DTE Energy Company (DTE Energy) has reported operating revenues of $9.3 billion for the year-end 2008, compared with the operating revenues of $8.5 billion in the previous year-end. It has also reported a net income of $546 million, or $3.36 per diluted share, for the year-end 2008, compared with the net income of $971 million, or $5.70 per diluted share, in the previous year-end.

Company’s earnings decline was largely due to a one-time gain on the sale of the company’s Antrim Shale business in 2007 and the discontinuance of synfuel operations in 2007, but partially offset by the sale of a portion of DTE Energy’s Barnett Shale natural gas property in 2008.

The company’s 2008 operating earnings were $471 million, or $2.90 per diluted share, compared with 2007 operating earnings of $480 million, or $2.82 per diluted share. This operating earnings exclude non-recurring items, certain timing-related items and discontinued operations. Operating earnings per diluted share improved primarily due to a reduction in shares outstanding. The company has averaged 163 million shares outstanding in 2008, compared with 170 million in 2007.

For the fourth quarter of 2008, the company has reported earnings of $129 million, or $0.80 per diluted share, compared with $255 million, or $1.56 per diluted share in 2007. The operating earnings for the fourth quarter 2008 were $142 million, or $0.88 per diluted share, compared with $163 million, or $1.01 per diluted share in 2007. DTE Energy’s operating earnings per share reduction is primarily due to lower sales and higher uncollectible expense at Detroit Edison, partially offset by increased revenue at MichCon from sales of base gas from storage and fewer shares outstanding.

As a result of considerable hard work during an incredibly challenging year, we were able to generate operating earnings per share growth, said Anthony F. Earley Jr., DTE Energy chairman and chief executive officer. Customers and shareholders benefited from our aggressive actions throughout 2008 to reduce our costs, maximize our revenues and conserve cash. Despite obstacles faced, DTE Energy had many notable achievements in 2008 that will serve us well in the future. These include successfully advocating for energy legislation in Michigan, which strengthened our regulatory structure and will be a catalyst for new construction and energy-related jobs in our state; filing a license application for a possible new nuclear power plant; and launching an advanced metering program that we expect will lead to increased energy efficiency.

We expect the challenging economy to continue in 2009 and are prepared to adjust our plans as conditions change, Earley added. Building on last year’s accomplishments, 2009 priorities are to create value through effectively launching renewable and energy optimization programs, successfully executing key regulatory proceedings to provide earnings stability and continuing to deliver significant and sustainable cost savings. Achievement of these goals will position DTE Energy for strong future growth and provide our customers with reliable, affordable energy for years to come.

Operating earnings for 2008, by segment:

Electric Utility: The operating earnings for Detroit Edison were $2.03 per diluted share versus $2 in 2007. Operating earnings increase was driven by fewer shares outstanding, the 2008 expiration of a temporary rate reduction, lower Electric Choice volumes, the elimination of 2007 computer system start-up costs and other cost-reduction efforts. Partly offsetting these factors were lower sales and higher uncollectible accounts receivable expense.

Gas Utility: Principally consisting of MichCon, this segment had operating earnings of $0.55 per diluted share compared with $0.48 in 2007. Driving the improvement was colder weather, advanced revenue from gas sales as MichCon sold the remaining 2.8 billion cubic feet of base gas made available by improvements to its storage fields, and fewer shares outstanding. Partially offsetting these increases were lower gas storage margins and lower temperature-normalized sales.

Unconventional Gas Production: The operating earnings for this segment were $0.05 per diluted share compared with $0.06 in 2007. The earnings in 2008 were impacted by the sale of Antrim and Core Barnett properties, partially offset by higher gas and oil prices and higher production from the company’s Western Barnett properties.

Power and Industrial Projects: The operating earnings from Power and Industrial Projects were $0.26 per diluted share, in line with 2007 operating earnings. The earnings per share benefit of fewer shares outstanding and higher coke production and pricing was offset by the absence of synfuel transportation revenue.

Energy Trading: This segment had operating earnings of $0.27 per diluted share compared with $0.31 in 2007. The primary driver of this change was an increase in administrative expenses.

Corporate and Other: This segment has an operating loss of $0.49 per diluted share, equal to the loss of $0.49 in 2007. The lower interest expense in 2008 was offset by the impact on operating earnings per diluted share for the reduction in average outstanding shares from 2007 to 2008.

2009 Guidance

DTE Energy announced 2009 operating earnings guidance of $2.75 to $3.05 per diluted share.

As we head into 2009, we are building additional flexibility into our financial plans to maintain a strong balance sheet, solid liquidity and an attractive dividend, said David E. Meador, DTE Energy executive vice president and chief financial officer. We expect our ongoing pursuit of continuous improvement initiatives to provide the savings necessary to help offset planned environmental and infrastructure investments. As economic challenges continue this year, we anticipate earnings to remain flat compared with 2008, but remain committed to long-term growth of 5 percent to 6 percent.