EX-99.2 3 k33819exv99w2.htm FINANCIAL INFORMATION DISTRIBUTION exv99w2
Exhibit 99.2
Second Quarter 2008 Supplemental Financial Information July 30, 2008


 

DTE Energy Company
Consolidated Statement of Financial Position (unaudited)
 
                 
    June 30     December 31  
    2008     2007  
(in Millions)                
ASSETS
               
Current Assets
               
Cash and cash equivalents
  $ 445     $ 123  
Restricted cash
    86       140  
Accounts receivable (less allowance for doubtful accounts of $269 and $182, respectively)
               
Customer
    1,557       1,658  
Other
    320       514  
Accrued power and gas supply cost recovery revenue
    47       76  
Inventories
               
Fuel and gas
    379       429  
Materials and supplies
    204       204  
Deferred income taxes
    207       387  
Assets from risk management and trading activities
    545       181  
Other
    135       196  
Current assets held for sale
          83  
 
           
 
    3,925       3,991  
 
           
 
               
Investments
               
Nuclear decommissioning trust funds
    794       824  
Other
    559       446  
 
           
 
    1,353       1,270  
 
           
 
               
Property
               
Property, plant and equipment
    19,673       18,809  
Less accumulated depreciation and depletion
    (7,778 )     (7,401 )
 
           
 
    11,895       11,408  
 
           
 
               
Other Assets
               
Goodwill
    2,037       2,037  
Regulatory assets
    2,803       2,786  
Securitized regulatory assets
    1,066       1,124  
Intangible assets
    87       25  
Notes receivable
    117       87  
Assets from risk management and trading activities
    395       199  
Prepaid pension assets
    162       152  
Other
    129       116  
Noncurrent assets held for sale
          547  
 
           
 
    6,796       7,073  
 
           
 
               
Total Assets
  $ 23,969     $ 23,742  
 
           

 


 

DTE Energy Company
Consolidated Statements of Financial Position (Unaudited)
 
                 
    June 30     December 31  
    2008     2007  
(in Millions, Except Shares)                
LIABILITIES AND SHAREHOLDERS’ EQUITY
               
Current Liabilities
               
Accounts payable
  $ 1,231     $ 1,189  
Accrued interest
    118       112  
Dividends payable
    86       87  
Short-term borrowings
    100       1,084  
Gas inventory equalization
    153        
Current portion long-term debt, including capital leases
    590       454  
Liabilities from risk management and trading activities
    818       281  
Deferred gains and reserves
    313       400  
Other
    483       566  
Current liabilities associated with assets held for sale
          48  
 
           
 
    3,892       4,221  
 
           
 
               
Long-Term Debt (net of current portion)
               
Mortgage bonds, notes and other
    5,936       5,576  
Securitization bonds
    996       1,065  
Trust preferred-linked securities
    289       289  
Capital lease obligations
    65       41  
 
           
 
    7,286       6,971  
 
           
 
               
Other Liabilities
               
Deferred income taxes
    1,824       1,824  
Regulatory liabilities
    1,156       1,168  
Asset retirement obligations
    1,310       1,277  
Unamortized investment tax credit
    102       108  
Liabilities from risk management and trading activities
    764       450  
Liabilities from transportation and storage contracts
    119       126  
Accrued pension liability
    68       68  
Accrued postretirement liability
    1,059       1,094  
Deferred gains
    14       15  
Nuclear decommissioning
    127       134  
Other
    286       303  
Noncurrent liabilities associated with assets held for sale
          82  
 
           
 
    6,829       6,649  
 
           
 
               
Commitments and Contingencies (Notes 2, 6 and 9)
               
 
               
Minority Interest
    61       48  
 
           
 
               
Shareholders’ Equity
               
Common stock, without par value, 400,000,000 shares authorized, 163,095,193 and 170,649,715 shares issued and outstanding, respectively
    3,169       3,176  
Retained earnings
    2,862       2,790  
Accumulated other comprehensive loss
    (130 )     (113 )
 
           
 
    5,901       5,853  
 
           
 
               
Total Liabilities and Shareholders’ Equity
  $ 23,969     $ 23,742  
 
           

 


 

DTE Energy Company
Consolidated Statement of Cash Flows (Unaudited)
 
                 
    Six Months Ended  
    June 30  
    2008     2007  
(in Millions)                
Operating Activities
               
Net Income
  $ 240     $ 519  
Adjustments to reconcile net income to net cash from operating activities:
               
Depreciation, depletion and amortization
    440       467  
Deferred income taxes
    180       (4 )
Gain on sale of non-utility business
    (128 )     (897 )
Other asset (gains), losses and reserves, net
    12       10  
Gain on sale of interests in synfuel projects
    (15 )     (77 )
Partners’ share of synfuel project (gains) losses
    2       (115 )
Contributions from synfuel partners
    30       101  
Changes in assets and liabilities, exclusive of changes shown separately
    774       994  
 
           
Net cash from operating activities
    1,535       998  
 
           
 
               
Investing Activities
               
Plant and equipment expenditures — utility
    (544 )     (480 )
Plant and equipment expenditures — non-utility
    (110 )     (141 )
Acquisitions, net of cash acquired
    (72 )      
Proceeds from sale of interests in synfuel projects
    82       221  
Refunds to synfuel partners
    (96 )     (16 )
Proceeds from sale of non-utility assets
    253       1,258  
Proceeds from sale of other assets, net
    16       11  
Restricted cash for debt redemptions
    54       4  
Proceeds from sale of nuclear decommissioning trust fund assets
    106       124  
Investment in nuclear decommissioning trust funds
    (124 )     (140 )
Other investments
    (17 )     (30 )
 
           
Net cash from (used for) investing activities
    (452 )     811  
 
           
 
               
Financing Activities
               
Issuance of long-term debt
    798        
Redemption of long-term debt
    (154 )     (111 )
Repurchase of long-term debt
    (238 )      
Short-term borrowings, net
    (984 )     (330 )
Repurchase of common stock
    (16 )     (333 )
Dividends on common stock
    (172 )     (187 )
Other
    (6 )     (2 )
 
           
Net cash used for financing activities
    (772 )     (963 )
 
           
 
               
Net Increase (Decrease) in Cash and Cash Equivalents
    311       846  
Cash and Cash Equivalents Reclassified from Assets Held for Sale
    11        
Cash and Cash Equivalents at Beginning of the Period
    123       147  
 
           
Cash and Cash Equivalents at End of the Period
  $ 445     $ 993  
 
           

 


 

THE DETROIT EDISON COMPANY
CONSOLIDATED STATEMENT OF OPERATIONS (UNAUDITED)
 
                                 
    Three Months Ended     Six Months Ended  
    June 30     June 30  
(in Millions)   2008     2007     2008     2007  
 
                               
Operating Revenues
  $ 1,173     $ 1,210     $ 2,326     $ 2,304  
 
                       
 
                               
Operating Expenses
                               
Fuel and purchased power
    415       402       817       756  
Operation and maintenance
    369       380       727       728  
Depreciation and amortization
    178       198       370       380  
Taxes other than income
    60       69       122       141  
Asset (gains) and reserves, net
          (1 )           6  
 
                       
 
    1,022       1,048       2,036       2,011  
 
                       
 
                               
Operating Income
    151       162       290       293  
 
                       
 
                               
Other (Income) and Deductions
                               
Interest expense
    71       75       147       149  
Interest income
    (1 )     (2 )     (2 )     (3 )
Other income
    (11 )     (7 )     (23 )     (18 )
Other expenses
    12       6       23       15  
 
                       
 
    71       72       145       143  
 
                       
 
                               
Income Before Income Taxes
    80       90       145       150  
 
                               
Income Tax Provision
    29       30       53       50  
 
                               
 
                       
Reported Earnings
    51       60       92       100  
 
                       
 
                               
Adjustments
                               
Effective tax rate normalization
          1             2  
Regulatory asset surcharge
          3             6  
Performance Excellence Process
                       
Detroit Thermal Reserve
                      6  
 
                       
 
          4             14  
 
                       
Operating Earnings
  $ 51     $ 64     $ 92     $ 114  
 
                       
The Consolidated Statement of Operations (Unaudited) should be read in conjunction with the Notes to
Consoldated Financial Statements appearing in Forms 10-K and 10-Q.

 


 

MICHIGAN CONSOLIDATED GAS COMPANY
CONSOLIDATED STATEMENT OF OPERATIONS (UNAUDITED)
 
                                 
    Three     Six  
    Months Ended     Months Ended  
    June 30     June 30  
(in Millions)   2008     2007     2008     2007  
 
                               
Operating Revenues
  $ 381     $ 305     $ 1,277     $ 1,166  
 
                       
 
                               
Operating Expenses
                               
Cost of gas
    210       158       854       771  
Operation and maintenance
    149       111       271       220  
Depreciation and amortization
    25       24       50       45  
Taxes other than income
    12       15       25       29  
Asset (gains) and losses, net
                      3  
 
                       
 
    396       308       1,200       1,068  
 
                       
 
                               
Operating Income (Loss)
    (15 )     (3 )     77       98  
 
                       
 
                               
Other (Income) and Deductions
                               
Interest expense
    14       12       30       27  
Interest income
    (2 )     (5 )     (4 )     (7 )
Other income
    (4 )     (2 )     (6 )     (5 )
Other expenses
    2       1       5       2  
 
                       
 
    10       6       25       17  
 
                       
 
                               
Income (Loss) Before Income Taxes
    (25 )     (9 )     52       81  
Income Tax Provision (Benefit)
    (8 )     (2 )     15       21  
 
                       
Reported Earnings (Loss)
    (17 )     (7 )     37       60  
 
                               
Adjustments
                               
Effective tax rate normalization
          3             (2 )
Performance Excellence Process
          1             2  
 
                       
 
          4              
 
                       
Operating Earnings (Loss)
  $ (17 )   $ (3 )   $ 37     $ 60  
 
                       

 


 

(DTE ENERGY LOGO)
DTE Energy Debt/Equity Calculation
As of June 30, 2008
($ millions)
         
Short-term borrowings
  $ 100  
Current portion of long-term debt, including capital leases
    590  
Mortgage bonds, notes and other
    5,936  
Securitization bonds
    996  
Capital lease obligations
    65  
less MichCon short-term debt
     
less Securitization bonds, including current portion
    (1,124 )
 
     
Total debt
    6,564  
 
       
Trust preferred-linked securities
    289  
 
     
Total preferred/ other
    289  
 
       
Equity
    5,901  
 
       
 
     
Total capitalization
  $ 12,753  
 
     
 
       
Debt
    51.5 %
Preferred
    2.3 %
Common shareholders’ equity
    46.3 %
 
     
 
       
Total
    100.0 %
 
     

 


 

(DTE ENERGY LOGO)
Sales Analysis — Q2 2008
Electric Sales — Detroit Edison Service Area (GWh)
                         
    Q2 2008   Q2 2007   % Change
     
Residential
    3,428       3,718       -8 %
Commercial
    4,912       4,871       1 %
Industrial
    3,231       3,322       -3 %
Other
    788       804       -2 %
     
 
    12,359       12,715       -3 %
Choice*
    297       524       -43 %
     
TOTAL SALES
    12,656       13,239       -4 %
     
 
*   Includes Dearborn Industrial Group sales
Electric Revenue — Detroit Edison Service Area ($000s)
                         
    Q2 2008   Q2 2007   % Change
     
Residential
    375,200       398,757       -6 %
Commercial
    456,612       440,454       4 %
Industrial
    224,016       214,972       4 %
Other
    42,398       42,914       -1 %
     
 
    1,098,226       1,097,097       0 %
Choice*
    3,694       9,412       -61 %
     
TOTAL REVENUES
    1,101,920       1,106,509       0 %
     
 
*   Distribution charge, includes Dearborn Industrial Group revenues
Gas Sales — MichCon Service Area (Mcf)
                         
    Q2 2008   Q2 2007   % Change
     
Residential
    13,849       16,261       -15 %
Commercial
    4,160       4,869       -15 %
Industrial
    149       140       6 %
     
 
    18,158       21,270       -15 %
End User Transportation*
    22,517       23,832       -6 %
     
TOTAL SALES
    40,675       45,102       -10 %
     
 
*   Includes choice customers
Gas Revenue — MichCon Service Area ($000s)
                         
    Q2 2008   Q2 2007   % Change
     
Residential
    187,734       189,088       -1 %
Commercial
    53,993       54,065       0 %
Industrial
    1,637       1,445       13 %
     
 
    243,364       244,598       -1 %
End User Transportation*
    32,493       28,224       15 %
     
TOTAL REVENUES
    275,857       272,822       1 %
     
 
*   Includes choice customers
Weather
Cooling Degree Days
Detroit Edison service territory
                         
    Q2 2008   Q2 2007   % Change
     
Actuals
    204       277       -26 %
Normal
    193       193          
             
 
                       
Deviation from normal
    6 %     44 %        
Heating Degree Days
MichCon service territory
                         
    Q2 2008   Q2 2007   % Change
     
Actuals
    774       784       -1 %
Normal
    865       840          
             
 
                       
Deviation from normal
    -11 %     -7 %        
Earnings Impact of Weather
Variance from normal weather ($millions, after-tax)
                 
    Q2 2008   Q2 2007
     
Detroit Edison
    1       14  
MichCon
    (4 )     (1 )
Warmer than normal weather added $1 million to Detroit Edison’s earnings in Q2 2008
Milder weather reduced MichCon’s earnings by $4M Q2 2008

 


 

(DTE ENERGY LOGO)
DTE Energy Company
Consolidated Statements of Operations (unaudited)
(Reconciliation of Reported Earnings to Operating earnings)
 
                         
    Three Months Ended June 30, 2008
    2Q 2008 Reported   Operating   2Q 2008 Operating
(in Millions)   Earnings   Adjustments   Earnings
Operating Revenues
    2,251       (2 )     2,249  
 
                       
Operating Expenses
                       
Fuel, purchased power and gas
    1,032             1,032  
Operation and maintenance
    754             754  
Depreciation, depletion and amortization
    216             216  
Taxes other than income
    78             78  
Gain on sale of non-utility business
    (2 )     2        
Other asset (gains) and losses, reserves and impairments, net
    16             16  
 
                       
 
    2,094       2       2,096  
 
                       
 
                       
Operating Income
    157       (4 )     153  
 
                       
 
                       
Other (Income) and Deductions
                       
Interest expense
    122             122  
Interest income
    (4 )           (4 )
Other income
    (18 )           (18 )
Other expenses
    9             9  
 
                       
 
    109             109  
 
                       
Income Before Income Taxes and Minority Interest
    48       (4 )     44  
 
                       
Income Tax Provision
    18       (2 )     16  
 
                       
Minority Interest
    2             2  
 
                       
Income from Continuing Operations
    28       (2 )     26  
 
                       
Discontinued Operations
                       
Income (loss) from discontinued operations, net of tax
                 
Minority interest in discontinued operations
                 
 
                       
 
                   
 
                       
Net Income
    28       (2 )     26