Company: DTK
Filing Date: 2025-02-13
Form Type: 10-K
Source: 0000936340-25-000065
Chunk: 119

Company: DTE ENERGY CO
Filing Date: 2025-02-13
Form: 10-K
Item: Item 7
Chunk 119
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 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 increased $856 million in 2024 and $664 million in 2023 due primarily to increases in utility plant and equipment expenditures and cash used related to Notes receivable.

Cash from 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 from financing activities increased $462 million in 2024.  The increase was primarily due to an increase in Issuance of long-term debt, net of issuance costs, partially offset by decreases in cash related to Redemption of long-term debt and Short-term borrowings, net.

Net cash from financing activities decreased $579 million in 2023.  The decrease was primarily due to the Issuance of common stock in 2022 and a decrease in Short-term borrowings, net, partially offset by an increase in Issuance of long-term debt, net of issuance costs.

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