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

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 compared to $1,388 million in the prior year period.
• Net income was a loss of $29 million for the three months ended September 30, 2026, versus a loss of $36 million in the prior year period; for the nine months ended September 30, 2026, net income was $176 million compared to $175 million in the prior year period.
• 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 period; for the nine months ended September 30, 2026, operating income was $323 million compared to $309 million in the prior year period.
• Cost of gas was $9 million for the three months ended September 30, 2026, compared to $3 million in the prior year period; for the nine months ended September 30, 2026, cost of gas was $400 million compared to $372 million in the prior year period.
• Operation and maintenance expenses were $139 million for the three months ended September 30, 2026, compared to $142 million in the prior year period; for the nine months ended September 30, 2026, expenses were $446 million compared to $444 million in the prior year period.
• Depreciation and amortization was $58 million for the three months ended September 30, 2026, matching the prior year period; for the nine months ended September 30, 2026, it was $174 million compared to $166 million in the prior year period.
• Interest expense was $35 million for the three months ended September 30, 2026, compared to $33 million in the prior year period; for the nine months ended September 30, 2026, it was $105 million compared to $97 million in the prior year period.
• Net cash provided by operating activities was $508 million for the nine months ended September 30, 2026, compared to $513 million in the prior year period.
• 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 period.
• Net cash provided by financing activities was $50 million for the nine months ended September 30, 2026, compared to $120 million in the prior year period.
• 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.
• Cash and cash equivalents were $0 million as of September 30, 2026, compared to $31 million as of December 31, 2025.
• Gas inventory was $131 million as of September 30, 2026, compared to $45 million as of December 31, 2025.
• Customer accounts receivable was $160 million as of September 30, 2026, compared to $422 million as of December 31, 2025.

Guidance and Future Outlook:

• The Company expects to recognize revenue related to fixed consideration associated with remaining performance obligations 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.
• The Company anticipates 2026 annual capital expenditures to be approximately $900 million.
• The Company is not expecting 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 period; for the nine months ended September 30, 2026, it was $1,042 million compared to $1,018 million in the prior year period.
• End User Transportation revenue was $48 million for the three months ended September 30, 2026, compared to $44 million in the prior year period; for the nine months ended September 30, 2026, it was $192 million compared to $186 million in the prior year period.
• Intermediate Transportation revenue was $16 million for the three months ended September 30, 2026, compared to $16 million in the prior year period; for the nine months ended September 30, 2026, it was $71 million compared to $63 million in the prior year period.
• Other revenue (including regulatory mechanism adjustments) was $11 million for the three months ended September 30, 2026, compared to $37 million in the prior year period; for the nine months ended September 30, 2026, it was $140 million compared to $121 million in the prior year period.

Market and Competitive Landscape:

• DTE Gas serves approximately 1.4 million customers throughout Michigan.
• The Company is regulated by the Michigan Public Service Commission (MPSC), the Federal Energy Regulatory Commission (FERC), the U.S. Environmental Protection Agency (EPA), and the Michigan Department of Environment, Great Lakes, and Energy (EGLE).
• The Company has fixed-priced contracts for portions of its expected natural gas supply requirements through March 2029.

Risks and Challenges:

• Cleanup activities are ongoing at remaining Manufactured Gas Plant (MGP) sites, with costs accrued at $25 million as of September 30, 2026; changes in assumptions regarding remediation techniques or regulatory requirements could impact financial position and cash flows.
• The status of the EPA's Good Neighbor Rule remains uncertain due to ongoing litigation, though no significant financial impact is expected at this time.
• Potential non-attainment designations for fine particulate matter (PM2.5) in Michigan could require State Implementation Plans, but no near-term financial impact is expected and long-term impacts cannot be assessed.
• Approximately 2% of the Company's represented employees have labor 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 $163 million net increase in base rates 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 total capitalization ratio of 0.52 to 1 as of September 30, 2026, complying 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 under the Energy Dominance Financing program (EDF) to support natural gas infrastructure modernization; 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.
• 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.
• Uncollectible expense was $33 million for the nine months ended September 30, 2026, compared to $24 million in the prior year period.
• 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.