Company: DTK
Filing Date: 2025-02-13
Form Type: 10-K
Source: 0000936340-25-000065
Chunk: 121

Company: DTE ENERGY CO
Filing Date: 2025-02-13
Form: 10-K
Item: Item 7
Chunk 121
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 approximately $0.9 billion in 2025.  Any payment of future dividends is subject to approval by the Board of Directors and may depend on DTE Energy's future earnings, capital requirements, and financial condition.  Over the long-term, DTE Energy expects continued dividend growth and is targeting a payout ratio consistent with pure-play utility companies.  Dividends are subject to certain restrictions as discussed in Note 15 to the Consolidated Financial Statements, "Short-Term Credit Arrangements and Borrowings."  However, these restrictions are not expected to impact DTE Energy's planned dividend payments.

Various subsidiaries and equity investees of DTE Energy have entered into derivative and non-derivative contracts which contain ratings triggers and are guaranteed by DTE Energy.  These contracts contain provisions which allow the counterparties to require that DTE Energy post cash or letters of credit as collateral in the event that DTE Energy's credit rating is downgraded below investment grade.  Certain of these provisions (known as "hard triggers") state specific circumstances under which DTE Energy can be required to post collateral upon the occurrence of a credit downgrade, while other provisions (known as "soft triggers") are not as specific.  For contracts with soft triggers, it is difficult to estimate the amount of collateral which may be requested by counterparties and/or which DTE Energy may ultimately be required to post.  The amount of such collateral which could be requested fluctuates based on commodity prices (primarily natural gas, power, and environmental) and the provisions and maturities of the underlying transactions.  As of December 31, 2024, DTE Energy's contractual obligation to post collateral in the form of cash or letters of credit in the event of a downgrade to below investment grade, under both hard trigger and soft trigger provisions, was $360 million.

For cash obligations related to leases and future purchase commitments, refer to Note 16 and Note 17 to the Consolidated Financial Statements, "Leases." and "Commitments and Contingencies," respectively.  Purchase commitments include capital expenditures that are contractually obligated.  Also refer to the "Capital Investments" section above for additional information on DTE Energy's capital strategy and estimated spend over the next five years.

Other obligations are further described in the following Combined Notes to the Consolidated Financial Statements:

NoteTitle1Organization and Basis of Presentation7Asset Retirement Obligations8Regulatory Matters9Income Taxes12Financial and Other Derivative Instruments13Long-Term Debt15Short-Term Credit