Group 1 - The options market indicates significant implied volatility for Ameren Corporation, particularly for the June 20, 2025 $75.00 Call option, suggesting that investors expect a substantial price movement [1] - Implied volatility reflects market expectations of future stock movement, often indicating potential upcoming events that could lead to significant price changes [2] - Ameren currently holds a Zacks Rank 3 (Hold) in the Utility - Electric Power industry, which is in the top 29% of the Zacks Industry Rank, with recent analyst activity showing an increase in earnings estimates for the current quarter from 84 cents to $1.03 per share [3] Group 2 - The high implied volatility for Ameren shares may present trading opportunities, as options traders often seek to sell premium on such options, aiming for the underlying stock to not move as much as anticipated [4]

Analyst's Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Entergy Corporation (NYSE: ETR ) and Ameren (NYSE: AEE ) are both regulated electric utilities facing ...

"Companies who use a lot of energy evaluate many factors when they are looking to locate their business in a community," said Rob Dixon, senior director of economic and community development for Ameren Missouri. "At Ameren Missouri, we offer a balanced energy mix, a reliable energy delivery system, and some of the lowest electric rates in the country. We want those companies to know Missouri is open for business, and we are ready to serve them. When businesses grow here, they create jobs and spur millions o ...

Core Points - Ameren Corporation announced the pricing of an underwritten offering of 5,550,416 shares of its common stock at $94.00 per share [1] - The offering is being managed by several financial institutions, including Goldman Sachs, J.P. Morgan, Barclays, and Wells Fargo [1] - The closing of the offering is expected to occur on or about May 14, 2025 [1] Offering Details - Ameren entered into forward sale agreements with multiple counterparties for the issuance of 5,550,416 shares [2] - Underwriters have a 30-day option to purchase an additional 832,562 shares under the same terms [2] - If the option is exercised, Ameren expects to enter into additional forward sale agreements for the extra shares [2] Settlement and Use of Proceeds - Settlement of the forward sale agreements will occur on or before January 15, 2027, with options for cash or net share settlement [3] - Proceeds from the settlement will be used for general corporate purposes, including repayment of short-term debt [3] Company Overview - Ameren Corporation serves 2.5 million electric customers and over 900,000 natural gas customers across a 64,000-square-mile area [5] - The company operates through its subsidiaries, Ameren Missouri and Ameren Illinois, providing various utility services [5]

Core Viewpoint - Ameren Corporation is offering $520 million of its common stock in an underwritten offering, with Goldman Sachs, J.P. Morgan, Barclays, and Wells Fargo acting as joint book-running managers [1][3]. Group 1: Offering Details - The offering consists of $520 million in shares, which are expected to be borrowed by forward counterparties from third parties and sold to underwriters [1][2]. - Ameren will issue shares to underwriters if the forward counterparties do not borrow and sell the required number of shares [2]. - The initial forward sale price per share will be equal to the price at which underwriters purchase the shares, with a potential additional $78 million option for underwriters to purchase more shares [3]. Group 2: Settlement and Use of Proceeds - Settlement of the forward sale agreements will occur on specified dates before January 15, 2027, with options for cash or net share settlement [4]. - Proceeds from the settlement will be used for general corporate purposes, including repayment of short-term debt [4]. Group 3: Company Overview - Ameren Corporation serves 2.5 million electric customers and over 900,000 natural gas customers across a 64,000-square-mile area through its subsidiaries [6].

Financial Performance - Net income attributable to Ameren common shareholders for Q1 2025 was $289 million, or $1.07 per diluted share, compared to $261 million, or $0.98 per diluted share in Q1 2024, reflecting a $28 million increase [192]. - Operating income for Ameren reached $430 million in Q1 2025, compared to $371 million in Q1 2024, a 16% increase [211]. - Net income attributable to Ameren common shareholders was $289 million in Q1 2025, up from $261 million in Q1 2024, an 11% increase [211]. - Electric revenues for Ameren increased to $1,622 million in Q1 2025 from $1,364 million in Q1 2024, representing a 19% increase [211]. - Natural gas revenues for Ameren increased to $475 million in Q1 2025 from $452 million in Q1 2024, a 5% increase [211]. Revenue Changes - Total electric revenue change for Ameren was $258 million, driven by a $179 million increase in Ameren Missouri and a $66 million increase in Ameren Illinois Electric Distribution [213]. - Ameren Missouri's electric revenues rose by $179 million, or 25%, driven by higher recoverable expenses and capital investment [220]. - Ameren Illinois Electric Distribution's revenues increased by $66 million, or 13%, primarily due to base rate increases and higher recoverable non-purchased power expenses [221]. - Ameren's natural gas revenues increased by $23 million, or 5%, for the three months ended March 31, 2025, compared to the year-ago period [225]. Infrastructure Investments - Increased infrastructure investments at Ameren Missouri, Ameren Transmission, and Ameren Illinois Electric Distribution positively impacted net income for Q1 2025 [192]. - Ameren invested $1.1 billion in its rate-regulated businesses in the three months ended March 31, 2025 [193]. - The Smart Energy Plan includes a five-year capital investment of approximately $16.2 billion from 2025 to 2029 to upgrade electric infrastructure and accommodate renewable energy [197]. - The company plans to invest up to $27.4 billion in capital expenditures from 2025 to 2029, with $17.5 billion allocated to Ameren Missouri, $7.0 billion to Ameren Illinois, and $2.9 billion to ATXI [330]. Regulatory Changes - The Missouri Senate Bill 4, effective August 2025, modifies regulations affecting Ameren Missouri's electric and natural gas businesses [194]. - An increase of $355 million to Ameren Missouri's annual revenue requirement for electric retail service was approved, effective June 1, 2025 [195]. - Ameren Missouri's updated request for a natural gas delivery service revenue increase of $38 million is based on a 10.25% ROE and a rate base of $525 million [196]. - The annual limit on increases to the electric service revenue requirement for Ameren Missouri is currently set at 2.5%, which will change to 2.25% after August 2025 [319]. Expenses and Costs - Ameren Missouri's fuel and purchased power expenses surged by $164 million, or 99%, for the three months ended March 31, 2025, compared to the previous year [232]. - Ameren's total fuel and purchased power expenses increased by $174 million, or 53%, for the three months ended March 31, 2025 [231]. - Other operations and maintenance expenses increased by $15 million in Q1 2025 compared to the same period last year, with a notable decrease of $8 million in non-segment activities [244]. - Interest charges increased by $21 million in Q1 2025, primarily due to a $19 million increase at Ameren (parent) from higher short-term borrowings [269]. Cash Flow and Financing - Ameren's cash provided by operating activities decreased by $61 million in Q1 2025 compared to Q1 2024 [281]. - Cash used in investing activities increased by $181 million in Q1 2025, primarily due to a $174 million increase in capital expenditures related to natural gas and renewable generation investments [286]. - Ameren's cash provided by financing activities increased by $207 million in Q1 2025, utilizing net proceeds from long-term debt issuance of $1.1 billion [290]. - As of March 31, 2025, Ameren's net available liquidity was $1.347 billion, including cash and cash equivalents [297]. Future Outlook - Future outlook includes continued investments in infrastructure and potential rate base increases to support growth [210]. - Ameren Missouri expects a year-over-year increase in 2025 earnings of approximately $100 million compared to 2024 due to a $355 million increase in annual revenue requirement for electric retail service [321]. - The company expects to issue approximately $600 million of equity each year from 2025 to 2029 to fund capital expenditures [332]. - Ameren anticipates that cash used for capital expenditures and dividends will exceed cash provided by operating activities over the next several years [332].

Core Viewpoint - Ameren Corporation (AEE) reported first-quarter 2025 earnings of $1.07 per share, slightly missing the Zacks Consensus Estimate of $1.08, but showing a 9.2% improvement from the previous year's earnings of 98 cents per share [1] Financial Performance - Total revenues for the quarter reached $2.10 billion, marking a 15.5% increase year over year and exceeding the Zacks Consensus Estimate of $1.98 billion by 5.7% [1] - Total operating expenses were reported at $1.67 billion, up 15.4% year over year [2] - Interest expenses for the first quarter totaled $175 million, compared to $154 million in the same quarter of the previous year [2] Segmental Results - The Ameren Missouri segment reported earnings of $42 million, up from $36 million a year ago, attributed to increased infrastructure investments and higher retail sales due to colder winter temperatures [3] - The Ameren Illinois Electric Distribution segment's earnings increased to $63 million from $56 million, driven by infrastructure investments under a multi-year rate plan [4] - The Ameren Illinois Natural Gas segment reported earnings of $108 million, slightly up from $106 million, due to lower operations and maintenance expenses [4] - The Ameren Transmission segment's earnings rose to $89 million from $72 million, reflecting increased infrastructure investments [5] Financial Condition - As of March 31, 2025, cash and cash equivalents stood at $23 million, up from $7 million at the end of 2024 [6] - Long-term debt totaled $18.35 billion, an increase from $17.26 billion as of December 31, 2024 [6] - Cash flow from operating activities amounted to $431 million, down from $492 million a year ago [6] Guidance - Ameren reaffirmed its 2025 earnings guidance, expecting earnings per share (EPS) in the range of $4.85-$5.05, with the Zacks Consensus Estimate for 2025 earnings at $4.94 per share, near the midpoint of the company's guidance [7] Zacks Rank - Ameren currently holds a Zacks Rank 3 (Hold) [8]

Financial Data and Key Metrics Changes - The company reported first quarter 2025 earnings of $1.07 per share, an increase from adjusted earnings of $1.02 per share in the first quarter of 2024 [6][21] - The expected diluted earnings per share for 2025 is projected to be in the range of $4.85 to $5.05 [7][26] Business Line Data and Key Metrics Changes - Infrastructure investments continue to strengthen the energy grid and provide more energy resources, driving earnings growth across the company [21] - The economic outlook for service territories remains strong, with a 3% increase in total weather-normalized retail sales over the trailing twelve months ended in March [22] Market Data and Key Metrics Changes - The Missouri Public Service Commission approved a $355 million annual revenue increase, marking the fifth consecutive settlement of electric revenue requirements in the state [24] - The company expects approximately 5.5% compound annual sales growth in Missouri from 2025 through 2029, primarily driven by increasing data center demand [13] Company Strategy and Development Direction - The company remains committed to its strategic plan, focusing on delivering reliable, affordable energy while making prudent investments in energy infrastructure [5][6] - A robust pipeline of investment opportunities exceeding $63 billion is anticipated to strengthen the energy grid and support economic growth [19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving the 2025 guidance range and expects to deliver at the midpoint or higher [26] - The company is optimistic about the legislative environment in Missouri, which supports significant investments in utility infrastructure [10] Other Important Information - The company has successfully prevented over 114,000 customer outages through smart technology investments, equating to more than 30 million outage minutes avoided [11] - The company plans to file for approval of a proposed rate structure for large load customers in the second quarter [15] Q&A Session Summary Question: Clarification on the 2.3 gigawatts referenced - Management clarified that the incremental change is from 1.8 to 2.3 gigawatts, with an additional 500 megawatts signed under construction agreements related to data centers [39] Question: Need for new generation due to load growth - Management expressed confidence that the current generation plans would be adequate to serve the 2.3 gigawatts of load growth anticipated [44] Question: Impact of potential changes to tax credits - Management highlighted the importance of maintaining tax credits for building generation resources affordably, emphasizing that these credits are crucial for customer rates [48] Question: Exposure to tariffs in the capital plan - Management estimated that about 2% of the overall capital plan could be exposed to tariffs, primarily related to battery projects, but noted that this is manageable [86][87] Question: Cost estimate for the Castle Bluff plant - Management confirmed that the cost estimate for the Castle Bluff 800 megawatt plant remains at $900 million [92] Question: EPS growth expectations - Management affirmed expectations for EPS growth to be at or above the midpoint of the 6% to 8% CAGR range for 2025 to 2029 [100]

Financial Data and Key Metrics Changes - The company reported first quarter 2025 earnings of $1.07 per share, an increase from adjusted earnings of $1.02 per share in the first quarter of 2024 [6][20] - The expected diluted earnings per share for 2025 is projected to be in the range of $4.85 to $5.05 [7][25] Business Line Data and Key Metrics Changes - Infrastructure investments continue to strengthen the energy grid and provide more energy resources, driving earnings growth across the company [20] - The economic outlook for service territories remains strong, with a 3% increase in total weather-normalized retail sales over the trailing twelve months ended in March [21] Market Data and Key Metrics Changes - The Missouri Public Service Commission approved a $355 million annual revenue increase, marking the fifth consecutive settlement of electric revenue requirements in the state [22] - The company expects approximately 5.5% compound annual sales growth in Missouri from 2025 through 2029, driven by increasing data center demand [12] Company Strategy and Development Direction - The company remains committed to its strategic plan, focusing on reliable and affordable energy while investing in energy infrastructure [5][6] - The company is pursuing significant investments in dispatchable natural gas, renewable generation resources, and battery storage to ensure reliable service over the next decade [8][9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to execute investment plans and strategies across all business segments, expecting strong long-term earnings and dividend growth [19][34] - The company is optimistic about the prospects for growth in Missouri, supported by recent legislative developments that favor utility infrastructure investment [9][11] Other Important Information - The company has a robust pipeline of investment opportunities exceeding $63 billion, aimed at enhancing the energy grid and supporting economic growth [18] - The company plans to issue approximately $600 million of common equity in 2025 to support its capital needs [28] Q&A Session Summary Question: Clarification on the $350 million referenced - Management clarified that the incremental change is from 1.8 to 2.3 gigawatts, with an additional 500 megawatts under construction agreements related to data centers [39][40] Question: Need for new generation due to load growth - Management indicated that the 2.3 gigawatts of data center load growth provides greater confidence in sales growth estimates and aligns with their resource plan [43][44] Question: Impact of potential changes to tax credits - Management discussed the importance of maintaining tax credits and transferability for affordability and energy reliability, expressing optimism about legislative outcomes [49][50] Question: Exposure to tariffs in capital plans - Management estimated that about 2% of the overall capital plan could be exposed to tariffs, primarily related to battery projects, but noted that this is manageable [84][86] Question: Cost estimate for the Castle Bluff plant - Management confirmed the cost estimate for the Castle Bluff 800 megawatt plant is approximately $900 million [91] Question: EPS growth expectations - Management affirmed expectations for EPS growth to be at or above the midpoint of the 6% to 8% CAGR range for 2025 to 2029, driven by load growth and strategic investments [100][101]

Powering Growth First Quarter 2025 Earnings May 2, 2025 Cautionary Statements Use of Non-GAAP Financial Measures In this presentation, Ameren has presented adjusted earnings per share, which is a non-GAAP measure and may not be comparable to those of other companies. A reconciliation of GAAP to non-GAAP information is included in this presentation. Generally, adjusted earnings or losses include earnings or losses attributable to Ameren common shareholders and exclude income or loss from significant discrete ...