- Completed DT Midstream spin-off
- Launched first-of-its-kind
Tree Trim Academy - Recognized as top corporate citizen in
Michigan - Retired
River Rouge coal plant
Operating earnings for the second quarter 2021 were
“The first half of 2021 was very positive as our strong team continued to deliver for our customers, communities and investors. We also executed the successful spin-off of our midstream business, now called DT Midstream,” said
Norcia noted the following recent company accomplishments:
- Completed DT Midstream spin-off: DT Midstream, a premier natural gas pipeline, storage and gathering provider, debuted as an independent, publicly traded company after successfully completing its separation from
DTE Energy onJuly 1, 2021 . - Launched first-of-its-kind
Tree Trim Academy : In partnership with theInternational Brotherhood of Electrical Workers Local 17 , theCity of Detroit , andFocus: HOPE , DTE’sTree Trim Academy will offer new jobs, paid training, and wraparound services – like childcare and transportation – for a diverse pool of talent. Academy graduates will help to ensure energy reliability by reducing outages due to fallen trees. This innovative initiative combines the needs of the community with the needs of the company. - Ranked as one of the country's top corporate citizens by Points of Light: One of two
Michigan companies named to the Civic 50 – the top 50 companies nationwide in corporate citizenship – by Points of Light, the world's largest organization dedicated to volunteer service. DTE was also recognized as the leading energy company nationally. - Retired
River Rouge power plant: The closure of theRiver Rouge power plant is another milestone in DTE’s clean energy transition that includes increased investments in wind and solar and utilizing cleaner natural gas. - Enhanced MIGreenPower voluntary renewable energy program: The Michigan Public Service Commission’s (MPSC) approval of DTE’s renewable energy plan will enable the company to add a total of 1,000 megawatts of new voluntary wind and solar by the end of 2023. DTE also received MPSC approval to update this program resulting in making clean energy more accessible and affordable for all customers.
- Strengthened pledge to net zero goal by collaborating with automakers to optimize EV charging: DTE is collaborating with Electric Vehicle (EV) manufacturers to optimize EV charging through the new DTE Smart Charge program. This program aims to help the company balance energy demand on the grid while moving closer to its environmental goal of achieving net zero carbon emissions by 2050.
- Protected more than 24,000 acres of Michigan’s
Upper Peninsula forests:DTE Gas partnered with Bluesource, the nation’s largest carbon offset developer, on the Greenleaf Improved Forest Management project in Michigan’sUpper Peninsula . The partnership is part of DTE’s Natural Gas Balance, a voluntary customer program to neutralize greenhouse gas emissions through a combination of carbon offsets and renewable natural gas.
Outlook for 2021
“DTE’s solid financial results achieved during the first half of the year gives us confidence in increasing our 2021 earnings guidance,” said
This earnings announcement and presentation slides are available at dteenergy.com/investors.
The company will conduct a conference call to discuss earnings results at
About
Use of Operating Earnings Information -
In this release,
The information contained herein is as of the date of this document.
Many factors impact forward-looking statements including, but not limited to, the following: risks related to the spin-off of DT Midstream, including that providing DT Midstream with the transition services previously negotiated could adversely affect our business, and that the transaction may not achieve some or all of the anticipated benefits; the duration and impact of the COVID-19 pandemic on
For further information, members of the media may call:
For further information, analysts may call:
Segment Net Income (Unaudited) | |||||||||||||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||||||||||||
2021 | 2020 | ||||||||||||||||||||||||||||||||||
Reported Earnings | Pre-tax Adjustments | Income Taxes(1) | Operating Earnings | Reported Earnings | Pre-tax Adjustments | Income Taxes(1) | Operating Earnings | ||||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||||||||
$ | 238 | $ | — | $ | — | $ | 238 | $ | 183 | $ | 35 | F | $ | (9 | ) | $ | 219 | ||||||||||||||||||
13 | G | (3 | ) | ||||||||||||||||||||||||||||||||
7 | — | — | 7 | 1 | 11 | F | (3 | ) | 11 | ||||||||||||||||||||||||||
2 | G | — | |||||||||||||||||||||||||||||||||
Non-utility operations | |||||||||||||||||||||||||||||||||||
Gas Storage and Pipelines | 64 | 9 | A | (1 | ) | 86 | 70 | — | — | 70 | |||||||||||||||||||||||||
19 | B | (5 | ) | ||||||||||||||||||||||||||||||||
Power and Industrial Projects | 14 | 27 | C | (7 | ) | 34 | 25 | — | — | 25 | |||||||||||||||||||||||||
Energy Trading | (66 | ) | 116 | D | (29 | ) | 21 | (1 | ) | 8 | D | (2 | ) | 5 | |||||||||||||||||||||
Total Non-utility operations | 12 | 171 | (42 | ) | 141 | 94 | 8 | (2 | ) | 100 | |||||||||||||||||||||||||
Corporate and Other | (78 | ) | 15 | A | (2 | ) | (57 | ) | (1 | ) | — | (34 | ) | H | (35 | ) | |||||||||||||||||||
— | 8 | E | |||||||||||||||||||||||||||||||||
Net Income Attributable to | $ | 179 | $ | 186 | $ | (36 | ) | $ | 329 | $ | 277 | $ | 69 | $ | (51 | ) | $ | 295 | |||||||||||||||||
(1) Excluding tax related adjustments, the amount of income taxes was calculated based on a combined federal and state income tax rate, considering the applicable jurisdictions of the respective segments and deductibility of specific operating adjustments. | |||||||||||||||||||||||||||||||||||
Adjustments key | |||||||||||||||||||||||||||||||||||
A) Transaction costs relating to the separation of DT Midstream — recorded in Operating Expenses — Operation and maintenance | |||||||||||||||||||||||||||||||||||
B) Impairment of notes receivable for an investment in certain assets in the | |||||||||||||||||||||||||||||||||||
C) Impairment of long-lived assets for the anticipated closure of a pulverized coal facility — recorded in Operating Expenses — Assets (gains) losses and impairments, net | |||||||||||||||||||||||||||||||||||
D) 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, gas, and other — non-utility | |||||||||||||||||||||||||||||||||||
E) Adjustment to Income Tax Expense due to a tax law change in | |||||||||||||||||||||||||||||||||||
F) MPSC disallowance of capital expenses previously recorded in 2018 and 2019 related to incentive compensation — recorded in Operating Expenses — Asset (gains) losses and impairments, net | |||||||||||||||||||||||||||||||||||
G) Shift premiums and other incremental costs associated with the sequestration of employees critical to continued operations due to COVID-19 — recorded in Operating Expenses — Operation and maintenance | |||||||||||||||||||||||||||||||||||
H) Reduction to Income Tax Expense resulting from carrying back 2018 net operating losses to 2013 pursuant to the CARES Act |
Segment Diluted Earnings Per Share (Unaudited)(2) | |||||||||||||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||||||||||||
2021 | 2020 | ||||||||||||||||||||||||||||||||||
Reported Earnings | Pre-tax Adjustments | Income Taxes(1) | Operating Earnings | Reported Earnings | Pre-tax Adjustments | Income Taxes(1) | Operating Earnings | ||||||||||||||||||||||||||||
$ | 1.23 | $ | — | $ | — | $ | 1.23 | $ | 0.95 | $ | 0.18 | F | $ | (0.05 | ) | $ | 1.13 | ||||||||||||||||||
0.07 | G | (0.02 | ) | ||||||||||||||||||||||||||||||||
0.04 | — | — | 0.04 | — | 0.06 | F | (0.02 | ) | 0.05 | ||||||||||||||||||||||||||
0.01 | G | — | |||||||||||||||||||||||||||||||||
Non-utility operations | |||||||||||||||||||||||||||||||||||
Gas Storage and Pipelines | 0.33 | 0.05 | A | (0.01 | ) | 0.44 | 0.37 | — | — | 0.37 | |||||||||||||||||||||||||
0.10 | B | (0.03 | ) | ||||||||||||||||||||||||||||||||
Power and Industrial Projects | 0.07 | 0.14 | C | (0.04 | ) | 0.17 | 0.13 | — | — | 0.13 | |||||||||||||||||||||||||
Energy Trading | (0.35 | ) | 0.60 | D | (0.14 | ) | 0.11 | — | 0.05 | D | (0.02 | ) | 0.03 | ||||||||||||||||||||||
Total Non-utility operations | 0.05 | 0.89 | (0.22 | ) | 0.72 | 0.50 | 0.05 | (0.02 | ) | 0.53 | |||||||||||||||||||||||||
Corporate and Other | (0.40 | ) | 0.08 | A | (0.01 | ) | (0.29 | ) | (0.01 | ) | — | (0.17 | ) | H | (0.18 | ) | |||||||||||||||||||
— | 0.04 | E | |||||||||||||||||||||||||||||||||
Net Income Attributable to | $ | 0.92 | $ | 0.97 | $ | (0.19 | ) | $ | 1.70 | $ | 1.44 | $ | 0.37 | $ | (0.28 | ) | $ | 1.53 | |||||||||||||||||
(1) Excluding tax related adjustments, the amount of income taxes was calculated based on a combined federal and state income tax rate, considering the applicable jurisdictions of the respective segments and deductibility of specific operating adjustments. | |||||||||||||||||||||||||||||||||||
(2) Per share amounts are divided by Weighted Average Common Shares Outstanding — Diluted, as noted on the Consolidated Statements of Operations (Unaudited). | |||||||||||||||||||||||||||||||||||
Adjustments key — see previous page |
Segment Net Income (Unaudited) | |||||||||||||||||||||||||||||||||||
Six Months Ended | |||||||||||||||||||||||||||||||||||
2021 | 2020 | ||||||||||||||||||||||||||||||||||
Reported Earnings | Pre-tax Adjustments | Income Taxes(1) | Operating Earnings | Reported Earnings | Pre-tax Adjustments | Income Taxes(1) | Operating Earnings | ||||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||||||||
$ | 446 | $ | — | $ | — | $ | 446 | $ | 277 | $ | 35 | F | $ | (9 | ) | $ | 313 | ||||||||||||||||||
13 | G | (3 | ) | ||||||||||||||||||||||||||||||||
176 | — | — | 176 | 122 | 11 | F | (3 | ) | 132 | ||||||||||||||||||||||||||
2 | G | — | |||||||||||||||||||||||||||||||||
Non-utility operations | |||||||||||||||||||||||||||||||||||
Gas Storage and Pipelines | 143 | 19 | A | (4 | ) | 172 | 142 | — | — | 142 | |||||||||||||||||||||||||
19 | B | (5 | ) | ||||||||||||||||||||||||||||||||
Power and Industrial Projects | 42 | 27 | C | (7 | ) | 62 | 55 | — | — | 55 | |||||||||||||||||||||||||
Energy Trading | (121 | ) | 208 | D | (52 | ) | 35 | 33 | (18 | ) | D | 4 | 19 | ||||||||||||||||||||||
Total Non-utility operations | 64 | 273 | (68 | ) | 269 | 230 | (18 | ) | 4 | 216 | |||||||||||||||||||||||||
Corporate and Other | (110 | ) | 15 | A | (2 | ) | (89 | ) | (12 | ) | — | (34 | ) | H | (46 | ) | |||||||||||||||||||
— | 8 | E | |||||||||||||||||||||||||||||||||
Net Income Attributable to | $ | 576 | $ | 288 | $ | (62 | ) | $ | 802 | $ | 617 | $ | 43 | $ | (45 | ) | $ | 615 | |||||||||||||||||
(1) Excluding tax related adjustments, the amount of income taxes was calculated based on a combined federal and state income tax rate, considering the applicable jurisdictions of the respective segments and deductibility of specific operating adjustments. | |||||||||||||||||||||||||||||||||||
Adjustments key | |||||||||||||||||||||||||||||||||||
A) Transaction costs relating to the separation of DT Midstream — recorded in Operating Expenses — Operation and maintenance | |||||||||||||||||||||||||||||||||||
B) Impairment of notes receivable for an investment in certain assets in the | |||||||||||||||||||||||||||||||||||
C) Impairment of long-lived assets for the anticipated closure of a pulverized coal facility — recorded in Operating Expenses — Assets (gains) losses and impairments, net | |||||||||||||||||||||||||||||||||||
D) 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, gas, and other — non-utility | |||||||||||||||||||||||||||||||||||
E) Adjustment to Income Tax Expense due to a tax law change in | |||||||||||||||||||||||||||||||||||
F) MPSC disallowance of capital expenses previously recorded in 2018 and 2019 related to incentive compensation — recorded in Operating Expenses — Asset (gains) losses and impairments, net | |||||||||||||||||||||||||||||||||||
G) Shift premiums and other incremental costs associated with the sequestration of employees critical to continued operations due to COVID-19 — recorded in Operating Expenses — Operation and maintenance | |||||||||||||||||||||||||||||||||||
H) Reduction to Income Tax Expense resulting from carrying back 2018 net operating losses to 2013 pursuant to the CARES Act |
Segment Diluted Earnings Per Share (Unaudited)(2) | |||||||||||||||||||||||||||||||||||
Six Months Ended | |||||||||||||||||||||||||||||||||||
2021 | 2020 | ||||||||||||||||||||||||||||||||||
Reported Earnings | Pre-tax Adjustments | Income Taxes(1) | Operating Earnings | Reported Earnings | Pre-tax Adjustments | Income Taxes(1) | Operating Earnings | ||||||||||||||||||||||||||||
$ | 2.30 | $ | — | $ | — | $ | 2.30 | $ | 1.44 | $ | 0.18 | F | $ | (0.05 | ) | $ | 1.62 | ||||||||||||||||||
0.07 | G | (0.02 | ) | ||||||||||||||||||||||||||||||||
0.91 | — | — | 0.91 | 0.63 | 0.06 | F | (0.02 | ) | 0.68 | ||||||||||||||||||||||||||
0.01 | G | — | |||||||||||||||||||||||||||||||||
Non-utility operations | |||||||||||||||||||||||||||||||||||
Gas Storage and Pipelines | 0.74 | 0.10 | A | (0.02 | ) | 0.89 | 0.74 | — | — | 0.74 | |||||||||||||||||||||||||
0.10 | B | (0.03 | ) | ||||||||||||||||||||||||||||||||
Power and Industrial Projects | 0.22 | 0.14 | C | (0.04 | ) | 0.32 | 0.29 | — | — | 0.29 | |||||||||||||||||||||||||
Energy Trading | (0.63 | ) | 1.07 | D | (0.26 | ) | 0.18 | 0.17 | (0.09 | ) | D | 0.02 | 0.10 | ||||||||||||||||||||||
Total Non-utility operations | 0.33 | 1.41 | (0.35 | ) | 1.39 | 1.20 | (0.09 | ) | 0.02 | 1.13 | |||||||||||||||||||||||||
Corporate and Other | (0.57 | ) | 0.08 | A | (0.01 | ) | (0.46 | ) | (0.07 | ) | — | (0.17 | ) | H | (0.24 | ) | |||||||||||||||||||
— | 0.04 | E | |||||||||||||||||||||||||||||||||
Net Income Attributable to | $ | 2.97 | $ | 1.49 | $ | (0.32 | ) | $ | 4.14 | $ | 3.20 | $ | 0.23 | $ | (0.24 | ) | $ | 3.19 | |||||||||||||||||
(1) Excluding tax related adjustments, the amount of income taxes was calculated based on a combined federal and state income tax rate, considering the applicable jurisdictions of the respective segments and deductibility of specific operating adjustments. | |||||||||||||||||||||||||||||||||||
(2) Per share amounts are divided by Weighted Average Common Shares Outstanding — Diluted, as noted on the Consolidated Statements of Operations (Unaudited). | |||||||||||||||||||||||||||||||||||
Adjustments key — see previous page |
Source:
2021 GlobeNewswire, Inc., source