Company: DTK
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0000936340-25-000097
Chunk: 105

Company: DTE ENERGY CO
Filing Date: 2025-05-01
Form: 10-Q
Item: Part I, Item 1
Chunk 105
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 In any given year, DTE Energy looks to realize cash from under-performing or non-strategic assets or matured, fully valued assets.

Capital spending within the utility businesses is primarily to maintain and improve electric generation and the electric and natural gas distribution infrastructure, and to comply with environmental regulations and renewable energy goals.

Capital spending within the non-utility businesses is primarily for ongoing maintenance, expansion, and growth.  DTE Energy looks to make growth investments that meet strict criteria in terms of strategy, management skills, risks, and returns.  All new investments are analyzed for their rates of return and cash payback on a risk adjusted basis.  DTE Energy has been disciplined in how it deploys capital and will not make investments unless they meet the criteria.  For new business lines, DTE Energy initially invests based on research and analysis.  DTE Energy starts with a limited investment, evaluates the results, and either expands or exits the business based on those results.  In any given year, the amount of growth capital will be determined by the underlying cash flows of DTE Energy, with a clear understanding of any potential impact on its credit ratings.

Net cash used for investing activities decreased by $648 million in 2025 primarily due to decreases in utility plant and equipment expenditures, Notes receivable, and the Investment in time deposit in 2024.

Cash from (used for) Financing Activities

DTE Energy relies on both short-term borrowing and long-term financing as a source of funding for capital requirements not satisfied by its operations.

DTE Energy's strategy is to have a targeted debt portfolio blend of fixed and variable interest rates and maturity.  DTE Energy targets balance sheet financial metrics to ensure it is consistent with the objective of a strong investment grade debt rating.

Net cash used for financing activities changed by $922 million in 2025 primarily due to decreases in cash related to the Issuance of long-term debt, net of discount and issuance costs and Redemption of long-term debt, partially offset by an increase in cash related to Short-term borrowings, net.

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Outlook

Sources of Cash

DTE Energy expects cash flows from operations to increase over the long-term, primarily as a result of growth from the utility and non-utility businesses.  Growth in the utilities is expected to be driven primarily by capital spending which will increase the base from which rates are determined.  Further, the Inflation Reduction Act allows for extended tax benefits for renewable technologies, increased rates for PTCs and an option to claim P