DTE Energy (NYSE: DTB) sets up $1.5B common stock and forward equity plan
Rhea-AI Filing Summary
DTE Energy Company entered into an equity distribution agreement allowing it to offer and sell shares of its common stock with an aggregate offering price of up to $1.5 billion. Sales can be made from time to time through a group of investment bank managers on the New York Stock Exchange, either in ordinary broker transactions, block trades, or to a manager acting as principal, with sales agents earning up to a 2% commission on gross proceeds.
The program also includes forward sale agreements, under which forward purchasers or their affiliates may borrow and sell shares now, with DTE Energy receiving cash later upon physical settlement, up to the same $1.5 billion cap. Depending on whether agreements are physically, cash, or net share settled, DTE Energy could receive proceeds or, in some cases, owe cash or shares. The company plans to use any net proceeds for general corporate purposes, including potential investments in its subsidiaries, under its existing automatic shelf registration statement.
Positive
- None.
Negative
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Insights
DTE Energy set up a $1.5B at-the-market and forward equity program for flexible capital raising.
DTE Energy Company established an equity distribution framework to sell up to
The arrangement is paired with forward sale agreements dated
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
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Securities registered pursuant to Section 12(b) of the Act:
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| Item 8.01. | Other Events. |
On December 19, 2025, DTE Energy Company (the “Company”) entered into an equity distribution agreement (the “Equity Distribution Agreement”) with each of the Managers, Forward Purchasers and Forward Sellers listed below with respect to the offering and sale from time to time through the Managers or the Forward Sellers of shares of the Company’s common stock, without par value (“common stock”), having an aggregate offering price of up to $1,500,000,000 (including shares of common stock that may be sold pursuant to the forward sale agreements described below, the “Shares”).
Managers |
Forward Sellers |
Forward Purchasers | ||
| Barclays Capital Inc. | Barclays Capital Inc. | Barclays Bank PLC | ||
| BMO Capital Markets Corp. | BMO Capital Markets Corp. | Bank of Montreal | ||
| BofA Securities, Inc. | BofA Securities, Inc. | Bank of America, N.A. | ||
| BNP Paribas Securities Corp. | BNP Paribas Securities Corp. | BNP Paribas | ||
| BNY Mellon Capital Markets, LLC | BNY Mellon Capital Markets, LLC | The Bank of New York Mellon | ||
| Citigroup Global Markets Inc. | Citigroup Global Markets Inc. | Citibank, N.A. | ||
| Fifth Third Securities, Inc. | ||||
| J.P. Morgan Securities LLC | J.P. Morgan Securities LLC | JPMorgan Chase Bank, National Association | ||
| KeyBanc Capital Markets Inc. | KeyBanc Capital Markets Inc. | KeyBanc Capital Markets Inc. | ||
| Mizuho Securities USA LLC | Mizuho Securities USA LLC | Mizuho Markets Americas LLC | ||
| Morgan Stanley & Co. LLC | Morgan Stanley & Co. LLC | Morgan Stanley & Co. LLC | ||
| MUFG Securities Americas Inc. | MUFG Securities Americas Inc. | MUFG Securities EMEA plc | ||
| Scotia Capital (USA) Inc. | Scotia Capital (USA) Inc. | The Bank of Nova Scotia | ||
| TD Securities (USA) LLC | TD Securities (USA) LLC | The Toronto-Dominion Bank | ||
| Truist Securities, Inc. | Truist Securities, Inc. | Truist Bank | ||
| Wells Fargo Securities, LLC | Wells Fargo Securities, LLC | Wells Fargo Bank, National Association |
Sales of the Shares, if any, will be made by means of ordinary brokers’ transactions through the facilities of the New York Stock Exchange at market prices, in block transactions or as otherwise agreed between the Company and the Managers or the Forward Sellers. Under the terms of the Equity Distribution Agreement, the Company may also sell Shares from time to time to a Manager as principal for its own account at a price to be agreed upon at the time of sale. The Equity Distribution Agreement provides that each Manager, when it is acting as the Company’s sales agent, will be entitled to a commission of up to 2% of the gross offering proceeds of the Shares sold through such Manager. The Company has no obligation to offer or sell any Shares under the Equity Distribution Agreement and may at any time suspend offers and sales under the Equity Distribution Agreement.
The Equity Distribution Agreement provides that, in addition to the issuance and sale of Shares by the Company to or through the Managers, the Company may enter into forward sale agreements under the separate master forward sale confirmations (collectively, the “Master Forward Confirmations”) each dated December 19, 2025 between the Company and each Forward Purchaser and the related supplemental confirmations to be entered into between the Company and the relevant Forward Purchaser (each supplemental confirmation, together with the related Master Forward Confirmation, a “Forward Agreement”). In connection with any Forward Agreement, the relevant Forward Purchaser or its affiliate will borrow from third parties and, through its affiliated Forward Seller, sell a number of Shares equal to the number of Shares underlying the particular Forward Agreement. In no event will the aggregate number of Shares sold through the Managers or the Forward Sellers under the Equity Distribution Agreement and under any Forward Agreement have an aggregate sales price in excess of $1,500,000,000.
The Company will not initially receive any proceeds from the sale of borrowed Shares by a Forward Seller. The Company expects to receive proceeds from the sale of Shares by a Forward Seller upon future physical settlement of the relevant Forward Agreement with the relevant Forward Purchaser on dates specified by the Company on or prior to the maturity date of the relevant Forward Agreement. If the Company elects to cash settle or net share settle a Forward Agreement, the Company may not (in the case of cash settlement) or will not (in the case of net share settlement) receive any proceeds, and the Company may owe cash (in the case of cash settlement) or shares of common stock (in the case of net share settlement) to the relevant Forward Purchaser. In connection with each Forward Agreement, the relevant Forward Seller will receive, in the form of a reduced initial forward sale price payable by the relevant Forward Purchaser under its Forward Agreement, a commission of up to 2% of the gross sales price of all borrowed Shares sold during the applicable forward hedge selling period by it or its affiliate as a Forward Seller.
The Company intends to use the net proceeds, if any, (x) from the offering, after deducting the Managers’ commissions and its offering expenses and (y) payable upon settlement of any Forward Agreement, in each case, for general corporate purposes, which may include investment in the Company’s subsidiaries.
The Shares offered by any Manager or Forward Seller will be so offered pursuant to the Company’s automatic shelf registration statement on Form S-3 filed with the Securities and Exchange Commission on April 4, 2025 (Registration No. 333-286383).
The summary of the Equity Distribution Agreement and the Master Forward Confirmations in this report does not purport to be complete and is qualified by reference to the full text of the Equity Distribution Agreement, including the form of Master Forward Confirmation attached as Exhibit A thereto, a copy of which is filed as Exhibit 1.01, to this Current Report on Form 8-K, and is incorporated herein by reference.
| Item 9.01. | Financial Statements and Exhibits. |
(d) Exhibits
| 1.01 | Equity Distribution Agreement dated December 19, 2025, including the form of Master Forward Confirmation attached thereto as Exhibit A. | |
| 5.1 | Opinion of Kathrine M. Lorenz, Esq. | |
| 23.1 | Consent of Kathrine M. Lorenz, Esq. (included in Exhibit 5.1) | |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). | |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrants have duly caused this report to be signed on their behalf by the undersigned hereunto duly authorized.
| Date: December 19, 2025 | ||||||
DTE ENERGY COMPANY (Registrant) | ||||||
/s/ David Ruud | ||||||
| David Ruud | ||||||
| Vice Chairman and Chief Financial Officer | ||||||
FAQ
What equity program did DTE Energy Company (DTB) establish in this filing?
DTE Energy Company entered into an equity distribution agreement that allows it to offer and sell shares of its common stock from time to time, with an aggregate offering price of up to $1.5 billion, through a syndicate of investment bank managers and related forward sale structures.
How much common stock can DTE Energy (DTB) sell under the new equity distribution agreement?
The agreement covers shares of DTE Energy’s common stock with a total aggregate offering price of up to $1,500,000,000, including shares involved in the related forward sale agreements. The company is not obligated to sell any minimum amount and can suspend sales at any time.
How will DTE Energy Company (DTB) sell shares under this equity distribution arrangement?
Sales of shares, if any, may be made as ordinary brokers’ transactions on the New York Stock Exchange, in block transactions, or as otherwise agreed with the managers or forward sellers. The company may also sell shares directly to a manager acting as principal at an agreed price.
What fees will DTE Energy (DTB) pay to the managers and forward sellers?
When a manager acts as sales agent, it is entitled to a commission of up to 2% of the gross offering proceeds for shares sold through it. For forward sale agreements, the relevant forward seller effectively receives up to 2% of the gross sales price of borrowed shares sold during the hedge period via a reduced initial forward sale price.
How do the forward sale agreements work for DTE Energy Company (DTB)?
Under each forward agreement, the forward purchaser or its affiliate borrows shares from third parties and sells them through a forward seller. DTE Energy expects to receive cash when it later physically settles the forward on dates it specifies before the agreement’s maturity. If it instead elects cash or net share settlement, it may owe cash or common shares to the forward purchaser.
How does DTE Energy (DTB) plan to use any proceeds from the equity distribution and forward agreements?
DTE Energy intends to use any net proceeds from share sales under the equity distribution agreement and from settlements of forward agreements for general corporate purposes, which may include investment in its subsidiaries.
Under what registration statement are the DTE Energy (DTB) shares being offered?
The shares offered by any manager or forward seller are being offered pursuant to DTE Energy’s automatic shelf registration statement on Form S-3 filed with the Securities and Exchange Commission on
