Elliott Management Supportive of DTE Energy's Intent to Spin-Off Midstream Business

Rhea-AI Summary

Elliott Management Corporation expressed strong support for DTE Energy's plan to spin off its DTE Midstream business. Senior Portfolio Manager Jeff Rosenbaum praised CEO Gerardo Norcia for the decision, emphasizing that it aims to unlock significant shareholder value. The spin-off is expected to highlight DTE Electric and DTE Gas as leading U.S. regulated utilities, while DTE Midstream will focus on attractive natural gas basins, promising best-in-class earnings growth. Elliott believes both entities will achieve superior results as independent companies.

Positive

• Elliott Management supports DTE's spin-off, seeing it as a value-unlocking strategy.
• The spin-off could enhance the focus on DTE Electric and DTE Gas as leading regulated utilities.
• DTE Midstream is expected to provide best-in-class earnings growth in attractive natural gas basins.

Negative

• None.

NEW YORK, Oct. 27, 2020 /PRNewswire/ -- Elliott Management Corporation ("Elliott"), which manages funds that collectively own a significant interest in DTE Energy Co. ("DTE" or the "Company"), today released a statement supporting DTE's decision to pursue a spin-off of the DTE Midstream business from DTE Energy. Elliott Senior Portfolio Manager Jeff Rosenbaum also commended CEO Gerardo "Jerry" Norcia on the Company's commitment to unlocking value:

"Elliott is supportive of DTE's plan to spin-off the DTE Midstream business, and we applaud CEO Jerry Norcia and the entire DTE team for taking these steps to unlock significant value. We appreciate the engagement and dialogue we have had with DTE's senior management team over the past several months. We believe the new DTE Energy and DTE Midstream will stand as leading companies in their respective sectors. In particular, the transaction will highlight the value of DTE Electric and DTE Gas as two of the best regulated utilities in the U.S. with industry-leading system capital investment and growth, a strong management execution track record and a top-tier regulatory jurisdiction. Additionally, we believe DTE Midstream will be differentiated as one of the only publicly traded midstream businesses operating in the two most attractive U.S. natural gas basins and providing both best-in-class earnings growth and contract coverage. We believe this transaction should unlock significant shareholder value.  Both companies are now poised to deliver results and value that exceed what they could otherwise achieve on a combined basis."

About Elliott
Elliott Management Corporation manages approximately $41 billion of assets. Its flagship fund, Elliott Associates, L.P., was founded in 1977, making it one of the oldest funds under continuous management. The Elliott funds' investors include pension plans, sovereign wealth funds, endowments, foundations, funds-of-funds, high net worth individuals and families, and employees of the firm.

Media Contact:         

Stephen Spruiell                                                         
Elliott Management Corporation                                           
(212) 478-2017                                              
sspruiell@elliottmgmt.com

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SOURCE Elliott Management Corporation

FAQ

What is DTE Energy's plan regarding its DTE Midstream business?

DTE Energy plans to spin off its DTE Midstream business to unlock shareholder value.

Who supports DTE Energy's spin-off decision?

Elliott Management Corporation strongly supports DTE Energy's decision to pursue the spin-off.

How will the spin-off affect DTE Energy's operations?

The spin-off aims to enhance operational focus and value for both DTE Electric and DTE Midstream.

What are the expected benefits of the spin-off for shareholders?

The spin-off is expected to unlock significant shareholder value and improve financial performance.

When was the statement supporting DTE's spin-off released?

The statement was released on October 27, 2020.

Who is the CEO of DTE Energy?

The CEO of DTE Energy is Gerardo 'Jerry' Norcia.