Ameren Corporation (NYSE:AEE) Q3 2024 Results Conference Call November 7, 2024 10:00 AM ET Company Participants Andrew Kirk - Director-Investor Relations and Corporate Modeling Martin Lyons - Chairman, President and Chief Executive Officer Michael Moehn - Senior Executive Vice President and Chief Financial Officer Conference Call Participants Robin Shillock - JPMorgan Paul Patterson - Glenrock Associates Carly Davenport - Goldman Sachs Brian Russo - Jefferies David Paz - Wolfe Research Nick Campanella - Bar ...

Financial Performance - Net income attributable to Ameren common shareholders for Q3 2024 was $456 million, or $1.70 per diluted share, down from $493 million, or $1.87 per diluted share in Q3 2023[196]. - For the nine months ended September 30, 2024, net income was $975 million, or $3.65 per diluted share, compared to $994 million, or $3.78 per diluted share in the same period last year[196]. - Net income attributable to Ameren common shareholders decreased by $37 million in Q3 2024 compared to Q3 2023, with earnings per diluted share decreasing by $0.17[221]. - For the nine months ended September 30, 2024, net income attributable to Ameren common shareholders decreased by $19 million, with earnings per diluted share down by $0.13[222]. - The company reported a net income of $979 million for the nine months ended September 30, 2024, compared to $998 million for the same period in 2023, a decrease of 1.9%[231]. - The net income attributable to Ameren common shareholders for Q3 2024 was $56 million, down from $66 million in Q3 2023, representing a decline of 15.2%[233]. - The company reported a net income of $174 million for the nine months ended September 30, 2024, compared to $194 million for the same period in 2023, a decrease of 10.3%[235]. Revenue and Sales - Electric revenues for Q3 2024 reached $2,035 million, a 5.9% increase from $1,921 million in Q3 2023[229]. - Total electric revenues for the nine months ended September 30, 2024, were $4,920 million, a slight decrease from $5,096 million in the same period of 2023[231]. - Ameren's electric revenues increased by $114 million, or 6%, for the three months ended September 30, 2024, compared to the previous year, primarily driven by increased revenues at Ameren Missouri and Ameren Transmission[239]. - For the nine months ended September 30, 2024, Ameren's electric revenues decreased by $176 million, or 3%, mainly due to decreased revenues at Ameren Illinois Electric Distribution and Ameren Missouri[239]. - Revenues associated with other cost recovery mechanisms increased by $10 million and $23 million for the three and nine months ended September 30, 2024, respectively[241]. - Revenues from Ameren Illinois Electric Distribution decreased by $6 million, or 1%, for Q3 2024, and by $155 million, or 9%, for the nine months ended September 30, 2024[246]. Investments and Capital Expenditures - Ameren invested $3.0 billion in its rate-regulated businesses in the nine months ended September 30, 2024[199]. - Ameren Missouri's Smart Energy Plan includes a five-year capital investment of approximately $12.4 billion to upgrade electric infrastructure and accommodate renewable energy[206]. - Ameren Missouri plans to invest up to $22.8 billion in capital expenditures from 2024 through 2028, including $3.3 billion for renewable generation investments[370]. - Capital expenditures increased by $458 million during the first nine months of 2024, primarily due to the acquisition of solar projects[316]. - Ameren Missouri acquired solar projects for a total purchase price of approximately $0.9 billion in 2024[369]. Rate Changes and Regulatory Filings - Ameren Missouri filed a request for a $446 million electric service rate increase based on a 10.25% ROE and a rate base of $14 billion, with a decision expected by May 2025[200]. - The MoPSC is expected to decide on Ameren Missouri's $40 million natural gas delivery service rate increase request by August 2025[208]. - New rates for Ameren Illinois' electric energy-efficiency formula rate update are expected to increase rates by $26 million, with a decision required by December 2024[212]. - The ICC approved an increase of $112 million in annual revenues for natural gas delivery service, effective November 28, 2023[358]. Expenses and Costs - Interest charges for Q3 2024 totaled $173 million, compared to $152 million in Q3 2023, reflecting an increase of 13.8%[229]. - Other operations and maintenance expenses for Q3 2024 totaled $229 million, an increase from $200 million in Q3 2023, representing a rise of 14.5%[233]. - Ameren's electric fuel and purchased power expenses increased by $69 million, or 16%, for Q3 2024, but decreased by $364 million, or 24%, for the nine months ended September 30, 2024[256]. - Depreciation and amortization expenses for the nine months ended September 30, 2024, were $1,125 million, compared to $1,024 million in the same period of 2023, an increase of 9.9%[231]. - Bad debt costs at Ameren Illinois Electric Distribution increased by $19 million and $35 million in the three and nine months ended September 30, 2024, respectively[272]. Financing and Liquidity - Cash provided by operating activities decreased by $85 million in the first nine months of 2024 compared to the same period in 2023, totaling $1.946 billion[310]. - Cash provided by financing activities increased by $557 million during the first nine months of 2024, totaling $1.6 billion from long-term debt issuance[320]. - Ameren plans to issue approximately $300 million of equity in 2024 and $600 million each year from 2025 to 2028[305]. - As of September 30, 2024, Ameren had approximately $615 million of common stock available for sale under the ATM program[305]. - Ameren has a credit facility providing $2.6 billion until maturity in December 2027, ensuring access to capital for operational needs[324]. Strategic Initiatives and Future Outlook - The company targets net-zero carbon emissions by 2045, with a 60% reduction by 2030 and an 85% reduction by 2040 based on 2005 levels[365]. - Ameren is evaluating strategies to enhance its results of operations, which may include acquisitions and cost reduction initiatives[382]. - The MISO awarded Ameren projects estimated to cost approximately $1.8 billion as part of a long-range transmission planning roadmap[372]. - The agreement with the U.S. Department of Justice includes funding for electric buses and charging stations estimated to cost approximately $64 million[362].

Core Viewpoint - Ameren Corporation reported third-quarter 2024 adjusted earnings of $1.87 per share, missing the Zacks Consensus Estimate of $1.91 by 2.1% and showing a decline from $1.87 per share in the same quarter of 2023 [1] Financial Performance - Total revenues for the quarter were $2.17 billion, reflecting a year-over-year increase of 5.5%, but fell short of the Zacks Consensus Estimate of $2.21 billion by 1.6% [2] - Total operating expenses rose to $1.59 billion, up 9.8% year over year [3] - Cash flow from operating activities was $1.95 billion, down from $2.03 billion a year ago [8] Segment Results - The Ameren Missouri segment reported adjusted earnings of $415 million, with GAAP earnings of $381 million [4] - The Ameren Illinois Electric Distribution segment's earnings decreased to $56 million from $66 million a year ago due to a lower allowed return on equity [4] - The Ameren Illinois Natural Gas segment reported a loss of $10 million, worsening from a loss of $5 million in the prior year [5] - The Ameren Transmission segment's adjusted earnings were $90 million, with GAAP earnings of $100 million, an increase from $86 million in the previous year [6] Financial Condition - As of September 30, 2024, cash and cash equivalents were $17 million, down from $25 million at the end of 2023 [7] - Long-term debt increased to $16.42 billion from $15.12 billion as of December 31, 2023 [7] Guidance - Ameren has lowered its 2024 GAAP earnings guidance to a range of $4.34-$4.48 per share, down from the previous range of $4.52-$4.72 [9] - The company expects adjusted earnings for 2024 to be in the range of $4.55-$4.69, with the Zacks Consensus Estimate at $4.61 per share [9] Zacks Rank - Ameren currently holds a Zacks Rank 2 (Buy) [10]

For the quarter ended September 2024, Ameren (AEE) reported revenue of $2.17 billion, up 5.5% over the same period last year. EPS came in at $1.87, compared to $1.87 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $2.21 billion, representing a surprise of -1.57%. The company delivered an EPS surprise of -2.09%, with the consensus EPS estimate being $1.91.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they c ...

Ameren (AEE) came out with quarterly earnings of $1.87 per share, missing the Zacks Consensus Estimate of $1.91 per share. This compares to earnings of $1.87 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -2.09%. A quarter ago, it was expected that this utility would post earnings of $0.93 per share when it actually produced earnings of $0.97, delivering a surprise of 4.30%.Over the last four quarters, the company has surpass ...

Earnings Performance - Third Quarter GAAP Diluted Earnings Per Share (EPS) were $1.70 in 2024, down from $1.87 in 2023, while Adjusted (Non-GAAP) EPS remained unchanged at $1.87[2] - Third Quarter 2024 net income attributable to common shareholders was $456 million, compared to $493 million in the same period of 2023[2] - Net income attributable to Ameren common shareholders for the three months ended September 30, 2024, was $456 million, a decrease of 7.5% from $493 million in the same period of 2023[23] - Earnings per common share (basic) for the three months ended September 30, 2024, were $1.71, down from $1.88 in the same period last year, representing a decline of 9.1%[23] - Ameren Parent reported a loss of $61 million in the third quarter of 2024, an improvement from a loss of $65 million in 2023, primarily due to lower tax expenses[16] Revenue and Income - Total operating revenues for the three months ended September 30, 2024, were $2,173 million, an increase of 5.5% compared to $2,060 million for the same period in 2023[23] - Electric revenue for the three months ended September 30, 2024, was $2,035 million, up 5.9% from $1,921 million in the same period last year[23] - Total electric revenues increased to $2.035 billion from $1.921 billion, marking an increase of 5.9% year-over-year[28] - Gas revenues for Ameren Total were $138 million, slightly down from $139 million, indicating a decrease of 0.7%[29] Guidance and Projections - 2024 GAAP Diluted EPS Guidance Range is now $4.34 to $4.48, and Adjusted EPS Guidance Range is established at $4.55 to $4.69[10] - For 2025, Diluted EPS Guidance Range is established at $4.85 to $5.05, representing a 7.1% increase over the midpoint of the 2024 adjusted guidance range[4] Operating Expenses and Costs - Total operating expenses for the three months ended September 30, 2024, increased to $1,587 million, up 9.7% from $1,446 million in the same period last year[23] - Fuel and purchased power expenses for the three months ended September 30, 2024, were $499 million, an increase of 15.9% compared to $430 million in the same period of 2023[23] - Interest charges for the three months ended September 30, 2024, rose to $173 million, up 13.8% from $152 million in the same period last year[23] Segment Performance - Ameren Missouri's third quarter 2024 adjusted earnings were $415 million, reflecting an increase from $411 million in 2023, driven by infrastructure investments[12] - Ameren Transmission's third quarter 2024 adjusted earnings were $100 million, up from $86 million in 2023, also attributed to increased infrastructure investments[13] - Ameren Illinois Electric Distribution reported third quarter 2024 earnings of $56 million, down from $66 million in 2023, due to a lower allowed return on equity[14] - Ameren Illinois Natural Gas segment reported a loss of $10 million in the third quarter of 2024, compared to a loss of $5 million in 2023, impacted by new delivery service rates[15] Cash Flow and Capital Expenditures - Net cash provided by operating activities was $1.946 billion, down from $2.031 billion, reflecting a decrease of 4.2%[25] - Capital expenditures for the period were $3.029 billion, an increase of 17.8% compared to $2.571 billion in the prior year[25] Assets and Liabilities - Total assets increased to $43.298 billion from $40.830 billion, representing a growth of 3.4% year-over-year[24] - Long-term debt increased to $16.422 billion from $15.121 billion, representing an increase of 8.6%[24] - Total current liabilities rose to $3.567 billion, up from $3.345 billion, indicating an increase of 6.6% year-over-year[24] Other Financial Information - The company reported other income of $101 million for the three months ended September 30, 2024, unchanged from the same period in 2023[23] - The increase in nine-month adjusted earnings for 2024 was attributed to infrastructure investments and disciplined cost control, despite higher interest expenses[6] - The company anticipates regulatory reviews and potential changes in recovery mechanisms that could impact future financial performance[20]

Third Quarter GAAP Diluted Earnings Per Share (EPS) were $1.70 in 2024 vs. $1.87 in 2023 Third Quarter Adjusted (Non-GAAP) Diluted Earnings Per Share were $1.87 in 2024 vs. $1.87 in 2023 2024 GAAP Diluted EPS Guidance Range is now $4.34 to $4.48 per Diluted Share 2024 Adjusted (Non-GAAP) Diluted EPS Guidance Range Established at $4.55 to $4.69 2025 Diluted EPS Guidance Range Established at $4.85 to $5.05ST. LOUIS, Nov. 6, 2024 /PRNewswire/ -- Ameren Corporation (NYSE: AEE) today announced third quarter 2 ...

Core Viewpoint - Ameren (AEE) is expected to report quarterly earnings of $1.93 per share, a 3.2% increase year-over-year, with revenues projected at $2.21 billion, reflecting a 7.2% increase compared to the same period last year [1]. Earnings Estimates - The consensus EPS estimate has been revised 12.4% higher over the last 30 days, indicating a collective reevaluation by analysts [2]. - Changes in earnings estimates are crucial for predicting investor reactions, with empirical studies showing a strong correlation between earnings estimate revisions and short-term stock performance [3]. Revenue Projections - Analysts predict 'External revenues- Ameren Illinois Electric Distribution' at $577.21 million, a 3.6% increase from the previous year [5]. - The estimated 'External revenues- Ameren Illinois Natural Gas' is $126.43 million, indicating a 4.5% year-over-year increase [5]. - 'Electric Revenues- Ameren Missouri- Total' is expected to reach $1.21 billion, reflecting a 1.2% decrease from the prior year [6]. - 'Electric Revenues- Ameren Illinois Electric Distribution- Total' is projected at $644.44 million, a 15.5% increase year-over-year [6]. - 'Operating Revenues- Natural gas' is forecasted to be $157.29 million, a 13.2% increase from the previous year [7]. - 'Gas Revenues- Ameren Missouri' is estimated at $21.02 million, suggesting a 16.8% year-over-year increase [7]. - 'Gas Revenues- Ameren Illinois Natural Gas' is projected to reach $136.42 million, indicating an 11.8% increase [7]. - 'Operating Revenues- Electric' is expected to be $2.00 billion, reflecting a 3.9% year-over-year increase [8]. - 'Electric Revenues- Ameren Transmission- Total' is projected at $233.67 million, a 24.3% increase from the previous year [8]. - 'Electric Sales - Ameren Total' is estimated at 19,067.47 GWh, slightly down from 19,098 GWh year-over-year [8]. Operating Income - Analysts suggest 'Operating Income- Ameren Missouri' will likely reach $515.87 million, compared to $419 million reported in the same quarter last year [9]. Stock Performance - Over the past month, shares of Ameren have returned -1%, matching the Zacks S&P 500 composite's -1% change, with a Zacks Rank 2 (Buy) indicating potential outperformance in the near future [9].

Ameren Missouri receives approval to build vital dispatchable energy source and closes on three solar generation projects in 2024ST. LOUIS, Oct. 31, 2024 /PRNewswire/ -- Ameren Missouri, a subsidiary of Ameren Corporation (NYSE: AEE), received approval Wednesday from the Missouri Public Service Commission to build an 800-megawatt (MW) simple-cycle natural gas energy center expected to be ready to serve as a reliable backup source of energy in 2027. The Castle Bluff Energy Center represents an investment of ...

Company Overview - Ameren (AEE) is expected to report a year-over-year increase in earnings, with a projected EPS of $1.93, reflecting a change of +3.2% [3] - Revenues for the quarter are anticipated to be $2.21 billion, which is a 7.2% increase from the previous year [3] Earnings Expectations - The earnings report is scheduled for November 6, 2024, and the stock price may react positively if results exceed expectations [2] - Conversely, if the results fall short, the stock may decline [2] Estimate Revisions - The consensus EPS estimate has been revised 12.41% higher in the last 30 days, indicating a reassessment by analysts [4] - However, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, leading to an Earnings ESP of -2.04%, suggesting a bearish outlook [10] Historical Performance - In the last reported quarter, Ameren had an EPS of $0.97, surpassing the expected $0.93, resulting in a surprise of +4.30% [11] - Over the past four quarters, Ameren has beaten consensus EPS estimates two times [12] Market Context - The utility sector, particularly the Electric Power industry, is seeing similar trends with other companies like PSEG, which is expected to post earnings of $0.91 per share, a +7.1% change year-over-year [16] - PSEG's revenue is projected at $2.48 billion, up 0.9% from the previous year [16]