SlideShare a Scribd company logo
1 of 10
Download to read offline
Feb. 26, 2007


DTE Energy announces strong 2006 operating earnings
       DETROIT – DTE Energy (NYSE:DTE) today reported 2006 earnings of $433 million, or
$2.43 per diluted share, compared with reported earnings of $537 million, or $3.05 per diluted
share in 2005. Reported earnings declined from 2005 primarily due to reduced synthetic fuel
production and associated accounting reserves. Additionally, restructuring of non-utility
businesses resulted in one-time impairments related to peaking plants, waste coal recovery and
biomass operations.

        The company had 2006 operating earnings of $593 million, or $3.33 per diluted share,
compared with 2005 operating earnings of $577 million, or $3.28 per diluted share. Operating
results exclude non-recurring items, certain timing-related items and discontinued operations.

        Excluding synthetic fuels, 2006 operating earnings were $2.89 per diluted share, above
the company’s prior guidance of $2.52 to $2.63 per diluted share primarily due to better than
expected performance at Detroit Edison and Energy Trading. Reconciliations of reported to
operating earnings for both the quarter ended and 12 months ended Dec. 31, 2006 and 2005, are
at the end of this news release.

       DTE Energy also reported cash flow from operations of approximately $1.5 billion in 2006,
a 50 percent increase over the $1 billion reported in 2005.

        “I’m pleased with our accomplishments in 2006,” said Anthony F. Earley Jr., DTE Energy
chairman and CEO. “Our robust cash flow enabled a dividend increase, and we worked hard to
produce strong results in our utilities. Both customers and shareholders are benefiting from our
investments in improving utility service and safety while at the same time reducing our operating
costs through our comprehensive Performance Excellence Process.

       “In addition, our non-utility restructuring is proceeding as planned and we expect to
generate more than $1 billion of cash flow in 2007 as we harvest some of the value we have
created in our Unconventional Gas, Power and Industrial Projects and other non-utility
businesses,” Earley continued. “Overall, I expect our utility and non-utility strategies to continue to
produce sustainable long-term earnings growth and cash flow.”




                                                -   more –
-2-

Operating earnings and other results for 2006, by segment:

         Electric Utility: Operating earnings for Detroit Edison were $2.03 per diluted share
versus $1.54 in 2005. The primary earnings driver was higher gross margins due to the expiration
of the cap on residential rates in 2006 and customers returning to full utility service. Partially
offsetting these improved results was milder weather in 2006 compared with 2005. In 2006
Detroit Edison invested $230 million in environmental projects to produce cleaner air and water
and $741 million on other power generation, distribution system and technology improvements to
improve reliability and efficiency.

         Gas Utility: Primarily consisting of MichCon, this segment had operating earnings of
$0.36 per diluted share compared with $0.42 in 2005. Lower sales due to milder weather and
conservation were the main factors impacting year-over-year earnings. These impacts were
partially offset by improved gas storage margins, a full year of higher rates from the April 2005
rate order, and lower operating and maintenance expense. MichCon invested $157 million in
2006 for improvements designed to benefit customers, including gas storage additions and a gas
distribution system expansion to meet growing demand in western Michigan.

       Coal and Gas Midstream: This segment had operating earnings of $0.29 per diluted
share compared with $0.26 in 2005. Driving earnings higher were higher non-utility gas storage
margins and increased coal marketing activity.

       Unconventional Gas Production: Operating earnings for this segment increased to
$0.05 per diluted share compared with $0.02 in 2005, primarily due to higher production from the
Barnett shale and the continued repricing of Antrim shale gas production as low-priced legacy
contracts expire. Offsetting these revenue increases were commensurate increases in operating
and depletion expenses associated with higher production and the operation of new wells.

        DTE Energy drilled 142 wells and produced 22 billion cubic feet of natural gas equivalent
(Bcfe) in its Antrim shale properties in Michigan in 2006. In its Barnett shale properties in Texas,
the company successfully drilled 64 wells and produced 4.1 Bcfe in 2006.

        Power and Industrial Projects: Beginning in the third quarter of 2006, the synthetic fuel
business has been shown as its own segment instead of being included in the Power and
Industrial Projects segment. Power and Industrial Projects had an operating loss of $0.04 per
diluted share compared with earnings of $0.02 in 2005. Key earnings drivers were improved coke
battery performance offset by biomass underperformance.

        In 2006, DTE Energy recorded asset impairment charges of $0.40 per diluted share in this
segment, primarily at its Crete and River Rouge peaking assets; these charges are excluded from
operating earnings. The company is exploring options to remove the quarterly earnings drag
resulting from its peaking plants including asset sales of remaining units.

         Energy Trading: This segment had operating earnings of $0.54 per diluted share
compared with an operating loss of $0.25 in 2005. Driving earnings higher were increased trading
activity and the flowback of timing-related losses incurred in 2005.


                                               -   more –
-3-

        Synthetic Fuel: This segment had operating earnings of $0.44 per diluted share versus
$1.56 in 2005. This decline was driven by the temporary idling of synthetic fuel plants and the
partial phase out of production tax credits along with associated impairments, reserves and
deferrals of potential gains from selling interests in the plants in 2006. The company has hedged
its exposure to operating losses from oil price-related production tax credit phase out in 2007, and
therefore expects to produce synthetic fuel at full capacity in 2007.

Corporate and Other: This segment had an operating loss of $0.34 per diluted share, compared
with a loss of $0.29 in 2005, primarily due to tax benefits received in 2005 and a contribution to
the DTE Energy Foundation in 2006.

Fourth quarter 2006 operating earnings results, by segment:

        For the fourth quarter of 2006, DTE Energy had reported earnings of $142 million, or
$0.79 per diluted share, compared with $382 million, or $2.14 per diluted share in 2005.
Operating earnings for the fourth quarter 2006 were $167 million, or $0.93 per diluted share,
compared with $378 million, or $2.12 per diluted share in 2005. Reported and operating earnings
in the fourth quarter of 2005 were higher primarily due to the realization of earnings from synthetic
fuel production that had been deferred for the first three quarters of 2005.

       Electric Utility: Operating earnings for Detroit Edison were $0.39 per diluted share
versus $0.40 in the fourth quarter of 2005. Driving performance in 2006 was mild weather and a
contribution to the DTE Energy Foundation, partially offset by more customers on full utility
service compared with 2005.

        Gas Utility: MichCon had operating earnings of $0.20 per diluted share versus $0.26 in
the fourth quarter of 2005. The key driver of this decline was lower gas usage due to mild weather
in 2006.

        Non-Utility Operations: Operating earnings from non-utility operations were $0.44 per
diluted share versus $1.60 in the fourth quarter of 2005. The higher 2005 earnings resulted from
the recognition of synfuel earnings deferred from the first three quarters of 2005, as well as the
flowback of timing-related accounting adjustments in the Energy Trading segment. Earnings from
Unconventional Gas Production increased to $0.03 per diluted share from breakeven results in
the fourth quarter of 2005 due primarily to higher gas production from the company’s Barnett
shale properties.

        Corporate and Other: The Corporate and Other segment had operating losses of $0.10
per diluted share compared with losses of $0.14 in the fourth quarter of 2005. Driving the
improvement was lower interest expense and taxes.

Outlook for 2007

       DTE Energy reiterated its 2007 operating earnings guidance excluding synthetic fuel of
$2.60 to $2.80 per diluted share. Synthetic fuel is expected to add operating earnings of $0.60 to
$1.25 per diluted share in 2007.

                                              - more -
-4-

       “In 2007 we expect to continue to earn our authorized returns at Detroit Edison and
MichCon,” said David E. Meador, DTE Energy executive vice president and chief financial officer.
“As we complete portions of our non-utility restructuring, we will provide updates to our non-utility
earnings outlook.”

Conference call and webcast information

        This earnings announcement, as well as a package of supplemental financial information,
is available on the company’s website at www.dteenergy.com/investors.

        DTE Energy plans to conduct a conference call with the investment community hosted by
Meador at 9 a.m. EST Tuesday, Feb. 27, to discuss 2006 earnings results and provide a general
business update. Investors, the news media and the public may listen to a live internet broadcast
of the meeting at www.dteenergy.com/investors. The telephone dial-in numbers are (800) 263-
8506 or (719) 457-2681. There is no passcode. The internet broadcast will be archived on the
company’s website. An audio replay of the call will be available from 1 p.m. Feb. 27 to March 12,
2007. To access the replay, dial (888) 203-1112 or (719) 457-0820 and enter passcode 2050934.

       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 2007 operating earnings guidance. It is likely that
certain items that impact the company's 2007 reported results will be excluded from operating
results. A reconciliation to the comparable 2007 reported earnings guidance is 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.

       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 Detroit Edison, an electric utility serving 2.2 million customers in Southeastern Michigan,
MichCon, a natural gas utility serving 1.3 million customers in Michigan and other non-utility,
energy businesses focused on gas pipelines and storage, coal transportation, unconventional gas
production and power and industrial projects. Information about DTE Energy is available at
dteenergy.com.

           The information contained herein is as of the date of this news release. DTE Energy expressly disclaims any current
intention to update any forward-looking statements contained in this news release as a result of new information or future events or
developments. Words such as quot;anticipate,quot; quot;believe,quot; quot;expect,quot; quot;projectedquot; and quot;goalsquot; 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 news release contains forward-looking statements about DTE Energy's financial results and estimates of future
prospects, and actual results may differ materially.




                                                              - more -
-5-
           Factors that may impact forward-looking statements include, but are not limited to: the higher price of oil and its impact on
the value of production tax credits, or the potential requirement to refund proceeds received from synfuel partners; the uncertainties of
successful exploration of gas shale resources and inability to estimate gas reserves with certainty; the effects of weather and other
natural phenomena on operations and sales to customers, and purchases from suppliers; economic climate and population growth or
decline in the geographic areas where we do business; environmental issues, laws, regulations, and the cost of remediation and
compliance; nuclear regulations and operations associated with nuclear facilities; implementation of electric and gas Customer Choice
programs; impact of electric and gas utility restructuring in Michigan, including legislative amendments; employee relations and the
impact of collective bargaining agreements; unplanned outages; access to capital markets and capital market conditions and the
results of other financing efforts which can be affected by credit agency ratings; the timing and extent of changes in interest rates; the
level of borrowings; changes in the cost and availability of coal and other raw materials, purchased power and natural gas; effects of
competition; impact of regulation by the FERC, MPSC, NRC and other applicable governmental proceedings and regulations, including
any associated impact on rate structures; contributions to earnings by non-utility subsidiaries; 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 ability to recover costs through rate increases; the availability, cost, coverage and terms of insurance; the cost of protecting
assets against, or damage due to, terrorism; 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;
uncollectible accounts receivable; binding arbitration, litigation and related appeals; changes in the economic and financial viability of
our suppliers, customers and trading counterparties, and the continued ability of such parties to perform their obligations to the
Company; and the timing, terms and proceeds from any asset sale or monetization. This news release should also be read in
conjunction with the quot;Forward-Looking Statementsquot; section in DTE Energy's 2005 Form 10-K and the 2006 quarterly reports on Form
10-Q (which sections are incorporated herein by reference), and in conjunction with other SEC reports filed by DTE Energy.


                                                                  - 30 -

For further information, members of the media may contact:

Len Singer                                                     Lorie N. Kessler
(313) 235-8809                                                 (313) 235-8807


Analysts – for further information:

Dan Miner                                                      Lisa Muschong
(313) 235-5525                                                 (313) 235-8505
DTE ENERGY COMPANY
        CONSOLIDATED STATEMENT OF OPERATIONS (UNAUDITED)
                                                                                    Twelve Months Ended
                                                                                         December 31
(in Millions, Except per Share Amounts)                                                            2005
                                                                                   2006
                                                                                                $     9,021
Operating Revenues ............................................................. $    9,022

Operating Expenses
 Fuel, purchased power and gas ............................................                                    3,530
                                                                                                 3,056
 Operation and maintenance..................................................                                   3,792
                                                                                                 3,696
 Depreciation, depletion and amortization ............................                                           868
                                                                                                 1,014
 Taxes other than income ......................................................                                  274
                                                                                                   321
 Asset (gains) and losses, reserves and impairments, net .....                                                  (390 )
                                                                                                   107
                                                                                                               8,074
                                                                                                 8,194

                                                                                                                947
Operating Income..................................................................                828

Other (Income) and Deductions
 Interest expense....................................................................                           519
                                                                                                  526
 Interest income .....................................................................                          (57 )
                                                                                                  (47 )
 Other income .......................................................................                           (68 )
                                                                                                  (61 )
 Other expenses .....................................................................                            55
                                                                                                   86
                                                                                                                449
                                                                                                  504

                                                                                                                498
Income Before Income Taxes and Minority Interest .........                                        324

                                                                                                                202
Income Tax Provision ..........................................................                   137

                                                                                                                (281 )
Minority Interest (1) .............................................................              (250 )

                                                                                                                577
Income from Continuing Operations ..................................                              437

                                                                                                                 (37 )
Loss from Discontinued Operations, net of tax .................                                     (5 )

                                                                                                                  (3 )
Cumulative Effect of Accounting Changes, net of tax .......                                          1

                                                                                                           $    537
Net Income ............................................................................. $        433

Basic Earnings per Common Share
 Income from continuing operations ..................................... $                                 $    3.30
                                                                                                  2.46
 Discontinued operations.......................................................                                 (.21 )
                                                                                                  (.03 )
 Cumulative effect of accounting changes.............................                                           (.02 )
                                                                                                   .01
  Total ................................................................................... $              $    3.07
                                                                                                  2.44

Diluted Earnings per Common Share
 Income from continuing operations ..................................... $                                 $    3.28
                                                                                                  2.45
 Discontinued operations.......................................................                                 (.21 )
                                                                                                  (.03 )
 Cumulative effect of accounting changes.............................                                           (.02 )
                                                                                                   .01
   Total ................................................................................... $             $    3.05
                                                                                                  2.43

Average Common Shares
 Basic.....................................................................................                     175
                                                                                                  177
 Diluted..................................................................................                      176
                                                                                                  178

                                                                                                           $    2.06
Dividends Declared per Common Share ............................. $                              2.075

          (1)   Primarily represents our partners’ share of synfuel project losses.
DTE ENERGY COMPANY
                                                                   SEGMENT NET INCOME (UNAUDITED)

                                                                                                  Three Months Ended December 31
                                                                                                                                                       2005
                                                                                    2006
                                                                                                                               Reported                                    Operating
                                                                  Reported                             Operating
                                                                                                                               Earnings           Adjustments              Earnings
(in Millions)                                                     Earnings     Adjustments             Earnings

                                                                                                                           $          65         $           4B           $         73
Electric Utility ........................................     $        68      $         2A          $          70
                                                                                                                                                             3A
                                                                                                                                                             1H

                                                                                                                                     (86 )                  1B                      45
Gas Utility...............................................             34                 5B                    36
                                                                                                                                                          130 A
                                                                                         (3 )A

Non-utility Operations

 Coal and Gas Midstream........................                                                                                       12                      -                     12
                                                                       14                 -                     14

 Unconventional Gas Production ............                                                                                             1                     -                      1
                                                                         4                -                       4

 Power and Industrial Projects ................                                                                                         1                    1B                      2
                                                                        (6 )              1C                      2
                                                                                          7D

 Energy Trading ......................................                                                                               129                      -                    129
                                                                       29                 -                     29

 Synthetic Fuel ........................................                                                                             140                    (3 )E                  144
                                                                       18               11 E                    29
                                                                                                                                                             7I
    Total Non-utility Operations...............                                                                                      283                     5                     288
                                                                       59               19                      78

                                                                                                                                     126                 (154 )A                   (28 )
Corporate and Other.............................                       (17 )              -                   (17)

                                                                                                                                     388                   (10 )                   378
Income from Continuing Operations ...                                 144               23                     167

                                                                                                                                       (3 )                  3F                      -
Discontinued Operations.......................                          (2 )              1F                      -
                                                                                          1G

Cumulative Effect of Accounting
                                                                                                                                       (3 )                  3J                      -
Change ....................................................              -                -                       -

                                                                                                                           $         382         $          (4 )          $        378
Net Income .............................................      $       142      $        25           $         167


          ADJUSTMENTS KEY
          A) Effective tax rate normalization ................................. Quarterly adjustment to normalize effective tax rate. Annual results not impacted.
          B) Performance Excellence Process................................ Costs to achieve savings from Performance Excellence Process
          C) Impairment charge...................................................... Impairment charge of Crete, a joint venture merchant generating investment
          D) Impairment charge...................................................... Impairment charge of Biomass landfill gas projects
          E) 2007 oil price option................................................... Mark to market on 2007 synfuel oil hedges
          F) Impairment charge ...................................................... Impairment charge and operating results relating to the discontinuance of Dtech operations
          G) Georgetown ................................................................ Operating results relating to the discontinuance of Georgetown operations
          H) DTE2/SAP project costs ........................................... Incremental non-recurring DTE2/SAP project costs
          I) 2006 oil price option ................................................... Mark to market on 2006 synfuel oil hedges
          J) Cumulative effect of accounting change ..................... Cumulative effect of change in accounting principle from adoption of FIN 47
DTE ENERGY COMPANY
                                                  SEGMENT DILUTED EARNINGS PER SHARE (UNAUDITED)

                                                                                                    Three Months Ended December 31
                                                                                                                                                          2005
                                                                                      2006
                                                                                                                                 Reported                                    Operating
                                                                   Reported                              Operating
                                                                                                                                 Earnings            Adjustments             Earnings
                                                                   Earnings      Adjustments             Earnings

                                                                                                                             $        0.36         $        0.02 B          $       0.40
Electric Utility ...........................................   $       0.38      $      0.01 A         $        0.39
                                                                                                                                                            0.02 A


                                                                                                                                     (0.48 )                0.01 B                  0.26
Gas Utility ...............................................            0.19             0.03 B                  0.20
                                                                                                                                                            0.73 A
                                                                                       (0.02 )A

Non-utility Operations

 Coal and Gas Midstream ........................                                                                                      0.07                       -                  0.07
                                                                       0.08                    -                0.08

 Unconventional Gas Production.............                                                                                               -                      -                      -
                                                                       0.03                    -                0.03

 Power and Industrial Projects.................                                                                                       0.01                       -                  0.01
                                                                      (0.04 )           0.01 C                  0.01
                                                                                        0.04 D

 Energy Trading ......................................                                                                                0.72                       -                  0.72
                                                                       0.16                    -                0.16

 Synthetic Fuel ........................................                                                                              0.78                 (0.02 )E                 0.80
                                                                       0.10             0.06 E                  0.16
                                                                                                                                                            0.04 I
    Total Non-utility Operations ...............                                                                                      1.58                  0.02                    1.60
                                                                       0.33             0.11                    0.44

                                                                                                                                      0.72                 (0.86 )A                 (0.14 )
Corporate and Other .............................                     (0.10 )                  -               (0.10 )

                                                                                                                                      2.18                 (0.06 )                  2.12
Income from Continuing Operations....                                  0.80             0.13                    0.93

                                                                                                                                     (0.02 )                0.02 F                      -
Discontinued Operations .......................                       (0.01 )           0.01 F                      -


Cumulative Effect of Accounting
                                                                                                                                     (0.02 )                0.02 J                      -
Change ....................................................            -                   -                        -

                                                                                                                             $        2.14         $       (0.02 )          $       2.12
Net Income..............................................       $       0.79      $      0.14           $        0.93


           ADJUSTMENTS KEY
           A) Effective tax rate normalization ................................. Quarterly adjustment to normalize effective tax rate. Annual results not impacted.
           B) Performance Excellence Process................................ Costs to achieve savings from Performance Excellence Process
           C) Impairment charge...................................................... Impairment charge of Crete, a joint venture merchant generating investment
           D) Impairment charge...................................................... Impairment charge of Biomass landfill gas projects
           E) 2007 oil price option................................................... Mark to market on 2007 synfuel oil hedges
           F) Impairment charge ...................................................... Impairment charge and operating results relating to the discontinuance of Dtech operations
           G) Georgetown ................................................................ Operating results relating to the discontinuance of Georgetown operations
           H) DTE2/SAP project costs ........................................... Incremental non-recurring DTE2/SAP project costs
           I) 2006 oil price option ................................................... Mark to market on 2006 synfuel oil hedges
           J) Cumulative effect of accounting change ..................... Cumulative effect of change in accounting principle from adoption of FIN 47
DTE ENERGY COMPANY
                                                                 SEGMENT NET INCOME (UNAUDITED)

                                                                                                  Twelve Months Ended December 31
                                                                                                                                                       2005
                                                                                   2006
                                                                                                                               Reported                                    Operating
                                                             Reported                                 Operating
                                                                                                                               Earnings           Adjustments              Earnings
(in Millions)                                                Earnings         Adjustments             Earnings

                                                                                                                           $        277          $           4B           $        272
Electric Utility ........................................    $     325        $         38 A         $        363
                                                                                                                                                             8J
                                                                                                                                                           (17 )Q

                                                                                                                                      37                     1B                     73
Gas Utility...............................................          50                  16 B                    66
                                                                                                                                                             5J
                                                                                                                                                            30 L

Non-utility Operations

 Coal and Gas Midstream........................                                                                                       45                      -                     45
                                                                    50                   1B                     51

 Unconventional Gas Production ............                                                                                            4                      -                      4
                                                                     9                    -                      9

 Power and Industrial Projects ................                                                                                        4                     1B                      5
                                                                   (80 )                 1    B                 (9 )
                                                                                        13    C
                                                                                        27    D
                                                                                        21    E
                                                                                         9    F

 Energy Trading ......................................                                                                               (43 )                    -                    (43 )
                                                                    96                    -                     96

 Synthetic Fuel ........................................                                                                            305                     (3 )H                  276
                                                                    48                 26 G                     78
                                                                                                                                                           (26 )R
                                                                                        4H
    Total Non-utility Operations...............                                                                                     315                    (28 )                   287
                                                                   123                102                     225

                                                                                                                                     (52 )                  (3 )Q                  (55 )
Corporate and Other.............................                   (61 )                  -                    (61 )

                                                                                                                                    577                       -                    577
Income from Continuing Operations ...                              437                156                     593

                                                                                                                                     (37 )                  36 I                     -
Discontinued Operations.......................                      (5 )                 4I                       -
                                                                                                                                                            (2 )M
                                                                                         1P
                                                                                                                                                             3N

Cumulative Effect of Accounting
                                                                                                                                      (3 )                   3O                      -
Changes ..................................................           1                  (1 )K                     -

                                                                                                                           $        537          $          40            $        577
Net Income .............................................     $     433        $       160            $        593


         ADJUSTMENTS KEY
         A) September 2006 MPSC Electric ................................ Impact of disallowance of 2004 stranded costs and PSCR reconciliation
         B) Performance Excellence Process................................ Costs to achieve savings from Performance Excellence Process
         C) Impairment charge...................................................... Impairment charge PepTec operations
         D) Impairment charge...................................................... Impairment charge of River Rouge merchant generation facility
         E) Impairment charge ...................................................... Impairment charge of Crete, a joint venture merchant generating investment
         F) Impairment charge ...................................................... Impairment charge of Biomass landfill gas projects
         G) 2006 oil price option rollback .................................... Mark to market on 2006 synfuel oil hedges recognized in 2005
         H) 2007 oil price option .................................................. Mark to market on 2007 synfuel oil hedges
         I) Impairment charge ....................................................... Impairment charge and operating results relating to the discontinuance of Dtech operations
         J) DTE2/SAP project costs ............................................. Incremental non-recurring DTE2/SAP project costs
         K) Cumulative effect of accounting change.................... Cumulative effect of a change in accounting principle from adoption of FASB No. 123-R
         L) April 2005 MPSC Gas ............................................... Impact of disallowances of 2002 gas costs and certain computer systems and equipment
                                                                                         costs
         M) Gain on sale of Southern Missouri ............................ Gain from the sale of Southern Missouri Gas Company
         N) Gain on sale of ITC .................................................... A related adjustment from the sale of International Transmission Company
         O) Cumulative effect of accounting change.................... Cumulative effect of a change in accounting principle from adoption of FIN 47
         P) Georgetown ................................................................. Operating results relating to the discontinuance of Georgetown operations
         Q) Gain on sale of assets ................................................. Gain on sale of land
         R) 2006 oil price option................................................... Mark to market on 2006 synfuel oil hedges
DTE ENERGY COMPANY
                                                SEGMENT DILUTED EARNINGS PER SHARE (UNAUDITED)

                                                                                                  Twelve Months Ended December 31
                                                                                                                                                       2005
                                                                                    2006
                                                                                                                               Reported                                    Operating
                                                             Reported                                 Operating
                                                                                                                               Earnings           Adjustments              Earnings
                                                             Earnings         Adjustments             Earnings

                                                                                                                           $       1.57          $       0.02 B           $        1.54
Electric Utility ........................................    $   1.82         $      0.21 A          $       2.03
                                                                                                                                                         0.04 J
                                                                                                                                                        (0.09 )Q

                                                                                                                                   0.21                  0.01 B                    0.42
Gas Utility...............................................       0.28                0.08 B                  0.36
                                                                                                                                                         0.03 J
                                                                                                                                                         0.17 L

Non-utility Operations

 Coal and Gas Midstream........................                                                                                    0.26                       -                    0.26
                                                                 0.28                0.01 B                  0.29

 Unconventional Gas Production ............                                                                                        0.02                       -                    0.02
                                                                 0.05                     -                  0.05

 Power and Industrial Projects ................                                                                                    0.02                       -                    0.02
                                                                 (0.45 )             0.01     B             (0.04 )
                                                                                     0.08     C
                                                                                     0.15     D
                                                                                     0.12     E
                                                                                     0.05     F

 Energy Trading ......................................                                                                            (0.25 )                     -                    (0.25 )
                                                                 0.54                     -                  0.54

 Synthetic Fuel ........................................                                                                           1.73                 (0.02 )H                   1.56
                                                                 0.27                0.15 G                  0.44
                                                                                                                                                        (0.15 )R
                                                                                     0.02 H
    Total Non-utility Operations...............                                                                                    1.78                 (0.17 )                    1.61
                                                                 0.69                0.59                    1.28

                                                                                                                                  (0.28 )               (0.01 )Q                   (0.29 )
Corporate and Other.............................                 (0.34 )                  -                 (0.34 )

                                                                                                                                   3.28                       -                    3.28
Income from Continuing Operations ...                            2.45                0.88                    3.33

                                                                                                                                  (0.21 )                0.21 I                        -
Discontinued Operations.......................                   (0.03 )             0.02 I                       -
                                                                                                                                                        (0.01 )M
                                                                                     0.01 P
                                                                                                                                                         0.01 N

Cumulative Effect of Accounting
                                                                                                                                  (0.02 )                0.02 O                        -
Changes ..................................................       0.01               (0.01 )K                      -

                                                                                                                           $       3.05          $       0.23             $        3.28
Net Income .............................................     $   2.43         $      0.90            $       3.33


         ADJUSTMENTS KEY
         A) September 2006 MPSC Electric ................................ Impact of disallowance of 2004 stranded costs and PSCR reconciliation
         B) Performance Excellence Process................................ Costs to achieve savings from Performance Excellence Process
         C) Impairment charge...................................................... Impairment charge PepTec operations
         D) Impairment charge...................................................... Impairment charge of River Rouge merchant generation facility
         E) Impairment charge ...................................................... Impairment charge of Crete, a joint venture merchant generating investment
         F) Impairment charge ...................................................... Impairment charge of Biomass landfill gas projects
         G) 2006 oil price option rollback .................................... Mark to market on 2006 synfuel oil hedges recognized in 2005
         H) 2007 oil price option .................................................. Mark to market on 2007 synfuel oil hedges
         I) Impairment charge ....................................................... Impairment charge and operating results relating to the discontinuance of Dtech operations
         J) DTE2/SAP project costs ............................................. Incremental non-recurring DTE2/SAP project costs
         K) Cumulative effect of accounting change.................... Cumulative effect of a change in accounting principle from adoption of FASB No. 123-R
         L) April 2005 MPSC Gas ................................................ Impact of disallowances of 2002 gas costs and certain computer systems and equipment
                                                                                         costs
         M) Gain on sale of Southern Missouri ............................ Gain from the sale of Southern Missouri Gas Company
         N) Gain on sale of ITC .................................................... A related adjustment from the sale of International Transmission Company
         O) Cumulative effect of accounting change.................... Cumulative effect of a change in accounting principle from adoption of FIN 47
         P) Georgetown ................................................................. Operating results relating to the discontinuance of Georgetown operations
         Q) Gain on sale of assets ................................................. Gain on sale of land
         R) 2006 oil price option................................................... Mark to market on 2006 synfuel oil price hedges

More Related Content

What's hot

progress energy Q4 04 earnings release
progress energy Q4 04 earnings releaseprogress energy Q4 04 earnings release
progress energy Q4 04 earnings releasefinance25
 
progress energy q2 07
progress energy q2 07progress energy q2 07
progress energy q2 07finance25
 
progress energy q4 2005earningsrelease
progress energy q4 2005earningsreleaseprogress energy q4 2005earningsrelease
progress energy q4 2005earningsreleasefinance25
 
progress energy q3 06 earnings
progress energy q3 06 earningsprogress energy q3 06 earnings
progress energy q3 06 earningsfinance25
 
dte_Q12008_er
dte_Q12008_erdte_Q12008_er
dte_Q12008_erfinance41
 
dte_er040205
dte_er040205dte_er040205
dte_er040205finance41
 

What's hot (9)

dte_2Q05ER
dte_2Q05ERdte_2Q05ER
dte_2Q05ER
 
dte_q304er
dte_q304erdte_q304er
dte_q304er
 
progress energy Q4 04 earnings release
progress energy Q4 04 earnings releaseprogress energy Q4 04 earnings release
progress energy Q4 04 earnings release
 
progress energy q2 07
progress energy q2 07progress energy q2 07
progress energy q2 07
 
progress energy q4 2005earningsrelease
progress energy q4 2005earningsreleaseprogress energy q4 2005earningsrelease
progress energy q4 2005earningsrelease
 
progress energy q3 06 earnings
progress energy q3 06 earningsprogress energy q3 06 earnings
progress energy q3 06 earnings
 
dte_Q12008_er
dte_Q12008_erdte_Q12008_er
dte_Q12008_er
 
dte_q104
dte_q104dte_q104
dte_q104
 
dte_er040205
dte_er040205dte_er040205
dte_er040205
 

Viewers also liked

center- point energy annual reports 2004
center- point energy annual reports 2004center- point energy annual reports 2004
center- point energy annual reports 2004finance41
 
dte_3Q06supp_v2
dte_3Q06supp_v2dte_3Q06supp_v2
dte_3Q06supp_v2finance41
 
dte_4q06_supp
dte_4q06_suppdte_4q06_supp
dte_4q06_suppfinance41
 
center- point energy annual reports 2008
center- point energy annual reports 2008center- point energy annual reports 2008
center- point energy annual reports 2008finance41
 
Q32003_release
Q32003_releaseQ32003_release
Q32003_releasefinance41
 
dte_q305supp
dte_q305suppdte_q305supp
dte_q305suppfinance41
 
dte_1Q2007ER
dte_1Q2007ERdte_1Q2007ER
dte_1Q2007ERfinance41
 
dte_Q12008_er
dte_Q12008_erdte_Q12008_er
dte_Q12008_erfinance41
 
dte_2Q05supplemental
dte_2Q05supplementaldte_2Q05supplemental
dte_2Q05supplementalfinance41
 

Viewers also liked (12)

center- point energy annual reports 2004
center- point energy annual reports 2004center- point energy annual reports 2004
center- point energy annual reports 2004
 
dte_3Q06supp_v2
dte_3Q06supp_v2dte_3Q06supp_v2
dte_3Q06supp_v2
 
dte_4q06_supp
dte_4q06_suppdte_4q06_supp
dte_4q06_supp
 
center- point energy annual reports 2008
center- point energy annual reports 2008center- point energy annual reports 2008
center- point energy annual reports 2008
 
Q32003_release
Q32003_releaseQ32003_release
Q32003_release
 
dte_q305supp
dte_q305suppdte_q305supp
dte_q305supp
 
dte_2Q2007
dte_2Q2007dte_2Q2007
dte_2Q2007
 
dte_1Q2007ER
dte_1Q2007ERdte_1Q2007ER
dte_1Q2007ER
 
DTE_4Q07_ER
DTE_4Q07_ERDTE_4Q07_ER
DTE_4Q07_ER
 
DTE_q206sup
DTE_q206supDTE_q206sup
DTE_q206sup
 
dte_Q12008_er
dte_Q12008_erdte_Q12008_er
dte_Q12008_er
 
dte_2Q05supplemental
dte_2Q05supplementaldte_2Q05supplemental
dte_2Q05supplemental
 

Similar to dte_4q06_ER

dte_er050210
dte_er050210dte_er050210
dte_er050210finance41
 
dte_1Q2007ER
dte_1Q2007ERdte_1Q2007ER
dte_1Q2007ERfinance41
 
EarningsDTEQ3
EarningsDTEQ3EarningsDTEQ3
EarningsDTEQ3finance41
 
EarningsDTEQ3
EarningsDTEQ3EarningsDTEQ3
EarningsDTEQ3finance41
 
dte_er040205
dte_er040205dte_er040205
dte_er040205finance41
 
2006/110301f
2006/110301f2006/110301f
2006/110301ffinance21
 
Download Documentation Q4 2007 Exelon Corporation Earnings Conference Call
Download Documentation 	Q4 2007 Exelon Corporation Earnings Conference CallDownload Documentation 	Q4 2007 Exelon Corporation Earnings Conference Call
Download Documentation Q4 2007 Exelon Corporation Earnings Conference Callfinance14
 

Similar to dte_4q06_ER (19)

dte_3Q06ER
dte_3Q06ERdte_3Q06ER
dte_3Q06ER
 
dte_q206er
dte_q206erdte_q206er
dte_q206er
 
DTE_4q05er
DTE_4q05erDTE_4q05er
DTE_4q05er
 
dte_er050210
dte_er050210dte_er050210
dte_er050210
 
dte_2Q05ER
dte_2Q05ERdte_2Q05ER
dte_2Q05ER
 
DTE_3Q07_ER
DTE_3Q07_ERDTE_3Q07_ER
DTE_3Q07_ER
 
dte_q105er
dte_q105erdte_q105er
dte_q105er
 
dte_1Q2007ER
dte_1Q2007ERdte_1Q2007ER
dte_1Q2007ER
 
EarningsDTEQ3
EarningsDTEQ3EarningsDTEQ3
EarningsDTEQ3
 
EarningsDTEQ3
EarningsDTEQ3EarningsDTEQ3
EarningsDTEQ3
 
dte_er040205
dte_er040205dte_er040205
dte_er040205
 
dte_q104
dte_q104dte_q104
dte_q104
 
dte_2Q2007
dte_2Q2007dte_2Q2007
dte_2Q2007
 
2006080301f
2006080301f2006080301f
2006080301f
 
dte_q304er
dte_q304erdte_q304er
dte_q304er
 
2006/110301f
2006/110301f2006/110301f
2006/110301f
 
dte_040730
dte_040730dte_040730
dte_040730
 
dte_040730
dte_040730dte_040730
dte_040730
 
Download Documentation Q4 2007 Exelon Corporation Earnings Conference Call
Download Documentation 	Q4 2007 Exelon Corporation Earnings Conference CallDownload Documentation 	Q4 2007 Exelon Corporation Earnings Conference Call
Download Documentation Q4 2007 Exelon Corporation Earnings Conference Call
 

More from finance41

pepco POMSlides
pepco POMSlidespepco POMSlides
pepco POMSlidesfinance41
 
pepco Berenson0306
pepco Berenson0306pepco Berenson0306
pepco Berenson0306finance41
 
pepco EdwardJones0306
pepco EdwardJones0306pepco EdwardJones0306
pepco EdwardJones0306finance41
 
pepco 2006JulyInvestorMeetings
pepco 2006JulyInvestorMeetingspepco 2006JulyInvestorMeetings
pepco 2006JulyInvestorMeetingsfinance41
 
pepco Presentation081706
pepco Presentation081706pepco Presentation081706
pepco Presentation081706finance41
 
pepco FallEEIl
pepco FallEEIlpepco FallEEIl
pepco FallEEIlfinance41
 
pepco WSUG107
pepco WSUG107pepco WSUG107
pepco WSUG107finance41
 
pepco AugustInvestorMeetings2007Final
pepco AugustInvestorMeetings2007Finalpepco AugustInvestorMeetings2007Final
pepco AugustInvestorMeetings2007Finalfinance41
 
pepco MerillLynchPower&GasConferenceSept2007(final)
pepco MerillLynchPower&GasConferenceSept2007(final)pepco MerillLynchPower&GasConferenceSept2007(final)
pepco MerillLynchPower&GasConferenceSept2007(final)finance41
 
pepco POMFallEEI2007
pepco POMFallEEI2007pepco POMFallEEI2007
pepco POMFallEEI2007finance41
 
pepco WallStBerensonFINAL
pepco WallStBerensonFINALpepco WallStBerensonFINAL
pepco WallStBerensonFINALfinance41
 
pepco POMAGAPresentation(final)
pepco POMAGAPresentation(final)pepco POMAGAPresentation(final)
pepco POMAGAPresentation(final)finance41
 
PHI_ProxyAnnual_Report2002
PHI_ProxyAnnual_Report2002PHI_ProxyAnnual_Report2002
PHI_ProxyAnnual_Report2002finance41
 
PHI_ProxyAnnual_Report2002
PHI_ProxyAnnual_Report2002PHI_ProxyAnnual_Report2002
PHI_ProxyAnnual_Report2002finance41
 
PHI_ProxyAnnual_Report2004
PHI_ProxyAnnual_Report2004PHI_ProxyAnnual_Report2004
PHI_ProxyAnnual_Report2004finance41
 
PHI_ProxyAnnual_Report2003
PHI_ProxyAnnual_Report2003PHI_ProxyAnnual_Report2003
PHI_ProxyAnnual_Report2003finance41
 
PHI_ProxyAnnual_Report2003
PHI_ProxyAnnual_Report2003PHI_ProxyAnnual_Report2003
PHI_ProxyAnnual_Report2003finance41
 
PHI_ProxyAnnual_Report2004
PHI_ProxyAnnual_Report2004PHI_ProxyAnnual_Report2004
PHI_ProxyAnnual_Report2004finance41
 
phi proxystatement2005report
phi proxystatement2005reportphi proxystatement2005report
phi proxystatement2005reportfinance41
 

More from finance41 (20)

pepco POMSlides
pepco POMSlidespepco POMSlides
pepco POMSlides
 
pepco Berenson0306
pepco Berenson0306pepco Berenson0306
pepco Berenson0306
 
pepco EdwardJones0306
pepco EdwardJones0306pepco EdwardJones0306
pepco EdwardJones0306
 
pepco 2006JulyInvestorMeetings
pepco 2006JulyInvestorMeetingspepco 2006JulyInvestorMeetings
pepco 2006JulyInvestorMeetings
 
pepco Presentation081706
pepco Presentation081706pepco Presentation081706
pepco Presentation081706
 
pepco FallEEIl
pepco FallEEIlpepco FallEEIl
pepco FallEEIl
 
pepco WSUG107
pepco WSUG107pepco WSUG107
pepco WSUG107
 
pepco AugustInvestorMeetings2007Final
pepco AugustInvestorMeetings2007Finalpepco AugustInvestorMeetings2007Final
pepco AugustInvestorMeetings2007Final
 
pepco MerillLynchPower&GasConferenceSept2007(final)
pepco MerillLynchPower&GasConferenceSept2007(final)pepco MerillLynchPower&GasConferenceSept2007(final)
pepco MerillLynchPower&GasConferenceSept2007(final)
 
pepco POMFallEEI2007
pepco POMFallEEI2007pepco POMFallEEI2007
pepco POMFallEEI2007
 
pepco WallStBerensonFINAL
pepco WallStBerensonFINALpepco WallStBerensonFINAL
pepco WallStBerensonFINAL
 
pepco POM2
pepco POM2pepco POM2
pepco POM2
 
pepco POMAGAPresentation(final)
pepco POMAGAPresentation(final)pepco POMAGAPresentation(final)
pepco POMAGAPresentation(final)
 
PHI_ProxyAnnual_Report2002
PHI_ProxyAnnual_Report2002PHI_ProxyAnnual_Report2002
PHI_ProxyAnnual_Report2002
 
PHI_ProxyAnnual_Report2002
PHI_ProxyAnnual_Report2002PHI_ProxyAnnual_Report2002
PHI_ProxyAnnual_Report2002
 
PHI_ProxyAnnual_Report2004
PHI_ProxyAnnual_Report2004PHI_ProxyAnnual_Report2004
PHI_ProxyAnnual_Report2004
 
PHI_ProxyAnnual_Report2003
PHI_ProxyAnnual_Report2003PHI_ProxyAnnual_Report2003
PHI_ProxyAnnual_Report2003
 
PHI_ProxyAnnual_Report2003
PHI_ProxyAnnual_Report2003PHI_ProxyAnnual_Report2003
PHI_ProxyAnnual_Report2003
 
PHI_ProxyAnnual_Report2004
PHI_ProxyAnnual_Report2004PHI_ProxyAnnual_Report2004
PHI_ProxyAnnual_Report2004
 
phi proxystatement2005report
phi proxystatement2005reportphi proxystatement2005report
phi proxystatement2005report
 

Recently uploaded

2024.03 Strategic Resources Presentation
2024.03 Strategic Resources Presentation2024.03 Strategic Resources Presentation
2024.03 Strategic Resources PresentationAdnet Communications
 
20240315 _E-Invoicing Digiteal. .pptx
20240315 _E-Invoicing Digiteal.    .pptx20240315 _E-Invoicing Digiteal.    .pptx
20240315 _E-Invoicing Digiteal. .pptxFinTech Belgium
 
RWA Report 2024: Rise of Real-World Assets in Crypto | CoinGecko
RWA Report 2024: Rise of Real-World Assets in Crypto | CoinGeckoRWA Report 2024: Rise of Real-World Assets in Crypto | CoinGecko
RWA Report 2024: Rise of Real-World Assets in Crypto | CoinGeckoCoinGecko
 
The unequal battle of inflation and the appropriate sustainable solution | Eu...
The unequal battle of inflation and the appropriate sustainable solution | Eu...The unequal battle of inflation and the appropriate sustainable solution | Eu...
The unequal battle of inflation and the appropriate sustainable solution | Eu...Antonis Zairis
 
Mphasis - Schwab Newsletter PDF - Sample 8707
Mphasis - Schwab Newsletter PDF - Sample 8707Mphasis - Schwab Newsletter PDF - Sample 8707
Mphasis - Schwab Newsletter PDF - Sample 8707harshan90
 
MARKET FAILURE SITUATION IN THE ECONOMY.
MARKET FAILURE SITUATION IN THE ECONOMY.MARKET FAILURE SITUATION IN THE ECONOMY.
MARKET FAILURE SITUATION IN THE ECONOMY.Arifa Saeed
 
Introduction to Entrepreneurship and Characteristics of an Entrepreneur
Introduction to Entrepreneurship and Characteristics of an EntrepreneurIntroduction to Entrepreneurship and Characteristics of an Entrepreneur
Introduction to Entrepreneurship and Characteristics of an Entrepreneurabcisahunter
 
What Key Factors Should Risk Officers Consider When Using Generative AI
What Key Factors Should Risk Officers Consider When Using Generative AIWhat Key Factors Should Risk Officers Consider When Using Generative AI
What Key Factors Should Risk Officers Consider When Using Generative AI360factors
 
Lundin Gold March 2024 Corporate Presentation - PDAC v1.pdf
Lundin Gold March 2024 Corporate Presentation - PDAC v1.pdfLundin Gold March 2024 Corporate Presentation - PDAC v1.pdf
Lundin Gold March 2024 Corporate Presentation - PDAC v1.pdfAdnet Communications
 
Contracts with Interdependent Preferences
Contracts with Interdependent PreferencesContracts with Interdependent Preferences
Contracts with Interdependent PreferencesGRAPE
 
India Economic Survey Complete for the year of 2022 to 2023
India Economic Survey Complete for the year of 2022 to 2023India Economic Survey Complete for the year of 2022 to 2023
India Economic Survey Complete for the year of 2022 to 2023SkillCircle
 
Solution manual for Intermediate Accounting, 11th Edition by David Spiceland...
Solution manual for  Intermediate Accounting, 11th Edition by David Spiceland...Solution manual for  Intermediate Accounting, 11th Edition by David Spiceland...
Solution manual for Intermediate Accounting, 11th Edition by David Spiceland...mwangimwangi222
 
ACCOUNTING FOR BUSINESS.II DEPARTMENTAL ACCOUNTS.
ACCOUNTING FOR BUSINESS.II DEPARTMENTAL ACCOUNTS.ACCOUNTING FOR BUSINESS.II DEPARTMENTAL ACCOUNTS.
ACCOUNTING FOR BUSINESS.II DEPARTMENTAL ACCOUNTS.KumarJayaraman3
 
Buy and Sell Urban Tots unlisted shares.pptx
Buy and Sell Urban Tots unlisted shares.pptxBuy and Sell Urban Tots unlisted shares.pptx
Buy and Sell Urban Tots unlisted shares.pptxPrecize Formely Leadoff
 
The Power Laws of Bitcoin: How can an S-curve be a power law?
The Power Laws of Bitcoin: How can an S-curve be a power law?The Power Laws of Bitcoin: How can an S-curve be a power law?
The Power Laws of Bitcoin: How can an S-curve be a power law?Stephen Perrenod
 
Hungarys economy made by Robert Miklos
Hungarys economy   made by Robert MiklosHungarys economy   made by Robert Miklos
Hungarys economy made by Robert Miklosbeduinpower135
 
LIC PRIVATISATION its a bane or boon.pptx
LIC PRIVATISATION its a bane or boon.pptxLIC PRIVATISATION its a bane or boon.pptx
LIC PRIVATISATION its a bane or boon.pptxsonamyadav7097
 
Stock Market Brief Deck for March 26.pdf
Stock Market Brief Deck for March 26.pdfStock Market Brief Deck for March 26.pdf
Stock Market Brief Deck for March 26.pdfMichael Silva
 
ACCOUNTING FOR BUSINESS.II BRANCH ACCOUNTS NOTES
ACCOUNTING FOR BUSINESS.II BRANCH ACCOUNTS NOTESACCOUNTING FOR BUSINESS.II BRANCH ACCOUNTS NOTES
ACCOUNTING FOR BUSINESS.II BRANCH ACCOUNTS NOTESKumarJayaraman3
 

Recently uploaded (20)

2024.03 Strategic Resources Presentation
2024.03 Strategic Resources Presentation2024.03 Strategic Resources Presentation
2024.03 Strategic Resources Presentation
 
20240315 _E-Invoicing Digiteal. .pptx
20240315 _E-Invoicing Digiteal.    .pptx20240315 _E-Invoicing Digiteal.    .pptx
20240315 _E-Invoicing Digiteal. .pptx
 
RWA Report 2024: Rise of Real-World Assets in Crypto | CoinGecko
RWA Report 2024: Rise of Real-World Assets in Crypto | CoinGeckoRWA Report 2024: Rise of Real-World Assets in Crypto | CoinGecko
RWA Report 2024: Rise of Real-World Assets in Crypto | CoinGecko
 
The unequal battle of inflation and the appropriate sustainable solution | Eu...
The unequal battle of inflation and the appropriate sustainable solution | Eu...The unequal battle of inflation and the appropriate sustainable solution | Eu...
The unequal battle of inflation and the appropriate sustainable solution | Eu...
 
Mphasis - Schwab Newsletter PDF - Sample 8707
Mphasis - Schwab Newsletter PDF - Sample 8707Mphasis - Schwab Newsletter PDF - Sample 8707
Mphasis - Schwab Newsletter PDF - Sample 8707
 
MARKET FAILURE SITUATION IN THE ECONOMY.
MARKET FAILURE SITUATION IN THE ECONOMY.MARKET FAILURE SITUATION IN THE ECONOMY.
MARKET FAILURE SITUATION IN THE ECONOMY.
 
Introduction to Entrepreneurship and Characteristics of an Entrepreneur
Introduction to Entrepreneurship and Characteristics of an EntrepreneurIntroduction to Entrepreneurship and Characteristics of an Entrepreneur
Introduction to Entrepreneurship and Characteristics of an Entrepreneur
 
What Key Factors Should Risk Officers Consider When Using Generative AI
What Key Factors Should Risk Officers Consider When Using Generative AIWhat Key Factors Should Risk Officers Consider When Using Generative AI
What Key Factors Should Risk Officers Consider When Using Generative AI
 
Lundin Gold March 2024 Corporate Presentation - PDAC v1.pdf
Lundin Gold March 2024 Corporate Presentation - PDAC v1.pdfLundin Gold March 2024 Corporate Presentation - PDAC v1.pdf
Lundin Gold March 2024 Corporate Presentation - PDAC v1.pdf
 
Contracts with Interdependent Preferences
Contracts with Interdependent PreferencesContracts with Interdependent Preferences
Contracts with Interdependent Preferences
 
India Economic Survey Complete for the year of 2022 to 2023
India Economic Survey Complete for the year of 2022 to 2023India Economic Survey Complete for the year of 2022 to 2023
India Economic Survey Complete for the year of 2022 to 2023
 
Solution manual for Intermediate Accounting, 11th Edition by David Spiceland...
Solution manual for  Intermediate Accounting, 11th Edition by David Spiceland...Solution manual for  Intermediate Accounting, 11th Edition by David Spiceland...
Solution manual for Intermediate Accounting, 11th Edition by David Spiceland...
 
ACCOUNTING FOR BUSINESS.II DEPARTMENTAL ACCOUNTS.
ACCOUNTING FOR BUSINESS.II DEPARTMENTAL ACCOUNTS.ACCOUNTING FOR BUSINESS.II DEPARTMENTAL ACCOUNTS.
ACCOUNTING FOR BUSINESS.II DEPARTMENTAL ACCOUNTS.
 
Buy and Sell Urban Tots unlisted shares.pptx
Buy and Sell Urban Tots unlisted shares.pptxBuy and Sell Urban Tots unlisted shares.pptx
Buy and Sell Urban Tots unlisted shares.pptx
 
The Power Laws of Bitcoin: How can an S-curve be a power law?
The Power Laws of Bitcoin: How can an S-curve be a power law?The Power Laws of Bitcoin: How can an S-curve be a power law?
The Power Laws of Bitcoin: How can an S-curve be a power law?
 
Hungarys economy made by Robert Miklos
Hungarys economy   made by Robert MiklosHungarys economy   made by Robert Miklos
Hungarys economy made by Robert Miklos
 
LIC PRIVATISATION its a bane or boon.pptx
LIC PRIVATISATION its a bane or boon.pptxLIC PRIVATISATION its a bane or boon.pptx
LIC PRIVATISATION its a bane or boon.pptx
 
Commercial Bank Economic Capsule - March 2024
Commercial Bank Economic Capsule - March 2024Commercial Bank Economic Capsule - March 2024
Commercial Bank Economic Capsule - March 2024
 
Stock Market Brief Deck for March 26.pdf
Stock Market Brief Deck for March 26.pdfStock Market Brief Deck for March 26.pdf
Stock Market Brief Deck for March 26.pdf
 
ACCOUNTING FOR BUSINESS.II BRANCH ACCOUNTS NOTES
ACCOUNTING FOR BUSINESS.II BRANCH ACCOUNTS NOTESACCOUNTING FOR BUSINESS.II BRANCH ACCOUNTS NOTES
ACCOUNTING FOR BUSINESS.II BRANCH ACCOUNTS NOTES
 

dte_4q06_ER

  • 1. Feb. 26, 2007 DTE Energy announces strong 2006 operating earnings DETROIT – DTE Energy (NYSE:DTE) today reported 2006 earnings of $433 million, or $2.43 per diluted share, compared with reported earnings of $537 million, or $3.05 per diluted share in 2005. Reported earnings declined from 2005 primarily due to reduced synthetic fuel production and associated accounting reserves. Additionally, restructuring of non-utility businesses resulted in one-time impairments related to peaking plants, waste coal recovery and biomass operations. The company had 2006 operating earnings of $593 million, or $3.33 per diluted share, compared with 2005 operating earnings of $577 million, or $3.28 per diluted share. Operating results exclude non-recurring items, certain timing-related items and discontinued operations. Excluding synthetic fuels, 2006 operating earnings were $2.89 per diluted share, above the company’s prior guidance of $2.52 to $2.63 per diluted share primarily due to better than expected performance at Detroit Edison and Energy Trading. Reconciliations of reported to operating earnings for both the quarter ended and 12 months ended Dec. 31, 2006 and 2005, are at the end of this news release. DTE Energy also reported cash flow from operations of approximately $1.5 billion in 2006, a 50 percent increase over the $1 billion reported in 2005. “I’m pleased with our accomplishments in 2006,” said Anthony F. Earley Jr., DTE Energy chairman and CEO. “Our robust cash flow enabled a dividend increase, and we worked hard to produce strong results in our utilities. Both customers and shareholders are benefiting from our investments in improving utility service and safety while at the same time reducing our operating costs through our comprehensive Performance Excellence Process. “In addition, our non-utility restructuring is proceeding as planned and we expect to generate more than $1 billion of cash flow in 2007 as we harvest some of the value we have created in our Unconventional Gas, Power and Industrial Projects and other non-utility businesses,” Earley continued. “Overall, I expect our utility and non-utility strategies to continue to produce sustainable long-term earnings growth and cash flow.” - more –
  • 2. -2- Operating earnings and other results for 2006, by segment: Electric Utility: Operating earnings for Detroit Edison were $2.03 per diluted share versus $1.54 in 2005. The primary earnings driver was higher gross margins due to the expiration of the cap on residential rates in 2006 and customers returning to full utility service. Partially offsetting these improved results was milder weather in 2006 compared with 2005. In 2006 Detroit Edison invested $230 million in environmental projects to produce cleaner air and water and $741 million on other power generation, distribution system and technology improvements to improve reliability and efficiency. Gas Utility: Primarily consisting of MichCon, this segment had operating earnings of $0.36 per diluted share compared with $0.42 in 2005. Lower sales due to milder weather and conservation were the main factors impacting year-over-year earnings. These impacts were partially offset by improved gas storage margins, a full year of higher rates from the April 2005 rate order, and lower operating and maintenance expense. MichCon invested $157 million in 2006 for improvements designed to benefit customers, including gas storage additions and a gas distribution system expansion to meet growing demand in western Michigan. Coal and Gas Midstream: This segment had operating earnings of $0.29 per diluted share compared with $0.26 in 2005. Driving earnings higher were higher non-utility gas storage margins and increased coal marketing activity. Unconventional Gas Production: Operating earnings for this segment increased to $0.05 per diluted share compared with $0.02 in 2005, primarily due to higher production from the Barnett shale and the continued repricing of Antrim shale gas production as low-priced legacy contracts expire. Offsetting these revenue increases were commensurate increases in operating and depletion expenses associated with higher production and the operation of new wells. DTE Energy drilled 142 wells and produced 22 billion cubic feet of natural gas equivalent (Bcfe) in its Antrim shale properties in Michigan in 2006. In its Barnett shale properties in Texas, the company successfully drilled 64 wells and produced 4.1 Bcfe in 2006. Power and Industrial Projects: Beginning in the third quarter of 2006, the synthetic fuel business has been shown as its own segment instead of being included in the Power and Industrial Projects segment. Power and Industrial Projects had an operating loss of $0.04 per diluted share compared with earnings of $0.02 in 2005. Key earnings drivers were improved coke battery performance offset by biomass underperformance. In 2006, DTE Energy recorded asset impairment charges of $0.40 per diluted share in this segment, primarily at its Crete and River Rouge peaking assets; these charges are excluded from operating earnings. The company is exploring options to remove the quarterly earnings drag resulting from its peaking plants including asset sales of remaining units. Energy Trading: This segment had operating earnings of $0.54 per diluted share compared with an operating loss of $0.25 in 2005. Driving earnings higher were increased trading activity and the flowback of timing-related losses incurred in 2005. - more –
  • 3. -3- Synthetic Fuel: This segment had operating earnings of $0.44 per diluted share versus $1.56 in 2005. This decline was driven by the temporary idling of synthetic fuel plants and the partial phase out of production tax credits along with associated impairments, reserves and deferrals of potential gains from selling interests in the plants in 2006. The company has hedged its exposure to operating losses from oil price-related production tax credit phase out in 2007, and therefore expects to produce synthetic fuel at full capacity in 2007. Corporate and Other: This segment had an operating loss of $0.34 per diluted share, compared with a loss of $0.29 in 2005, primarily due to tax benefits received in 2005 and a contribution to the DTE Energy Foundation in 2006. Fourth quarter 2006 operating earnings results, by segment: For the fourth quarter of 2006, DTE Energy had reported earnings of $142 million, or $0.79 per diluted share, compared with $382 million, or $2.14 per diluted share in 2005. Operating earnings for the fourth quarter 2006 were $167 million, or $0.93 per diluted share, compared with $378 million, or $2.12 per diluted share in 2005. Reported and operating earnings in the fourth quarter of 2005 were higher primarily due to the realization of earnings from synthetic fuel production that had been deferred for the first three quarters of 2005. Electric Utility: Operating earnings for Detroit Edison were $0.39 per diluted share versus $0.40 in the fourth quarter of 2005. Driving performance in 2006 was mild weather and a contribution to the DTE Energy Foundation, partially offset by more customers on full utility service compared with 2005. Gas Utility: MichCon had operating earnings of $0.20 per diluted share versus $0.26 in the fourth quarter of 2005. The key driver of this decline was lower gas usage due to mild weather in 2006. Non-Utility Operations: Operating earnings from non-utility operations were $0.44 per diluted share versus $1.60 in the fourth quarter of 2005. The higher 2005 earnings resulted from the recognition of synfuel earnings deferred from the first three quarters of 2005, as well as the flowback of timing-related accounting adjustments in the Energy Trading segment. Earnings from Unconventional Gas Production increased to $0.03 per diluted share from breakeven results in the fourth quarter of 2005 due primarily to higher gas production from the company’s Barnett shale properties. Corporate and Other: The Corporate and Other segment had operating losses of $0.10 per diluted share compared with losses of $0.14 in the fourth quarter of 2005. Driving the improvement was lower interest expense and taxes. Outlook for 2007 DTE Energy reiterated its 2007 operating earnings guidance excluding synthetic fuel of $2.60 to $2.80 per diluted share. Synthetic fuel is expected to add operating earnings of $0.60 to $1.25 per diluted share in 2007. - more -
  • 4. -4- “In 2007 we expect to continue to earn our authorized returns at Detroit Edison and MichCon,” said David E. Meador, DTE Energy executive vice president and chief financial officer. “As we complete portions of our non-utility restructuring, we will provide updates to our non-utility earnings outlook.” Conference call and webcast information This earnings announcement, as well as a package of supplemental financial information, is available on the company’s website at www.dteenergy.com/investors. DTE Energy plans to conduct a conference call with the investment community hosted by Meador at 9 a.m. EST Tuesday, Feb. 27, to discuss 2006 earnings results and provide a general business update. Investors, the news media and the public may listen to a live internet broadcast of the meeting at www.dteenergy.com/investors. The telephone dial-in numbers are (800) 263- 8506 or (719) 457-2681. There is no passcode. The internet broadcast will be archived on the company’s website. An audio replay of the call will be available from 1 p.m. Feb. 27 to March 12, 2007. To access the replay, dial (888) 203-1112 or (719) 457-0820 and enter passcode 2050934. 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 2007 operating earnings guidance. It is likely that certain items that impact the company's 2007 reported results will be excluded from operating results. A reconciliation to the comparable 2007 reported earnings guidance is 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. 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 Detroit Edison, an electric utility serving 2.2 million customers in Southeastern Michigan, MichCon, a natural gas utility serving 1.3 million customers in Michigan and other non-utility, energy businesses focused on gas pipelines and storage, coal transportation, unconventional gas production and power and industrial projects. Information about DTE Energy is available at dteenergy.com. The information contained herein is as of the date of this news release. DTE Energy expressly disclaims any current intention to update any forward-looking statements contained in this news release as a result of new information or future events or developments. Words such as quot;anticipate,quot; quot;believe,quot; quot;expect,quot; quot;projectedquot; and quot;goalsquot; 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 news release contains forward-looking statements about DTE Energy's financial results and estimates of future prospects, and actual results may differ materially. - more -
  • 5. -5- Factors that may impact forward-looking statements include, but are not limited to: the higher price of oil and its impact on the value of production tax credits, or the potential requirement to refund proceeds received from synfuel partners; the uncertainties of successful exploration of gas shale resources and inability to estimate gas reserves with certainty; the effects of weather and other natural phenomena on operations and sales to customers, and purchases from suppliers; economic climate and population growth or decline in the geographic areas where we do business; environmental issues, laws, regulations, and the cost of remediation and compliance; nuclear regulations and operations associated with nuclear facilities; implementation of electric and gas Customer Choice programs; impact of electric and gas utility restructuring in Michigan, including legislative amendments; employee relations and the impact of collective bargaining agreements; unplanned outages; access to capital markets and capital market conditions and the results of other financing efforts which can be affected by credit agency ratings; the timing and extent of changes in interest rates; the level of borrowings; changes in the cost and availability of coal and other raw materials, purchased power and natural gas; effects of competition; impact of regulation by the FERC, MPSC, NRC and other applicable governmental proceedings and regulations, including any associated impact on rate structures; contributions to earnings by non-utility subsidiaries; 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 ability to recover costs through rate increases; the availability, cost, coverage and terms of insurance; the cost of protecting assets against, or damage due to, terrorism; 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; uncollectible accounts receivable; binding arbitration, litigation and related appeals; changes in the economic and financial viability of our suppliers, customers and trading counterparties, and the continued ability of such parties to perform their obligations to the Company; and the timing, terms and proceeds from any asset sale or monetization. This news release should also be read in conjunction with the quot;Forward-Looking Statementsquot; section in DTE Energy's 2005 Form 10-K and the 2006 quarterly reports on Form 10-Q (which sections are incorporated herein by reference), and in conjunction with other SEC reports filed by DTE Energy. - 30 - For further information, members of the media may contact: Len Singer Lorie N. Kessler (313) 235-8809 (313) 235-8807 Analysts – for further information: Dan Miner Lisa Muschong (313) 235-5525 (313) 235-8505
  • 6. DTE ENERGY COMPANY CONSOLIDATED STATEMENT OF OPERATIONS (UNAUDITED) Twelve Months Ended December 31 (in Millions, Except per Share Amounts) 2005 2006 $ 9,021 Operating Revenues ............................................................. $ 9,022 Operating Expenses Fuel, purchased power and gas ............................................ 3,530 3,056 Operation and maintenance.................................................. 3,792 3,696 Depreciation, depletion and amortization ............................ 868 1,014 Taxes other than income ...................................................... 274 321 Asset (gains) and losses, reserves and impairments, net ..... (390 ) 107 8,074 8,194 947 Operating Income.................................................................. 828 Other (Income) and Deductions Interest expense.................................................................... 519 526 Interest income ..................................................................... (57 ) (47 ) Other income ....................................................................... (68 ) (61 ) Other expenses ..................................................................... 55 86 449 504 498 Income Before Income Taxes and Minority Interest ......... 324 202 Income Tax Provision .......................................................... 137 (281 ) Minority Interest (1) ............................................................. (250 ) 577 Income from Continuing Operations .................................. 437 (37 ) Loss from Discontinued Operations, net of tax ................. (5 ) (3 ) Cumulative Effect of Accounting Changes, net of tax ....... 1 $ 537 Net Income ............................................................................. $ 433 Basic Earnings per Common Share Income from continuing operations ..................................... $ $ 3.30 2.46 Discontinued operations....................................................... (.21 ) (.03 ) Cumulative effect of accounting changes............................. (.02 ) .01 Total ................................................................................... $ $ 3.07 2.44 Diluted Earnings per Common Share Income from continuing operations ..................................... $ $ 3.28 2.45 Discontinued operations....................................................... (.21 ) (.03 ) Cumulative effect of accounting changes............................. (.02 ) .01 Total ................................................................................... $ $ 3.05 2.43 Average Common Shares Basic..................................................................................... 175 177 Diluted.................................................................................. 176 178 $ 2.06 Dividends Declared per Common Share ............................. $ 2.075 (1) Primarily represents our partners’ share of synfuel project losses.
  • 7. DTE ENERGY COMPANY SEGMENT NET INCOME (UNAUDITED) Three Months Ended December 31 2005 2006 Reported Operating Reported Operating Earnings Adjustments Earnings (in Millions) Earnings Adjustments Earnings $ 65 $ 4B $ 73 Electric Utility ........................................ $ 68 $ 2A $ 70 3A 1H (86 ) 1B 45 Gas Utility............................................... 34 5B 36 130 A (3 )A Non-utility Operations Coal and Gas Midstream........................ 12 - 12 14 - 14 Unconventional Gas Production ............ 1 - 1 4 - 4 Power and Industrial Projects ................ 1 1B 2 (6 ) 1C 2 7D Energy Trading ...................................... 129 - 129 29 - 29 Synthetic Fuel ........................................ 140 (3 )E 144 18 11 E 29 7I Total Non-utility Operations............... 283 5 288 59 19 78 126 (154 )A (28 ) Corporate and Other............................. (17 ) - (17) 388 (10 ) 378 Income from Continuing Operations ... 144 23 167 (3 ) 3F - Discontinued Operations....................... (2 ) 1F - 1G Cumulative Effect of Accounting (3 ) 3J - Change .................................................... - - - $ 382 $ (4 ) $ 378 Net Income ............................................. $ 142 $ 25 $ 167 ADJUSTMENTS KEY A) Effective tax rate normalization ................................. Quarterly adjustment to normalize effective tax rate. Annual results not impacted. B) Performance Excellence Process................................ Costs to achieve savings from Performance Excellence Process C) Impairment charge...................................................... Impairment charge of Crete, a joint venture merchant generating investment D) Impairment charge...................................................... Impairment charge of Biomass landfill gas projects E) 2007 oil price option................................................... Mark to market on 2007 synfuel oil hedges F) Impairment charge ...................................................... Impairment charge and operating results relating to the discontinuance of Dtech operations G) Georgetown ................................................................ Operating results relating to the discontinuance of Georgetown operations H) DTE2/SAP project costs ........................................... Incremental non-recurring DTE2/SAP project costs I) 2006 oil price option ................................................... Mark to market on 2006 synfuel oil hedges J) Cumulative effect of accounting change ..................... Cumulative effect of change in accounting principle from adoption of FIN 47
  • 8. DTE ENERGY COMPANY SEGMENT DILUTED EARNINGS PER SHARE (UNAUDITED) Three Months Ended December 31 2005 2006 Reported Operating Reported Operating Earnings Adjustments Earnings Earnings Adjustments Earnings $ 0.36 $ 0.02 B $ 0.40 Electric Utility ........................................... $ 0.38 $ 0.01 A $ 0.39 0.02 A (0.48 ) 0.01 B 0.26 Gas Utility ............................................... 0.19 0.03 B 0.20 0.73 A (0.02 )A Non-utility Operations Coal and Gas Midstream ........................ 0.07 - 0.07 0.08 - 0.08 Unconventional Gas Production............. - - - 0.03 - 0.03 Power and Industrial Projects................. 0.01 - 0.01 (0.04 ) 0.01 C 0.01 0.04 D Energy Trading ...................................... 0.72 - 0.72 0.16 - 0.16 Synthetic Fuel ........................................ 0.78 (0.02 )E 0.80 0.10 0.06 E 0.16 0.04 I Total Non-utility Operations ............... 1.58 0.02 1.60 0.33 0.11 0.44 0.72 (0.86 )A (0.14 ) Corporate and Other ............................. (0.10 ) - (0.10 ) 2.18 (0.06 ) 2.12 Income from Continuing Operations.... 0.80 0.13 0.93 (0.02 ) 0.02 F - Discontinued Operations ....................... (0.01 ) 0.01 F - Cumulative Effect of Accounting (0.02 ) 0.02 J - Change .................................................... - - - $ 2.14 $ (0.02 ) $ 2.12 Net Income.............................................. $ 0.79 $ 0.14 $ 0.93 ADJUSTMENTS KEY A) Effective tax rate normalization ................................. Quarterly adjustment to normalize effective tax rate. Annual results not impacted. B) Performance Excellence Process................................ Costs to achieve savings from Performance Excellence Process C) Impairment charge...................................................... Impairment charge of Crete, a joint venture merchant generating investment D) Impairment charge...................................................... Impairment charge of Biomass landfill gas projects E) 2007 oil price option................................................... Mark to market on 2007 synfuel oil hedges F) Impairment charge ...................................................... Impairment charge and operating results relating to the discontinuance of Dtech operations G) Georgetown ................................................................ Operating results relating to the discontinuance of Georgetown operations H) DTE2/SAP project costs ........................................... Incremental non-recurring DTE2/SAP project costs I) 2006 oil price option ................................................... Mark to market on 2006 synfuel oil hedges J) Cumulative effect of accounting change ..................... Cumulative effect of change in accounting principle from adoption of FIN 47
  • 9. DTE ENERGY COMPANY SEGMENT NET INCOME (UNAUDITED) Twelve Months Ended December 31 2005 2006 Reported Operating Reported Operating Earnings Adjustments Earnings (in Millions) Earnings Adjustments Earnings $ 277 $ 4B $ 272 Electric Utility ........................................ $ 325 $ 38 A $ 363 8J (17 )Q 37 1B 73 Gas Utility............................................... 50 16 B 66 5J 30 L Non-utility Operations Coal and Gas Midstream........................ 45 - 45 50 1B 51 Unconventional Gas Production ............ 4 - 4 9 - 9 Power and Industrial Projects ................ 4 1B 5 (80 ) 1 B (9 ) 13 C 27 D 21 E 9 F Energy Trading ...................................... (43 ) - (43 ) 96 - 96 Synthetic Fuel ........................................ 305 (3 )H 276 48 26 G 78 (26 )R 4H Total Non-utility Operations............... 315 (28 ) 287 123 102 225 (52 ) (3 )Q (55 ) Corporate and Other............................. (61 ) - (61 ) 577 - 577 Income from Continuing Operations ... 437 156 593 (37 ) 36 I - Discontinued Operations....................... (5 ) 4I - (2 )M 1P 3N Cumulative Effect of Accounting (3 ) 3O - Changes .................................................. 1 (1 )K - $ 537 $ 40 $ 577 Net Income ............................................. $ 433 $ 160 $ 593 ADJUSTMENTS KEY A) September 2006 MPSC Electric ................................ Impact of disallowance of 2004 stranded costs and PSCR reconciliation B) Performance Excellence Process................................ Costs to achieve savings from Performance Excellence Process C) Impairment charge...................................................... Impairment charge PepTec operations D) Impairment charge...................................................... Impairment charge of River Rouge merchant generation facility E) Impairment charge ...................................................... Impairment charge of Crete, a joint venture merchant generating investment F) Impairment charge ...................................................... Impairment charge of Biomass landfill gas projects G) 2006 oil price option rollback .................................... Mark to market on 2006 synfuel oil hedges recognized in 2005 H) 2007 oil price option .................................................. Mark to market on 2007 synfuel oil hedges I) Impairment charge ....................................................... Impairment charge and operating results relating to the discontinuance of Dtech operations J) DTE2/SAP project costs ............................................. Incremental non-recurring DTE2/SAP project costs K) Cumulative effect of accounting change.................... Cumulative effect of a change in accounting principle from adoption of FASB No. 123-R L) April 2005 MPSC Gas ............................................... Impact of disallowances of 2002 gas costs and certain computer systems and equipment costs M) Gain on sale of Southern Missouri ............................ Gain from the sale of Southern Missouri Gas Company N) Gain on sale of ITC .................................................... A related adjustment from the sale of International Transmission Company O) Cumulative effect of accounting change.................... Cumulative effect of a change in accounting principle from adoption of FIN 47 P) Georgetown ................................................................. Operating results relating to the discontinuance of Georgetown operations Q) Gain on sale of assets ................................................. Gain on sale of land R) 2006 oil price option................................................... Mark to market on 2006 synfuel oil hedges
  • 10. DTE ENERGY COMPANY SEGMENT DILUTED EARNINGS PER SHARE (UNAUDITED) Twelve Months Ended December 31 2005 2006 Reported Operating Reported Operating Earnings Adjustments Earnings Earnings Adjustments Earnings $ 1.57 $ 0.02 B $ 1.54 Electric Utility ........................................ $ 1.82 $ 0.21 A $ 2.03 0.04 J (0.09 )Q 0.21 0.01 B 0.42 Gas Utility............................................... 0.28 0.08 B 0.36 0.03 J 0.17 L Non-utility Operations Coal and Gas Midstream........................ 0.26 - 0.26 0.28 0.01 B 0.29 Unconventional Gas Production ............ 0.02 - 0.02 0.05 - 0.05 Power and Industrial Projects ................ 0.02 - 0.02 (0.45 ) 0.01 B (0.04 ) 0.08 C 0.15 D 0.12 E 0.05 F Energy Trading ...................................... (0.25 ) - (0.25 ) 0.54 - 0.54 Synthetic Fuel ........................................ 1.73 (0.02 )H 1.56 0.27 0.15 G 0.44 (0.15 )R 0.02 H Total Non-utility Operations............... 1.78 (0.17 ) 1.61 0.69 0.59 1.28 (0.28 ) (0.01 )Q (0.29 ) Corporate and Other............................. (0.34 ) - (0.34 ) 3.28 - 3.28 Income from Continuing Operations ... 2.45 0.88 3.33 (0.21 ) 0.21 I - Discontinued Operations....................... (0.03 ) 0.02 I - (0.01 )M 0.01 P 0.01 N Cumulative Effect of Accounting (0.02 ) 0.02 O - Changes .................................................. 0.01 (0.01 )K - $ 3.05 $ 0.23 $ 3.28 Net Income ............................................. $ 2.43 $ 0.90 $ 3.33 ADJUSTMENTS KEY A) September 2006 MPSC Electric ................................ Impact of disallowance of 2004 stranded costs and PSCR reconciliation B) Performance Excellence Process................................ Costs to achieve savings from Performance Excellence Process C) Impairment charge...................................................... Impairment charge PepTec operations D) Impairment charge...................................................... Impairment charge of River Rouge merchant generation facility E) Impairment charge ...................................................... Impairment charge of Crete, a joint venture merchant generating investment F) Impairment charge ...................................................... Impairment charge of Biomass landfill gas projects G) 2006 oil price option rollback .................................... Mark to market on 2006 synfuel oil hedges recognized in 2005 H) 2007 oil price option .................................................. Mark to market on 2007 synfuel oil hedges I) Impairment charge ....................................................... Impairment charge and operating results relating to the discontinuance of Dtech operations J) DTE2/SAP project costs ............................................. Incremental non-recurring DTE2/SAP project costs K) Cumulative effect of accounting change.................... Cumulative effect of a change in accounting principle from adoption of FASB No. 123-R L) April 2005 MPSC Gas ................................................ Impact of disallowances of 2002 gas costs and certain computer systems and equipment costs M) Gain on sale of Southern Missouri ............................ Gain from the sale of Southern Missouri Gas Company N) Gain on sale of ITC .................................................... A related adjustment from the sale of International Transmission Company O) Cumulative effect of accounting change.................... Cumulative effect of a change in accounting principle from adoption of FIN 47 P) Georgetown ................................................................. Operating results relating to the discontinuance of Georgetown operations Q) Gain on sale of assets ................................................. Gain on sale of land R) 2006 oil price option................................................... Mark to market on 2006 synfuel oil price hedges