10-QPeriod: Q2 FY2019

DTE ENERGY CO Quarterly Report for Q2 Ended Jun 30, 2019

Filed July 24, 2019For Securities:DTEDTKDTBDTGDTW

Summary

DTE Energy Company reported a decrease in net income for both the three and six months ended June 30, 2019, compared to the same periods in 2018. The decrease in the second quarter was primarily attributed to lower earnings in the Electric, Gas, Gas Storage and Pipelines, and Power and Industrial Projects segments, partially offset by higher earnings in the Corporate and Other segment. For the six-month period, the decrease was mainly due to lower earnings in the Electric, Gas Storage and Pipelines, and Power and Industrial Projects segments, partially offset by higher earnings in the Gas and Corporate and Other segments. The company's utilities are continuing to invest significant capital to improve reliability and comply with environmental regulations. DTE Energy is also accelerating its carbon emission reduction goals, with plans to transition away from coal-powered sources and incorporate more renewable energy. The company expects planned capital investments to drive earnings growth and is focused on operational excellence, customer affordability, and regulatory stability.

Financial Highlights

47 data points
Beta

Net Income

$182.00M

EPS (Diluted)

$0.99

Total Assets

$36.85B

Cash & Equivalents

$62.00M

Free Cash Flow

$615.00M

Financial Statements
Beta
Operating Expenses$2.59B
Operating Income$300.00M
Interest Expense$154.00M
Net Income$182.00M
EPS (Basic)$0.99
EPS (Diluted)$0.99
Shares Outstanding (Basic)183.00M
Shares Outstanding (Diluted)184.00M

Key Highlights

  • 1Net income attributable to DTE Energy Company decreased to $182 million ($0.99/share) for the three months ended June 30, 2019, from $234 million ($1.29/share) in the prior year period.
  • 2For the six months ended June 30, 2019, net income attributable to DTE Energy Company was $583 million ($3.18/share), down from $595 million ($3.29/share) in the comparable 2018 period.
  • 3DTE Electric filed a rate case on July 8, 2019, requesting an increase in base rates of $351 million, with a final order expected by May 2020.
  • 4Capital investments for DTE Electric over the 2019-2023 period are estimated at $11.3 billion, including $4.6 billion for distribution infrastructure and $2.7 billion for new generation.
  • 5DTE Energy announced updated plans to accelerate carbon emission reductions, targeting 32% by the early 2020s, 50% by 2030, and 80% by 2040 from 2005 levels.
  • 6The company has approximately $2.4 billion of available liquidity at June 30, 2019, including cash and amounts available under revolving credit agreements.

Frequently Asked Questions

The decrease in net income for the second quarter of 2019 was primarily due to lower earnings in the Electric, Gas, Gas Storage and Pipelines, and Power and Industrial Projects segments. This was partially offset by higher earnings in the Corporate and Other segment.

DTE Energy has updated its plans to accelerate carbon emission reductions, aiming for 32% by the early 2020s, at least 50% by 2030, and 80% by 2040, all from 2005 carbon emission levels. This involves transitioning away from coal-powered sources and incorporating more renewable energy, energy waste reduction projects, demand response, and natural gas fueled generation.

DTE Electric filed a rate case on July 8, 2019, requesting an increase in base rates of $351 million. The company anticipates a final order from the MPSC by May 2020. This request is primarily driven by infrastructure and generation investments.

DTE Energy expects to fund its capital investments through internally generated cash flows, supplemented by the issuance of debt and equity. The company has approximately $2.4 billion in available liquidity as of June 30, 2019, and plans to raise approximately $250 million through equity issuances in 2019.