Ameren (NYSE: AEE) Announces First Quarter 2018 Results

Ameren (NYSE: AEE) Announces First Quarter 2018 Results

- First Quarter Earnings Per Share were $0.62 in 2018 vs. $0.42 in 2017

- Guidance Range for 2018 Affirmed at $2.95 to $3.15 Per Diluted Share

ST. LOUIS, May 9, 2018 /PRNewswire/ -- Ameren Corporation (NYSE: AEE) today announced first quarter 2018 net income attributable to common shareholders of $151 million, or $0.62 per share, compared to first quarter 2017 net income attributable to common shareholders of $102 million, or $0.42 per share.

The increase in year-over-year first quarter earnings reflected higher Ameren Missouri electric service rates, effective April 1, 2017, and higher Ameren Missouri electric retail sales, primarily due to colder winter temperatures compared to very mild temperatures in the year-ago period. The comparison also benefited from earnings on increased infrastructure investments made at Ameren Transmission, Ameren Illinois Electric Distribution and Ameren Illinois Natural Gas. While Ameren's effective income tax rate was lower in 2018 compared to 2017 reflecting federal tax reform, this benefit was almost entirely offset by a reduction in revenue reflecting the expected pass through of those savings to customers.

"We are on track to deliver within our 2018 earnings guidance range of $2.95 to $3.15 per share," said Warner L. Baxter, chairman, president and chief executive officer of Ameren Corporation. "Our team continues to successfully execute our strategy, including allocating capital to jurisdictions with modern, constructive regulatory frameworks and managing costs in a disciplined manner.

"Further, we continue to advocate for forward-thinking Missouri electric utility legislation currently under consideration by the Missouri General Assembly," Baxter said. "This legislation would support Ameren Missouri's ability to invest approximately $1 billion of incremental capital over the next five years to modernize Missouri's electric grid. In addition, the legislation would create jobs and provide significant customer benefits, including passing the benefits of the lower federal income tax rate on to customers in a very timely fashion."

Earnings Guidance

Today, Ameren also affirmed its 2018 earnings guidance range of $2.95 to $3.15 per diluted share.

Earnings guidance for 2018 assumes normal temperatures for the last nine months of this year and is subject to the effects of, among other things: 30-year U.S. Treasury bond yields; regulatory, judicial and legislative actions; energy center and energy distribution operations; energy, economic, capital and credit market conditions; severe storms; unusual or otherwise unexpected gains or losses; and other risks and uncertainties outlined, or referred to, in the Forward-looking Statements section of this press release.

Ameren Missouri Segment Results

Ameren Missouri first quarter 2018 earnings were $38 million, compared to first quarter 2017 earnings of $5 million. The increase in year-over-year earnings reflected higher electric service rates, as well as higher electric retail sales primarily due to colder winter temperatures compared to very mild temperatures in the year-ago period. These favorable factors were partially offset by increased other operations and maintenance expenses, primarily reflecting higher-than-normal scheduled non-nuclear plant outage costs.

Ameren Illinois Electric Distribution Segment Results

Ameren Illinois Electric Distribution first quarter 2018 earnings were $33 million, compared to first quarter 2017 earnings of $30 million. The year-over-year improvement reflected increased earnings on infrastructure investments. The allowed return on equity, which is based on the average 30-year U.S. Treasury bond yield, was comparable for 2018 and 2017.

Ameren Illinois Natural Gas Segment Results

Ameren Illinois Natural Gas first quarter 2018 earnings were $42 million, compared to first quarter 2017 earnings of $33 million. The year-over-year improvement reflected increased earnings on infrastructure investments and benefits of federal tax reform.

Ameren Transmission Segment Results

Ameren Transmission first quarter 2018 earnings were $37 million, compared to first quarter 2017 earnings of $34 million. The year-over-year improvement reflected increased earnings on infrastructure investments.

Other Results

Other results, which includes items not reported in a business segment, were $1 million of earnings for the first quarter of 2018, compared to no earnings for the first quarter of 2017.

Analyst Conference Call

Ameren will conduct a conference call for financial analysts at 9 a.m. Central Time on Wednesday, May 9, to discuss 2018 earnings, earnings guidance and other matters. Investors, the news media and the public may listen to a live broadcast of the call at AmerenInvestors.com by clicking on "Webcast" under "Q1 2018 Earnings Conference Call," where an accompanying slide presentation will also be available. The conference call and presentation will be archived for one year in the "Investor News & Events" section of the website under "Events and Presentations."

About Ameren

St. Louis-based Ameren Corporation powers the quality of life for 2.4 million electric customers and more than 900,000 natural gas customers in a 64,000-square-mile area through its Ameren Missouri and Ameren Illinois rate-regulated utility subsidiaries. Ameren Illinois provides electric and natural gas transmission and distribution service while Ameren Missouri provides vertically integrated electric service, with generating capacity of 10,300 megawatts, and natural gas distribution service. Ameren Transmission Company of Illinois develops regional electric transmission projects. For more information, visit Ameren.com, or follow us at @AmerenCorp, Facebook.com/AmerenCorp, or LinkedIn/company/Ameren.

Forward-looking Statements

Statements in this release not based on historical facts are considered "forward-looking" and, accordingly, involve risks and uncertainties that could cause actual results to differ materially from those discussed. Although such forward-looking statements have been made in good faith and are based on reasonable assumptions, there is no assurance that the expected results will be achieved. These statements include (without limitation) statements as to future expectations, beliefs, plans, strategies, objectives, events, conditions, and financial performance. In connection with the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, we are providing this cautionary statement to identify important factors that could cause actual results to differ materially from those anticipated. The following factors, in addition to those discussed under Risk Factors in Ameren's Annual Report on Form 10-K for the year ended December 31, 2017, and elsewhere in this release and in our other filings with the Securities and Exchange Commission, could cause actual results to differ materially from management expectations suggested in such forward-looking statements:

    --  regulatory, judicial, or legislative actions, including the effects of
        the Tax Cut and Jobs Act of 2017 (TCJA) and any changes in regulatory
        policies and ratemaking determinations, such as those that may result
        from the complaint case filed in February 2015 with the Federal Energy
        Regulatory Commission seeking a reduction in the allowed base return on
        common equity under the Midcontinent Independent System Operator tariff,
        Ameren Missouri's proceedings with the Missouri Public Service
        Commission to pass through to its customers the effect of the reduction
        in the federal statutory corporate income tax rate enacted under the
        TCJA, Ameren Illinois' natural gas regulatory rate review filed with the
        Illinois Commerce Commission in January 2018, Ameren Illinois' April
        2018 annual electric distribution formula rate update filing, and future
        regulatory, judicial, or legislative actions that change regulatory
        recovery mechanisms and the resulting impacts on our results of
        operations, financial position, and liquidity;
    --  the effect of Ameren Illinois' participation in performance-based
        formula ratemaking frameworks under the Illinois Energy Infrastructure
        Modernization Act and the Illinois Future Energy Jobs Act (FEJA),
        including the direct relationship between Ameren Illinois' return on
        common equity and 30-year United States Treasury bond yields, and the
        related financial commitments;
    --  the effects of changes in federal, state, or local laws and other
        governmental actions, including monetary, fiscal, and energy policies;
    --  the effects of changes in federal, state, or local tax laws,
        regulations, interpretations, or rates, amendments or technical
        corrections to the TCJA, and any challenges to the tax positions we have
        taken;
    --  the effects on demand for our services resulting from technological
        advances, including advances in customer energy efficiency and private
        generation sources, which generate electricity at the site of
        consumption and are becoming more cost-competitive;
    --  the effectiveness of Ameren Missouri's customer energy-efficiency
        programs and the related revenues and performance incentives earned
        under its Missouri Energy Efficiency Investment Act programs;
    --  Ameren Illinois' ability to achieve the FEJA electric energy-efficiency
        goals and the resulting impact on its allowed return on program
        investments;
    --  our ability to align overall spending, both operating and capital, with
        frameworks established by our regulators and to recover these costs in a
        timely manner in our attempt to earn our allowed returns on equity;
    --  the cost and availability of fuel, such as ultra-low-sulfur coal,
        natural gas, and enriched uranium used to produce electricity; the cost
        and availability of purchased power, zero emission credits, renewable
        energy credits, and natural gas for distribution; and the level and
        volatility of future market prices for such commodities and credits,
        including our ability to recover the costs for such commodities and
        credits and our customers' tolerance for any related price increases;
    --  disruptions in the delivery of fuel, failure of our fuel suppliers to
        provide adequate quantities or quality of fuel, or lack of adequate
        inventories of fuel, including nuclear fuel assemblies from Westinghouse
        Electric Company, LLC, the Callaway Energy Center's only Nuclear
        Regulatory Commission-licensed supplier of such assemblies;
    --  the effectiveness of our risk management strategies and our use of
        financial and derivative instruments;
    --  the ability to obtain sufficient insurance, including insurance for
        Ameren Missouri's Callaway Energy Center, or, in the absence of
        insurance, the ability to recover uninsured losses from our customers;
    --  business and economic conditions, including their impact on interest
        rates, collection of our receivable balances, and demand for our
        products;
    --  disruptions of the capital markets, deterioration in our credit metrics,
        including as a result of the implementation of the TCJA, or other events
        that may have an adverse effect on the cost or availability of capital,
        including short-term credit and liquidity;
    --  the actions of credit rating agencies and the effects of such actions;
    --  the impact of adopting new accounting guidance and the application of
        appropriate accounting rules and guidance;
    --  the impact of weather conditions and other natural phenomena on us and
        our customers, including the impact of system outages;
    --  the construction, installation, performance, and cost recovery of
        generation, transmission, and distribution assets;
    --  the effects of breakdowns or failures of equipment in the operation of
        natural gas transmission and distribution systems and storage
        facilities, such as leaks, explosions, and mechanical problems, and
        compliance with natural gas safety regulations;
    --  the effects of our increasing investment in electric transmission
        projects as well as potential wind and solar generation projects, our
        ability to obtain all of the necessary approvals to complete the
        projects, and the uncertainty as to whether we will achieve our expected
        returns in a timely manner;
    --  operation of Ameren Missouri's Callaway Energy Center, including planned
        and unplanned outages, and decommissioning costs;
    --  the effects of strategic initiatives, including mergers, acquisitions
        and divestitures;
    --  the impact of current environmental regulations and new, more stringent,
        or changing requirements, including those related to carbon dioxide,
        other emissions and discharges, cooling water intake structures, coal
        combustion residuals, and energy efficiency, that are enacted over time
        and that could limit or terminate the operation of certain of Ameren
        Missouri's energy centers, increase our costs or investment
        requirements, result in an impairment of our assets, cause us to sell
        our assets, reduce our customers' demand for electricity or natural gas,
        or otherwise have a negative financial effect;
    --  the impact of negative opinions of us or our utility services that our
        customers, legislators, or regulators may have or develop, which could
        result from a variety of factors, including failures in system
        reliability, failure to implement our investment plans or protect
        sensitive customer information, increases in rates, or negative media
        coverage;
    --  the impact of complying with renewable energy portfolio requirements in
        Missouri and Illinois and with the zero emission standard in Illinois;
    --  labor disputes, work force reductions, future wage and employee benefits
        costs, including changes in discount rates, mortality tables, and
        returns on benefit plan assets;
    --  the inability of our counterparties to meet their obligations with
        respect to contracts, credit agreements, and financial instruments;
    --  the cost and availability of transmission capacity for the energy
        generated by Ameren Missouri's energy centers or required to satisfy
        Ameren Missouri's energy sales;
    --  legal and administrative proceedings;
    --  the impact of cyber-attacks, which could, among other things, result in
        the loss of operational control of energy centers and electric and
        natural gas transmission and distribution systems and/or the loss of
        data, such as customer, employee, financial, and operating system
        information; and
    --  acts of sabotage, war, terrorism, or other intentionally disruptive
        acts.

New factors emerge from time to time, and it is not possible for management to predict all of such factors, nor can it assess the impact of each such factor on the business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained or implied in any forward-looking statement. Given these uncertainties, undue reliance should not be placed on these forward-looking statements. Except to the extent required by the federal securities laws, we undertake no obligation to update or revise publicly any forward-looking statements to reflect new information or future events.


                                      AMEREN CORPORATION (AEE)

                                  CONSOLIDATED STATEMENT OF INCOME

                         (Unaudited, in millions, except per share amounts)


                                                    Three Months Ended March 31,

                                                     2018                       2017
                                                     ----                       ----

    Operating Revenues:

    Electric                                                 $1,223                    $1,207

    Natural gas                                       362                          308
                                                      ---                          ---

    Total operating
     revenues                                       1,585                        1,515
                                                    -----                        -----

    Operating Expenses:

    Fuel                                              188                          206

    Purchased power                                   163                          180

    Natural gas
     purchased for
     resale                                           171                          130

    Other operations and
     maintenance                                      431                          418

    Depreciation and
     amortization                                     234                          221

    Taxes other than
     income taxes                                     125                          118
                                                      ---                          ---

    Total operating
     expenses                                       1,312                        1,273
                                                    -----                        -----

    Operating Income                                  273                          242

    Other Income, Net                                  23                           18

    Interest Charges                                  101                           99
                                                      ---                          ---

    Income Before Income
     Taxes                                            195                          161

    Income Taxes                                       42                           57
                                                      ---                          ---

    Net Income                                        153                          104

    Less: Net Income
     Attributable to
     Noncontrolling
     Interests                                          2                            2
                                                      ---                          ---

    Net Income
     Attributable to
     Ameren Common
     Shareholders                                              $151                      $102
    ----------------                                           ----                      ----


    Earnings per Common
     Share - Basic and
     Diluted                                                  $0.62                     $0.42


    Weighted-average
     Common Shares
     Outstanding - Basic                            242.9                        242.6


                                                AMEREN CORPORATION (AEE)

                                               CONSOLIDATED BALANCE SHEET

                                                (Unaudited, in millions)


                                                         March 31,             December 31,
                                                               2018                     2017
                                                               ----                     ----

                                ASSETS

    Current Assets:

    Cash and cash equivalents                                              $30                          $10

    Accounts receivable -trade (less
     allowance for doubtful accounts)                           514                             445

    Unbilled revenue                                            258                             323

    Miscellaneous accounts receivable                            98                              70

    Inventories                                                 453                             522

    Current regulatory assets                                   130                             144

    Other current assets                                         84                              98
                                                                ---                             ---

    Total current assets                                      1,567                           1,612
                                                              -----                           -----

    Property, Plant, and Equipment, Net                      21,666                          21,466

    Investments and Other Assets:

    Nuclear decommissioning trust fund                          698                             704

    Goodwill                                                    411                             411

    Regulatory assets                                         1,205                           1,230

    Other assets                                                532                             522
                                                                ---                             ---

    Total investments and other assets                        2,846                           2,867
    ----------------------------------                        -----                           -----

    TOTAL ASSETS                                                       $26,079                      $25,945
    ------------                                                       -------                      -------

                        LIABILITIES AND EQUITY

    Current Liabilities:

    Current maturities of long-term debt                                $1,170                         $841

    Short-term debt                                             960                             484

    Accounts and wages payable                                  497                             902

    Taxes accrued                                                91                              52

    Interest accrued                                             97                              99

    Customer deposits                                           115                             108

    Current regulatory liabilities                              130                             128

    Other current liabilities                                   285                             326
                                                                ---                             ---

    Total current liabilities                                 3,345                           2,940
                                                              -----                           -----

    Long-term Debt, Net                                       6,766                           7,094

    Deferred Credits and Other Liabilities:

    Accumulated deferred income taxes,
     net                                                      2,564                           2,506

    Accumulated deferred investment tax
     credits                                                     47                              49

    Regulatory liabilities                                    4,363                           4,387

    Asset retirement obligations                                636                             638

    Pension and other postretirement
     benefits                                                   541                             545

    Other deferred credits and
     liabilities                                                445                             460
                                                                ---                             ---

    Total deferred credits and other
     liabilities                                              8,596                           8,585
                                                              -----                           -----

    Ameren Corporation Shareholders' Equity:

    Common stock                                                  2                               2

    Other paid-in capital, principally
     premium on common stock                                  5,546                           5,540

    Retained earnings                                         1,699                           1,660

    Accumulated other comprehensive loss                       (17)                           (18)
                                                                ---                             ---

    Total Ameren Corporation
     shareholders' equity                                     7,230                           7,184

    Noncontrolling Interests                                    142                             142
                                                                ---                             ---

    Total equity                                              7,372                           7,326
    ------------                                              -----                           -----

    TOTAL LIABILITIES AND EQUITY                                       $26,079                      $25,945
    ----------------------------                                       -------                      -------


                                                       AMEREN CORPORATION (AEE)

                                            CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

                                                       (Unaudited, in millions)


                                                                         Three Months Ended March 31,

                                                                             2018                  2017
                                                                             ----                  ----

    Cash Flows From Operating Activities:

    Net income                                                                        $153                     $104

    Adjustments to reconcile net income to net cash provided by
     operating activities:

    Depreciation and amortization                                             230                          217

    Amortization of nuclear fuel                                               24                           24

    Amortization of debt issuance costs and premium/
     discounts                                                                  5                            6

    Deferred income taxes and investment tax
     credits, net                                                              26                           51

    Allowance for equity funds used during
     construction                                                             (5)                         (6)

    Stock-based compensation costs                                              6                            4

    Other                                                                       2                          (4)

    Changes in assets and liabilities                                       (183)                        (65)
                                                                             ----                          ---

    Net cash provided by operating activities                                 258                          331
    -----------------------------------------                                 ---                          ---

    Cash Flows From Investing Activities:

    Capital expenditures                                                    (579)                       (504)

    Nuclear fuel expenditures                                                (12)                        (27)

    Purchases of securities - nuclear
     decommissioning trust fund                                              (38)                        (40)

    Sales and maturities of securities - nuclear
     decommissioning trust fund                                                34                           34

    Other                                                                     (2)                         (2)
                                                                              ---                          ---

    Net cash used in investing activities                                   (597)                       (539)
    -------------------------------------                                    ----                         ----

    Cash Flows From Financing Activities:

    Dividends on common stock                                               (111)                       (107)

    Dividends paid to noncontrolling interest
     holders                                                                  (2)                         (2)

    Short-term debt, net                                                      475                          356

    Issuances of common stock                                                  17                            -

    Repurchases of common stock for stock-based
     compensation                                                               -                        (24)

    Employee payroll taxes related to stock-based
     compensation                                                            (19)                        (15)

    Other                                                                       -                         (1)
                                                                              ---                         ---

    Net cash provided by financing activities                                 360                          207

    Net change in cash, cash equivalents, and
     restricted cash                                                           21                          (1)

    Cash, cash equivalents, and restricted cash at
     beginning of year                                                         68                           52
                                                                              ---                          ---

    Cash, cash equivalents, and restricted cash at
     end of period                                                                     $89                      $51
    ----------------------------------------------                                     ---                      ---


                                      AMEREN CORPORATION (AEE)

                                        OPERATING STATISTICS


                                                       Three Months Ended

                                                            March 31,

                                                      2018                2017
                                                      ----                ----

    Electric Sales -kilowatthours (in
     millions):

    Ameren Missouri

    Residential                                      3,780                      3,227

    Commercial                                       3,528                      3,357

    Industrial                                       1,053                      1,035

    Street lighting and
     public authority                                   29                         33

    Ameren Missouri
     retail load subtotal                            8,390                      7,652

    Off-system                                       2,549                      3,188

    Ameren Missouri total                           10,939                     10,840
                                                    ------                     ------

    Ameren Illinois Electric
     Distribution

    Residential                                      3,071                      2,717

    Commercial                                       2,977                      2,917

    Industrial                                       2,794                      2,736

    Street lighting and
     public authority                                  146                        132
                                                       ---                        ---

    Ameren Illinois
     Electric
     Distribution total                              8,988                      8,502
                                                     -----                      -----

    Eliminate affiliate
     sales                                            (78)                     (168)
                                                       ---                       ----

    Ameren Total                                    19,849                     19,174
    ------------                                    ------                     ------

    Electric Revenues (in millions):

    Ameren Missouri

    Residential                                                 $332                    $290

    Commercial                                         252                        232

    Industrial                                          61                         58

    Other, including
     street lighting and
     public authority                                   27                         29

    Ameren Missouri
     retail load subtotal                                       $672                    $609

    Off-system                                          69                        138

    Ameren Missouri total                                       $741                    $747
                                                                ----                    ----

    Ameren Illinois Electric
     Distribution

    Residential                                                 $219                    $219

    Commercial                                         124                        133

    Industrial                                          35                         28

    Other, including
     street lighting and
     public authority                                   22                          5
                                                       ---

    Ameren Illinois
     Electric
     Distribution total                                         $400                    $385
                                                                ----                    ----

    Ameren Transmission

                                                                 $62                     $60

    Ameren Illinois Transmission(a)

        ATXI                                            42                         42
                                                       ---                        ---

    Ameren Transmission
     total                                                      $104                    $102
                                                                ----                    ----

    Other and
     intersegment
     eliminations                                     (22)                      (27)
                                                       ---                        ---

    Ameren Total                                              $1,223                  $1,207
    ------------                                              ------                  ------


    (a)                  Includes $13 million and $6
                         million, respectively, of
                         electric operating revenues
                         from transmission services
                         provided to the Ameren Illinois
                         Electric Distribution segment.


                                AMEREN CORPORATION (AEE)

                                  OPERATING STATISTICS


                                                Three Months Ended

                                                     March 31,

                                            2018                       2017
                                            ----

    Gas Sales -dekatherms (in
     millions):

    Ameren Missouri                            9                            6

    Ameren Illinois
     Natural Gas                              68                           58
                                             ---                          ---

    Ameren Total                              77                           64
    ------------                             ---                          ---

    Gas Revenues (in millions):

    Ameren Missouri                                    $51                       $44

    Ameren Illinois
     Natural Gas                             311                          264

    Ameren Total                                      $362                      $308
    ------------                                      ----                      ----

                                       March 31,             December 31,

                                            2018                       2017
                                            ----                       ----

    Common Stock:

    Shares outstanding
     (in millions)                         243.6                        242.6

    Book value per share                            $29.68                    $29.61

CONTACT: Media: Joe Muehlenkamp, 314.554.2182, jmuehlenkamp@ameren.com; Analysts: Doug Fischer, 314.554.4859, dfischer@ameren.com or Andrew Kirk, 314.554.3942, akirk@ameren.com; Investors: Investor Services, 800.255.2237, invest@ameren.com

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