DTE Energy (NYSE:DTE) today reported third quarter earnings of $332
million, or $1.61 per diluted share, compared with $387 million, or
$1.99 per diluted share in 2022.
Operating earnings for the third quarter 2023 were $298 million,
or $1.44 per diluted share, compared with 2022 operating earnings
of $311 million, or $1.60 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.
“This year we were faced with unprecedented headwinds which
impacted our 2023 operating EPS guidance, but through the
incredible work of our highly engaged team, DTE continues to be in
a good position to offset the majority of the challenges and
continue to deliver for our customers, our community and our
investors. We remain heavily focused on continuing to invest the
strategic capital that further supports the transition to cleaner
generation and improved grid reliability in the face of changing
weather patterns and increasing electrification,” Jerry Norcia, DTE
Energy Chairman and CEO, said. “We are well-positioned to do this
work while continuing to provide positive results for our
stakeholders.”
Norcia noted the following DTE accomplishments:
- Overcame unprecedented
headwinds: Implementing significant one-time O&M
actions and capturing opportunities throughout the portfolio to
offset the majority of storm and weather headwinds, while remaining
focused on customer service excellence and reliability.
- Filed DTE Electric
Distribution Grid Plan: The five-year, $9 billion roadmap
to build the grid of the future is expected to improve reliability
by 60% over the next five years. It includes transitioning to a
smart grid with full automation within five years, updating 90% of
the circuits in Detroit, trimming 30,000 miles of trees and
upgrading 10,000 miles of existing infrastructure.
- Launched undergrounding
pilot project: Work began in the City of Detroit in an
area that will span five miles and two neighborhoods as part of a
pilot program to bury power lines. The pilot will demonstrate
reliability improvements for customers.
- Awarded Energy Star
Partner of the Year: According to Energy Star, “Earning an
ENERGY STAR Partner of the Year Award distinguishes corporate
energy management programs. It is the highest level of EPA
recognition.” DTE’s Energy Efficiency program also was named among
the top five in the nation by the American Council for an
Energy-Efficient Economy. By participating in DTE energy efficiency
programs in 2022, DTE customers saved $418 million on energy
bills.
- Earned the C. Everett
Koop National Health Award for programs designed to improve
employee health: The Health Project, which seeks out,
evaluates, promotes and disseminates the lessons learned from
exemplary health promotion and disease prevention programs,
recognized DTE’s use of evidence-based programs for employee
wellness to achieve meaningful results. DTE’s program achieved
participation rates exceeding 85%, reducing critical
lifestyle-related health conditions, workers' compensation claims
and workplace injuries.
- Enrolled the City of
Southfield in DTE’s MIGreenPower program: One of the
largest programs of its kind in the country, MIGreenPower provides
business and residential customers with renewable energy solutions
and the opportunity to commit to a cleaner future by attributing
energy use to Michigan-based renewable energy projects.
- Started the fall planting season with the Detroit Tree
Equity Partnership: In partnership
with American Forests, the City of Detroit, Greening of Detroit and
the Erb Foundation, the effort continues with the fall planting
season with the aim of planting 5,500 trees, ultimately building
toward the goal of 75,000 trees in targeted areas of Detroit. This
spring, 4,329 trees were planted in the city. The partnership will
ultimately improve the tree canopy and create jobs, while providing
cooling summer shade.
Outlook for 2023
DTE Energy is revising 2023 operating EPS guidance from $6.09 -
$6.40 to $5.65 - $5.85.
“2023 operating EPS guidance is updated to reflect additional
headwinds from storms and cooler weather experienced in the third
quarter. Our team continues to execute the plan to offset the
majority of the unprecedented headwinds in 2023. DTE is
well-positioned for future growth and to continue to deliver for
our customers, communities, employees and shareholders,” David
Ruud, DTE executive vice president and CFO, said.
This earnings announcement and presentation slides are available
at dteenergy.com/investors.
The company will conduct a conference call to discuss earnings
results at 9:00 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 in the U.S.
and Canada are toll free: (888) 510-2008 or international: (646)
960-0306. The passcode is 4987588. The webcast will be archived on
the DTE website at dteenergy.com/investors.
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 company serving 2.3 million customers in
Southeast Michigan and a natural gas company serving 1.3 million
customers in Michigan. The DTE portfolio also includes non-utility
businesses focused on custom energy solutions, renewable energy
generation, and energy marketing and trading. As an environmental
leader, DTE utility operations plan to reduce carbon dioxide and
methane emissions by 80% by 2040 to produce cleaner
energy while keeping it safe, reliable and affordable. DTE
Electric and DTE Gas aspire to achieve net zero carbon
and greenhouse gas emissions by 2050. DTE is committed
to serving with its energy through volunteerism,
education and employment initiatives, philanthropy and
economic progress. Information about DTE is available
at dteenergy.com, empoweringmichigan.com, twitter.com/dte_energy and facebook
.com/dteenergy.
Use of Operating Earnings Information - DTE Energy management
believes that operating earnings provide a 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 is a non-GAAP measure and should be viewed as a
supplement and not a substitute for reported earnings, which
represents the company’s net income and the most comparable GAAP
measure. In this release, DTE Energy discusses 2023 operating
earnings guidance. It is likely that certain items that impact the
company's 2023 reported results will be excluded from operating
results. Reconciliations to the comparable 2023 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
document. DTE Energy expressly disclaims any current intention to
update any contained in this document as a result of new
information or future events or developments. Certain information
presented herein includes "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of
1995 with respect to the financial condition, results of
operations, and businesses of DTE Energy. 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 numerous
assumptions, risks and uncertainties that may cause actual future
results to be materially different from those contemplated,
projected, estimated, or budgeted.
Many factors may impact forward-looking statements including,
but not limited to, the following: the impact of regulation by the
EPA, EGLE, the FERC, the MPSC, the NRC, and for DTE Energy, the
CFTC and CARB, 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 DTE
Energy’s geographic area resulting in changes in demand, customer
conservation, and thefts of electricity and, for DTE Energy,
natural gas; the operational failure of electric or gas
distribution systems or infrastructure; impact of volatility in
prices in international steel markets and in prices of
environmental attributes generated from renewable natural gas
investments on the operations of DTE Vantage; the risk of a major
safety incident; environmental issues, laws, regulations, and the
increasing costs of remediation and compliance, including actual
and potential new federal and state requirements; the cost of
protecting assets and customer data against, or damage due to,
cyber incidents and terrorism; health, safety, financial,
environmental, and regulatory risks associated with ownership and
operation of nuclear facilities; 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, store power
or reduce power consumption; changes in the financial condition of
significant customers and strategic partners; the potential for
losses on investments, including nuclear decommissioning trust 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; impacts of inflation and 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, including climate change, on operations and sales to
customers, and purchases from suppliers; unplanned outages at our
generation plants; 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;
successful execution of new business development and future growth
plans; contract disputes, binding arbitration, litigation, and
related appeals; the ability of the electric and gas utilities to
achieve net zero emissions goals; and the risks discussed in DTE
Energy’s 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.
For more information, members of the media may
contact: Pete Ternes: 313.235.5555
For further information, analysts may call:
Barbara Tuckfield, DTE Energy, 313.235.1018 John Dermody, DTE
Energy, 313.235.8750
DTE Energy CompanySegment Net Income
(Unaudited)
|
|
|
|
|
Three Months Ended September 30, |
|
|
|
|
|
2023 |
|
|
|
|
|
|
|
2022 |
|
|
|
|
|
Reported Pre-tax Income Operating Reported Pre-tax Income
Operating Earnings Adjustments Taxes(1)
Earnings Earnings Adjustments
Taxes(1) Earnings |
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions) |
|
|
|
|
|
|
|
|
|
DTE Electric |
$ |
268 |
|
$ |
— |
|
|
$ |
— |
|
$ |
268 |
|
$ |
363 |
|
$ |
— |
|
|
$ |
— |
|
$ |
363 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DTE Gas |
|
(5 |
) |
|
— |
|
|
|
— |
|
|
(5 |
) |
|
(23 |
) |
|
— |
|
|
|
— |
|
|
(23 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-utility operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DTE Vantage |
|
56 |
|
|
— |
|
|
|
— |
|
|
56 |
|
|
26 |
|
|
— |
|
|
|
— |
|
|
26 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Energy Trading |
|
65 |
|
|
(46 |
) A |
|
|
12 |
|
|
31 |
|
|
56 |
|
|
(102 |
) A |
|
|
26 |
|
|
(20 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-utility operations |
|
121 |
|
|
(46 |
) |
|
|
12 |
|
|
87 |
|
|
82 |
|
|
(102 |
) |
|
|
26 |
|
|
6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate and Other |
|
(52 |
) |
|
— |
|
|
|
— |
|
|
(52 |
) |
|
(35 |
) |
|
— |
|
|
|
— |
|
|
(35 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income Attributable to DTE Energy Company |
$ |
332 |
|
$ |
(46 |
) |
|
$ |
12 |
|
$ |
298 |
|
$ |
387 |
|
$ |
(102 |
) |
|
$ |
26 |
|
$ |
311 |
|
(1) Excluding tax related adjustments, the amount of income
taxes was calculated based on a combined federal and state income
tax rate, considering the applicable jurisdictions of the
respective segments and deductibility of specific operating
adjustments.
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, gas, and other — non-utility
Segment Diluted Earnings Per Share
(Unaudited)(2)
|
|
|
|
|
Three Months Ended September 30, |
|
|
|
|
|
|
2023 |
|
|
|
|
|
|
|
2022 |
|
|
|
|
Reported
Pre-tax Income Operating Reported Pre-tax Income Operating Earnings
Adjustments Taxes(1) Earnings
Earnings Adjustments Taxes(1)
Earnings |
|
DTE Electric |
$ |
1.30 |
|
$ |
— |
|
|
$ |
— |
|
$ |
1.30 |
|
$ |
1.88 |
|
$ |
— |
|
|
$ |
— |
|
$ |
1.88 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DTE Gas |
|
(0.03 |
) |
|
— |
|
|
|
— |
|
|
(0.03 |
) |
|
(0.12 |
) |
|
— |
|
|
|
— |
|
|
(0.12 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-utility
operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DTE Vantage |
|
0.28 |
|
|
— |
|
|
|
— |
|
|
0.28 |
|
|
0.13 |
|
|
— |
|
|
|
— |
|
|
0.13 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Energy Trading |
|
0.32 |
|
|
(0.23 |
) A |
|
|
0.06 |
|
|
0.15 |
|
|
0.28 |
|
|
(0.53 |
) A |
|
|
0.14 |
|
|
(0.11 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-utility operations |
|
0.60 |
|
|
(0.23 |
) |
|
|
0.06 |
|
|
0.43 |
|
|
0.41 |
|
|
(0.53 |
) |
|
|
0.14 |
|
|
0.02 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate and
Other |
|
(0.26 |
) |
|
— |
|
|
|
— |
|
|
(0.26 |
) |
|
(0.18 |
) |
|
— |
|
|
|
— |
|
|
(0.18 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income Attributable
to DTE Energy Company |
$ |
1.61 |
|
$ |
(0.23 |
) |
|
$ |
0.06 |
|
$ |
1.44 |
|
$ |
1.99 |
|
$ |
(0.53 |
) |
|
$ |
0.14 |
|
$ |
1.60 |
|
(1) Excluding tax related adjustments, the amount of
income taxes was calculated based on a combined federal and state
income tax rate, considering the applicable jurisdictions of the
respective segments and deductibility of specific operating
adjustments.
(2) Per share amounts are divided by Weighted Average
Common Shares Outstanding — Diluted, as noted on the Consolidated
Statements of Operations (Unaudited).
Adjustments key — see previous
pageSegment Net Income (Unaudited)
|
|
|
|
Nine Months Ended September 30, |
|
|
|
|
|
|
2023 |
|
2022 |
|
|
|
|
|
|
Reported Pre-tax Income Operating Reported Pre-tax Income
Operating Earnings Adjustments Taxes(1)
Earnings Earnings Adjustments
Taxes(1) Earnings |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions) |
|
DTE Electric |
$ |
547 |
|
$ |
— |
|
|
$ |
— |
|
$ |
547 |
|
$ |
750 |
|
$ |
— |
|
$ |
— |
|
|
$ |
750 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DTE Gas |
|
190 |
|
|
— |
|
|
|
— |
|
|
190 |
|
|
179 |
|
|
— |
|
|
— |
|
|
|
179 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-utility operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DTE Vantage |
|
109 |
|
|
— |
|
|
|
— |
|
|
109 |
|
|
68 |
|
|
— |
|
|
— |
|
|
|
68 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Energy Trading |
|
234 |
|
|
(259 |
) A |
|
|
66 |
|
|
41 |
|
|
(80 |
) |
|
14 |
9 A |
|
(37 |
) |
|
|
32 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-utility operations |
|
343 |
|
|
(259 |
) |
|
|
66 |
|
|
150 |
|
|
(12 |
) |
|
149 |
|
|
(37 |
) |
|
|
100 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate and Other |
|
(102 |
) |
|
— |
|
|
|
(7 |
) B |
|
(109 |
) |
|
(99 |
) |
|
— |
|
|
— |
|
|
|
(99 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income Attributable to DTE Energy Company |
$ |
978 |
|
$ |
(259 |
) |
|
$ |
59 |
|
$ |
778 |
|
$ |
818 |
|
$ |
149 |
|
$ |
(37 |
) |
|
$ |
930 |
|
(1) Excluding tax related adjustments, the amount of income
taxes was calculated based on a combined federal and state income
tax rate, considering the applicable jurisdictions of the
respective segments and deductibility of specific operating
adjustments.
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, gas, and other — non-utility
B) Adjustment to Income Tax Expense due to a tax law
change in West Virginia
Segment Diluted Earnings Per Share
(Unaudited)(2)
|
|
|
|
|
Nine Months Ended September 30, |
|
|
|
|
|
|
2023 |
|
|
|
|
|
|
|
2022 |
|
|
|
|
Reported
Pre-tax Income Operating Reported Pre-tax Income Operating Earnings
Adjustments Taxes(1) Earnings
Earnings Adjustments Taxes(1)
Earnings |
DTE Electric |
$ |
2.65 |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
2.65 |
|
$ |
3.87 |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
3.87 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DTE Gas |
|
0.92 |
|
|
— |
|
|
|
— |
|
|
|
0.92 |
|
|
0.92 |
|
|
— |
|
|
|
— |
|
|
|
0.92 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-utility operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DTE Vantage |
|
0.53 |
|
|
— |
|
|
|
— |
|
|
|
0.53 |
|
|
0.35 |
|
|
— |
|
|
|
— |
|
|
|
0.35 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Energy Trading |
|
1.14 |
|
|
(1.27 |
) A |
|
|
0.32 |
|
|
|
0.19 |
|
|
(0.42 |
) |
|
0.77 |
A |
|
|
(0.19 |
) |
|
|
0.16 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-utility operations |
|
1.67 |
|
|
(1.27 |
) |
|
|
0.32 |
|
|
|
0.72 |
|
|
(0.07 |
) |
|
0.77 |
|
|
|
(0.19 |
) |
|
|
0.51 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate and Other |
|
(0.50 |
) |
|
— |
|
|
|
(0.03 |
) B |
|
|
(0.53 |
) |
|
(0.51 |
) |
|
— |
|
|
|
— |
|
|
|
(0.51 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income Attributable to DTE Energy Company |
$ |
4.74 |
|
$ |
(1.27 |
) |
|
$ |
0.29 |
|
|
$ |
3.76 |
|
$ |
4.21 |
|
$ |
0.77 |
|
|
$ |
(0.19 |
) |
|
$ |
4.79 |
|
(1) Excluding tax related adjustments, the amount of
income taxes was calculated based on a combined federal and state
income tax rate, considering the applicable jurisdictions of the
respective segments and deductibility of specific operating
adjustments.
(2) Per share amounts are divided by Weighted Average
Common Shares Outstanding — Diluted, as noted on the Consolidated
Statements of Operations (Unaudited).
Adjustments key — see previous
page
DTE Energy (NYSE:DTE)
Historical Stock Chart
From Jun 2024 to Jul 2024
DTE Energy (NYSE:DTE)
Historical Stock Chart
From Jul 2023 to Jul 2024