10-QPeriod: Q3 FY2011

DTE ENERGY CO Quarterly Report for Q3 Ended Sep 30, 2011

Filed November 4, 2011For Securities:DTEDTKDTBDTGDTW

Summary

DTE Energy Company reported a net income of $183 million ($1.07 per diluted share) for the third quarter of 2011, an increase from $163 million ($0.96 per diluted share) in the same period of 2010. For the nine months ended September 30, 2011, net income was $561 million ($3.30 per diluted share), up from $478 million ($2.84 per diluted share) in the comparable period of 2010. This overall improvement was driven by stronger performance in the Electric Utility and Energy Trading segments, with a notable contribution from a significant income tax benefit related to the enactment of the Michigan Corporate Income Tax in the Corporate & Other segment for the nine-month period. The company's total assets remained relatively stable at $24.8 billion, with property, plant, and equipment forming the largest asset category. Total liabilities and equity were also stable. The company's liquidity position appears sound, with significant available credit facilities. Management expects continued operational and financial strength, supported by regulatory stability for its utilities and strategic growth in non-utility segments.

Financial Highlights

49 data points
Beta

Revenue

$2.25B

Net Income

$183.00M

8.1% Net Margin

EPS (Diluted)

$1.07

Total Assets

$24.78B

Cash & Equivalents

$46.00M

Free Cash Flow

$327.00M

Financial Statements
Beta
Revenue$2.25B
Operating Expenses$1.87B
Operating Income$398.00M
Interest Expense$120.00M
Net Income$183.00M
EPS (Basic)$1.08
EPS (Diluted)$1.07
Shares Outstanding (Basic)169.00M
Shares Outstanding (Diluted)170.00M

Key Highlights

  • 1Net income attributable to DTE Energy Company increased to $183 million for Q3 2011 from $163 million in Q3 2010.
  • 2Diluted EPS rose to $1.07 in Q3 2011 from $0.96 in Q3 2010.
  • 3Nine-month net income increased to $561 million ($3.30/share) from $478 million ($2.84/share) in the prior year.
  • 4The increase in nine-month net income was significantly boosted by an $88 million income tax benefit from the Michigan Corporate Income Tax enactment.
  • 5Total assets remained stable at approximately $24.8 billion.
  • 6The company has significant available credit facilities totaling $1.6 billion as of September 30, 2011.

Frequently Asked Questions

The primary driver of the increase in net income for the nine-month period ended September 30, 2011, was an $88 million income tax benefit recognized due to the enactment of the Michigan Corporate Income Tax (MCIT). This benefit, along with improved performance in the Electric Utility and Energy Trading segments, contributed to the overall year-over-year increase.

Detroit Edison experienced decreased electric sales in the first nine months of 2011, primarily due to lower interconnection and industrial sales. This was partially offset by higher residential and commercial sales, the latter largely attributed to weather-related usage.

DTE Energy maintained a strong liquidity position, with approximately $1.6 billion in available credit facilities as of September 30, 2011. The company also completed an early renewal of its major revolving credit facilities in October 2011, extending their maturity to October 2016.

Yes, the enactment of the Michigan Corporate Income Tax (MCIT) resulted in a significant tax benefit. Additionally, Detroit Edison received an order in its October 2011 rate case, approving an annual revenue increase of $175 million and introducing new mechanisms like a Revenue Decoupling Mechanism (RDM).