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Researched by Industrial Info Resources (Sugar Land, Texas)--Buoyed by warmer weather, self-implemented rates and lower storm expenses, DTE Energy Company (NYSE:DTE) (Detroit, Michigan), a diversified energy company that generates most of its power in Michigan, reported solid income growth in third-quarter 2015 and is boosting its investment in a major natural gas pipeline operation in the Utica Shale. Industrial Info is tracking $472.5 million in active projects involving DTE.
Among the projects tracked is the $30 million retrofits of two mercury-control units at DTE's Trenton Channel Power Station in Trenton, Michigan. Three Alstom/CE coal tangential-fired dry-bottom boilers, with a total capacity of 640 megawatts (MW), will be overhauled to improve mercury emissions. Barton Malow Company (Southfield, Michigan) will perform engineering, procurement and construction services.
Net income for the quarter was reported to be $265 million, an increase of nearly 70% from third-quarter 2015, while total operating revenues stood at $2.6 billion, which was basically unchanged. In addition to normalized weather (when compared with the same period last year), the company benefited from the DTE Electric segment's self-implemented rate increase and a year-over-year decrease in storm activity, which resulted in lower operational expenses. DTE also benefited from increased volumes on the Bluestone pipeline, which delivers gas from the Marcellus Shale to pipelines in Pennsylvania and New York, and stronger investments in its gathering assets.
Capital expenditures totaled $1.7 billion in the first three quarters of the year.
In September, DTE announced the opening of Michigan's largest solar array to date, a 1.1-megawatt facility at Domino's Farms in Ann Arbor Township. According to the company, the array comprises more than 4,000 panels and generates enough energy to power nearly 200 homes. It also helped DTE meet Michigan's requirement to source 10% of its electricity from renewable sources by 2015.
The Ann Arbor project is one of three solar-related projects that DTE pursued in the third quarter that involve the installation of roughly 9,500 solar panels, making the company the state's largest investor in solar energy. The other two facilities are in Romulus and Ypsilanti.
During the third quarter, DTE increased its ownership in the Nexus pipeline project from 33% to 50%, which brings the company's total planned investment to about $1 billion. DTE executed contracts for the major pipe materials earlier this month, and expects to file with FERC before the end of the year. The 250-mile project, which also is being developed by Spectra Energy Corporation (NYSE:SE) (Houston, Texas), is slated to bring gas to Michigan from the Utica Shale by the end of 2017. For more information, see September 28, 2015, article - New Pipelines to Bring Gas to the West and Southwest, Creating New Competitive Dynamics .
"We have commitments [for Nexus]," said Peter Oleksiak, the senior vice president and chief financial officer of DTE, in a conference call. "We need to move forward with the construction of the pipe. We have recently signed a number of Tampa interconnect agreements that could provide potential aggregate load across northern Ohio for up to 1.4 billion cubic feet a day. This demonstrates strong market support for the project, and also strengthens the longer-term earnings potential for the play. And we continue to see increasing production forecast for the Appalachian region."
Capital expenditures are expected to total $2.5 billion for full-year 2015, which would be an increase of more than 15% from 2014. The expenditures for 2015 include about $1.8 billion at DTE Electric, $280 million at DTE Gas, and $350 million at non-utility businesses.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
Among the projects tracked is the $30 million retrofits of two mercury-control units at DTE's Trenton Channel Power Station in Trenton, Michigan. Three Alstom/CE coal tangential-fired dry-bottom boilers, with a total capacity of 640 megawatts (MW), will be overhauled to improve mercury emissions. Barton Malow Company (Southfield, Michigan) will perform engineering, procurement and construction services.
Net income for the quarter was reported to be $265 million, an increase of nearly 70% from third-quarter 2015, while total operating revenues stood at $2.6 billion, which was basically unchanged. In addition to normalized weather (when compared with the same period last year), the company benefited from the DTE Electric segment's self-implemented rate increase and a year-over-year decrease in storm activity, which resulted in lower operational expenses. DTE also benefited from increased volumes on the Bluestone pipeline, which delivers gas from the Marcellus Shale to pipelines in Pennsylvania and New York, and stronger investments in its gathering assets.
Capital expenditures totaled $1.7 billion in the first three quarters of the year.
In September, DTE announced the opening of Michigan's largest solar array to date, a 1.1-megawatt facility at Domino's Farms in Ann Arbor Township. According to the company, the array comprises more than 4,000 panels and generates enough energy to power nearly 200 homes. It also helped DTE meet Michigan's requirement to source 10% of its electricity from renewable sources by 2015.
The Ann Arbor project is one of three solar-related projects that DTE pursued in the third quarter that involve the installation of roughly 9,500 solar panels, making the company the state's largest investor in solar energy. The other two facilities are in Romulus and Ypsilanti.
During the third quarter, DTE increased its ownership in the Nexus pipeline project from 33% to 50%, which brings the company's total planned investment to about $1 billion. DTE executed contracts for the major pipe materials earlier this month, and expects to file with FERC before the end of the year. The 250-mile project, which also is being developed by Spectra Energy Corporation (NYSE:SE) (Houston, Texas), is slated to bring gas to Michigan from the Utica Shale by the end of 2017. For more information, see September 28, 2015, article - New Pipelines to Bring Gas to the West and Southwest, Creating New Competitive Dynamics .
"We have commitments [for Nexus]," said Peter Oleksiak, the senior vice president and chief financial officer of DTE, in a conference call. "We need to move forward with the construction of the pipe. We have recently signed a number of Tampa interconnect agreements that could provide potential aggregate load across northern Ohio for up to 1.4 billion cubic feet a day. This demonstrates strong market support for the project, and also strengthens the longer-term earnings potential for the play. And we continue to see increasing production forecast for the Appalachian region."
Capital expenditures are expected to total $2.5 billion for full-year 2015, which would be an increase of more than 15% from 2014. The expenditures for 2015 include about $1.8 billion at DTE Electric, $280 million at DTE Gas, and $350 million at non-utility businesses.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
