DTE Energy agrees to sell DTE Vantage for approximately US$3B
The planned sale excludes EES Coke, while DTE’s 2027 earnings baseline assumes a closing earlier than the announced target.
Ines Halvorsen
An approximately US$3 billion sale is expected to close in the first half of 2027, after DTE Energy NYSEDTE announced an agreement on Thursday. The disposal supports approximately US$44 billion of planned utility investment over the next five years, the company said in its Nov. 5 announcement.
The buyers are institutional investors advised by J.P. Morgan Asset Management's Global Infrastructure group. The agreement covers primarily all DTE Vantage assets except EES Coke. DTE's transaction summary does not quantify after-tax net proceeds, an allocation to debt repayment or specific closing approval requirements.
DTE shares NYSEDTE closed at US$137.53 in New York on Nov. 4, according to Google Finance's quote as of 4:03 p.m. EST. That price preceded Thursday's announcement.
For the third quarter of 2026, DTE reported earnings of US$470 million, up from US$419 million a year earlier. Diluted earnings per share rose to US$2.25 from US$2.01. The Detroit-based energy company operates electric and natural gas utilities in Michigan alongside non-utility businesses.
Non-GAAP operating earnings for the third quarter of 2026 were US$481 million, compared with US$468 million a year earlier. That measure excludes non-recurring items, certain mark-to-market adjustments and discontinued operations, and differs from reported profit.
"This transaction advances our strategy to focus our resources on our regulated electric and gas utilities, where we see significant opportunities to invest on behalf of customers and communities," DTE president and chief executive Joi Harris said in the release.
DTE maintained its 2026 operating earnings guidance of US$7.59 to US$7.73 a share. It also provided the same range as a 2027 pro forma baseline reflecting the Vantage sale.
A footnote to that baseline assumes the sale closes by the end of 2026, although the transaction summary targets the first half of 2027. DTE says the baseline is subject to change based on discontinued operations, actual closing timing and when sale proceeds are deployed.
Utility Investment Includes A Long-Term Generation Plan
DTE said on Nov. 5 that it had invested nearly US$4.1 billion in its utilities through the third quarter of 2026. It remains on track to spend US$6.1 billion this year, strengthening electric and natural gas systems and supporting cleaner generation.
The update also says DTE Electric filed a 20-year integrated resource plan with the Michigan Public Service Commission. DTE describes a proposed mix of renewables, storage, nuclear and natural gas, while maintaining its commitment to end coal use in 2032. The plan itself was not reviewed for this article.
Utility peer Public Service Enterprise Group Inc. NYSEPEG described a different funding approach in its Nov. 2 results. PSEG expects to finance its five-year capital investment plan of US$24 billion to US$28 billion without issuing new equity or selling assets.
Read more: PSEG reports US$376M quarterly profit as utility earnings slip
DTE's next scheduled update is its Nov. 5 earnings call at 9 a.m. EST. The Vantage transaction is expected to close in the first half of 2027.
