In part 2 of this series, we looked at Spartan Stores Inc (SPTN). Now lets look at DTE Energy.
DTE Energy Quote / Chart TTM P/E 12.78; Next full year forward P/E (FY2011) 12.33; Dividend yield 4.66%. Based on June 11, 2010 closing price of $46.14
DTE Energy is one of the nation’s largest diversified energy companies involved in the development and management of energy-related businesses and services. Their largest operating subsidiaries, Detroit Edison and MichCon provide electric and/or gas services to more than three million residential, business and industrial customers throughout Michigan. They also maintain a portfolio of non-utility energy businesses operating in 26 states.
What I find interesting about this company is their investments and commitment to alternate energy that started long before the current oil crisis.
DTE Biomass Energy has been partnering with landfills for more than 20 years in capturing and using landfill gas and providing environmentally sustainable products to the market.
DTE Energy Ventures has been operating for over a decade and has invested over $100 million in energy-related companies and funds. They invest primarily in entrepreneurial start-up companies and their primary investment interests lie in: Renewable Energy Sources (solar, wind biomass, biofuels, hydro), Energy Efficiency/Environmental (smartgrid, green building, LED, carbon capture, waste to energy) and Energy Storage (advanced battery systems, plug-in hybrid vehicles, flywheels).
DTE had 2009 earnings of $532 million, or $3.24 per diluted share, compared with $546 million, or $3.34 per diluted share in 2008. Reported earnings in 2008 included $0.50 per diluted share related to the sale of a portion of the company’s Barnett Shale natural gas property.
They had 1Q 2010 earnings of $229 million, or $1.38 per diluted share, compared with $178 million, or $1.09 per diluted share, in 1Q 2009. So they are showing strong earnings growth, both last year and during the first quarter of this year.
DTE Energy gave guidance of $3.35 to $3.75 per diluted share for 2010 operating earnings. The current 2010 analyst average estimate is $3.57.
Michigan law requires electric utilities to serve 10 percent of their retail sales with renewable energy by 2015. DTE plans to build facilities to produce half of this required amount and buy the other half from third party suppliers.
Detroit Edison plans to spend approximately $2 billion to build 1,295 megawatts (MW) of renewable energy through 2029. This will consist of: 565 MW of wind capacity (approximately 250 turbines) completed by 2028, 15 MW of solar capacity completed by 2014, and 29 MW of capacity from retrofitting boilers at existing conventional power plants completed by 2011. Detroit Edison has already purchased the easements on over 50,000 acres of land for potential wind development.
Detroit Edison plans to spend $3.5 billion through 2029 to buy renewable energy from Michigan-based facilities. The company expects these sources will be primarily wind, but may also include landfill gas, biomass, solar, hydropower and other approved sources.
Have a great day trading,
Disclosure: I current do not own any DTE shares, but I probably will again in the future.
Disclaimer: This article is intended to provoke thought about investment possibilities. Acting on the information provided is at your own risk. You are urged to do your own due diligence, and where appropriate, seek professional investment advice before acting on any information contained in these articles.