• Operating EPS 2024: $6.83 per share, 9% growth over 2023 original guidance midpoint.
• 2025 Operating EPS Guidance: Range of $7.09 to $7.23, midpoint of $7.16 per share, 7% growth over 2024 original guidance midpoint.
• 2024 Operating Earnings: $1.4 billion.
• DTE Electric Earnings 2024: $1.1 billion, $314 million higher than 2023.
• DTE Gas Earnings 2024: $263 million, $31 million lower than 2023.
• DTE Vantage Earnings 2024: $133 million.
• Energy Trading Earnings 2024: $100 million.
• Five-Year Capital Investment Plan: $30 billion, $5 billion increase from previous plan.
• Renewable Generation Investment: $10 billion over the next five years, $3 billion increase from last year's plan.
• Distribution Infrastructure Investment Increase: $1 billion.
• 45Z Tax Credits: Expected to contribute $50 million to $60 million in earnings annually from 2025 through 2027.
• Data Center Load Growth Potential: Approximately 2,100 megawatts of potential new load.
• FFO to Debt Ratio Target: 15% to 16%.

• Warning! GuruFocus has detected 10 Warning Signs with DTE.

Release Date: February 13, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• DTE Energy Co (NYSE:DTE) achieved operating EPS of $6.83 per share in 2024, delivering at the high end of their guidance with over 9% growth from the 2023 original guidance midpoint.
• The company has set a 2025 operating EPS guidance range of $7.09 to $7.23, with a midpoint of $7.16, indicating a 7% growth over the 2024 original guidance midpoint.
• DTE Energy Co (NYSE:DTE) plans a significant investment of $30 billion over the next five years, a $5 billion increase from the previous plan, primarily to improve reliability and transition to cleaner generation.
• The company has secured 45Z tax credits, providing confidence to reach the higher end of their growth rate from 2025 through 2027 and offering flexibility for future years.
• DTE Energy Co (NYSE:DTE) has a strong balance sheet, targeting minimal equity issuances of $0 to $100 million through 2027, supported by strong cash flows and a constructive regulatory environment.

Negative Points

• DTE Gas experienced a $31 million decrease in operating earnings in 2024 due to the warmest winter in over 60 years, impacting revenue.
• The company anticipates some modest increases in equity issuances beginning in 2028 to support their significant capital investment plan.
• DTE Energy Co (NYSE:DTE) has not yet included the benefits of data center agreements in their five-year plan, indicating potential uncertainty in future capital expenditures.
• The RNG and Customer Energy Solutions business at DTE Vantage is shifting focus to more utility-like projects, which may offer lower returns compared to previous RNG projects.
• There is potential for increased equity needs in the outer years of the plan, which could impact financial flexibility.

Q & A Highlights

Q: Can you clarify if the 2,100 megawatts from data center agreements are included in the current CapEx plan, and how should we think about future CapEx updates? A: The 2,100 megawatts from data centers are not yet included in the current five-year CapEx plan. As we move towards definitive agreements, we expect these to provide upside to our plan. We have some excess capacity to support early data center load, and as we finalize agreements, we'll update our capital plan, likely towards the end of the year. David Ruud, CFO

Q: How do you view the impact of data center demand on your load growth CAGR? A: Data center growth is expected to increase our load growth CAGR by approximately 4% to 5%, which is beneficial for customer affordability and allows us to invest in our infrastructure. Joi Harris, COO

Q: Could you discuss your rate filing cadence and how different rate case outcomes might affect your 2025 execution? A: We are confident in achieving the high end of our 2025 guidance. For rate cases, we plan to file an electric case in the second quarter to incorporate Liberty audit findings and expand the IRM. A gas case will likely be filed in the fourth quarter of 2025 to continue infrastructure investments. Joi Harris, COO

Q: Can you elaborate on the financing considerations and cash flow drivers behind minimal equity issuance in 2025 versus an uptick in 2028? A: Our plan for minimal equity issuance from 2025 to 2027 is supported by strong base cash flows and tax credit monetization. As capital needs increase in the outer years, we anticipate some modest equity issuances starting in 2028 to support growth. David Ruud, CFO

Q: What are the opportunities you are focusing on for DTE Vantage, and how do you expect this to evolve? A: We are focusing on utility-like projects with long-term fixed-fee contracts, such as cogeneration and water treatment. We are also exploring carbon capture and storage with ethanol producers. These projects are expected to contribute about $20 million in annual earnings growth. Gerardo Norcia, CEO

For the complete transcript of the earnings call, please refer to the full earnings call transcript.