DTE Energy Company (NYSE:DTE) Q3 2016 Earnings Conference Call - Final Transcript
Oct 26, 2016 • 09:00 am ET
Good day, and welcome to the DTE Energy Third Quarter 2016 Earnings Release Conference Call. [Operator Instructions]
At this time, I would like to turn the conference over to Barb Tuckfield. Please go ahead, ma'am.
Thank you, Tanisha, and good morning, everyone. Before we get started I would like to remind you to read the Safe Harbor statement on Page 2 of the presentation, including the reference to forward-looking statements.
Our presentation also includes references to operating earnings, which is a non-GAAP financial measure. Please refer to the reconciliation of GAAP net income to operating income provided in the appendix of today's presentation.
Peter Oleksiak, our Senior the Vice President and CFO, will be providing a financial update for the third quarter of 2016 guidance. We also have members of the Management Team here that we can call on during the Q&A session. And now I will turn it over to Peter to start the call.
Peter B. Oleksiak
Thanks, Barb. Good morning to everyone and thanks for joining us today. Of course, no DTE earnings call would be complete without an update on my Tigers, so let me get that over with here. I'm actually disappointed to say that for the second straight season the Tigers did not make the post season. Really the only sell offs here [Phonetic] is that we were the last American team to be eliminated from contention this year. But do like to congratulate two great Midwestern cities, Cleveland and Chicago, for being the World Series, and as always I'll look forward to a brighter season next year.
Now for an update on DTE. We're keeping today's call focused on the quarter and the current year. As you can see, I'm the only participant here. We have -- I have other members of Management Team here for the Q&A session and I will call on them throughout the Q&A if needed.
I will also be deferring questions on long-term growth and strategy to the EEI Conference, which is only a few weeks away. Gerry Anderson will be providing our normal detailed business update at EEI. There he will discuss our 2017 early outlook and long-term growth plans as well as details about each of the business segments.
So now I would like to start on Slide 4. As you know, in September we raised our operating EPS guidance for 2016. At that time increased the guidance midpoint's $0.17 to a range of $5.09 to $5.35 from a range of $4.91 to $5.19. The guidance increases were driven by a lot of weather favorability at DTE Electric, favorability across all platforms at the Gas Storage and Pipeline business and a strong year-to-date economic performance at our Trading Company.
In the past we've talked about our reinvestment strategy, holding favorability until we see the summer months play out. Well, this summer was the hottest we've had in the past 60 years and we were able to reinvest a lot of those revenues back into the system, into aging infrastructure to