DETROIT, April 26, 2017 /PRNewswire/ -- DTE Energy (NYSE:
DTE) today reported first quarter 2017 earnings of $400 million, or $2.23 per diluted share, compared with
$247 million, or $1.37 per diluted share in 2016. Reported
earnings were higher driven in large part by DTE Energy's
businesses outside of its utilities. The combined reported earnings
at the utilities were flat.
Operating earnings for the first quarter 2017 were $322 million, or $1.79 per diluted share, compared with 2016
operating earnings of $274 million,
or $1.52 per diluted share. Operating
earnings exclude non-recurring items, certain mark-to-market
adjustments and discontinued operations and are reconciled to
Reported earnings, prepared in accordance with generally accepted
accounting principles (GAAP), at the end of this news release.
The company experienced the largest weather event in its more
than 100-year history in early March when unseasonably warm
temperatures combined with sustained tropical storm force winds
gusting to 70 mph pounded Michigan
for 12 hours. With 800,000 customers impacted, thousands of DTE
employees along with out-of-state crews from seven states worked
around the clock to restore customers.
"Given the size of this wind storm, I couldn't be more proud of
our employees and the out-of-state crews who worked so hard to
restore power to our customers. We will continue to make
investments to strengthen and automate our system to prevent future
outages and improve the speed of our restoration efforts for
customers," said Gerry Anderson, DTE
chairman and CEO.
Anderson also noted the following recent company
accomplishments:
- DTE began commercial operation of its 50 megawatt Pinnebog Wind
Park in Huron County, generating
enough energy to power 22,000 homes. This brings the number of DTE
owned or operated wind parks to 13 across Michigan. This year, the company will finish
work on a $100 million solar project
in Lapeer, which is the largest
utility owned array in Michigan.
Once this project is completed, DTE Energy's entire renewable
energy portfolio, including solar, wind and biomass, will be large
enough to power 450,000 homes, or a city more than four times the
size of Ann Arbor, Michigan.
- DTE Energy partnered with the Michigan Department of
Transportation (MDOT) to re-light Michigan roads. The six-month
project involved DTE installing more than 13,000 LED lights above
Michigan freeways and overpasses.
The lighting upgrade is expected to save MDOT and Michigan residents an estimated $2 million in energy costs annually beginning
this year.
- DTE Energy customers will see the cost of natural gas drop
nearly 9 percent in their April gas bills due to the downward trend
of natural gas prices. Over the past 10 years, residential
customers' overall natural gas bills have dropped by 27 percent, or
about $300 annually, as the cost for
the natural gas DTE buys has declined.
- In 2016, DTE Energy gas crews replaced 140 miles of cast iron
gas lines with new polyethylene lines. We are on track to
meet this goal again in 2017. In total, the effort, which enhances
the company's natural gas infrastructure by increasing reliability,
employs more than 300 people, either at DTE or in other
Michigan-based companies.
- DTE was recognized again by the Gallup organization as a Gallup
Great Workplace for the fifth consecutive year. This award is given
to only a handful of companies worldwide for their extraordinary
ability to create a highly engaged workplace culture. DTE remains
the only utility company ever recognized by the Gallup
organization.
Outlook for 2017
DTE reiterated its 2017 operating earnings per share guidance of
$5.15 - $5.46.
"While our winter was warmer than expected and we experienced a
historic wind storm, our continued focus on operational cost
savings will allow us to achieve our financial goals and improve
service levels for our customers," said Peter Oleksiak, DTE Energy senior vice president
and CFO.
This earnings announcement and the presentation slides are
available at www.dteenergy.com/investors.
DTE Energy plans to conduct a conference call with the
investment community hosted by Anderson at 9
a.m. ET today to discuss first quarter 2017 earnings
results. Investors, the news media and the public may listen to a
live internet broadcast of the call at www.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
www.dteenergy.com/investors. An audio replay of the call will
be available from noon today to May
10, 2017. To access the replay, dial US and
Canada toll free (888) 203-1112 or
International toll (719) 457-0820 and enter 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 2017 operating earnings
guidance. It is likely that certain items that impact the company's
2017 reported results will be excluded from operating results.
Reconciliations to the comparable 2017 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 movements 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," "projected," "aspiration" 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; 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 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 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; the cost of protecting assets
against, or damage due to, cyber crime and terrorism; 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; implementation of new information
systems; 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 2016 Form 10-K and 2017 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
|
Consolidated
Statements of Operations (Unaudited)
|
|
|
|
Three Months
Ended
|
|
March
31,
|
|
2017
|
|
2016
|
|
(In millions,
except per share amounts)
|
Operating
Revenues
|
|
|
|
Utility
operations
|
$
|
1,718
|
|
|
$
|
1,664
|
|
Non-utility
operations
|
1,518
|
|
|
902
|
|
|
3,236
|
|
|
2,566
|
|
|
|
|
|
Operating
Expenses
|
|
|
|
Fuel, purchased
power, and gas — utility
|
529
|
|
|
565
|
|
Fuel, purchased
power, and gas — non-utility
|
1,180
|
|
|
776
|
|
Operation and
maintenance
|
600
|
|
|
516
|
|
Depreciation and
amortization
|
249
|
|
|
229
|
|
Taxes other than
income
|
109
|
|
|
99
|
|
|
2,667
|
|
|
2,185
|
|
Operating
Income
|
569
|
|
|
381
|
|
|
|
|
|
Other (Income) and
Deductions
|
|
|
|
Interest
expense
|
125
|
|
|
113
|
|
Interest
income
|
(3)
|
|
|
(11)
|
|
Other
income
|
(64)
|
|
|
(52)
|
|
Other
expenses
|
7
|
|
|
8
|
|
|
65
|
|
|
58
|
|
Income Before
Income Taxes
|
504
|
|
|
323
|
|
|
|
|
|
Income Tax
Expense
|
110
|
|
|
83
|
|
|
|
|
|
Net
Income
|
394
|
|
|
240
|
|
|
|
|
|
Less: Net Loss
Attributable to Noncontrolling Interests
|
(6)
|
|
|
(7)
|
|
|
|
|
|
Net Income
Attributable to DTE Energy Company
|
$
|
400
|
|
|
$
|
247
|
|
|
|
|
|
Basic Earnings per
Common Share
|
|
|
|
Net Income
Attributable to DTE Energy Company
|
$
|
2.23
|
|
|
$
|
1.38
|
|
|
|
|
|
Diluted Earnings
per Common Share
|
|
|
|
Net Income
Attributable to DTE Energy Company
|
$
|
2.23
|
|
|
$
|
1.37
|
|
|
|
|
|
Weighted Average
Common Shares Outstanding
|
|
|
|
Basic
|
179
|
|
|
179
|
|
Diluted
|
179
|
|
|
180
|
|
Dividends Declared
per Common Share
|
$
|
0.825
|
|
|
$
|
0.73
|
|
|
|
|
|
DTE Energy
Company
|
Segment Net Income
(Unaudited)
|
|
|
|
Three Months Ended
March 31,
|
|
2017
|
|
2016
|
|
Reported
Earnings
|
|
Adjustments
|
|
Operating
Earnings
|
|
Reported
Earnings
|
|
Adjustments
|
|
Operating
Earnings
|
|
(In
millions)
|
DTE
Electric
|
$
|
106
|
|
|
$
|
—
|
|
|
|
$
|
106
|
|
|
$
|
127
|
|
|
$
|
—
|
|
|
|
$
|
127
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DTE
Gas
|
107
|
|
|
—
|
|
|
|
107
|
|
|
87
|
|
|
—
|
|
|
|
87
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-utility
operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gas Storage and
Pipelines
|
45
|
|
|
—
|
|
|
|
45
|
|
|
30
|
|
|
—
|
|
|
|
30
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Power and Industrial
Projects
|
30
|
|
|
—
|
|
|
|
30
|
|
|
17
|
|
|
4
|
B
|
|
|
21
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Energy
Trading
|
96
|
|
|
(78)
|
A
|
|
|
18
|
|
|
(7)
|
|
|
23
|
A
|
|
|
16
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Non-utility
operations
|
171
|
|
|
(78)
|
|
|
|
93
|
|
|
40
|
|
|
27
|
|
|
|
67
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate and
Other
|
16
|
|
|
—
|
|
|
|
16
|
|
|
(7)
|
|
|
—
|
|
|
|
(7)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income
Attributable to DTE Energy Company
|
$
|
400
|
|
|
$
|
(78)
|
|
|
|
$
|
322
|
|
|
$
|
247
|
|
|
$
|
27
|
|
|
|
$
|
274
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 $50M in 2017 and $15M in
2016)
|
B) Closure of
Shenango coke battery due to impacts from downturn in North
American steel industry — recorded in Operating Expenses — Asset
(gains) losses and impairments (net of tax $2M)
|
DTE Energy
Company
|
Segment Diluted
Earnings Per Share (Unaudited)
|
|
|
|
Three Months Ended
March 31,
|
|
2017
|
|
2016
|
|
Reported
Earnings
|
|
Adjustments(1)
|
|
Operating
Earnings
|
|
Reported
Earnings
|
|
Adjustments(1)
|
|
Operating
Earnings
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DTE
Electric
|
$
|
0.59
|
|
|
$
|
—
|
|
|
|
$
|
0.59
|
|
|
$
|
0.71
|
|
|
$
|
—
|
|
|
|
$
|
0.71
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DTE
Gas
|
0.60
|
|
|
—
|
|
|
|
0.60
|
|
|
0.48
|
|
|
—
|
|
|
|
0.48
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-utility
operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gas Storage and
Pipelines
|
0.25
|
|
|
—
|
|
|
|
0.25
|
|
|
0.17
|
|
|
—
|
|
|
|
0.17
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Power and Industrial
Projects
|
0.17
|
|
|
—
|
|
|
|
0.17
|
|
|
0.09
|
|
|
0.02
|
B
|
|
|
0.11
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Energy
Trading
|
0.53
|
|
|
(0.44)
|
A
|
|
|
0.09
|
|
|
(0.04)
|
|
|
0.13
|
A
|
|
|
0.09
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Non-utility
operations
|
0.95
|
|
|
(0.44)
|
|
|
|
0.51
|
|
|
0.22
|
|
|
0.15
|
|
|
|
0.37
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate and
Other
|
0.09
|
|
|
—
|
|
|
|
0.09
|
|
|
(0.04)
|
|
|
—
|
|
|
|
(0.04)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income
Attributable to DTE Energy Company
|
$
|
2.23
|
|
|
$
|
(0.44)
|
|
|
|
$
|
1.79
|
|
|
$
|
1.37
|
|
|
$
|
0.15
|
|
|
|
$
|
1.52
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/dte-energy-reports-first-quarter-2017-results-300445761.html
SOURCE DTE Energy