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 Ameren Missouri and Ameren Illinois [3] - Ameren Illinois provides electric transmission and distribution services as well as natural gas distribution services, while Ameren Missouri offers electric generation, transmission, and distribution services along with natural gas distribution [3] - Ameren Transmission Company of Illinois focuses on developing, owning, and operating rate-regulated regional electric transmission projects within the Midcontinent Independent System Operator, Inc. [3] Upcoming Earnings Call - Martin J. Lyons Jr., chairman, president, and CEO, along with Michael L. Moehn, senior executive vice president and CFO, will discuss the second quarter 2025 earnings and guidance during a conference call on August 1 at 9 a.m. Central Time [1] - The call will be available for live streaming on AmerenInvestors.com, with supporting materials posted in the "Investor News and Events" section [2] - A replay of the webcast will be accessible for one year starting approximately one hour after the call concludes [2]

Core Points - Ameren Missouri is advancing its generation investment plan by filing an application for the construction of an 800-megawatt natural gas energy center and a large-scale battery storage facility in Jefferson County, Missouri [1][3] - The Big Hollow Energy Center aims to enhance energy reliability and meet increased energy demands while ensuring grid resiliency [1][2] - The project is expected to create significant investment and job opportunities in the community, with the energy center projected to be operational by 2028 [3][4] Investment and Infrastructure - The Big Hollow Energy Center will feature a 400-megawatt lithium-ion battery installation, which can provide backup power during peak energy needs and improve overall grid reliability [4][5] - Ameren Missouri plans to accelerate its battery storage capacity to a total of 1,000 megawatts by 2030 and 1,800 megawatts by 2042 [4] - The natural gas and battery storage facilities will operate independently but will utilize existing infrastructure, reducing construction time and costs [5][6] Community Impact - The project is expected to support local economic development, including contributions to the Jefferson R-VII School District and local first responders [7] - Community leaders express strong support for the Big Hollow Energy Center, viewing it as a commitment to the future of Jefferson County [7][8] - The closure of the Rush Island Energy Center in October 2024 has been addressed by Ameren Missouri, ensuring continued partnership with the community [8]

An updated edition of the May 6, 2025 article.The global shift toward sustainability is transforming the energy landscape, with industries rapidly adopting renewable sources like solar and wind. However, their intermittent nature has highlighted the critical need for reliable energy storage. This has fueled growing interest in battery storage technologies, which store excess power generated during peak periods and release it when production dips, ensuring grid stability and consistent supply. As a result, d ...

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]

Industry Overview - The Zacks Utility - Electric Power industry is characterized by a regulated framework that allows utilities to recover costs and generate consistent returns, minimizing earnings volatility [1] - The sector is seen as a dependable choice for income-oriented investors due to steady electricity demand and attractive dividend yields [1] Transition to Clean Energy - Electric utilities in the U.S. are evolving beyond traditional income providers, driven by investments in grid modernization, renewable energy integration, and electrification [2] - Federal incentives and climate initiatives are reshaping the utilities industry, positioning companies at the forefront of this transition for sustained growth [2] Company Profiles PPL Corporation - PPL Corporation focuses on infrastructure upgrades and clean energy, benefiting from predictable revenues due to its regulated nature [3] - The company is well-positioned for steady earnings growth and long-term value through investments in grid reliability and sustainable energy [3] Ameren Corporation - Ameren Corporation serves Missouri and Illinois, offering stable cash flows and a reliable dividend yield, supported by a constructive regulatory environment [4] - The company emphasizes grid modernization and clean energy transition, backed by strong financial management and credit ratings [4] Earnings Growth Projections - PPL's earnings per share (EPS) is projected to grow by 7.69% in 2025 and 8.24% in 2026, with a long-term growth estimate of 7.46% [6] - Ameren's EPS is expected to grow by 6.48% in 2025 and 7.61% in 2026, with a long-term growth estimate of 6.95% [9] Financial Metrics - PPL's return on equity (ROE) is 9.14%, while Ameren's ROE is 10.40%, which is above the industry's average of 10.13% [12] - PPL's debt-to-capital ratio is 52.71%, lower than Ameren's 59.78% and the industry's 54.57% [14] Dividend Yield - PPL Corporation has a dividend yield of 3.19%, higher than Ameren's 2.98% and the industry's yield of 3.17% [16] Valuation - PPL appears cheaper than Ameren on a Price/Earnings Forward 12-month basis, trading at 18.19X compared to Ameren's 18.75X [17] Capital Expenditure Plans - PPL plans to invest nearly $20 billion from 2025 to 2028 for infrastructure and clean electricity generation [19] - Ameren plans to invest $27.4 billion from 2025 to 2029 for strengthening its electric transmission, distribution, and generation infrastructure [19] Conclusion - PPL offers a balanced mix of income and long-term value appreciation potential, with a cheaper valuation and lower debt level compared to Ameren [20]

Core Insights - Entergy Corporation and Ameren are experiencing a surge in demand for the first time in years, driven by factors such as reshoring, AI-driven data center plans, and supportive legislation [1] Company Analysis - Entergy Corporation (NYSE: ETR) and Ameren (NYSE: AEE) are both regulated electric utilities [1] - Both companies are accelerating their investments in response to the increased demand [1] Market Trends - The surge in demand is attributed to reshoring initiatives and advancements in AI technology, particularly in data centers [1] - Legislative support is also contributing to the favorable market conditions for these utilities [1]

Core Viewpoint - Ameren Missouri has filed the Powering Missouri Growth Plan to meet the increasing energy demands of large businesses while ensuring fair rates for all customers [1][2]. Group 1: Goals of the Plan - The plan aims to attract new jobs and investments, support current customers' expansion, and enhance the community's appeal for business [2]. - It includes consumer protection measures in line with Missouri Senate Bill 4, which will take effect on August 28 [2]. Group 2: Economic Impact - If approved, the plan will ensure that new large customers contribute fairly to the costs of electric service while maintaining reasonable rates for existing customers [3]. - The initiative is expected to create significant job growth and stimulate millions in local investments [4][6]. Group 3: Energy Strategy - Ameren Missouri is revising its generation strategy to support an anticipated 2.0 gigawatts (GW) of new energy demand by 2032, focusing on a balanced mix of generation resources [5]. - The company emphasizes its commitment to providing reliable, affordable, and cleaner energy to attract new and expanding businesses [5]. Group 4: Company Overview - Ameren Missouri has over 100 years of experience in providing electric and gas services, serving approximately 1.3 million electric and 135,000 natural gas customers [6]. - The company operates in a service area covering about 60 counties and more than 500 communities, with some of the lowest electric rates in the nation [6].

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].