Nov 6, 2026, 4:18 PM ETUtilities

DTE Gas Company — Three and Nine Months Ended September 30, 2026 Earnings Summary

DTEDTE ENERGY CO

Source

Financial Performance

Operating revenues were $211 million for the three months ended September 30, 2026, compared to $207 million in the prior year period; for the nine months ended September 30, 2026, revenues were $1,445 million, up from $1,388 million.
Net income was a loss of $29 million for the three months ended September 30, 2026, compared to a loss of $36 million in the prior year; for the nine months ended September 30, 2026, net income was $176 million, compared to $175 million in the prior year.
Operating income was a loss of $5 million for the three months ended September 30, 2026, compared to a loss of $23 million in the prior year; for the nine months ended September 30, 2026, operating income was $323 million, up from $309 million.
Cost of gas was $9 million for the three months ended September 30, 2026, compared to $3 million in the prior year; for the nine months ended September 30, 2026, cost of gas was $400 million, up from $372 million.
Operation and maintenance expenses were $139 million for the three months ended September 30, 2026, compared to $142 million in the prior year; for the nine months ended September 30, 2026, expenses were $446 million, up from $444 million.
Depreciation and amortization was $58 million for the three months ended September 30, 2026, compared to $58 million in the prior year; for the nine months ended September 30, 2026, expenses were $174 million, up from $166 million.
Interest expense was $35 million for the three months ended September 30, 2026, compared to $33 million in the prior year; for the nine months ended September 30, 2026, expenses were $105 million, up from $97 million.
Net cash from operating activities was $508 million for the nine months ended September 30, 2026, compared to $513 million in the prior year.
Net cash used for investing activities was $589 million for the nine months ended September 30, 2026, compared to $631 million in the prior year.
Net cash from financing activities was $50 million for the nine months ended September 30, 2026, compared to $120 million in the prior year.
Total assets were $9,187 million as of September 30, 2026, compared to $8,905 million as of December 31, 2025.
Long-term debt, net of current portion, was $3,302 million as of September 30, 2026, compared to $3,043 million as of December 31, 2025.
Total shareholder's equity was $3,123 million as of September 30, 2026, compared to $3,116 million as of December 31, 2025.
Uncollectible expense was $5 million for the three months ended September 30, 2026, compared to $1 million in the prior year; for the nine months ended September 30, 2026, expense was $33 million, up from $24 million.
The effective income tax rate was 23.6% for the three months ended September 30, 2026, compared to 24.6% in the prior year; for the nine months ended September 30, 2026, the rate was 23.1%, unchanged from the prior year.

Guidance and Future Outlook

The Company expects to recognize revenue of $31 million in 2026, $121 million in 2027, $110 million in 2028, $94 million in 2029, $76 million in 2030, and $169 million in 2031 and thereafter related to fixed consideration associated with remaining performance obligations.
Annual capital expenditures for 2026 are expected to be approximately $900 million.
The Company anticipates transferring up to $25 million from its non-represented qualified pension plan to DTE Electric Company during the fourth quarter of 2026 in exchange for cash consideration.
The Company does not expect to make any contributions to the represented or non-represented qualified pension plans or postretirement benefit plans in 2026.

Business Segments and Product Lines

Gas sales revenue was $136 million for the three months ended September 30, 2026, compared to $110 million in the prior year; for the nine months ended September 30, 2026, revenue was $1,042 million, up from $1,018 million.
End User Transportation revenue was $48 million for the three months ended September 30, 2026, compared to $44 million in the prior year; for the nine months ended September 30, 2026, revenue was $192 million, up from $186 million.
Intermediate Transportation revenue was $16 million for the three months ended September 30, 2026, compared to $16 million in the prior year; for the nine months ended September 30, 2026, revenue was $71 million, up from $63 million.
The Company serves approximately 1.4 million customers throughout Michigan.
The Company has fixed-priced contracts for portions of its expected natural gas supply requirements through March 2029.

Market and Competitive Landscape

The Company is regulated by the Michigan Public Service Commission (MPSC) and certain activities are regulated by the Federal Energy Regulatory Commission (FERC).
The Company is also regulated by other federal and state regulatory agencies including the EPA and EGLE.
The Company owns or previously owned 14 former Manufactured Gas Plant (MGP) sites, with cleanup complete at eight sites and partial closure at five additional sites.

Risks and Challenges

Cleanup activities associated with remaining MGP sites will continue over the next several years; changes in assumptions regarding remediation techniques or regulatory requirements could impact cost estimates.
The status of the EPA's Good Neighbor Rule remains uncertain due to ongoing litigation, though the Company does not expect a significant financial impact at this time.
The EPA's finalization of National Ambient Air Quality Standards for fine particulate matter (PM2.5) may lead to Michigan areas being designated as non-attainment, requiring a State Implementation Plan, though no near-term impact is expected.
Approximately 2% of the Company's represented employees have contracts expiring within one year.
The Company is involved in various legal, regulatory, administrative, and environmental proceedings, the final disposition of which cannot be predicted.

Management Commentary and Tone

The MPSC approved an annual revenue increase of $149 million for services rendered on or after October 1, 2026, and a return on equity of 9.8%, following a DTE Gas filing requesting a net increase in base rates of $163 million and a return on equity increase from 9.8% to 10.25%.
The requested rate increase was primarily due to continued infrastructure investment and increasing operations and maintenance costs needed to ensure the continued safe and reliable delivery of natural gas to customers.
The Company maintains a total funded debt to capitalization ratio of 0.52 to 1 as of September 30, 2026, which is in compliance with the 0.65 to 1 covenant in its unsecured revolving credit agreement.

Other Key Points

In September 2026, the Company issued $300 million in mortgage bonds with interest rates of 5.34% (maturing 2031), 5.68% (maturing 2036), and 6.26% (maturing 2056); proceeds were used for repayment of short-term borrowings, capital expenditures, and other corporate purposes.
In June 2026, the U.S. Department of Energy's Office granted a $1.6 billion loan to DTE Gas to support modernization of natural gas infrastructure under the Energy Dominance Financing program (EDF); no draws were made on this loan as of September 30, 2026.
The Company has a $300 million unsecured revolving credit agreement intended to provide liquidity support for its commercial paper program, expiring in October 2030; no borrowings were outstanding as of September 30, 2026.
Dividends paid on common stock were $169 million for the nine months ended September 30, 2026, compared to $166 million in the prior year.
Plant and equipment expenditures were $580 million for the nine months ended September 30, 2026, compared to $437 million in the prior year.
The Company had $25 million accrued for remediation of contaminated sites as of September 30, 2026.
The Company allocated $3 million of stock-based compensation costs from DTE Energy for the three months ended September 30, 2026, and $10 million for the nine months ended September 30, 2026.
The Company adopted ASU No. 2025-05 effective January 1, 2026, regarding credit losses for accounts receivable, with no impact on financial position or results of operations.