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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].

Financial Data and Key Metrics Changes - Ameren Corporation reported adjusted earnings of $4.63 per share for 2024, an increase from $4.38 per share in 2023, exceeding the 2024 adjusted earnings guidance midpoint [11][39] - The company strategically invested approximately $4.3 billion in energy infrastructure in 2024, which contributed to operational and financial success [10][11] - Weather-normalized retail sales grew approximately 2% across Ameren Missouri, with specific growth rates of 2% in residential, 1.5% in commercial, and 3% in industrial sectors [41][42] Business Line Data and Key Metrics Changes - The successful execution of the infrastructure investment strategy improved grid resilience, preventing over 3.5 million minutes of potential outage time during severe winter storms [12] - The company expects to invest approximately $4.2 billion in electric, natural gas, and transmission infrastructure in 2025 to enhance safety, reliability, and responsiveness of the energy grid [15][19] Market Data and Key Metrics Changes - Ameren's weather-normalized retail sales are projected to increase approximately 5.5% compounded annually from 2025 through 2029, a significant increase from previous expectations of flat to 0.5% growth [22] - The company anticipates a robust economic growth pipeline across multiple sectors, including aviation, biotechnology, and data centers, which will drive energy demand [21][22] Company Strategy and Development Direction - The company is guided by a Three Pillar strategy focusing on investing in rate-regulated infrastructure, enhancing regulatory frameworks, and optimizing operating performance [9] - Ameren's long-term growth outlook includes a compound annual earnings per share growth expectation of 6% to 8% from 2025 through 2029, with a focus on strategic infrastructure investments [16][37] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver strong long-term earnings growth driven by robust rate base growth and disciplined cost management [60] - The company plans to continue advocating for constructive energy policies to support economic growth and job creation within its communities [34][35] Other Important Information - Ameren's Board of Directors approved a quarterly dividend increase of approximately 6%, marking the 12th consecutive year of dividend growth [17][18] - The company has a robust 10-year investment pipeline of over $63 billion aimed at enhancing the reliability and efficiency of the energy grid [35] Q&A Session Summary Question: Can you elaborate on the growth profile and how close you are to the top end of the 6% to 8% range? - Management highlighted strong sales growth expectations and a robust capital plan, indicating that they expect to deliver near the upper end of the range in the mid to latter part of the five-year plan [66][71] Question: What is the capacity headroom in the resource mix if demand exceeds the current plan? - Management indicated that the current resource plan supports the ability to serve 2 gigawatts by 2032, with potential for additional capacity if demand increases [75][112] Question: Can you provide insights on the balance sheet and FFO to debt positioning? - Management expressed confidence in maintaining a strong balance sheet, indicating that they are positioned to support a Baa1 rating and are above the downgrade threshold [90][89] Question: How do you view the regulatory lag in the current investment cycle? - Management acknowledged the importance of managing regulatory lag and emphasized their proactive approach to ensure projects are in place to maximize returns [136][137]

Core Insights - Ameren Corporation (AEE) reported fourth-quarter 2024 earnings of 77 cents per share, missing the Zacks Consensus Estimate of 79 cents by 2.5%, but showing a 28.3% improvement from the previous year's figure of 60 cents [1] - For the full year 2024, adjusted earnings were reported at $4.63 per share, aligning with the Zacks Consensus Estimate [2] Revenue Performance - Total operating revenues for the fourth quarter reached $1.94 billion, a 20% increase year over year, surpassing the Zacks Consensus Estimate of $1.75 billion by 10.3% [3] - For the full year 2024, operating revenues amounted to $7.62 billion, up from $7.50 billion in the prior year, also exceeding the consensus estimate of $7.50 billion [3] Sales and Expenses - Total electricity sales volumes increased by 1.1% to 15,929 million kilowatt-hours (kWh) from 15,760 million kWh in the year-ago period, while gas volumes decreased by 1.9% to 53 million dekatherms [4] - Total operating expenses rose to $1.74 billion, reflecting a 28.7% year-over-year increase [4] - Interest expenses for the fourth quarter totaled $171 million, compared to $153 million in the prior-year quarter [4] Segment Performance - The Ameren Missouri segment reported adjusted earnings of $604 million in 2024, with GAAP earnings of $559 million compared to $545 million in 2023 [5] - The Ameren Illinois Electric Distribution segment reported earnings of $234 million in 2024, down from $258 million a year ago due to a lower allowed return on equity [5] - The Ameren Illinois Natural Gas segment saw earnings increase to $149 million in 2024 from $134 million, attributed to new delivery service rates and lower operational expenses [6] - The Ameren Transmission segment reported adjusted earnings of $333 million in 2024, with GAAP earnings of $323 million compared to $296 million in the prior year, driven by infrastructure investments [7] Financial Condition - As of December 31, 2024, cash and cash equivalents were reported at $7 million, down from $25 million at the end of 2023 [8] - Long-term debt increased to $17.26 billion from $15.12 billion as of December 31, 2023 [8] - Cash flow from operating activities amounted to $2.76 billion, compared to $2.56 billion a year ago [8] 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 $4.93 per share [9] Zacks Rank - Ameren currently holds a Zacks Rank 3 (Hold) [10]

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 items that management does not consider representative of ongoing earnings, s ...

Company also details benefits from Smart Energy Plan investments in a stronger grid that saved customers 8 million minutes in outages in 2024 ST. LOUIS, Feb. 14, 2025 /PRNewswire/ -- Ameren Missouri, a subsidiary of Ameren Corporation (NYSE: AEE), announced a significant change to its generation strategy, aiming to accelerate generation investments to support robust economic expansion, bolster reliability and create jobs across Missouri. The revision to Ameren Missouri's Preferred Resource Plan in its Integ ...

Core Viewpoint - Ameren reported quarterly earnings of $0.77 per share, missing the Zacks Consensus Estimate of $0.79 per share, but showing an increase from $0.60 per share a year ago, indicating a -2.53% earnings surprise [1] - The company posted revenues of $1.94 billion for the quarter, exceeding the Zacks Consensus Estimate by 10.32%, compared to $1.62 billion in the same quarter last year [2] Earnings Performance - Over the last four quarters, Ameren has surpassed consensus EPS estimates only once [2] - The company had an earnings surprise of -2.09% in the previous quarter, with actual earnings of $1.87 per share against an expectation of $1.91 per share [1] Stock Performance - Ameren shares have increased by approximately 9.1% since the beginning of the year, outperforming the S&P 500's gain of 2.9% [3] Future Outlook - The company's earnings outlook is crucial for investors, including current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the next quarter is $1.16 on revenues of $1.97 billion, and for the current fiscal year, it is $4.93 on revenues of $8.05 billion [7] Industry Context - The Utility - Electric Power industry, to which Ameren belongs, is currently ranked in the bottom 43% of over 250 Zacks industries, which may impact stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, suggesting that tracking these revisions can be beneficial for investors [5][6]