Ameren (NYSE: AEE) Announces First Quarter 2019 Results
ST. LOUIS, May 9, 2019 /PRNewswire/ -- Ameren Corporation (NYSE: AEE) today announced first quarter 2019 net income attributable to common shareholders of $191 million, or $0.78 per diluted share, compared to first quarter 2018 net income attributable to common shareholders of $151 million, or $0.62 per diluted share.
The increase in year-over-year earnings reflected the benefits of increased infrastructure investments, which contributed to higher net income at each of Ameren's business segments. Ameren Illinois Natural Gas earnings increased as a result of higher delivery service rates and a change in rate design. Increased infrastructure investments drove higher earnings at Ameren Transmission and Ameren Illinois Electric Distribution, each of which benefits from formulaic ratemaking. Ameren Missouri earnings also rose reflecting higher weather-driven electric retail sales and energy efficiency performance incentives that offset the comparative impacts of timing differences in 2018 between income tax expense and revenue reductions related to federal tax reform. The first quarter earnings comparison also benefited from a lower consolidated effective income tax rate.
"Our first quarter results reflect the strong execution of our strategy across all of our jurisdictions, which we believe will continue to deliver superior value to our customers and shareholders," said Warner L. Baxter, chairman, president and chief executive officer of Ameren Corporation. "We remain on track to deliver within our 2019 earnings per share guidance range of $3.15 to $3.35."
Earnings Guidance
Today, Ameren also affirmed its 2019 earnings guidance range of $3.15 to $3.35 per diluted share. Earnings guidance for 2019 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 2019 earnings were $39 million, compared to first quarter 2018 earnings of $38 million. The year-over-year improvement reflected higher electric retail sales due, in part, to colder winter temperatures and energy efficiency performance incentives. These positive factors offset the comparative impacts of $19 million of timing differences in 2018 between income tax expense and revenue reductions related to the Tax Cuts and Jobs Act of 2017 (TCJA). These timing differences will impact 2019 quarterly earnings comparisons but are not expected to impact the full-year comparison.
Ameren Illinois Electric Distribution Segment Results
Ameren Illinois Electric Distribution first quarter 2019 earnings were $36 million, compared to first quarter 2018 earnings of $33 million. The year-over-year improvement reflected increased earnings on infrastructure investments partially offset by a lower allowed return on equity due to a lower average 30-year U.S. Treasury bond yield in 2019 compared to 2018.
Ameren Illinois Natural Gas Segment Results
Ameren Illinois Natural Gas first quarter 2019 earnings were $57 million, compared to first quarter 2018 earnings of $42 million. The year-over-year improvement reflected higher delivery service rates, which incorporated increased infrastructure investments, effective in November 2018. First quarter 2019 earnings also benefited by $9 million from a change in rate design, which is not expected to impact full-year results.
Ameren Transmission Segment Results
Ameren Transmission first quarter 2019 earnings were $44 million, compared to first quarter 2018 earnings of $37 million. The year-over-year improvement reflected increased earnings on infrastructure investments.
Other Results (includes items not reported in a business segment)
Other results for the first quarter of 2019 reflected earnings of $15 million, compared to first quarter 2018 earnings of $1 million. The year-over-year improvement reflected a lower effective income tax rate primarily due to recognition of tax benefits associated with stock-based compensation. In addition, the comparison benefited from a $5 million decrease in income tax expense, which is not expected to impact full-year results.
Analyst Conference Call
Ameren will conduct a conference call for financial analysts at 9 a.m. Central Time on Thursday, May 9, to discuss 2019 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 2019 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 transmission and distribution service and natural gas distribution service. Ameren Missouri provides electric generation, transmission and distribution service, as well as natural gas distribution service. Ameren Transmission Company of Illinois develops, owns and operates rate-regulated regional electric transmission projects. For more information, visit Ameren.com, or follow us on Twitter 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, 2018, 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, 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 (FERC), a new methodology to
determine the allowed base return on common equity under the Midwest
Independent System Operator (MISO) tariff proposed by the FERC in
November 2018, the Notices of Inquiry issued by the FERC in March 2019,
Ameren Missouri's natural gas regulatory rate review filed with the
Missouri Public Service Commission in December 2018, an appeal filed by
the Missouri Office of Public Counsel in January 2019 in Ameren
Missouri's Renewable Energy Standard Rate Adjustment Mechanism case,
Ameren Illinois' April 2019 annual electric distribution formula rate
update filing, and future regulatory, judicial, or legislative actions
that change regulatory recovery mechanisms;
-- 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 the 30-year United States Treasury bond yields, and
the related financial commitments;
-- the effect of Missouri Senate Bill 564 on Ameren Missouri, including as
a result of Ameren Missouri's election to use plant-in-service
accounting and the resulting customer rate caps;
-- 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 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, energy
storage, 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 performance standards applicable
to its electric distribution business and the FEJA electric customer
energy-efficiency goals and the resulting impact on its allowed return
on equity;
-- 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 the one
Nuclear Regulatory Commission-licensed supplier of Ameren Missouri's
Callaway Energy Center's assemblies;
-- 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;
-- 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;
-- the impact of cyberattacks on us or our suppliers, 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;
-- 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 inability of our counterparties to meet their obligations with
respect to contracts, credit agreements, and financial instruments;
-- 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 breakdowns or failures of electric generation,
transmission, or distribution equipment or facilities, which could
result in unanticipated liabilities or unplanned outages;
-- the operation of Ameren Missouri's Callaway Energy Center, including
planned and unplanned outages, and decommissioning costs;
-- the impact of current environmental laws and new, more stringent, or
changing requirements, including those related to carbon dioxide and the
proposed repeal and replacement of the Clean Power Plan and potential
adoption and implementation of the Affordable Clean Energy Rule, other
emissions and discharges, cooling water intake structures, coal
combustion residuals, and energy efficiency, that could limit or
terminate the operation of certain of Ameren Missouri's energy centers,
increase our operating 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 complying with renewable energy requirements in Missouri
and Illinois and with the zero emission standard in Illinois;
-- Ameren Missouri's ability to acquire wind and other renewable generation
facilities and recover its cost of investment and related return in a
timely manner, which is affected by the ability to obtain all necessary
project approvals; the availability of federal production and investment
tax credits related to renewable energy and Ameren Missouri's ability to
use such credits; the cost of wind and solar generation technologies;
and Ameren Missouri's ability to obtain timely interconnection
agreements with MISO or other Regional Transmission Organizations,
including the costs of such interconnections;
-- labor disputes, work force reductions, changes in future wage and
employee benefits costs, including those resulting from changes in
discount rates, mortality tables, returns on benefit plan assets, and
other assumptions;
-- 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 to protect
sensitive customer information, increases in rates, or negative media
coverage;
-- the impact of adopting new accounting guidance;
-- the effects of strategic initiatives, including mergers, acquisitions,
and divestitures;
-- legal and administrative proceedings; 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,
2019 2018
---
Operating Revenues:
Electric $
1,182 $
1,223
Natural gas 374 362
Total operating revenues 1,556 1,585
Operating Expenses:
Fuel 160 188
Purchased power 156 163
Natural gas purchased for resale 161 171
Other operations and maintenance 417 431
Depreciation and amortization 248 234
Taxes other than income taxes 126 125
Total operating expenses 1,268 1,312
Operating Income 288 273
Other Income, Net 29 23
Interest Charges 97 101
Income Before Income Taxes 220 195
Income Taxes 27 42
Net Income 193 153
Less: Net Income Attributable to
Noncontrolling Interests 2 2
Net Income Attributable to
Ameren Common Shareholders $
191 $
151
---
Earnings per Common Share -
Basic and Diluted $
0.78 $
0.62
Weighted-average Common Shares
Outstanding - Basic 244.9 242.9
Weighted-average Common Shares
Outstanding - Diluted 246.4 244.4
---
AMEREN CORPORATION (AEE)
CONSOLIDATED BALANCE SHEET
(Unaudited, in millions)
March 31, December 31,
2019
2018
---
ASSETS
Current Assets:
Cash and cash equivalents $
8 $
16
Accounts receivable -trade (less
allowance for doubtful accounts) 517 463
Unbilled revenue 238 295
Miscellaneous accounts receivable 74 79
Inventories 402 483
Current regulatory assets 113 134
Other current assets 70 63
Total current assets 1,422 1,533
Property, Plant, and Equipment, Net 23,044 22,810
Investments and Other Assets:
Nuclear decommissioning trust fund 754 684
Goodwill 411 411
Regulatory assets 1,134 1,127
Other assets 744 650
Total investments and other assets 3,043 2,872
---
TOTAL ASSETS $
27,509 $
27,215
---
LIABILITIES AND EQUITY
Current Liabilities:
Current maturities of long-term debt $
336 $
580
Short-term debt 799 597
Accounts and wages payable 522 817
Taxes accrued 81 53
Interest accrued 81 93
Customer deposits 111 116
Current regulatory liabilities 161 149
Other current liabilities 301 282
Total current liabilities 2,392 2,687
Long-term Debt, Net 8,221 7,859
Deferred Credits and Other Liabilities:
Accumulated deferred income taxes,
net 2,666 2,623
Accumulated deferred investment tax
credits 42 43
Regulatory liabilities 4,731 4,637
Asset retirement obligations 630 627
Pension and other postretirement
benefits 558 558
Other deferred credits and
liabilities 422 408
Total deferred credits and other
liabilities 9,049 8,896
Ameren Corporation Shareholders' Equity:
Common stock 2 2
Other paid-in capital, principally
premium on common stock 5,625 5,627
Retained earnings 2,099 2,024
Accumulated other comprehensive loss (21) (22)
Total Ameren Corporation
shareholders' equity 7,705 7,631
Noncontrolling Interests 142 142
Total equity 7,847 7,773
---
TOTAL LIABILITIES AND EQUITY $
27,509 $
27,215
---
AMEREN CORPORATION (AEE)
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(Unaudited, in millions)
Three Months Ended March 31,
2019 2018
---
Cash Flows From Operating Activities:
Net income $
193 $
153
Adjustments to reconcile net income to net cash provided by
operating activities:
Depreciation and amortization 245 230
Amortization of nuclear fuel 23 24
Amortization of debt issuance costs and premium/
discounts 5 5
Deferred income taxes and investment tax
credits, net 32 26
Allowance for equity funds used during
construction (6) (5)
Stock-based compensation costs 6 6
Other (8) 2
Changes in assets and liabilities (103) (183)
Net cash provided by operating activities 387 258
---
Cash Flows From Investing Activities:
Capital expenditures (544) (579)
Nuclear fuel expenditures (21) (12)
Purchases of securities - nuclear
decommissioning trust fund (39) (38)
Sales and maturities of securities - nuclear
decommissioning trust fund 36 34
Other 1 (2)
Net cash used in investing activities (567) (597)
---
Cash Flows From Financing Activities:
Dividends on common stock (116) (111)
Dividends paid to noncontrolling interest
holders (2) (2)
Short-term debt, net 202 475
Maturities of long-term debt (329)
Issuances of long-term debt 450
Issuances of common stock 19 17
Employee payroll taxes related to stock-based
compensation (29) (19)
Debt issuance costs (4)
Net cash provided by financing activities 191 360
Net change in cash, cash equivalents, and
restricted cash 11 21
Cash, cash equivalents, and restricted cash at
beginning of year 107 68
Cash, cash equivalents, and restricted cash at
end of period $
118 $
89
---
AMEREN CORPORATION (AEE)
OPERATING STATISTICS
Three Months Ended
March 31,
2019 2018
---
Electric Sales -kilowatthours (in millions):
Ameren Missouri
Residential 3,838 3,780
Commercial 3,549 3,528
Industrial 1,012 1,053
Street lighting and public authority 28 29
Ameren Missouri retail load subtotal 8,427 8,390
Off-system 1,836 2,549
Ameren Missouri total 10,263 10,939
Ameren Illinois Electric Distribution
Residential 3,133 3,071
Commercial 2,957 2,977
Industrial 2,744 2,814
Street lighting and public authority 137 146
Ameren Illinois Electric Distribution
total 8,971 9,008
Eliminate affiliate sales (17) (78)
Ameren Total 19,217 19,869
---
Electric Revenues (in millions):
Ameren Missouri
Residential $
312 $
332
Commercial 239 252
Industrial 55 61
Other, including street lighting and
public authority 41 27
Ameren Missouri retail load subtotal $
647 $
672
Off-system 57 69
Ameren Missouri total $
704 $
741
Ameren Illinois Electric Distribution
Residential $
217 $
219
Commercial 123 124
Industrial 34 35
Other, including street lighting and
public authority 13 22
Ameren Illinois Electric Distribution
total $
387 $
400
Ameren Transmission
Ameren Illinois Transmission(a) $
70 $
62
ATXI 44 42
Ameren Transmission total $
114 $
104
Other and intersegment
eliminations(a) (23) (22)
Ameren Total $
1,182 $
1,223
---
(a) Includes $15 million and $13
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,
2019 2018
---
Gas Sales -dekatherms (in millions):
Ameren Missouri 9 9
Ameren Illinois Natural
Gas 73 68
Ameren Total 82 77
---
Gas Revenues (in millions):
Ameren Missouri $
54 $
51
Ameren Illinois Natural
Gas 320 311
Ameren Total $
374 $
362
---
March 31, December 31,
2019 2018
---
Common Stock:
Shares outstanding (in
millions) 245.6 244.5
Book value per share $
31.37 $
31.21
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SOURCE Ameren Corporation
