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Why 2015 Was a Strong Year for DTE Energy

Vincent Kruger

How DTE Energy Beat Its Yearly Guidance for the 8th Straight Year

4Q15 earnings

Michigan’s largest utility company DTE Energy (DTE) posted its 4Q15 earnings on February 10, 2016. DTE reported quarterly operating earnings of $1.01 per share in 4Q15 compared to $1.17 per share in 4Q14. During the quarter, its electric and non-utility businesses dragged earnings compared to 4Q14.

2015 was a strong year for DTE Energy. The company increased its full-year guidance twice during the year. For 2015, DTE reported earnings of $4.82 per share against earnings of $4.60 per share in 2014. DTE surpassed the upper end of its guidance for the eighth consecutive year in a row in 2015.

DTE’s performance drivers

DTE experienced relatively flat load growth during the fourth quarter, influenced by milder weather. Lower sales from its residential customers were partially offset by sales from its commercial customers.

DTE’s industrial segment continued to see flat growth due to weakness, mainly in its steel sector. Along with DTE Energy, CMS Energy (CMS) has a noteworthy presence in Michigan.

DTE Energy’s non-utility business displayed strong performance in 2015. This segment reported 14% year-over-year growth in 2015 compared to 2014. During 4Q15, operating earnings from DTE’s non-utility business fell to $180 million from $207 million in 4Q14. DTE’s pipeline and gas storage businesses performed well during 2015.

The midwest and southern regions of the United States experienced milder weather in 4Q15. This impacted utilities’ (JXI) sales negatively. Both Dominion Resources (D) and American Electric Power (AEP) have noteworthy presences in the midwest and the southern United States. Both utilities reported weak sales numbers influenced by warmer weather in 4Q15.

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