8-K
Dte Energy Co (DTE)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_____________________________
FORM 8-K
_____________________________
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): November 01, 2023
Commission File Number: 1-11607
DTE Energy Company
| Michigan | 38-3217752 |
|---|---|
| (State or other jurisdiction of incorporation or organization) | (I.R.S Employer Identification No.) |
Commission File Number: 1-2198
DTE Electric Company
| Michigan | 38-0478650 |
|---|---|
| (State or other jurisdiction of incorporation or organization) | (I.R.S Employer Identification No.) |
Registrants address of principal executive offices: One Energy Plaza, Detroit, Michigan 48226-1279
Registrants telephone number, including area code: (313) 235-4000
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
| Title of Each Class | Trading Symbol(s) | Name of Exchange on which Registered |
|---|---|---|
| Common stock, without par value | DTE | New York Stock Exchange |
| 2017 Series E 5.25% Junior Subordinated Debentures due 2077 | DTW | New York Stock Exchange |
| 2020 Series G 4.375% Junior Subordinated Debentures due 2080 | DTB | New York Stock Exchange |
| 2021 Series E 4.375% Junior Subordinated Debentures due 2081 | DTG | New York Stock Exchange |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 under the Securities Act (17 CFR 230.405) or Rule 12b-2 under Exchange Act (17 CFR 240.12b-2).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02. Results of Operations and Financial Condition.
DTE Energy Company (DTE Energy) is furnishing the Securities and Exchange Commission (SEC) with its earnings release issued November 1, 2023, announcing financial results for the quarter ended September 30, 2023. A copy of the earnings release and the slide presentation, including supplemental financial information, are furnished as Exhibits 99.1 and 99.2 and incorporated herein by reference.
Item 7.01. Regulation FD Disclosure.
DTE Energy is furnishing the SEC with its slide presentation issued November 1, 2023. A copy of the slide presentation is furnished as Exhibit 99.2 and incorporated herein by reference.
In its earnings release, slide presentation and this filing, 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.
In accordance with General Instruction B.2 of Form 8-K, the information in this Current Report on Form 8-K, including Exhibits 99.1 and 99.2, shall not be deemed "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, nor shall they be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth in such a filing.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits
| 99.1 | Earnings Release of DTE Energy Company dated November 1, 2023. |
|---|---|
| 99.2 | Slide Presentation of DTE Energy Company dated November 1, 2023. |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). |
Forward-Looking Statements:
This Form 8-K contains forward-looking statements that are subject to various assumptions, risks and uncertainties. It should be read in conjunction with the "Forward-Looking Statements" section in DTE Energy's and DTE Electric Company's (DTE Electric) 2022 Form 10-K and 2023 Form 10-Qs (which section is incorporated by reference herein), and in conjunction with other SEC reports filed by DTE Energy and DTE Electric that discuss important factors that could cause DTE Energy's and DTE Electric's actual results to differ materially. DTE Energy and DTE Electric expressly disclaim any current intention to update any forward-looking statements contained in this report as a result of new information or future events or developments.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrants have duly caused this report to be signed on their behalf by the undersigned hereunto duly authorized.
| Date: November 1, 2023 | |
|---|---|
| DTE ENERGY COMPANY<br><br>(Registrant) | |
| /s/David Ruud<br><br>David Ruud<br><br>Executive Vice President and Chief Financial Officer | |
| DTE ELECTRIC COMPANY<br><br>(Registrant) | |
| --- | |
| /s/David Ruud<br><br>David Ruud<br><br>Executive Vice President and Chief Financial Officer |
Document
Exhibit 99.1
DTE Energy reports third quarter earnings and accomplishments
•Announced DTE Electric roadmap to improved reliability with Distribution Grid Plan
•Significant storm activity and cool summer weather results in operating EPS guidance midpoint change from $6.25 to $5.75 per share
•Launched electric undergrounding pilot project in Detroit
•Named Energy Star’s Partner of the Year for Energy Efficiency Program Delivery; customers saved $418 million in 2022
•Received the 2023 C. Everett Koop National Health Award in recognition of workforce wellness programs
•Partnered with the City of Southfield, now enrolled in the MIGreenPower renewable energy program
•Kicked-off fall planting as a founding partner in the Detroit Tree Equity Partnership
DETROIT, November 1, 2023 – 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 Company | |||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Segment Net Income (Unaudited) | |||||||||||||||||||
| Three Months Ended September 30, | |||||||||||||||||||
| 2023 | 2022 | ||||||||||||||||||
| Reported<br>Earnings | Pre-tax Adjustments | Income<br>Taxes(1) | Operating<br>Earnings | Reported<br>Earnings | Pre-tax Adjustments | Income<br>Taxes(1) | Operating<br>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 | |||||||||||||||||||
| DTE Energy Company | |||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |
| Segment Diluted Earnings Per Share (Unaudited)(2) | |||||||||||||||||||
| Three Months Ended September 30, | |||||||||||||||||||
| 2023 | 2022 | ||||||||||||||||||
| Reported<br>Earnings | Pre-tax Adjustments | Income<br>Taxes(1) | Operating<br>Earnings | Reported<br>Earnings | Pre-tax Adjustments | Income<br>Taxes(1) | Operating<br>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 page | |||||||||||||||||||
| DTE Energy Company | |||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Segment Net Income (Unaudited) | |||||||||||||||||||
| Nine Months Ended September 30, | |||||||||||||||||||
| 2023 | 2022 | ||||||||||||||||||
| Reported<br>Earnings | Pre-tax Adjustments | Income<br>Taxes(1) | Operating<br>Earnings | Reported<br>Earnings | Pre-tax Adjustments | Income<br>Taxes(1) | Operating<br>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) | 149 | 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 | |||||||||||||||||||
| DTE Energy Company | |||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Segment Diluted Earnings Per Share (Unaudited)(2) | |||||||||||||||||||
| Nine Months Ended September 30, | |||||||||||||||||||
| 2023 | 2022 | ||||||||||||||||||
| Reported<br>Earnings | Pre-tax Adjustments | Income<br>Taxes(1) | Operating<br>Earnings | Reported<br>Earnings | Pre-tax Adjustments | Income<br>Taxes(1) | Operating<br>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 |
exhibit992-93023
3Q Earnings Conference Call November 1, 2023 EXHIBIT 99.2
Safe harbor statement 2 The information contained herein is as of the date of this document. DTE Energy expressly disclaims any current intention to update any forward-looking statements contained in this document 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 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 our 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. This document should also be read in conjunction with the Forward-Looking Statements section in DTE Energy’s public filings with the Securities and Exchange Commission.
Participants 3 Jerry Norcia – Chairman and CEO Dave Ruud – Executive Vice President and CFO Barbara Tuckfield – Director of Investor Relations
Progressing on utility focused investment plan 4 1. Reconciliation of operating earnings (non-GAAP) to reported earnings included in the appendix • Advancing on building the grid of the future and our path to cleaner generation − Distribution Grid Plan provides roadmap to reliability improvement and acceleration of automation − Integrated Resource Plan (IRP) supports acceleration of coal plant retirements and development of energy storage, while reducing future costs to customers • Progressing toward constructive order on DTE Electric’s rate case − Underpins reliability and cleaner energy investments − Order expected early December • Additional headwinds from storms and continued cooler weather have pressured 2023 operating EPS1 − Overcoming majority of headwinds with one-time cost management initiatives and opportunities throughout the portfolio − Revising operating EPS guidance midpoint from $6.25 to $5.75 • Long-term growth plan remains robust; providing all forward-looking disclosures in mid-December after pending electric rate case decision
3Q 20231H 20234Q 2022 Overcame a significant portion of the ~$370 million of unprecedented operating earnings1 headwinds through one-time cost management initiatives and opportunities throughout the portfolio 5 1. Reconciliation of operating earnings (non-GAAP) to reported earnings included in the appendix Total impact • Lower-than-expected rate order received in 2022 driven by difference in sales forecast $100 million headwind ($0.49 per share) • Historical winter storms: $92 million • 4th warmest winter in over 60 years and cooler spring weather: $73 million $165 million headwinds ($0.80 per share) $106 million headwinds ($0.52 per share) • Additional storms: $53 million • One of the coolest summers in over 20 years: $53 million = ~$370 million headwinds ($1.81 per share) Through 1H 2023 • Implemented significant one-time O&M actions and created opportunities throughout the portfolio • Through 1H, identified offsets to headwinds to achieve midpoint of guidance while remaining focused on customer service excellence 3Q 2023 • Identified actions to partially offset additional headwinds • Continued earnings pressure drove a revision to operating EPS guidance • Unprecedented combination of unfavorable weather and high storm activity combined with low rate order at end of 2022 Total response • Accomplished through one- time savings and favorability across our diverse portfolio of businesses H e a d w in d s A c ti o n s Identified $265 million of annualized offsets ($1.29 per share) = $270 million response ($1.31 per share) $270 million response through 3Q ($1.31 per share)
Modernizing electric grid Preparing for impacts of increased extreme weather events and increased demand from vehicle electrification Transitioning to cleaner generation Shifting generation from coal to renewables supported by cleaner natural gas and storage Executing on significant customer-focused capital investment plan while maintaining affordability 6 Investing in customer-focused initiatives… …while maintaining affordability ✓ Distinctive continuous improvement culture drives cost management ✓ Shift from coal to renewables and natural gas drives fuel and O&M cost reductions ✓ Inflation Reduction Act (IRA) supports transition to cleaner energy while supporting customer affordability goals and further enhancing DTE Vantage opportunities ✓ IRP reduces future costs to customers by $2.5 billion Renewing gas infrastructure Continuing gas main renewal to maintain long- term safety and reliability and reduce GHG emissions
3Q 2023 operating earnings1 variance 7 1. Reconciliation of operating earnings (non-GAAP) to reported earnings included in the appendix 2. Infrastructure Recovery Mechanism 2022 2023 Variance Primary drivers DTE Electric $363 $268 ($95) Cooler weather, higher storm expenses, higher rate base costs and 2022 accelerated deferred tax amortization partially offset by one-time O&M cost reductions DTE Gas (23) (5) 18 One-time O&M cost reductions and IRM2 revenue partially offset by higher rate base costs DTE Vantage 26 56 30 RNG and steel related earnings Energy Trading (20) 31 51 Physical power portfolio performance Corporate & Other (35) (52) (17) Interest expense and timing of taxes DTE Energy $311 $298 ($13) Operating EPS $1.60 $1.44 ($0.16) Avg. Shares Outstanding 194 206 (millions, except EPS)
Overcoming majority of unprecedented headwinds; additional storm and unfavorable weather in 3Q exceed considerable one-time cost saving effort 8 (millions, except EPS) 2023 original guidance 2023 revised guidance Primary drivers DTE Electric $1,010 - $1,030 $813 - $827 Headwinds from lower-than-expected rate order, higher storm expenses and cooler weather partially offset by continued one-time O&M reductions DTE Gas 262 - 272 285 - 295 Continued one-time O&M reductions partially offset by warmer 1Q weather DTE Vantage 115 - 125 141 - 145 RNG performance, additional projects coming into service and opportunistic sales in steel business Energy Trading 20 - 30 75 - 85 Strong performance in the physical power portfolio Corporate & Other (150) - (136) (149) - (145) DTE Energy $1,257 - $1,321 $1,165 - $1,207 Operating EPS1 $6.09 - $6.40 $5.65 - $5.85 1. Reconciliation of operating earnings (non-GAAP) to reported earnings included in the appendix
Maintaining strong cash flow, balance sheet and credit profile 9 Credit ratings S&P Moody’s Fitch DTE Energy (unsecured) BBB Baa2 BBB DTE Electric (secured) A Aa3 A+ DTE Gas (secured) A A1 A Strong balance sheet supports robust customer-focused investment agenda, building the grid of the future and transition to cleaner generation • Consistently generating healthy cash flows • Maintaining solid investment-grade credit ratings
Increased utility investment focused on improved reliability and cleaner generation; well-positioned for long-term growth 10 ✓ Highly engaged team committed to delivering best-in-class results for our customers, communities and investors ✓ Significant effort from our team to offset the majority of the unprecedented headwinds in 2023 ✓ 2023 operating EPS1 guidance updated to reflect additional headwinds experienced in 3Q ✓ Robust customer-focused capital investment plan supports building the grid of the future and clean energy transition ✓ Strong balance sheet and solid investment-grade credit profile support capital investment plan 1. Reconciliation of operating earnings (non-GAAP) to reported earnings included in the appendix
11 Appendix
Weather impact on sales 12 1. DTE Electric 2022 weather normalized data based on 2006 – 2020 weather and 2023 weather normalized data based on 2007 – 2021 weather 2. Reconciliation of operating earnings (non-GAAP) to reported earnings included in the appendix 3. DTE Gas 2022 weather normalized data based on 2007 – 2021 weather and 2023 weather normalized data based on 2008 – 2022 weather Cooling degree days1 Operating earnings2 impact of weather Weather normal sales1 DTE Electric Heating degree days3 Operating earnings2 impact of weather DTE Gas (GWh) YTD 2022 YTD 2023 % Change Residential 12,169 11,855 (2.6%) Commercial 14,539 14,485 (0.4%) Industrial 7,732 7,788 0.7% Other 151 146 (3.3%) 34,591 34,274 (0.9%) (millions) (per share) 3Q YTD 3Q YTD 2022 $6 $28 $0.03 $0.15 2023 ($53) ($95) ($0.26) ($0.47) (millions) (per share) 3Q YTD 3Q YTD 2022 $0 $15 $0.00 $0.08 2023 ($1) ($32) $0.00 ($0.15) 3Q 2022 3Q 2023 % Change YTD 2022 YTD 2023 % Change Actuals 680 498 (27%) 980 682 (30%) Normal 637 643 1% 884 895 1% Deviation from normal 7% (23%) 11% (24%) 3Q 2022 3Q 2023 % Change YTD 2022 YTD 2023 % Change Actuals 110 77 (30%) 4,314 3,640 (16%) Normal 111 112 1% 4,137 4,140 0% Deviation from normal (1%) (31%) 4% (12%)
YTD cash flow and capital expenditures 13 (millions) Cash flow Capital expenditures (billions) YTD 3Q 2022 YTD 3Q 2023 DTE Electric Base infrastructure $836 $676 Cleaner generation 23 391 Distribution infrastructure 1,008 1,177 $1,867 $2,244 DTE Gas Base infrastructure $225 $259 Gas renewal program 250 269 $475 $528 Non-utility $78 $127 Total $2,420 $2,899 YTD 3Q 2022 YTD 3Q 2023 Cash from operations1 $1.4 $2.4 Capital expenditures (2.4) (2.9) Free cash flow ($1.0) ($0.5) Dividends (0.5) (0.6) Other (0.2) (0.1) Net cash ($1.7) ($1.2) Debt financing Issuances $2.0 $2.3 Redemptions (0.3) (1.1) Total debt financing $1.7 $1.2 Change in cash on hand $0.0 $0.0 1. Includes equity issued for employee benefit programs
2023 cash flow and capital expenditures guidance 14 2023 guidance Cash from operations1 $3.2 Capital expenditures (4.2) Free cash flow ($1.0) Dividends (0.8) Other - Net cash ($1.8) Debt financing Issuances $3.6 Redemptions (1.7) Total debt financing $1.9 Change in cash on hand $0.1 2023 guidance DTE Electric Base infrastructure $1,200 Cleaner generation 500 Distribution infrastructure 1,500 $3,200 DTE Gas Base infrastructure $375 Gas renewal program 310 $685 Non-utility $300 - $400 Total $4,185 - $4,285 (millions) Cash flow Capital expenditures (billions) 1. Includes equity issued for employee benefit programs
Environmental, social and governance efforts are key priorities; aspiring to be the best in the industry Environment • Transitioning towards net zero1 emissions at both utilities • Accelerating transition to cleaner generation • Protecting our natural resources Social • Focusing on the diversity, safety, well being and success of employees • Investing in communities • Leader in volunteerism Governance • Focusing on the oversight of environmental sustainability, social and governance • Ensuring board diversity • Providing incentive plans tied to safety and customer satisfaction targets 15 1. Definition of net zero included in the appendix Gallup Exceptional Workplace Award 11 consecutive years America’s Most Responsible Companies 2023 Superior corporate citizenship and community involvement America’s Greatest Workplaces for Diversity 2023 2023 Edison Electric Institute Business Diversity Excellence Award Award-winning commitment to ESG priorities
IRP outlines accelerated path to cleaner energy 77% 45% 31% 15% 17% 19% 19% 20% 18% 12% 2% 19% 24% 27% 34% 20% 3% 3% 4% 6% 6% 6% 1% 14% 22% 32% 42% 62% 2005 2023 2027 2029 2033 2042 Coal Nuclear Natural gas RenewablesStorage Generation mix1 (MWh %) First 5 years (2023 - 2027) • Ceasing coal use at one Belle River unit in 2025 and remaining unit in 2026; converting to 1,300 MW natural gas peaking resource • Adding 1,200 MW of solar • Adding 350 MW of energy storage, increased from 240 MW Second 5 years (2028 - 2032) • Retiring two coal units at Monroe in 2028 and accelerating retirement of two remaining units to 2032 from 2035 • Adding 3,200 MW of solar • Adding 1,000 MW of wind • Adding 430 MW of energy storage Next 10 years (2033 - 2042) • Adding 2,100 MW of solar • Adding 7,900 MW of wind • Adding 1,050 MW of energy storage 16 1. Generation mix subject to change
MIGreenPower program continues significant growth 1,600 business customers 93,000 residential customers 2,400 MW subscribed • Allows customers to attribute up to 100% of electricity use to renewable sources • One of the largest voluntary renewable programs in the nation • Two largest renewable energy purchases from a utility announced with Ford Motor Company and Stellantis − 1,050 MW of projects to be completed beginning in 2026 Voluntary renewable customers 17
Natural Gas Balance program reducing GHG emissions • Offering an affordable way to balance 25% to 100% of customers’ GHG emissions • RNG will be sourced by transforming landfill emissions and wastewater treatment plant by-products into usable gas • Carbon offset program is focused on protecting Michigan forests that naturally absorb greenhouse gases • Partnered with Anew, the nation’s largest carbon offset developer, on the Greenleaf Improved Forest Management project in Michigan’s Upper Peninsula to protect and preserve forests 2021 program inception 12,700 customers subscribed 30,000 metric tons of CO2-e has been offset 18
Progressing on EV initiatives Charging Forward Program • Promoting EV education, infrastructure and adoption • Providing residential and commercial rebates, infrastructure support and fleet advisory services • Offering unique solutions such as home charger installation financing and EV rebates for low and moderate income customers Program-to-date major milestones • 1,400 level 2 public chargers approved and 1,100 installed • 150 direct current fast charger rebates approved and 60 installed • 12 electric bus deployments with the local regional transit agencies • 6 electric school bus deployments with another 66 awarded from the first round of the EPA’s Clean School Bus Program • Approximately $45 million in regulatory approval for EV program funding to date 2019 program inception 1 million gallons of gasoline saved 4,400 residential rebates 19
Committed to Diversity, Equity and Inclusion (DEI); creating a safe and welcoming environment Health and safety of our people is a priority • Multiple safety committees spanning all levels of the company providing input into safety plans, addressing unique challenges of each business unit • Earned Accident Prevention Certificate from the American Gas Association by achieving a DART1 incident rate below the industry average Commitment to create a diverse, equitable and inclusive workforce • Office of DEI led by our CEO and key executive leaders, including a Director of DEI • Focused on sustaining a diverse workforce which is representative of the communities we serve • Annual review of compensation practices to ensure equitable pay • Formal training programs, including unconscious bias training, for employees and leaders Employees with disabilities group Latino and Hispanic group Young professionals group LGBTQ+ group Black professionals group Family oriented group Asian and Middle Eastern American group Military veterans group Women’s group Employee groups create an inclusive environment where differences are celebrated and a sense of belonging exists for all employees 1. Days away, restricted or transferred 20
$2.5b invested in Michigan businesses in 2022 65,000 jobs created since 2010 $900m invested with Detroit suppliers in 2022 $895m invested with suppliers owned by women, minorities, veterans, members of the LGBTQ+ community and disability-owned businesses in 2022 50+ supplier diversity awards earned since 2018 Building on the momentum of the last decade, committed to Michigan investments and supplier diversity $20 $19 $125 $69 $117 $255 2022 Michigan spend (millions) 21
Economic development fuels Michigan’s growth ✓ Michigan ranked in the top 10 by CNBC for America’s Top States for Business in 2023 ✓ $4 billion General Motors investment to convert an assembly plant to produce full-size electric pickup trucks, creating 2,300 jobs ✓ $1.6 billion Our Next Energy investment to build its first cell and electric vehicle battery pack manufacturing facility, creating 2,000 jobs ✓ $1 billion in federal funding to develop a new hydrogen production plant and a refueling center, creating 1,500 jobs ✓ $500 million Magna International investment expanding a facility and building two additional facilities to help support the production of EVs, creating over 1,000 jobs ✓ $400 million Nel Hydrogen investment for a new manufacturing facility to produce green hydrogen, creating 500 jobs ✓ $103 million Niagara Bottling investment in a bottled water facility 22 DTE Energy named one of the 2023 Top Utilities in Economic Development by Site Selection Magazine
10 years average tenure 4 - 7 8 - 11 >11 Governance framework provides shareholder rights and enables sustainable value creation Best-in-class governance practices • Lead Independent Director • All board committees are composed exclusively of independent Directors • Stock ownership guidelines for non-employee Directors • Majority voting standard • Annual Director elections • Established corporate governance guidelines • Publication of Sustainability report • Shareholder ability to call a special meeting • No supermajority voting provisions to approve mergers or amend charter • Overboarding policy 10 1 91% independent 4 7 36% gender or ethnically diverse 65 - 69 70 - 7460 - 64 67 years average age <4 23 Composition of DTE Board of Directors1 1. As of 11/1/2023
Annual or long-term incentive metrics Our team • Employee engagement • Employee safety Our customers • Customer satisfaction • Customer complaints • System reliability Our communities • Customer satisfaction • Customer complaints • System reliability Our investors • EPS • Cash flow • Relative total shareholder return • Balance sheet health Executive management compensation plan is aligned with our stakeholder priorities 24
3Q 2022 and 3Q 2023 reconciliation of reported to operating earnings (non- GAAP) and operating EPS (non-GAAP) 25 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 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) (Earnings per share2)
Reconciliation of reported to operating earnings (non-GAAP) 26 Use of Operating Earnings Information – Operating earnings exclude non-recurring items, certain mark-to-market adjustments and discontinued operations. 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 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 (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. Definition of net zero Goal for DTE Energy's utility operations and gas suppliers at DTE Gas that any carbon emissions put into the atmosphere will be balanced by those taken out of the atmosphere. Achieving this goal will include collective efforts to reduce carbon emissions and actions to offset any remaining emissions. Progress towards net zero goals is estimated and methodologies and calculations may vary from those of other utility businesses with similar targets. Carbon emissions is defined as emissions of carbon containing compounds, including carbon dioxide and methane, that are identified as greenhouse gases.