10-QPeriod: Q3 FY2013

DTE ENERGY CO Quarterly Report for Q3 Ended Sep 30, 2013

Filed October 25, 2013For Securities:DTEDTKDTBDTGDTW

Summary

DTE Energy Company reported its third-quarter and year-to-date results for 2013, showcasing mixed performance across its segments. For the three months ended September 30, 2013, Net Income Attributable to DTE Energy Company was $198 million, a decrease from $227 million in the same period of 2012. This was driven by lower earnings in the Electric, Gas, and Energy Trading segments, although partially offset by stronger performance in the Power and Industrial Projects segment. For the nine months ended September 30, 2013, Net Income Attributable to DTE Energy Company was $537 million, a slight increase from $529 million in the comparable 2012 period. This improvement was largely due to higher earnings from the Gas and Power and Industrial Projects segments, which counteracted weaker results in the Electric and Energy Trading segments. The company continues to focus on long-term earnings growth, maintaining a strong balance sheet, and providing an attractive dividend yield, with significant planned capital expenditures aimed at infrastructure, environmental compliance, and renewable energy initiatives.

Financial Statements
Beta
Revenue$2.39B
Operating Expenses$2.06B
Operating Income$329.00M
Interest Expense$106.00M
Net Income$198.00M
EPS (Basic)$1.13
EPS (Diluted)$1.13
Shares Outstanding (Basic)175.00M
Shares Outstanding (Diluted)176.00M

Key Highlights

  • 1Net income attributable to DTE Energy Company for the third quarter of 2013 was $198 million ($1.13 per diluted share), down from $227 million ($1.31 per diluted share) in the third quarter of 2012.
  • 2For the nine months ended September 30, 2013, Net Income Attributable to DTE Energy Company was $537 million ($3.07 per diluted share), a slight increase from $529 million ($3.08 per diluted share) in the same period of 2012.
  • 3The decrease in third-quarter net income was primarily due to lower earnings in the Electric, Gas, and Energy Trading segments, partially offset by higher earnings in the Power and Industrial Projects segment.
  • 4The increase in nine-month net income was driven by higher earnings in the Gas and Power and Industrial Projects segments, offsetting lower earnings in the Electric and Energy Trading segments.
  • 5DTE Energy plans significant capital expenditures over the 2013-2017 period, with DTE Electric estimating $5.0 billion for base infrastructure, $900 million for environmental compliance, and $500 million for renewable energy and energy efficiency.
  • 6DTE Gas plans capital investments of $680 million for base infrastructure and $400 million for gas main renewal and meter move out and pipeline integrity programs over the same period.
  • 7The company has a strong liquidity position, with approximately $1.5 billion in available liquidity at September 30, 2013, consisting of cash and amounts available under unsecured revolving credit agreements.

Frequently Asked Questions

For the third quarter of 2013, net income attributable to DTE Energy Company decreased to $198 million ($1.13 per diluted share) from $227 million ($1.31 per diluted share) in the same period of 2012. However, for the first nine months of 2013, net income increased slightly to $537 million ($3.07 per diluted share) from $529 million ($3.08 per diluted share) in the comparable 2012 period.

The decrease in third-quarter profitability was primarily driven by lower earnings in the Electric, Gas, and Energy Trading segments, which were partially offset by gains in the Power and Industrial Projects segment. The year-to-date improvement was mainly due to stronger performance in the Gas and Power and Industrial Projects segments, which compensated for weaker results in the Electric and Energy Trading segments.

DTE Energy has substantial capital investment plans. DTE Electric anticipates investing approximately $5.0 billion for base infrastructure, $900 million for environmental compliance, and $500 million for renewable energy and energy efficiency over the 2013-2017 period. DTE Gas plans to invest $680 million in base infrastructure and $400 million in gas main renewal and pipeline integrity programs during the same timeframe.

DTE Energy maintained a strong liquidity position, reporting approximately $1.5 billion in available liquidity as of September 30, 2013. This liquidity consisted of cash on hand and amounts available under its unsecured revolving credit agreements.