DTE Energy Co. - 4.375% DB REDEEM 15/10/2080 USD 25

Strong long-term outlook uplift (utility-driven) - 2026 operating EPS guidance: +6% to +8% vs 2025 midpoint; management says they’re positioned to achieve the high end. - Long-term operating EPS growth (updated): expects >9% operating EPS CAGR through 2031, measured from a 2027 pro forma baseline of $7.59–$7.73 (midpoint $7.66) that assumes the Vantage sale closes by year-end 2026. - Post-2027 ramp: >9% CAGR in 2028–2029, then ≥9% in 2030–2031, driven by utility capex ramp supporting data center load growth + reliability + cleaner generation.

Key strategic decision: Sale of DTE Vantage (~$3B) - Transaction: sale of essentially all DTE Vantage assets (excluding EES Coke) for ~$3B to institutional investors (JPMorgan Asset Management advised). - Timing: target close first half of 2027. - Why it matters: sharpens focus on regulated utility operations (simpler business, higher earnings visibility/premium utility profile), and enables rotation of capital into the larger regulated utility investment plan. - Accounting impact to earnings: Vantage earnings in 2027 will be treated as discontinued operations, creating timing effects in 2027 operating EPS; hence the pro forma baseline.

Major capex plan expanded to ~$44B over 5 years (almost +$10B vs prior) - Total 5-year utility investment: ~$44B (near + $10B increase). - DTE Electric (~$39B): - $23B cleaner generation including 7.6 GW solar/wind, 2.1 GW combined-cycle gas, 2.7 GW storage. - Built to support data center load, replace retiring coal, and meet Michigan clean energy requirements. - Grid/reliability spend: - ~$12B distribution (hardening, automation, resiliency) targeting -30% outages and -50% outage duration by 2029. - ~$4B base infrastructure. - DTE Gas: continued modernization (main renewal, transmission/distribution upgrades, compression/storage improvements). - Opportunity: management cites a robust data-center pipeline ~5 GW additional (about 2 GW in advanced discussions) and aims for at least one additional agreement by end of 2026.