DTE Energy Company, established in 1903 and based in Detroit, Michigan, is primarily engaged in utility services. Its Electric division is responsible ...
DTE Energy Company, headquartered in Detroit, Michigan, is a Fortune 500 diversified energy company with over a century of history. Founded as Detroit Edison in 1903, the company created a holding company named DTE Energy in January 1996, which is now the publicly traded entity. DTE operates primarily through its ...DTE Energy Company, headquartered in Detroit, Michigan, is a Fortune 500 diversified energy company with over a century of history. Founded as Detroit Edison in 1903, the company created a holding company named DTE Energy in January 1996, which is now the publicly traded entity. DTE operates primarily through its regulated electric and gas utilities, serving approximately 2.3 million electric customers in southeastern Michigan and 1.3 million natural gas customers statewide. The electric segment generates power from a diverse mix of fossil fuels (coal, natural gas), nuclear, hydroelectric, and renewable sources (wind and solar), and maintains extensive infrastructure including about 698 distribution substations and 449,800 line transformers. The gas segment manages natural gas procurement, storage, and distribution via around 20,000 miles of distribution mains and 2,000 miles of transmission pipelines. Beyond regulated utilities, DTE has non-utility segments: Power and Industrial Projects (providing metallurgical coke, steam, chilled water, and other services to industrial clients) and Energy Trading (marketing and trading power, natural gas, and environmental commodities). The company is led by CEO Joi Harris, who took office in September 2025, and CFO David Ruud. Financially, DTE reported revenue of about $12.5 billion in 2024, with a market capitalization around $29 billion as of late 2025. The company is committed to renewable energy and has set goals to reduce carbon emissions significantly. DTE employs approximately 9,900 people and continues to invest in grid modernization and cleaner energy sources. The company also operates DTE Vantage, a subsidiary focused on sustainable energy solutions. Despite its strong market position, DTE faces challenges such as high capital expenditures (over 30% of revenue) and negative free cash flow due to heavy investment in infrastructure and clean energy projects. Nevertheless, it maintains a stable dividend, offering a yield of about 3.3%.
Operator: Hello, and thank you for standing by. My name is Lacey, and I will be your conference operator today. At this time, I would like to welcome everyone to the DTE Energy Second Quarter 2026 Earnings Conference Call. I would now like to turn the call over to Matt Krupinski, Director of Investor Relations. Please go ahead.
Matt Krupinski: Thank you, and good morning, everyone. Before we get started, I'd like to remind you to read the safe harbor statement on Page 2 of the presentation, including the reference to forward-looking statements. Our presentation also includes references to operating earnings, which is a non-GAAP financial measure. Please refer to the reconciliation of GAAP earnings to operating earnings provided in the appendix. With us this morning are Joi Harris, President and CEO; and Dave Ruud, CFO. And now I'll turn it over to Joi to start our call this morning.
Joi Harris: Thanks, Matt, and good morning, everyone, and thank you for joining us. I'm happy to be with you today. As we move through the year, our team continues to execute at a high level, delivering strong results for our customers, communities and investors. Our performance reflects a highly engaged organization with a clear focus on operational excellence and doing what's right for our customers. I'm extremely proud that our team was recognized by the Gallup organization for the 14th consecutive year with a Great Workplace Award, and our employee engagement ranks in the 94th percentile globally among thousands of organizations. We are continuing to advance our customer-focused capital plan with targeted investments that are strengthening the grid and improving reliability. Importantly, we remain disciplined in how we deploy capital, ensuring that these investments deliver the greatest benefit while maintaining affordability for our customers. I'm sure you are aware, at the start of July, a severe fast-moving storm impacted nearly 400,000 customers. Despite extensive storm forecasting and preparedness efforts, weather models did not anticipate the storm severity and it developed rapidly with little advance warning, causing significant and widespread damage across the service territory, including more than 600 broken poles and substantial damage driven by trees outside of the utility-maintained right of way. With storms impacting much of the Midwest, we brought in crews from as far as Oklahoma and Texas to support restoration efforts. And I'd like to take a moment to express my immense gratitude to those crews, the contractors and our employees across DTE, who stepped up and worked long hours away from their families over the holiday weekend. Given the storm's unexpected severity and widespread damage across the Midwest, our restoration times extended beyond what we would typically target. However, our crews adjusted quickly and executed our restoration plan to support customers as safely and as quickly as possible. Importantly, areas where we have completed …