As the full impact of COVID-19 is still becoming evident, DTE
Energy (NYSE:DTE) moved quickly to activate its pandemic response
team. The company’s primary concern has been the health and
well-being of DTE customers, communities and employees.
Today DTE also reported first quarter 2020 earnings of $340
million, or $1.76 per diluted share, compared with $401 million, or
$2.19 per diluted share in 2019.
Operating earnings for the first quarter 2020 were $320 million,
or $1.66 per diluted share, compared with 2019 operating earnings
of $374 million, or $2.05 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. “DTE has a proud heritage of rallying at
the toughest of times. Whether we’re dealing with catastrophic
storms or economic crisis, in every case, we’ve emerged a better,
stronger company. There is no doubt that the work required of us
today will set us up for another successful decade,” said Jerry
Norcia, DTE Energy president and CEO.
Additionally, Norcia noted the following accomplishments:
- Providing reliable and safe service during the COVID-19
pandemic: The 10,000 women and men of DTE and key
suppliers have never stopped working during this crisis to provide
reliable and safe energy. We refined our safety practices to ensure
we deliver energy while keeping employees and customers safe.
- Providing assistance to low-income and vulnerable
customers: Instituted shut-off moratoriums for low-income
and senior customers and created new payment plans to ease the
burden of COVID-19.
- Mobilizing resources to address our communities’
needs: DTE’s Foundation and its non-profit and
philanthropic partners are mobilizing resources to swiftly address
our communities’ most vital needs. This includes supporting basic
needs, such as food, shelter and access to core medical services.
- Organized support for small businesses:
Working with state and federal leaders and the Detroit Economic
Growth Corporation, DTE helped small businesses apply for
small business administration loans.
- Donated personal protection equipment:
Distributing 2 million respiratory masks to area hospitals, police,
fire and critical workers.
- Received IRP order: The order increases energy
efficiency goals and ensures a renewable energy pathway that will
support DTE’s goal of net zero carbon emissions from electric
generation by 2050.
- Ranked among top 10 energy companies in the U.S. for
energy efficiency programs: Ranked as the eighth-leading
energy company in the nation for our energy efficiency savings to
customers. Residential and business customers who participated in
efficiency programs saw a 27% increase in annual energy savings as
the company dramatically broadened efficiency program
offerings.
Outlook for 2020
DTE Energy reaffirms 2020 operating EPS guidance of $6.47 -
$6.75.
“Over the years, we have earned a reputation as a top company in
our industry because we consistently deliver on our financial
commitments. It is very important that we maintain this hard-earned
reputation by meeting our 2020 financial targets. By doing so, we
help ensure success for all our key stakeholders – employees,
customers, community and shareholders,” said Peter Oleksiak, DTE
Energy senior vice president and CFO.
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 in the U.S.
and Canada are toll free: (833) 520-0059 or international: (825)
312-2353. The passcode is 2780029. The webcast will be archived on
the DTE website at dteenergy.com/investors. An audio replay
of the call will be available from noon today to noon Tuesday, May
26, 2020. To access the replay, dial U.S. and Canada toll free
(800) 585-8367 or international toll (416) 621-4642 and enter the
passcode 2780029.
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 2.2 million customers in Southeast Michigan and a
natural gas company serving 1.3 million customers in Michigan. The
DTE portfolio includes energy businesses focused on power and
industrial projects; renewable natural gas; natural gas pipelines,
gathering and storage; and energy marketing and trading. As an
environmental leader, DTE utility operations will reduce carbon
dioxide and methane emissions by more than 80 percent by 2040 to
produce cleaner energy while keeping it safe, reliable and
affordable. DTE Electric aspires to achieve net zero carbon
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.
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 2020 operating earnings
guidance. It is likely that certain items that impact the company's
2020 reported results will be excluded from operating results.
Reconciliations to the comparable 2020 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.
DTE Energy also discusses Adjusted EBITDA in its slide
presentation. The reconciliation of net income to Adjusted EBITDA
as projected for full-year 2020 is not provided. DTE Energy does
not forecast net income as it cannot, without unreasonable efforts,
estimate or predict with certainty the components of net
income. These components, net of tax, may include, but are
not limited to, impairments of assets and other charges, divesture
costs, acquisition costs, or changes in accounting principles. All
of these components could significantly impact such financial
measures. At this time, DTE Energy is not able to estimate the
aggregate impact, if any, of these items on future period reported
earnings. Accordingly, DTE Energy is not able to provide a
corresponding GAAP equivalent for Adjusted EBITDA.
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: the duration and impact of the
COVID-19 pandemic on DTE Energy and customers, 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 the 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 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; 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 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 the short-term
natural gas storage markets impacting third-party storage revenues
related to DTE Energy; 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 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 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 the Registrants' public filings
with the Securities and Exchange Commission.
For further information, members of the media may
call:Pete Ternes, DTE Energy, 313.235.5555
For further information, analysts may
call:Barbara Tuckfield, DTE Energy, 313.235.1018John
Dermody, DTE Energy, 313.235.8750
|
DTE
Energy Company |
Segment Net Income (Unaudited) |
|
Three Months Ended March 31, |
|
2020 |
|
2019 |
|
Reported |
|
Pre-tax |
|
Income |
|
Operating |
|
Reported |
|
Pre-tax |
|
Income |
|
Operating |
|
Earnings |
|
Adjustments |
|
Taxes(1) |
|
Earnings |
|
Earnings |
|
Adjustments |
|
Taxes(1) |
|
Earnings |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions) |
DTE Electric |
$ |
94 |
|
|
$ |
— |
|
|
|
$ |
— |
|
|
|
$ |
94 |
|
|
$ |
147 |
|
|
$ |
— |
|
|
|
$ |
— |
|
|
|
$ |
147 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DTE Gas |
121 |
|
|
— |
|
|
|
— |
|
|
|
121 |
|
|
151 |
|
|
— |
|
|
|
— |
|
|
|
151 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-utility
operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gas Storage and Pipelines |
72 |
|
|
— |
|
|
|
— |
|
|
|
72 |
|
|
48 |
|
|
— |
|
|
|
— |
|
|
|
48 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Power and Industrial Projects |
30 |
|
|
— |
|
|
|
— |
|
|
|
30 |
|
|
26 |
|
|
— |
|
|
|
— |
|
|
|
26 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Energy Trading |
34 |
|
|
(26 |
) |
A |
|
6 |
|
|
|
14 |
|
|
32 |
|
|
(36 |
) |
A |
|
9 |
|
|
|
5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Non-utility operations |
136 |
|
|
(26 |
) |
|
|
6 |
|
|
|
116 |
|
|
106 |
|
|
(36 |
) |
|
|
9 |
|
|
|
79 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate and
Other |
(11 |
) |
|
— |
|
|
|
— |
|
|
|
(11 |
) |
|
(3 |
) |
|
— |
|
|
|
— |
|
|
|
(3 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income
Attributable to DTE Energy Company |
$ |
340 |
|
|
$ |
(26 |
) |
|
|
$ |
6 |
|
|
|
$ |
320 |
|
|
$ |
401 |
|
|
$ |
(36 |
) |
|
|
$ |
9 |
|
|
|
$ |
374 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Excluding tax
related adjustments, the amount of income taxes was calculated
using a combined federal and state income tax rate of 25% for the
three months ended March 31, 2020 and 27% for the three months
ended March 31, 2019. |
|
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 |
|
DTE
Energy Company |
Segment Diluted Earnings Per Share
(Unaudited)(2) |
|
|
|
|
|
|
|
Three Months Ended March 31, |
|
2020 |
|
2019 |
|
Reported |
|
Pre-tax |
|
Income |
|
Operating |
|
Reported |
|
Pre-tax |
|
Income |
|
Operating |
|
Earnings |
|
Adjustments |
|
Taxes(1) |
|
Earnings |
|
Earnings |
|
Adjustments |
|
Taxes(1) |
|
Earnings |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DTE Electric |
$ |
0.49 |
|
|
$ |
— |
|
|
|
$ |
— |
|
|
|
$ |
0.49 |
|
|
$ |
0.81 |
|
|
$ |
— |
|
|
|
$ |
— |
|
|
|
$ |
0.81 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DTE Gas |
0.63 |
|
|
— |
|
|
|
— |
|
|
|
0.63 |
|
|
0.83 |
|
|
— |
|
|
|
— |
|
|
|
0.83 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-utility
operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gas Storage and Pipelines |
0.37 |
|
|
— |
|
|
|
— |
|
|
|
0.37 |
|
|
0.26 |
|
|
— |
|
|
|
— |
|
|
|
0.26 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Power and Industrial Projects |
0.16 |
|
|
— |
|
|
|
— |
|
|
|
0.16 |
|
|
0.14 |
|
|
— |
|
|
|
— |
|
|
|
0.14 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Energy Trading |
0.17 |
|
|
(0.14 |
) |
A |
|
0.04 |
|
|
|
0.07 |
|
|
0.18 |
|
|
(0.19 |
) |
A |
|
0.05 |
|
|
|
0.04 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Non-utility operations |
0.70 |
|
|
(0.14 |
) |
|
|
0.04 |
|
|
|
0.60 |
|
|
0.58 |
|
|
(0.19 |
) |
|
|
0.05 |
|
|
|
0.44 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate and
Other |
(0.06 |
) |
|
— |
|
|
|
— |
|
|
|
(0.06 |
) |
|
(0.03 |
) |
|
— |
|
|
|
— |
|
|
|
(0.03 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income
Attributable to DTE Energy Company |
$ |
1.76 |
|
|
$ |
(0.14 |
) |
|
|
$ |
0.04 |
|
|
|
$ |
1.66 |
|
|
$ |
2.19 |
|
|
$ |
(0.19 |
) |
|
|
$ |
0.05 |
|
|
|
$ |
2.05 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Excluding tax
related adjustments, the amount of income taxes was calculated
using a combined federal and state income tax rate of 25% for the
three months ended March 31, 2020 and 27% for the three months
ended March 31, 2019. |
|
(2) 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 |
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