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:
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 | |||
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, | ||
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 |
SOURCE Ameren Corporation
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