DTE Energy to sell non-utility Vantage unit for $3 billion
DTE Energy agreed to sell its non-utility DTE Vantage business for about $3 billion and reported third-quarter operating EPS of $2.30, topping the $2.17 consensus estimate.
Key takeaways
- DTE Energy (DTE) agreed to sell its non-utility DTE Vantage business for approximately $3 billion to institutional investors advised by the Global Infrastructure group at J.P. Morgan Asset Management. The sale is expected to close in the first half of 2027. The company also reported third-quarter operating earnings of $2.30 per diluted share, topping the $2.17 consensus estimate.
DTE Energy (DTE) agreed to sell its non-utility DTE Vantage business for about $3 billion to institutional investors advised by the Global Infrastructure group at J.P. Morgan Asset Management, with the sale expected to close in the first half of 2027.
Shares fell 1.1% at 10:07 a.m. ET, from a $137.53 close.
The proceeds support about $44 billion of customer-focused utility capital planned over the next five years. The utilities have invested nearly $4.1 billion through the third quarter of 2026 and remain on track to invest $6.1 billion this year.
Third-quarter earnings were $470 million, or $2.25 per diluted share, versus $419 million, or $2.01, a year earlier. Operating earnings were $481 million, or $2.30 per diluted share, topping the $2.17 consensus estimate and $468 million, or $2.25, a year earlier.
"This transaction advances our strategy to focus our resources on our regulated electric and gas utilities," said Joi Harris, DTE president and CEO. DTE Vantage has been part of DTE Energy for more than 30 years.
The sale covers primarily all DTE Vantage assets, except EES Coke. DTE expects to deliver $500 million of 2026 equity sold under forward contracts in 2027.
DTE confirms 2026 operating EPS guidance of $7.59 to $7.73, unchanged from September. Its 2027 pro forma baseline is also $7.59 to $7.73, reflecting the Vantage sale. The company targets operating EPS growth of greater than 9% through 2031, measured from the 2027 baseline, and plans to increase its dividend 7% in 2027.
DTE Electric filed its 20-year Integrated Resource Plan with the Michigan Public Service Commission. The plan mixes renewables, energy storage, nuclear and natural gas, keeps the commitment to end coal use in 2032, costs $3.5 billion less than the company's previous IRP, and reduces carbon dioxide emissions by 84%.
The Michigan Public Service Commission approved DTE's energy contracts with Google for a planned data center in Van Buren Township. DTE is also moving forward to serve two hyperscale data center customers in Michigan.
DTE completed the 100-megawatt Cold Creek Solar Park near Coldwater, with Ford participating through the MIGreenPower program.