Ameren Announces First Quarter 2024 Results
-- First quarter Diluted Earnings Per Share were $0.98 in 2024 vs. $1.00 in
2023
-- Guidance Range for 2024 Affirmed at $4.52 to $4.72 per Diluted Share
ST. LOUIS, May 2, 2024 /PRNewswire/ -- Ameren Corporation (NYSE: AEE) today announced first quarter 2024 net income attributable to common shareholders of $261 million, or $0.98 cents per share, compared to first quarter 2023 GAAP net income of $264 million, or $1.00 per diluted share.
First quarter 2024 results reflected earnings on increased infrastructure investments driven by strong execution of the company's strategy. Earnings were positively impacted by new Ameren Illinois Natural Gas service rates and rate design. Ameren Missouri earnings also benefited from new electric service rates and higher electric retail sales that were partially offset by impacts of milder winter temperatures compared to the year-ago-period. These positive factors were more than offset by higher operations and maintenance expenses at Ameren Missouri, which included a charge related to the Rush Island Energy Center litigation, higher interest expense at Ameren Missouri, lower tax benefits at Ameren Parent and a lower return on equity at Ameren Illinois Electric Distribution. Finally, the earnings comparison also reflected higher weighted-average basic common shares outstanding.
"We delivered solid first quarter results through strong operational performance and continued strategic infrastructure and grid technology investments. Upgrading our energy delivery systems and increasing renewable generation will ensure reliable, safe, affordable, and cleaner energy for our customers and communities," said Martin J. Lyons, Jr., chairman, president and chief executive officer of Ameren Corporation. "We remain committed to disciplined cost management, which we expect to result in meaningful operations and maintenance expense reductions in the second half of the year. Through consistent execution of our long-term strategy, we are focused on driving sustainable earnings and dividend growth for our shareholders," added Lyons.
Earnings Guidance
Today, Ameren affirmed its 2024 earnings guidance range of $4.52 to $4.72 per diluted share. Earnings guidance for 2024 assumes normal temperatures for the last nine months of the year and is subject to the effects of, among other things: regulatory, judicial and legislative actions; energy center and energy distribution operations; energy, economic and capital market conditions; customer usage; severe storms; market returns on company-owned life insurance investments; 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 2024 earnings were $25 million, compared to first quarter 2023 earnings of $28 million. The year-over-year comparison reflected earnings on increased infrastructure investments, new electric service rates effective July 9, 2023, and higher electric retail sales that were partially offset by impacts of milder winter temperatures compared to the year-ago-period. These positive factors were more than offset by higher operations and maintenance expenses, including a charge related to the Rush Island Energy Center litigation and higher interest expense due to higher debt balances.
Ameren Illinois Electric Distribution Segment Results
Ameren Illinois Electric Distribution first quarter 2024 earnings were $56 million, compared to first quarter 2023 earnings of $61 million. The year-over-year comparison reflected a lower allowed return on equity for 2024 under the new multi-year rate plan.
Ameren Illinois Natural Gas Segment Results
Ameren Illinois Natural Gas first quarter 2024 earnings were $106 million, compared to first quarter 2023 earnings of $87 million. The year-over-year increase reflected new delivery service rates and rate design effective November 28, 2023. The rate design change, which increased earnings by $8 million, is not expected to impact full-year results.
Ameren Transmission Segment Results
Ameren Transmission first quarter 2024 earnings were $72 million, compared to first quarter 2023 earnings of $71 million. The year-over-year increase reflected earnings on increased infrastructure investments offset primarily by lower allowance for funds used during construction due to timing of financings and project expenditures.
Ameren Parent Results (includes items not reported in a business segment)
Ameren Parent first quarter 2024 earnings were $2 million, compared to first quarter 2023 earnings of $17 million. The year-over-year comparison primarily reflected lower tax benefits associated with share-based compensation.
Analyst Conference Call
Ameren will conduct a conference call for financial analysts at 9 a.m. Central Time on Friday, May 3, 2024 to discuss 2024 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 "Latest Quarterly Results," where an accompanying slide presentation will also be available. The conference call and presentation will be archived in the "Investors" section of the website under "Quarterly Earnings."
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 in the Midcontinent Independent System Operator, Inc. For more information, visit Ameren.com, or follow us on X 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, projections, strategies, targets, estimates, 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, 2023, 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, that may change
regulatory recovery mechanisms, such as those that may result from
Ameren Missouri's petition to the Missouri Public Service Commission
(MoPSC) for a financing order to authorize the issuance of securitized
utility tariff bonds to finance the cost of the planned accelerated
retirement of the Rush Island Energy Center, any additional mitigation
relief sought by the United States Department of Justice related to the
Rush Island Energy Center in the United States District Court for the
Eastern District of Missouri, Ameren Missouri's proposed customer
energy-efficiency plan under the Missouri Energy Efficiency Investment
Act (MEEIA) filed with the MoPSC in January 2024, Ameren Illinois'
December 2023 Illinois Commerce Commission (ICC) order for the
Multi-Year Rate Plan (MYRP) electric distribution service regulatory
rate review that directed Ameren Illinois to file a revised Grid Plan
and a request to update the associated MYRP revenue requirements for
2024 through 2027, both subsequently filed in March 2024, along with
Ameren Illinois' January 2024 rehearing request of the order and appeal
of the order to the Illinois Appellate Court for the Fifth Judicial
District, Ameren Illinois' electric distribution service revenue
requirement reconciliation adjustment request filed with the ICC in
April 2024, Ameren Illinois' appeal of the November 2023 ICC natural gas
delivery service rate order to the Illinois Appellate Court for the
Fifth Judicial District, and the August 2022 United States Court of
Appeals for the District of Columbia Circuit ruling that vacated the
Federal Energy Regulatory Commission's (FERC) Midcontinent Independent
System Operator, Inc. (MISO), return on equity (ROE)-determining orders
and remanded the proceedings to the FERC;
-- our ability to control costs and make substantial investments in our
businesses, including our ability to recover costs and investments, and
to earn our allowed ROEs, within frameworks established by our
regulators, while maintaining affordability of services for our
customers;
-- the effect and duration of Ameren Illinois' election to utilize MYRPs
for electric distribution service ratemaking effective for rates
beginning in 2024, including the effect of the reconciliation cap on the
electric distribution revenue requirement;
-- the effect of Ameren Illinois' use of the performance-based formula
ratemaking framework for its participation in electric energy-efficiency
programs, and the related impact of the direct relationship between
Ameren Illinois' ROE and the 30-year United States Treasury bond yields;
-- the effect on Ameren Missouri of any customer rate caps or limitations
on increasing the electric service revenue requirement pursuant to
Ameren Missouri's election to use the plant-in-service accounting
regulatory mechanism (PISA);
-- Ameren Missouri's ability to construct and/or acquire wind, solar, and
other renewable energy generation facilities and battery storage, as
well as natural gas-fired energy centers, extend the operating license
for the Callaway Energy Center, retire fossil fuel-fired energy centers,
and implement new or existing customer energy-efficiency programs,
including any such construction, acquisition, retirement, or
implementation in connection with its Smart Energy Plan, integrated
resource plan, or emissions reduction goals, and to recover its cost of
investment, a related return, and, in the case of customer
energy-efficiency programs, any lost electric revenues in a timely
manner, each of which is affected by the ability to obtain all necessary
regulatory and project approvals, including certificates of convenience
and necessity from the MoPSC or any other required approvals for the
addition of renewable resources and natural gas-fired energy centers;
-- Ameren Missouri's ability to use or transfer federal production and
investment tax credits related to renewable energy projects; the cost of
wind, solar, and other renewable generation and storage technologies;
and our ability to obtain timely interconnection agreements with the
MISO or other regional transmission organizations at an acceptable cost
for each facility;
-- the outcome of competitive bids related to requests for proposals
associated with the MISO's long-range transmission planning;
-- the inability of our counterparties to meet their obligations with
respect to contracts, credit agreements, and financial instruments,
including as they relate to the construction and acquisition of electric
and natural gas utility infrastructure and the ability of counterparties
to complete projects, which is dependent upon the availability of
necessary materials and equipment, including those obligations that are
affected by supply chain disruptions;
-- advancements in energy technologies, including carbon capture,
utilization, and sequestration, hydrogen fuel for electric production
and energy storage, next generation nuclear, and large-scale long-cycle
battery energy storage, and the impact of federal and state energy and
economic policies with respect to those technologies;
-- the effects of changes in federal, state, or local laws and other
governmental actions, including monetary, fiscal, foreign trade, and
energy policies;
-- the effects of changes in federal, state, or local tax laws or rates,
including the effects of the Inflation Reduction Act of 2022 (IRA) and
the 15% minimum tax on adjusted financial statement income, as well as
additional regulations, interpretations, amendments, or technical
corrections to or in connection with the IRA, and challenges to the tax
positions we have taken, if any, as well as resulting effects on
customer rates and the recoverability of the minimum tax imposed under
the IRA;
-- the effects on energy prices and demand for our services resulting from
technological advances, including advances in customer energy
efficiency, electric vehicles, electrification of various industries,
energy storage, and private generation sources, which generate
electricity at the site of consumption and are becoming more
cost-competitive;
-- the cost and availability of fuel, such as low-sulfur coal, natural gas,
and enriched uranium used to produce electricity; the cost and
availability of natural gas for distribution and the cost and
availability of purchased power, including capacity, zero emission
credits, renewable energy credits, and emission allowances; and the
level and volatility of future market prices for such commodities and
credits;
-- 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 primarily from
the one Nuclear Regulatory Commission-licensed supplier of assemblies
for Ameren Missouri's Callaway Energy Center;
-- 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, or, in the absence of
insurance, the ability to timely recover uninsured losses from our
customers;
-- the impact of cyberattacks and data security risks on us, our suppliers,
or other entities on the grid, 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;
-- acts of sabotage, which have increased in frequency and severity within
the utility industry, war, terrorism, or other intentionally disruptive
acts;
-- business, economic, and capital market conditions, including the impact
of such conditions on interest rates, inflation, and investments;
-- the impact of inflation or a recession on our customers and the related
impact on our results of operations, financial position, and liquidity;
-- disruptions of the capital and credit markets, deterioration in our
credit metrics, or other events that may have an adverse effect on the
cost or availability of capital, including short-term credit and
liquidity, and our ability to access the capital and credit markets on
reasonable terms when needed;
-- the actions of credit rating agencies and the effects of such actions;
-- the impact of weather conditions and other natural conditions on us and
our customers, including the impact of system outages and the level of
wind and solar resources;
-- the construction, installation, performance, and cost recovery of
generation, transmission, and distribution assets;
-- the ability to maintain system reliability during the transition to
clean energy generation by Ameren Missouri and the electric utility
industry, as well as our ability to meet generation capacity
obligations;
-- the effects of failures of electric generation, electric and natural gas
transmission or distribution, or natural gas storage facilities systems
and equipment, which could result in unanticipated liabilities or
unplanned outages;
-- the operation of Ameren Missouri's Callaway Energy Center, including
planned and unplanned outages, as well as the ability to recover costs
associated with such outages and the impact of such outages on
off-system sales and purchased power, among other things;
-- Ameren Missouri's ability to recover the remaining investment and
decommissioning costs associated with the retirement of an energy
center, as well as the ability to earn a return on that remaining
investment and those decommissioning costs;
-- the impact of current environmental laws and new, more stringent, or
changing requirements, including those related to New Source Review
provisions of the Clean Air Act, carbon dioxide, nitrogen oxides and
other emissions and discharges, Illinois emission standards, cooling
water intake structures, coal combustion residuals, energy efficiency,
and wildlife protection, 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 standards in Missouri and
Illinois and with the zero emission standard in Illinois;
-- the effectiveness of Ameren Missouri's customer energy-efficiency
programs and the related revenues and performance incentives earned
under its MEEIA programs;
-- Ameren Illinois' ability to achieve the performance standards applicable
to its electric distribution business and electric customer
energy-efficiency goals and the resulting impact on its allowed ROE;
-- 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, investors, legislators, regulators, creditors, or other
stakeholders 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, negative media coverage, or concerns about
environmental, social, and governance practices;
-- the impact of adopting new accounting and reporting guidance;
-- the effects of strategic initiatives, including mergers, acquisitions,
and divestitures;
-- legal and administrative proceedings;
-- pandemics or other significant global health events, and their impacts
on our results of operations, financial position, and liquidity; and
-- the impacts of the Russian invasion of Ukraine and conflicts in the
Middle East, related sanctions imposed by the U.S. and other
governments, and any broadening of these or other global conflicts,
including potential impacts on the cost and availability of fuel,
natural gas, enriched uranium, and other commodities, materials, and
services, the inability of our counterparties to perform their
obligations, disruptions in the capital and credit markets, acts of
sabotage or terrorism, including cyberattacks,and other impacts on
business, economic, and geopolitical conditions, including inflation.
New factors emerge from time to time, and it is not possible for us to predict all of such factors, nor can we 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,
2024 2023
Operating Revenues:
Electric $1,364 $1,590
Natural gas 452 472
Total operating revenues 1,816 2,062
Operating Expenses:
Fuel and purchased power 328 608
Natural gas purchased for resale 151 208
Other operations and maintenance 470 448
Depreciation and amortization 361 320
Taxes other than income taxes 135 127
Total operating expenses 1,445 1,711
Operating Income 371 351
Other Income, Net 89 78
Interest Charges 154 127
Income Before Income Taxes 306 302
Income Taxes 44 37
Net Income 262 265
Less: Net Income Attributable to Noncontrolling Interests 1 1
Net Income Attributable to Ameren Common Shareholders $261 $264
Earnings per Common Share - Basic $0.98 $1.01
Earnings per Common Share - Diluted $0.98 $1.00
Weighted-average Common Shares Outstanding - Basic 266.4 262.2
Weighted-average Common Shares Outstanding - Diluted 266.8 263.1
AMEREN CORPORATION (AEE)
CONSOLIDATED BALANCE SHEET
(Unaudited, in millions)
March 31, December 31,
2024 2023
ASSETS
Current Assets:
Cash and cash equivalents $85 $25
Accounts receivable - trade (less allowance for doubtful accounts) 507 494
Unbilled revenue 272 319
Miscellaneous accounts receivable 82 106
Inventories 679 733
Current regulatory assets 356 365
Other current assets 103 139
Total current assets 2,084 2,181
Property, Plant, and Equipment, Net 34,114 33,776
Investments and Other Assets:
Nuclear decommissioning trust fund 1,232 1,150
Goodwill 411 411
Regulatory assets 1,904 1,810
Pension and other postretirement benefits 597 581
Other assets 964 921
Total investments and other assets 5,108 4,873
TOTAL ASSETS $41,306 $40,830
LIABILITIES AND EQUITY
Current Liabilities:
Current maturities of long-term debt $1,149 $849
Short-term debt 868 536
Accounts and wages payable 647 1,136
Customer deposits 190 176
Other current liabilities 651 648
Total current liabilities 3,505 3,345
Long-term Debt, Net 15,167 15,121
Deferred Credits and Other Liabilities:
Accumulated deferred income taxes and tax credits, net 4,251 4,176
Regulatory liabilities 5,593 5,512
Asset retirement obligations 779 772
Other deferred credits and liabilities 439 426
Total deferred credits and other liabilities 11,062 10,886
Shareholders' Equity:
Common stock 3 3
Other paid-in capital, principally premium on common stock 7,228 7,216
Retained earnings 4,219 4,136
Accumulated other comprehensive loss (7) (6)
Total shareholders' equity 11,443 11,349
Noncontrolling Interests 129 129
Total equity 11,572 11,478
TOTAL LIABILITIES AND EQUITY $41,306 $40,830
AMEREN CORPORATION (AEE)
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(Unaudited, in millions)
Three Months Ended March 31,
2024 2023
Cash Flows From Operating Activities:
Net income $262 $265
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization 379 350
Amortization of nuclear fuel 18 19
Amortization of debt issuance costs and premium/discounts 5 3
Deferred income taxes and investment tax credits, net 44 35
Allowance for equity funds used during construction (9) (9)
Stock-based compensation costs 8 8
Other 16 (6)
Changes in assets and liabilities (231) (169)
Net cash provided by operating activities 492 496
Cash Flows From Investing Activities:
Capital expenditures (890) (931)
Nuclear fuel expenditures (12) (20)
Purchases of securities - nuclear decommissioning trust fund (70) (29)
Sales and maturities of securities - nuclear decommissioning trust fund 66 17
Other - (1)
Net cash used in investing activities (906) (964)
Cash Flows From Financing Activities:
Dividends on common stock (178) (165)
Dividends paid to noncontrolling interest holders (1) (1)
Short-term debt, net 332 179
Issuances of long-term debt 347 499
Issuances of common stock 10 5
Employee payroll taxes related to stock-based compensation (8) (20)
Debt issuance costs (5) (5)
Other - (3)
Net cash provided by financing activities 497 489
Net change in cash, cash equivalents, and restricted cash 83 21
Cash, cash equivalents, and restricted cash at beginning of year(a) 272 216
Cash, cash equivalents, and restricted cash at end of period(b) $355 $237
(a) Includes $25 million of cash and cash equivalents and $247 million of restricted cash as
of December 31, 2023.
(b) Includes $85 million of cash and cash equivalents and $270 million of restricted cash as
of March 31, 2024.
AMEREN CORPORATION (AEE)
OPERATING STATISTICS
Three Months Ended
March 31,
2024 2023
Electric Sales - kilowatthours (in millions):
Ameren Missouri
Residential 3,477 3,413
Commercial 3,271 3,202
Industrial 959 936
Street lighting and public authority 19 20
Ameren Missouri retail load subtotal 7,726 7,571
Off-system 1,131 1,054
Ameren Missouri total 8,857 8,625
Ameren Illinois Electric Distribution
Residential 2,751 2,696
Commercial 2,756 2,826
Industrial 2,678 2,611
Street lighting and public authority 98 107
Ameren Illinois Electric Distribution total 8,283 8,240
Ameren Total 17,140 16,865
Electric Revenues (in millions):
Ameren Missouri
Residential $341 $324
Commercial 259 247
Industrial 61 61
Other, including street lighting and public authority 24 30
Ameren Missouri retail load subtotal $685 $662
Off-system sales and capacity 29 179
Ameren Missouri total $714 $841
Ameren Illinois Electric Distribution
Residential $297 $382
Commercial 165 200
Industrial 45 48
Other, including street lighting and public authority (1) (6)
Ameren Illinois Electric Distribution total $506 $624
Ameren Transmission
Ameren Illinois Transmission(a) $131 $114
ATXI 55 49
Eliminate affiliate revenues (1)
Ameren Transmission total $185 $163
Other and intersegment eliminations(a) (41) (38)
Ameren Total $1,364 $1,590
(a) Includes $28 million in both years 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,
2024 2023
Gas Sales - dekatherms (in millions):
Ameren Missouri 8 8
Ameren Illinois Natural Gas 60 60
Ameren Total 68 68
Gas Revenues (in millions):
Ameren Missouri $61 $82
Ameren Illinois Natural Gas 391 391
Eliminate affiliate revenues - (1)
Ameren Total $452 $472
March 31, December 31,
2024 2023
Common Stock:
Shares outstanding (in millions) 266.6 266.3
Book value per share $42.92 $42.62
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SOURCE Ameren Corporation
