DTE Expects Boost from Southwestern’s Rig Expansion

Aug 1, 2016

DTE Energy said the addition of two new Southwestern Energy drilling rigs in the Utica Shale could boost profits in the future.

DTE Energy raised its 2016 earnings per share guidance from $4.80-$5.05 to $4.91-$5.19 and said the addition of two new drilling rigs in the Utica Shale could boost profits further still.

DTE Expects Boost from Southwestern’s Rig Expansion — Southwestern Energy Drill Rig *Source: Southwestern Energy*

Houston-based oil and natural gas company Southwestern Energy recently announced it will add five rigs by the end of the third quarter, two of which will be in the DTE-serviced Utica Shale basin, which could boost DTE’s gas storage and pipeline business segment.

The expected increase in drilling activity was excluded from DTE’s revised earnings guidance, which reflected better-than-expected second quarter results. But DTE CFO Peter Oleksiak said during an earnings call last week that the rigs “may provide upside to 2016” earnings and also will aid 2017 results.

DTE reported second-quarter operating earnings of $177 million ($0.98/share), up from $137 million ($0.76/share) in 2015. DTE’s gas segment earned $35 million, up $10 million from a year earlier.

— Amanda Durish Cook

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