ST. LOUIS, March 26, 2025 /PRNewswire/ -- Union Electric Company, doing business as Ameren Missouri, a subsidiary of Ameren Corporation (NYSE: AEE), announced today the pricing of a public offering of $500 million aggregate principal amount of 5.25% first mortgage bonds due 2035 at 99.975% of their principal amount. The transaction is expected to close on April 4, 2025, subject to the satisfaction of customary closing conditions. Ameren Missouri intends to use the net proceeds of the offering to repay short ...

For those looking to find strong Utilities stocks, it is prudent to search for companies in the group that are outperforming their peers. Is Ameren (AEE) one of those stocks right now? A quick glance at the company's year-to-date performance in comparison to the rest of the Utilities sector should help us answer this question.Ameren is one of 104 companies in the Utilities group. The Utilities group currently sits at #4 within the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measu ...

Industry Overview - The global shift towards renewable energy has significantly increased the demand for reliable energy storage solutions due to the intermittent nature of sources like solar and wind [1] - Global electricity consumption is expected to rise rapidly from 2025 to 2027, creating growth opportunities for renewable energy and battery storage companies [2][3] - The International Energy Agency (IEA) forecasts that by 2025, renewables will account for over one-third of global electricity generation, surpassing coal [3] Investment Opportunities - Companies in the renewable energy and battery storage sectors are positioned for profitable growth due to stable electricity demand, government incentives, and technological advancements that lower production costs [4] - Ameren (AEE) is expanding its renewable portfolio with plans to add 4,200 MW of renewable generation and 1,000 MW of battery storage by 2030, supported by a $16.2 billion investment plan [6][7][8] - CMS Energy aims to add 9 GW of solar and 4 GW of wind capacity by 2045, with a $5.2 billion investment in renewables planned for 2025-2029 [9][10] Company Highlights - Bloom Energy (BE) has deployed approximately 1.4 GW of its Energy Server systems globally, enhancing its position in the renewable energy market [11] - Bloom Energy's collaboration with Equinix aims to provide sustainable on-site power for data centers, with projected sales growth of 18.3% for 2025 [12] - Stem Inc. has established itself as a leading clean energy software provider, with over 16,000 customers and significant projects in battery storage and solar asset management [13][14][15]

Economic Overview - The University of Michigan's Consumer Sentiment Index for mid-March dropped to 57.9, significantly below the consensus estimate of 63.2 and the final reading of 64.7 in February, indicating a decline in consumer confidence [4] - The short-term inflation outlook increased to 4.9% in March from 4.3% in February, the highest since November 2022, while the long-term inflation outlook rose to 3.9% from 3.4%, marking the highest since February 1991 [5] Investment Strategy - Investment in low-beta high-yielding stocks is recommended as a strategy to safeguard portfolios during uncertain market conditions, with the potential for upside if markets recover [6][8] - The utility sector is highlighted for its stability and consistent demand, making it a favorable choice for income-oriented investors [7][8] Company Highlights Ameren Corp. (AEE) - Ameren plans to invest up to $26.3 billion from 2025 to 2029 to enhance customer reliability and transition to cleaner energy sources [11][12] - Expected revenue and earnings growth rates for the current year are 6% and 6.7%, respectively, with a current dividend yield of 2.90% [14] Atmos Energy Corp. (ATO) - Atmos Energy benefits from rising demand for natural gas and has a long-term investment plan to improve pipeline reliability [15] - Expected revenue and earnings growth rates for the current year are 18.2% and 5.1%, respectively, with a current dividend yield of 2.37% [17] American Water Works Co. Inc. (AWK) - American Water Works is expanding through acquisitions and new water rates, with pending acquisitions expected to add 24,200 customers [21] - Expected revenue and earnings growth rates for the current year are 1.1% and 5.9%, respectively, with a current dividend yield of 2.15% [22] Entergy Corp. (ETR) - Entergy plans to invest $37 billion from 2025 to 2028 to modernize its infrastructure and expand renewable capacity [23] - Expected revenue and earnings growth rates for the current year are 5.5% and 6.3%, respectively, with a current dividend yield of 2.90% [25] NiSource Inc. (NI) - NiSource expects to invest $19.4 billion from 2025 to 2029 to modernize infrastructure and aims to retire all coal-generating sources by 2028 [26][27] - Expected revenue and earnings growth rates for the current year are 11.1% and 9.1%, respectively, with a current dividend yield of 2.90% [28]

Core Insights - The article highlights a significant number of companies announcing dividend increases, with over 30 companies reported in a single week, which is considered rare in the investment landscape [1] Group 1: Dividend Increases - The focus is on upcoming dividend increases, indicating a positive trend in companies rewarding shareholders [1] - The article suggests that investors, particularly younger ones, should consider these dividend increases as part of their strategy to build a growing income stream [1] Group 2: Investment Tools - The article introduces a platform, customstockalerts.com, which provides utilities for investors to track stock performance and receive alerts on price changes, dividend yields, and upcoming dividends [1] - This tool aims to assist investors in making informed decisions regarding their investments and maximizing dividend collection opportunities [1]

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1] Company Overview: Ameren (AEE) - Ameren currently holds a Momentum Style Score of B, indicating a solid momentum pick [2] - The company has a Zacks Rank of 2 (Buy), suggesting it is positioned for potential outperformance in the market [3] Performance Metrics - Over the past week, AEE shares increased by 3.06%, outperforming the Zacks Utility - Electric Power industry, which rose by 1.06% [5] - In the last quarter, AEE shares gained 8.19%, and over the past year, they have increased by 32.92%, while the S&P 500 saw movements of -5.43% and 13.83%, respectively [6] - The average 20-day trading volume for AEE is 2,052,325 shares, indicating a bullish sentiment with rising stock prices [7] Earnings Outlook - In the past two months, three earnings estimates for AEE have been revised upwards, with no downward revisions, leading to an increase in the consensus estimate from $4.93 to $4.94 [9] - For the next fiscal year, two estimates have also moved upwards, reflecting positive sentiment regarding AEE's earnings potential [9] Conclusion - Considering the positive performance metrics and earnings outlook, AEE is positioned as a 2 (Buy) stock with a Momentum Score of B, making it a strong candidate for near-term investment [10][11]

Core Points - Ameren Corporation announced a public offering of $750 million in senior notes with a 5.375% interest rate due in 2035, priced at 99.822% of their principal amount [1] - The offering is expected to close on March 7, 2025, pending customary closing conditions [1] - The net proceeds will be used for general corporate purposes, including repayment of short-term debt [1] 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 [4] - Ameren Illinois provides electric transmission and distribution as well as natural gas distribution services, while Ameren Missouri offers electric generation, transmission, and distribution services along with natural gas distribution [4] - Ameren Transmission Company of Illinois focuses on developing, owning, and operating rate-regulated regional electric transmission projects [4]

Core Viewpoint - Ameren Illinois Company has announced a public offering of $350 million in first mortgage bonds with a 5.625% interest rate, maturing in 2055, expected to close on March 3, 2025 [1][2] Group 1: Offering Details - The bonds are priced at 99.986% of their principal amount [1] - The net proceeds will be used to repay $300 million of 3.25% senior secured notes due in 2025 and to refinance part of the short-term debt [2] - The offering is managed by BNY Mellon Capital Markets, BofA Securities, Morgan Stanley, and Truist Securities [2] Group 2: Company Overview - Ameren Illinois serves 1.2 million electric and over 800,000 natural gas customers across central and southern Illinois [4] - The service area encompasses more than 1,200 communities and covers 43,700 square miles [4] - The company's mission is to enhance the quality of life through energy delivery [4]

Core Viewpoint - The Electric Power industry is transitioning towards cleaner energy sources, supported by government initiatives, while also focusing on infrastructure resilience to mitigate the impacts of natural disasters [1][5]. Industry Overview - The Utility – Electric Power industry encompasses the generation, transmission, distribution, storage, and sale of electricity, with a significant portion of earnings derived from regulated operations [3]. - Demand for electricity remains stable across economic cycles, with seasonal weather variations influencing consumption [3]. - The industry is witnessing a shift towards zero-emission goals, driven by increasing electricity demand from global internet usage and anticipated growth in artificial intelligence [3]. Industry Trends - Interest Rate Decline: The Federal Reserve's recent rate cuts have reduced benchmark rates by 100 basis points to a range of 4.25-4.50%, benefiting capital-intensive utilities planning infrastructure investments [4]. - Transition to Cleaner Energy: The share of U.S. electricity generation from renewable sources is projected to rise from 23% in 2024 to 27% by 2026, aided by the Inflation Reduction Act [5]. - Rising Demand and Prices: U.S. electricity supply is expected to increase by 2% in 2025 and 1% in 2026, with residential electricity prices projected to average 16.94 cents per kWh in 2025, a 2.7% increase from 2024 [6]. Industry Performance - The Utility Electric Power industry has gained 21.6% over the past 12 months, outperforming its sector's 15.7% increase but lagging behind the S&P 500's 24.2% gain [10]. - The industry is currently trading at an EV/EBITDA of 14.01X, lower than the S&P 500's 17.7X and the Utility sector's 14.19X, indicating a discount compared to historical valuations [12]. Company Highlights - **Vistra Corp. (VST)**: Plans to invest nearly $2.22 billion in 2025, with a long-term earnings growth rate of 23.05% [17][18]. - **Exelon Corporation (EXC)**: Aims to invest $38 billion from 2025 to 2028, with a current dividend yield of 3.55% and a long-term earnings growth rate of 5.71% [20][21]. - **Entergy Corporation (ETR)**: Plans to deploy approximately $37 billion from 2025 to 2028, with a long-term earnings growth rate of 8.4% [21][22]. - **Ameren Corporation (AEE)**: Expected to invest over $26.3 billion from 2025 to 2029, with a long-term earnings growth rate of 6.6% [24][25].

Energy Generation and Supply - Ameren Missouri's electric supply is primarily generated from its energy centers, with factors influencing power purchases including outages and renewable energy requirements [109]. - The peak demand for the AMMO balancing authority area was 7,560 MWs in 2024, while the AMIL balancing authority area reached 8,479 MWs [106]. - Ameren Missouri plans to add 1,600 MW of natural gas-fired simple-cycle generation by 2030 and 2,100 MW of natural gas-fired combined-cycle generation by 2035 [117]. - Ameren Missouri aims to add 3,200 MW of renewable generation by 2030, including 900 MW of solar projects [117]. - Ameren Missouri burned approximately 10.7 million tons of coal in 2024 [122]. - Coal accounted for 50.5% of Ameren Missouri's energy supply in 2024, down from 54.6% in 2023 [161]. - The coal generation total decreased to 1.6 billion in 2024 from 1.9 billion in 2023, a decline of 15.8% [162]. - Renewable generation capacity increased to 2.4 billion from 1.4 billion in 2023, a significant growth of 71.4% [162]. Financial Performance and Investments - Ameren Illinois is subject to an average annual rate base of $4.2 billion to $4.8 billion from 2024 to 2027, as approved by the ICC [96]. - The allowed return on equity (ROE) for Ameren Illinois' electric distribution service is set at 8.72% [93]. - The total electric operating revenues for Ameren in 2024 were $6,540 million, compared to $6,439 million in 2023 [158]. - Ameren Missouri's total electric operating revenues for 2024 were $3,847 million, compared to $3,694 million in 2023, reflecting a growth of approximately 4.1% [158]. - The total rate base for Ameren increased to $27.7 billion in 2024, up from $25.8 billion in 2023, reflecting a growth of 7.4% [162]. - Ameren's total natural gas operating revenues for 2024 were $1,083 million, slightly up from $1,061 million in 2023, an increase of 2.1% [162]. - The rate base for natural gas transmission and distribution rose to $3.3 billion in 2024, compared to $3.2 billion in 2023, an increase of 3.1% [162]. Regulatory Environment - The FERC regulates Ameren Missouri's, Ameren Illinois', and ATXI's cost-based rates for wholesale transmission and distribution of energy [92]. - The regulatory lag for Ameren's electric and natural gas jurisdictions varies, with Ameren Transmission experiencing the least amount of lag [91]. - The company faces regulatory challenges, including potential changes in environmental laws and cybersecurity risks, which could impact operational control and financial performance [154]. - Ameren's ability to recover and earn a fair return on investments may be affected by changes in the allowed return on equity (ROE) and regulatory lag [157]. Workforce and Human Capital Management - The total attrition rate for Ameren's workforce was 7% in 2024, primarily due to retirements, allowing for proactive succession planning [150]. - As of December 31, 2024, Ameren's workforce demographics show 42% Millennials, 40% Generation X, and 11% Baby Boomers, indicating a young and diverse workforce [152]. - Ameren's human capital management strategy focuses on culture, leadership, talent, and rewards to enhance workforce engagement and performance [141]. - The collective bargaining units at Ameren's subsidiaries represented 46% of employees, with contracts expiring in 2025 and 2026 covering 4% and 96% of represented employees, respectively [152]. - The company expects continued constructive relationships with labor unions, with contracts covering significant portions of represented employees expiring in the coming years [152]. Energy Efficiency and Demand Response - Ameren Missouri has invested approximately $415 million in customer energy-efficiency and demand response programs through 2024 [134]. - The planned investment in customer energy-efficiency programs for Ameren Missouri is $51 million annually in 2025 and 2026, and $22 million in 2027 [134]. - Ameren Illinois plans to invest approximately $120 million in electric energy-efficiency programs in 2025 and $125 million annually from 2026 to 2029 [137]. - The ICC approved Ameren Illinois' electric and natural gas energy-efficiency plans for 2022 through 2025, authorizing expenditures of $476 million and $66 million, respectively [137]. - If 100% of performance goals are achieved, Ameren Missouri would earn performance incentive revenues of $5 million in 2025 and 2026, and $2 million in 2027 [134]. Power Procurement and Renewable Energy Credits - Ameren Illinois procured power for 25% of its total kilowatt-hour sales in 2024, down from 28% in 2023 and 2022 [116]. - Ameren Illinois is required to collect funds capped at $4.58 per MWh from customers for renewable energy credits [130]. - Ameren Illinois has contractual commitments to purchase approximately 1.6 million wind renewable energy credits and 3.6 million solar renewable energy credits per year [130]. - Ameren Illinois has entered into contracts to purchase approximately 0.6 million wind renewable energy credits per year, ending in 2032 [130]. Operational Metrics - Ameren Missouri's total electric sales for 2024 reached 34,833 million kilowatt-hours, a slight increase from 34,498 million in 2023 [158]. - Ameren Illinois Electric Distribution's total electric sales for 2024 were 33,911 million kilowatt-hours, up from 33,501 million in 2023 [158]. - Ameren Illinois Natural Gas total sales remained stable at 163 million dekatherms in both 2024 and 2023 [162]. - Ameren Missouri's residential natural gas revenues decreased to $90 million in 2024 from $100 million in 2023 [162]. - Ameren total natural gas sales decreased to 181 million dekatherms in 2024 from 182 million dekatherms in 2023, a decline of 0.5% [162].