on the after-tax effect for each item,
divided by the diluted weighted average common shares
outstanding,
as noted on the Consolidated Statements of Operations
(Unaudited)
|
|
Adjustments
key — see previous page
|
View original content with
multimedia:http://www.prnewswire.com/news-releases/dte-energy-reports-strong-second-quarter-2018-results-raises-guidance-300686116.html
SOURCE DTE Energy