2. DTE ENERGY COMPANY
CONSOLIDATED STATEMENT OF FINANCIAL POSITION (UNAUDITED)
December 31
June 30
2006
2007
(in Millions)
ASSETS
Current Assets
Cash and cash equivalents..................................................................................... $ 147
$ 993
Restricted cash ...................................................................................................... 146
143
Accounts receivable (less allowance for doubtful accounts of $179 and $170,
respectively)
Customer .............................................................................................................. 1,427
1,391
Collateral held by others ...................................................................................... 68
102
Other .................................................................................................................... 442
205
Accrued power and gas supply cost recovery revenue .......................................... 117
88
Inventories
Fuel and gas ......................................................................................................... 562
530
Materials and supplies.......................................................................................... 153
180
Deferred income taxes ........................................................................................... 245
283
Assets from risk management and trading activities.............................................. 461
273
Other ...................................................................................................................... 193
148
3,961
4,336
Investments
Nuclear decommissioning trust funds................................................................... 740
794
Other .......................................................................................................................... 505
520
1,245
1,314
Property
Property, plant and equipment .............................................................................. 19,224
19,024
(7,773 )
(7,564 )
Less accumulated depreciation and depletion ......................................................
11,451
11,460
Other Assets
Goodwill ............................................................................................................... 2,057
2,043
Regulatory assets ................................................................................................. 3,226
3,112
Securitized regulatory assets ................................................................................. 1,235
1,182
Intangible assets .................................................................................................... 72
72
Notes receivable.................................................................................................... 164
149
Assets from risk management and trading activities............................................. 164
94
Prepaid pension assets........................................................................................... 71
75
Other ..................................................................................................................... 139
121
7,128
6,848
$ 23,785
Total Assets............................................................................................................. $ 23,958
The Consolidated Statement of Financial Position (Unaudited) should be read in conjunction with the Notes
to Consolidated Financial Statements appearing in Forms 10-K and 10-Q
3. DTE ENERGY COMPANY
CONSOLIDATED STATEMENT OF FINANCIAL POSITION (UNAUDITED)
December 31
June 30
2006
2007
(in Millions, Except Shares)
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities
Accounts payable ............................................................................................. $ 1,145
$ 1,344
Accrued interest................................................................................................ 115
116
Dividends payable ............................................................................................ 94
91
Short-term borrowings...................................................................................... 1,131
801
Gas inventory equalization .............................................................................. -
145
Current portion of long-term debt, including capital leases ............................. 354
403
Liabilities from risk management and trading activities ...................................... 437
263
Deferred gains from asset sales ........................................................................ 208
288
Other................................................................................................................. 680
701
4,164
4,152
Long-Term Debt (net of current portion)
Mortgage bonds, notes and other.................................................................... 5,918
5,816
Securitization bonds ....................................................................................... 1,185
1,124
Trust preferred-linked securities..................................................................... 289
289
Capital lease obligations................................................................................. 82
75
7,474
7,304
Other Liabilities
Deferred income taxes...................................................................................... 1,465
1,562
Regulatory liabilities ........................................................................................ 765
808
Asset retirement obligations ............................................................................ 1,221
1,248
Unamortized investment tax credit................................................................... 120
113
Liabilities from risk management and trading activities................................... 259
411
Liabilities from transportation and storage contracts ....................................... 157
137
Accrued pension liability.................................................................................. 388
393
Accrued postretirement liability ....................................................................... 1,414
1,424
Deferred gains from asset sales ........................................................................ 36
16
Nuclear decommissioning ................................................................................ 119
126
Other................................................................................................................. 312
328
6,256
6,566
Commitments and Contingencies
42
Minority Interest .............................................................................................. 47
Shareholders’ Equity
Common stock, without par value, 400,000,000 shares authorized,
170,649,715 and 177,138,060 shares issued and outstanding, respectively 3,467
3,311
Retained earnings (less FIN 48 cumulative effect adjustment of $5 in 2007) .. 2,593
2,700
Accumulated other comprehensive loss ........................................................... (211 )
(122 )
5,849
5,889
$ 23,785
Total Liabilities and Shareholders’ Equity ..................................................... $ 23,958
4. DTE ENERGY COMPANY
CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED)
Six Months Ended
June 30
2006
2007
(in Millions)
Operating Activities
Net Income ..................................................................................................... $ 103
$ 519
Adjustments to reconcile net income to net cash from operating activities:
Depreciation, depletion and amortization .................................................. 446
467
Deferred income taxes ............................................................................... 53
(4 )
Gain on sale of interests in synfuel projects .............................................. (20 )
(77 )
Gain on sale of non-utility business........................................................... -
(897 )
Other asset (gains), losses and reserves, net .............................................. 2
10
Impairment of synfuel projects.................................................................. 122
-
Partners’ share of synfuel project losses.................................................... (180 )
(115 )
Contributions from synfuel partners .......................................................... 129
101
Cumulative effect of accounting change ................................................... (1 )
-
Changes in assets and liabilities, exclusive of changes
shown separately ................................................................................... 260
994
Net cash from operating activities .................................................................. 914
998
Investing Activities
Plant and equipment expenditures – utility..................................................... (574 )
(480 )
Plant and equipment expenditures – non-utility ............................................. (144 )
(141 )
Acquisitions, net of cash acquired .................................................................. (27 )
-
Proceeds from sale of interests in synfuel projects......................................... 163
221
Refunds to synfuel partners ............................................................................ -
(16 )
Proceeds from sale of non-utility business ..................................................... -
1,258
Proceeds from sale of other assets, net ........................................................... 34
11
Restricted cash for debt redemptions.............................................................. (5 )
4
Proceeds from sale of nuclear decommissioning trust fund assets ................. 99
124
Investment in nuclear decommissioning trust funds....................................... (118 )
(140 )
Other investments........................................................................................... (31 )
(30 )
Net cash from (used for) investing activities .................................................. (603 )
811
Financing Activities
Issuance of long-term debt ............................................................................. 545
-
Redemption of long-term debt........................................................................ (620 )
(111 )
Short-term borrowings, net ............................................................................. (50 )
(330 )
Repurchase of common stock......................................................................... (10 )
(333 )
Dividends on common stock .......................................................................... (182 )
(187 )
Other............................................................................................................... (6 )
(2 )
Net cash used for financing activities ............................................................. (323 )
(963 )
(12 )
Net Increase (Decrease) in Cash and Cash Equivalents............................... 846
88
Cash and Cash Equivalents at Beginning of the Period............................... 147
$ 76
Cash and Cash Equivalents at End of the Period ......................................... $ 993
The Consolidated Statement of Cash Flows (Unaudited) should be read in conjunction with the Notes to
Consolidated Financial Statements appearing in Forms 10-K and 10-Q
5. THE DETROIT EDISON COMPANY
CONSOLIDATED STATEMENT OF OPERATIONS (UNAUDITED)
Three Months Ended Six Months Ended
June 30 June 30
(in Millions) 2006 2006
2007 2007
$ 1,175 $ 2,225
Operating Revenues .................................................................$ 1,210 $ 2,304
Operating Expenses
Fuel and purchased power ....................................................... 409 718
402 756
Operation and maintenance ..................................................... 369 714
380 728
Depreciation and amortization ................................................ 168 335
198 380
Taxes other than income.......................................................... 65 134
69 141
Asset (gains) and reserves, net ................................................ - -
(1 ) 6
1,011 1,901
1,048 2,011
164 324
Operating Income .................................................................... 162 293
Other (Income) and Deductions
Interest expense ....................................................................... 76 148
75 149
Interest income ........................................................................ (1 ) (1 )
(2 ) (3 )
Other income ........................................................................... (6 ) (13 )
(7 ) (18 )
Other expenses ........................................................................ 10 20
6 15
79 154
72 143
85 170
Income Before Income Taxes .................................................. 90 150
28 55
Income Tax Provision .............................................................. 30 50
57 115
Income Before Accounting Change......................................... 60 100
- 1
Cumulative Effect of Accounting Change .............................. - -
57 116
Reported Earnings ................................................................... 60 100
Adjustments ..............................................................................
Effective tax rate normalization ............................................... 1 1
1 2
Regulatory asset surcharge ....................................................... - -
3 6
Performance Excellence Process .............................................. 23 31
- -
Detroit Thermal Reserve .......................................................... - -
- 6
24 32
4 14
$ 81 $ $ 148
Operating Earnings..................................................................$ 64 114
The Consolidated Statement of Operations (Unaudited) should be read in conjunction with the Notes to
Consolidated Financial Statements appearing in Forms 10-K and 10-Q.
6. MICHIGAN CONSOLIDATED GAS COMPANY
CONSOLIDATED STATEMENT OF OPERATIONS (UNAUDITED)
Three Months Ended Six Months Ended
June 30 June 30
(in Millions) 2006 2006
2007 2007
$ 229 $ 1,092
Operating Revenues ..................................................... $ 305 $ 1,166
Operating Expenses
Cost of gas................................................................... 88 712
158 771
Operation and maintenance ......................................... 110 229
111 220
Depreciation and amortization .................................... 24 47
24 45
Taxes other than income ............................................. 13 28
15 29
Asset (gains) and losses, net........................................ 3 3
- 3
238 1,019
308 1,068
Operating Income (Loss) ............................................ (9) 73
(3) 98
Other (Income) and Deductions
Interest expense ........................................................... 15 32
12 27
Interest income ............................................................ (2) (4)
(5) (7)
Other income............................................................... (2) (4)
(2) (5)
Other expenses ............................................................ - 1
1 2
11 25
6 17
(20) 48
Income (Loss) Before Income Taxes ........................... (9) 81
(7) 11
Income Tax Provision (Benefit)................................... (2) 21
(13) 37
Reported Earnings (Loss)............................................ (7) 60
Adjustments
Effective tax rate normalization ................................... 2 (2)
3 (2)
Performance Excellence Process.................................. 2 4
1 2
4 2
4 -
$ (9) $ 39
Operating Earnings (Loss) $ (3) $ 60
The Consolidated Statement of operations (Unaudited) should be read in conjunction with the
Notes to Consolidated Financial Statements appearing in Forms 10-K and 10-Q.
7. DTE Energy Debt/Equity Calculation
As of June 30, 2007
($ millions)
Short-term borrowings $ 801
Current portion of long-term debt, including capital leases 403
Mortgage bonds, notes and other 5,816
Securitization bonds 1,124
Capital lease obligations 75
less MichCon short-term debt -
less Securitization bonds, including current portion (1,238)
Total debt 6,981
Trust preferred-linked securities 289
Total preferred/ other 289
Equity 5,889
Total capitalization $ 13,159
Debt 53.0%
Preferred 2.2%
Common shareholders' equity 44.8%
Total 100.0%
8. Sales Analysis - Q2 2007
Electric Sales - Detroit Edison Service Area (GWh) Electric Revenue - Detroit Edison Service Area ($000s)
Q2 2007 Q2 2006 Q2 2007 Q2 2006
% Change % Change
Residential 3,718 3,514 6% Residential 398,757 380,178 5%
Commercial 4,871 4,506 8% Commercial 440,434 411,570 7%
Industrial 3,322 3,209 4% Industrial 214,972 207,966 3%
Other 804 792 2% Other 42,914 42,830 0%
12,715 12,021 6% 1,097,077 1,042,544 5%
Choice* Choice*
524 984 -47% 9,412 22,067 -57%
TOTAL SALES 13,239 13,005 2% TOTAL REVENUES 1,106,489 1,064,611 4%
* Includes Dearborn Industrial Group sales * Distribution charge, includes Dearborn Industrial Group revenues
Gas Sales - MichCon Service Area (Mcf) Gas Revenue - MichCon Service Area ($000s)
Q2 2007 Q2 2006 Q2 2007 Q2 2006
% Change % Change
Residential 16,260,472 13,361,179 22% Residential 189,088 167,356 13%
Commercial 4,868,998 3,747,549 30% Commercial 54,065 45,044 20%
Industrial 140,387 160,681 -13% Industrial 1,445 1,785 -19%
21,269,857 17,269,409 23% 244,598 214,185 14%
End User End User
Transportation* Transportation*
23,832,347 27,338,128 -13% 28,224 26,836 5%
TOTAL SALES 45,102,204 44,607,537 1% TOTAL REVENUES 272,822 241,021 13%
* Includes choice customers * Includes choice customers
Weather
Cooling Degree Days Heating Degree Days
Detroit Edison service territory MichCon service territory
Q2 2007 Q2 2006 Q2 2007 Q2 2006
% Change % Change
Actuals 277 225 23% Actuals 784 683 15%
Normal 193 193 n/m Normal 840 853
43% 17% -7% -20%
Deviation from normal Deviation from normal
