DTE Energy reports solid 2012 results

                    DTE Energy reports solid 2012 results

Company provides 2013 operating earnings guidance of $3.85 to $4.15 per share

PR Newswire

DETROIT, Feb. 20, 2013

DETROIT, Feb. 20, 2013 /PRNewswire/ -- DTE Energy (NYSE:DTE) today reported
2012 earnings of $610 million, or $3.55 per diluted share, compared with $711
million, or $4.18 per diluted share in 2011. Reported earnings in 2012 include
a non-operating after-tax loss on the sale of western Barnett and Marble Falls
shale assets of $56 million, or $0.33 per diluted share. Reported earnings in
2011 included an $87 million, or $0.50 per diluted share, non-cash adjustment
to reduce income tax expense related to the enactment of the Michigan
Corporate Income Tax in May 2011.

2012 operating earnings were $676 million, or $3.94 per diluted share,
compared with 2011 operating earnings of $636 million, or $3.75 per diluted
share. Earnings increased in 2012 primarily due to warm weather with no
revenue decoupler at the electric utility, ongoing growth at Power &
Industrial Projects and continued cost reductions in Corporate & Other. These
increases were partially offset by market opportunities at Energy Trading in
2011, but not repeated in 2012. Operating earnings for 2012 and 2011 exclude
non-recurring items and discontinued operations. Reconciliations of reported
earnings to operating earnings are at the end of this news release.

"I'm pleased with our financial accomplishments in 2012," said Gerard M.
Anderson, DTE Energy chairman, president and CEO. "The continuous improvement
program we implemented a few years ago is now considered just part of normal,
on-going daily responsibilities by our employees. This enabled us to not only
execute on the financial priorities we set at the beginning of the year, but
also enhanced our customers' experience with DTE Energy."

Anderson noted that improving the reliability of electric service is a
critical component of customer satisfaction.

"In 2012, we started a multi-year program focused on improving electric
reliability and we are confident this will provide a positive impact on our
customers' experience," Anderson said. "In 2013 we are committing an
additional $50 million in capital to improve system reliability in key areas
that have had high outage frequency in recent years, effectively doubling the
level of investment in these areas.

"Becoming the best operated energy company in North America remains our
aspiration," Anderson added. "We will continue to work hard for our customers
and shareholders to reach new levels of financial, operational and reliability
excellence during the upcoming year."

Outlook for 2013

DTE Energy confirmed its previously communicated 2013 operating earnings
guidance of $3.85 - $4.15 per diluted share.

"Focusing on solid earnings and cash flow combined with a strong balance sheet
allowed us to increase our dividend during this past year," said David E.
Meador, DTE Energy executive vice president and chief financial officer. "We
will continue to execute on our financial growth plans which target long-term
average annual operating earnings per share growth of 5 percent to 6 percent
while providing an attractive dividend to shareholders. As always, these plans
keep our customers at the center of everything we do, ensuring that our
underlying priority is to provide them with clean, safe, reliable energy at an
affordable price.

"In addition to focusing on improving our company's operational and financial
goals in 2013, we also remain committed to making a difference in helping to
power local economies," Meador continued. "In 2011, DTE Energy pledged its
support to the state's Pure Michigan Business initiative, a five-year program
designed to increase the services Michigan suppliers provide to companies
across the state. In 2012, we spent $826 million with Michigan-based
suppliers, compared with $598 million spent in 2011 and $475 million in 2010.
I am proud to say that as a result of our commitment to be a force for growth
and prosperity in our state, nearly 7,000 full-time jobs were created in 2012
from our increase in Michigan spend."

This earnings announcement, as well as a package of slides and supplemental
information, is available at www.dteenergy.com.

DTE Energy plans to conduct a conference call with the investment community
hosted by Anderson at 8:30 a.m. EST today, to discuss 2012 earnings results.
Investors, the news media and the public may listen to a live internet
broadcast of the call at www.dteenergy.com/investors. The telephone dial-in
numbers are U.S. and Canada toll free: (800) 378-6902 or International toll:
(913) 312-0714. The passcode is 6297144. The internet broadcast will be
archived on the company's website. An audio replay of the call will be
available from noon today to March 6. To access the replay, dial (888)
206-1112 or (719) 457-0820 and enter passcode 6297144.

DTE Energy is a Detroit-based diversified energy company involved in the
development and management of energy-related businesses and services
nationwide. Its operating units include an electric utility serving 2.1
million customers in Southeastern Michigan and a natural gas utility serving
1.2 million customers in Michigan. The DTE Energy portfolio also includes
non-utility energy businesses focused on power and industrial projects and
energy trading. Information about DTE Energy is available at dteenergy.com,
twitter.com/dte_energy and facebook.com/dteenergy.

Use of Operating Earnings Information - DTE Energy management believes that
operating earnings provide a more meaningful representation of the company's
earnings from ongoing operations and uses operating earnings as the primary
performance measurement for external communications with analysts and
investors. Internally, DTE Energy uses operating earnings to measure
performance against budget and to report to the Board of Directors.

In this release, DTE Energy discusses 2013 operating earnings guidance. It is
likely that certain items that impact the company's 2013 reported results will
be excluded from operating results. Reconciliations to the comparable 2013
reported earnings guidance are not provided because it is not possible to
provide a reliable forecast of specific line items. These items may fluctuate
significantly from period to period and may have a significant impact on
reported earnings.

The information contained herein is as of the date of this release. DTE
Energy expressly disclaims any current intention to update any forward-looking
statements contained in this release as a result of new information or future
events or developments. Words such as "anticipate," "believe," "expect,"
"projected" and "goals" signify forward-looking statements. Forward-looking
statements are not guarantees of future results and conditions but rather are
subject to various assumptions, risks and uncertainties. This release
contains forward-looking statements about DTE Energy's financial results and
estimates of future prospects, and actual results may differ materially.

Many factors may impact forward-looking statements including, but not limited
to, the following: impact of regulation by the FERC, MPSC, NRC and other
applicable governmental proceedings and regulations, including any associated
impact on rate structures; the amount and timing of cost recovery allowed as a
result of regulatory proceedings, related appeals or new legislation; impact
of electric and gas utility restructuring in Michigan, including legislative
amendments and Customer Choice programs; economic conditions and population
changes in our geographic area resulting in changes in demand, customer
conservation, increased thefts of electricity and gas and high levels of
uncollectible accounts receivable; environmental issues, laws, regulations,
and the increasing costs of remediation and compliance, including actual and
potential new federal and state requirements; health, safety, financial,
environmental and regulatory risks associated with ownership and operation of
nuclear facilities; changes in the cost and availability of coal and other raw
materials, purchased power and natural gas; volatility in the short-term
natural gas storage markets impacting third-party storage revenues; access to
capital markets and the results of other financing efforts which can be
affected by credit agency ratings; instability in capital markets which could
impact availability of short and long-term financing; the timing and extent of
changes in interest rates; the level of borrowings; the potential for losses
on investments, including nuclear decommissioning and benefit plan assets and
the related increases in future expense and contributions; the potential for
increased costs or delays in completion of significant construction projects;
the uncertainties of successful exploration of unconventional gas and oil
resources and challenges in estimating gas and oil reserves with certainty;
changes in and application of federal, state and local tax laws and their
interpretations, including the Internal Revenue Code, regulations, rulings,
court proceedings and audits; the effects of weather and other natural
phenomena on operations and sales to customers, and purchases from suppliers;
unplanned outages; the cost of protecting assets against, or damage due to,
terrorism or cyber attacks; employee relations and the impact of collective
bargaining agreements; the availability, cost, coverage and terms of insurance
and stability of insurance providers; cost reduction efforts and the
maximization of plant and distribution system performance; the effects of
competition; changes in and application of accounting standards and financial
reporting regulations; changes in federal or state laws and their
interpretation with respect to regulation, energy policy and other business
issues; binding arbitration, litigation and related appeals; and the risks
discussed in our public filings with the Securities and Exchange Commission.
New factors emerge from time to time. We cannot predict what factors may arise
or how such factors may cause our results to differ materially from those
contained in any forward-looking statement. Any forward-looking statements
refer only as of the date on which such statements are made. We undertake no
obligation to update any forward-looking statement to reflect events or
circumstances after the date on which such statement is made or to reflect the
occurrence of unanticipated events. This presentation should also be read in
conjunction with the "Forward-Looking Statements" sections in each of DTE
Energy's and DTE Electric's 2011 Forms 10-K and 10-Q (which sections are
incorporated herein by reference), and in conjunction with other SEC reports
filed by DTE Energy and DTE Electric.



DTE Energy Company
Consolidated Statements of Operations
                                       Three Months Ended  Twelve Months Ended
                                       December 31         December 31
                                       2012      2011      2012       2011
                                       (In millions, except per share amounts)
Operating Revenues                     $ 2,349   $ 2,163   $  8,791   $ 8,858
Operating Expenses
Fuel, purchased power and gas          949       829       3,296      3,537
Operation and maintenance              781       676       2,892      2,612
Depreciation, depletion and            265       238       995        977
amortization
Taxes other than income                80        73        332        310
Other asset (gains) and losses,        7         1         (3)        1
reserves and impairments, net
                                       2,082     1,817     7,512      7,437
Operating Income                       267       346       1,279      1,421
Other (Income) and Deductions
Interest expense                       110       123       440        488
Interest income                        (3)       (2)       (10)       (10)
Other income                           (48)      (58)      (173)      (117)
Other expenses                         34        38        62         69
                                       93        101       319        430
Income Before Income Taxes             174       245       960        991
Income Tax Expense                     35        87        286        268
Income from Continuing Operations      139       158       674        723
Loss from Discontinued Operations, net (56)      (1)       (56)       (3)
of tax
Net Income                             83        157       618        720
Less: Net Income Attributable to       2         7         8          9
Noncontrolling Interest
Net Income Attributable to DTE Energy  $ 81      $ 150     $  610     $ 711
Company
Basic Earnings per Common Share
Income from continuing operations      $ 0.79    $ 0.88    $  3.89    $ 4.21
Loss from discontinued operations, net (0.32)    —         (0.33)     (0.02)
of tax
Total                                  $ 0.47    $ 0.88    $  3.56    $ 4.19
Diluted Earnings per Common Share
Income from continuing operations      $ 0.79    $ 0.88    $  3.88    $ 4.20
Loss from discontinued operations, net (0.32)    —         (0.33)     (0.02)
of tax
Total                                  $ 0.47    $ 0.88    $  3.55    $ 4.18
Weighted Average Common
SharesOutstanding
Basic                                  172       169       171        169
Diluted                                173       170       172        170
Dividends Declared per Common Share    $ 0.62    $ 0.59    $  2.42    $ 2.32



DTE Energy Company
Segment Net Income
             Three Months Ended December 31
             2012                              2011
(in          Reported  Adjustments  Operating  Reported  Adjustments  Operating
Millions)    Earnings               Earnings   Earnings               Earnings
DTE Electric $  66     $  —         $  66      $  89     $   —        $  89
DTE Gas      55        —            55         41        —            41
Non-utility
Operations
Gas Storage
and          13        —            13         15        —            15
Pipelines
Power and
Industrial   2         7        A   12         11        —            11
Projects
                       2        B                        —
                       1        C                        —
Energy       9         —            9          16        —            16
Trading
Total
Non-utility  24        10           34         42        —            42
operations
Corporate    (8)                    (8)        (21)      1        E   (20)
and Other
Income from
Continuing   137       10           147        151       1            152
Operations
Discontinued
Operations   (56)      56           —          (1)       1            —
(D)
Net Income
Attributable
to DTE       $  81     $  66        $  147     $  150    $   2        $  152
Energy
Company
Adjustments key
A) Settlement related to sale of coke oven gas
B) Loss on sale of coal transloading terminal
C) Petroleum coke asset impairment
D) Discontinued operations of Unconventional Gas Production business
E) Income tax adjustment related to Michigan Corporate Income Tax



DTE Energy Company
Segment Diluted Earnings Per Share
             Three Months Ended December 31
             2012                              2011
             Reported  Adjustments  Operating  Reported  Adjustments  Operating
             Earnings               Earnings   Earnings               Earnings
DTE Electric $  0.38   $  —         $  0.38    $  0.52   $  —         $  0.52
DTE Gas      0.32      —            0.32       0.24      —            0.24
Non-utility
Operations
Gas Storage
and          0.08      —            0.08       0.09      —            0.09
Pipelines
Power and
Industrial   0.01      0.04      A  0.07       0.07      —            0.07
Projects
                       0.01      B                       —
                       0.01      C                       —
Energy       0.05      —            0.05       0.09      —            0.09
Trading
Total
Non-utility  0.14      0.06         0.20       0.25      —            0.25
operations
Corporate    (0.05)                 (0.05)     (0.13)    0.01      E  (0.12)
and Other
Income from
Continuing   0.79      0.06         0.85       0.88      0.01         0.89
Operations
Discontinued
Operations   (0.32)    0.32         —          —         —            —
(D)
Net Income
Attributable
to DTE       $  0.47   $  0.38      $  0.85    $  0.88   $  0.01      $  0.89
Energy
Company
Adjustments key
A) Settlement related to sale of
coke oven gas
B) Loss on sale of coal
transloading terminal
C) Petroleum coke asset impairment
D) Discontinued operations of Unconventional Gas Production business
E) Income tax adjustment related to Michigan Corporate Income Tax



DTE Energy Company
Segment Net Income
             Twelve Months Ended December 31
             2012                              2011
(in          Reported  Adjustments  Operating  Reported  Adjustments  Operating
Millions)    Earnings               Earnings   Earnings               Earnings
DTE Electric $  483    $  —         $  483     $  434    $  9      E  $  443
DTE Gas      115       —            115        110       —            110
Non-utility
Operations
Gas Storage
and          61        —            61         57        —            57
Pipelines
Power and
Industrial   42        7        A   52         38        —            38
Projects
                       2        B                        —
                       1        C                        —
Energy       12        —            12         52        —            52
Trading
Total
Non-utility  115       10           125        147       —            147
operations
Corporate    (47)                   (47)       23        (87)      F  (64)
and Other
Income from
Continuing   666       10           676        714       (78)         636
Operations
Discontinued
Operations   (56)      56           —          (3)       3            —
(D)
Net Income
Attributable
to DTE       $  610    $  66        $  676     $  711    $  (75)      $  636
Energy
Company
Adjustments key
A) Settlement related to sale of coke oven
gas
B) Loss on sale of coal transloading terminal
C) Petroleum coke asset impairment
D) Discontinued operations of Unconventional Gas Production business
E) Fermi asset retirement obligation.
F) Income tax adjustment due to enactment of Michigan Corporate Income Tax in
May 2011.



DTE Energy Company
Segment Diluted Earnings Per Share
             Twelve Months Ended December 31
             2012                              2011
             Reported  Adjustments  Operating  Reported  Adjustments  Operating
             Earnings               Earnings   Earnings               Earnings
DTE Electric $  2.81   $  —         $  2.81    $  2.55   $ 0.05    E  $  2.60
DTE Gas      0.67      —            0.67       0.65      —            0.65
Non-utility
Operations
Gas Storage
and          0.36      —            0.36       0.34      —            0.34
Pipelines
Power and
Industrial   0.24      0.04      A  0.30       0.22      —            0.22
Projects
                       0.01      B                       —
                       0.01      C                       —
Energy       0.07      —            0.07       0.31      —            0.31
Trading
Total
Non-utility  0.67      0.06         0.73       0.87      —            0.87
operations
Corporate    (0.27)                 (0.27)     0.13      (0.50)    F  (0.37)
and Other
Income from
Continuing   3.88      0.06         3.94       4.20      (0.45)       3.75
Operations
Discontinued
Operations   (0.33)    0.33         —          (0.02)    0.02         —
(D)
Net Income
Attributable
to DTE       $  3.55   $  0.39      $  3.94    $  4.18   $ (0.43)     $  3.75
Energy
Company
Adjustments key
A) Settlement related to sale of coke oven
gas
B) Loss on sale of coal transloading terminal
C) Petroleum coke asset impairment
D) Discontinued operations of Unconventional Gas Production business
E) Fermi asset retirement obligation.
F) Income tax adjustment due to enactment of the Michigan Corporate Income Tax
in May 2011.

SOURCE DTE Energy

Website: http://www.dteenergy.com
Contact: For further information, members of the media may call: Scott Simons,
+1-313-235-8808; Len Singer, +1-313-235-8809; Analysts, for further
information call: Anastasia Minor, +1-313- 235-8466; Benny Riggi,
+1-313-235-3208
 
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