Summary
DTE Energy Company (DTE) filed an 8-K on June 8, 2020, to disclose information presented to investors on June 9, 2020, via a slide presentation. The primary focus for investors is the reaffirmation of DTE Energy's 2020 operating earnings guidance range of $6.47 to $6.75 per share. This guidance is presented on an "operating earnings" basis, which may exclude certain items impacting reported results. The company explicitly states that reconciliations to GAAP reported earnings guidance are not provided due to the unpredictability of these excluded items. Furthermore, DTE Energy discussed "Adjusted EBITDA" in its presentation. Similar to operating earnings, a reconciliation to GAAP net income for projected full-year 2020 Adjusted EBITDA is not provided. The company cites the difficulty in forecasting significant, variable components of net income, such as impairments, divestiture costs, and changes in accounting principles, which prevent the provision of a reliable GAAP equivalent for Adjusted EBITDA and allocated debt.
Key Highlights
- 1DTE Energy reaffirms its 2020 operating earnings guidance of $6.47 to $6.75 per share.
- 2The guidance is based on "operating earnings," which may exclude certain items from reported results.
- 3Reconciliations between operating earnings and GAAP reported earnings are not provided due to uncertainty in forecasting excluded items.
- 4The company also discussed "Adjusted EBITDA" in investor meetings.
- 5A reconciliation from net income to Adjusted EBITDA for 2020 is not provided.
- 6The inability to reliably forecast significant net income components (e.g., impairments, divestiture costs) prevents providing a GAAP equivalent for Adjusted EBITDA and allocated debt.
- 7The furnished slide presentation (Exhibit 99.1) is not considered "filed" for Section 18 purposes but is available on DTE's website.