Ameren Corporation · NYSE:AEE
Ameren — AGA Financial Forum 2019
28 slides from Ameren's conference presentation, May 20, 2019
Slide 1: Building a Brighter Energy Future
Building a Brighter Energy Future AGA Financial Forum May 21-22, 2019
Slide 2: Cautionary Statements
Cautionary Statements Use of Non-GAAP Financial Measures In this presentation, Ameren has presented core earnings per share, which is a non-GAAP measure and may not be comparable to that of other companies. A reconciliation of GAAP to non-GAAP information is included in this presentation. Generally,
Slide 3: Company Description
Company Description Ameren Businesses 2.4M Fully rate-regulated electric and natural gas utility electric Ameren Missouri customers • Electric transmission, distribution, and generation business Corporate Headquarters and a natural gas distribution business in Missouri regulated Electric Service Ter
Slide 4: Our Value Proposition to Investors and Customers
Our Value Proposition to Investors and Customers Strong long-term Attractive Attractive total growth outlook dividend return potential • Expect 6% to 8% EPS CAGR from • Annualized equivalent dividend rate • Track record of delivering strong 2018-20231,2 of $1.90 per share provides results attractive
Slide 5: Our Strategic Plan
Our Strategic Plan • Investing in and operating our utilities in a manner consistent with existing regulatory frameworks • Enhancing regulatory frameworks and advocating for responsible energy and economic policies • Creating and capitalizing on opportunities for investment for the benefit of our cu
Slide 6: Solid Operating Performance
Solid Operating Performance Delivery system reliability has Generating plan performance Electric rates are low Strong safety performance improved remains solid Outage Frequency Distribution System Baseload Energy Center Average Residential Lost ¢/KWh Recordable Safety Performance Workday (per custom
Slide 7: Four Constructive Regulatory Frameworks
Four Constructive Regulatory Frameworks FERC-regulated: Formula ratemaking • Allowed ROE is 10.82%1, which includes the MISO participation adder of 50 basis points Ameren • Rates reset each Jan. 1 based on forward-looking calculation with annual reconciliation Transmission • Constructive rate treatm
Slide 8: Strong Rate Base Growth in All Regulatory Jurisdictions
Strong Rate Base Growth in All Regulatory Jurisdictions1 ~$13.3 Billion of Regulated Infrastructure Investment1,2 2018 to 2023E Regulated Five-Year Rate Infrastructure Rate Base1,2,3 Base CAGR 2019-2023 ($ billions) Ameren Illinois Ameren Illinois Electric Distribution Natural Gas $22.7 ~8% $2.5B $1
Slide 9: Expect to Deliver 6% to 8% EPS CAGR From 2018-2023
Expect to Deliver 6% to 8% EPS CAGR From 2018-2023 • Expect 2019 EPS in a range of $3.15 to $3.351 – Midpoint represents nearly 7% EPS growth compared to 2018 2018 Normalized Core EPS2 vs. weather-normalized core EPS2 2019E and Five-Year EPS Growth • Expect 6% to 8% EPS CAGR from 2018-20232,3 2023 –
Slide 10: Executing Our Strategy – Natural Gas Distribution System
Executing Our Strategy – Natural Gas Distribution System Investing in and operating our utilities in a manner consistent with existing regulatory frameworks • One of the nation’s largest natural gas distribution utilities – More than 0.9 million customers; 0.8 million in Illinois and 0.1 million in
Slide 11: Executing Our Strategy – Ameren Missouri Wind Investment
Executing Our Strategy – Ameren Missouri Wind Investment Creating and capitalizing on opportunities for investment for the benefit of our customers and shareholders • Entered into build-transfer agreements for up to 857 MWs of wind generation in Missouri, ~$1.4 billion investment, to comply with Mis
Slide 12: Ameren Missouri Smart Energy Plan Filed With MoPSC
Ameren Missouri Smart Energy Plan Filed With MoPSC on Feb. 14 Investing in and operating our utilities in a manner consistent with existing regulatory frameworks • Five-year $6.3 billion investment plan1 with focus on modernizing energy grid and adding renewables – Automate the electric distribution
Slide 13: Expected 2019-2023 Funding Plan
Expected 2019-2023 Funding Plan1 • Comfortable with capitalization levels at each legal entity – Expect capitalization levels over the five-year period to remain in line with those at the end of 2018 • Cash from Operations – Return of capital through depreciation in rates – Return on equity-financed
Slide 14: Executing Our Strategy - Illinois Proposed Legislation
Executing Our Strategy - Illinois Proposed Legislation Enhancing regulatory frameworks and advocating for responsible energy and economic policies • HB 3152, as amended, passed Public Utilities Committee Apr. 11 (10 Yes/0 No); SB 2080 passed Energy and Public Utilities Committee Mar. 21 (18 Yes/0 No
Slide 15: Select Regulatory Matters – Ameren Missouri and Ameren Illinois
Select Regulatory Matters – Ameren Missouri and Ameren Illinois Ameren Missouri • On May 3, 2019, filed 60-day notice for electric rate review with MoPSC – Intend to file rate review as early as July 2019 – Key drivers include increased infrastructure investments and other costs of service; will inc
Slide 16: Select Regulatory Matters – Ameren Transmission
Select Regulatory Matters – Ameren Transmission • First and second complaint cases to reduce MISO’s FERC base ROE – In Sept. 2016, FERC order issued in first complaint case set base ROE of 10.32% resulting in a total ROE of 10.82% including 50 basis point adder for MISO participation; order remains
Slide 17: Executing Our Strategy – Investing in the Energy Grid
Executing Our Strategy – Investing in the Energy Grid Creating and capitalizing on opportunities for investment for the benefit of our customers and shareholders • Expect energy grid will be increasingly more important and valuable to our customers, communities and shareholders – Investing to modern
Slide 18: ESG: Environmental Focus – Achieving Balance Responsibly
ESG: Environmental Focus – Achieving Balance Responsibly • Transitioning Ameren Missouri’s generation to a Ameren’s Planned CO2 Emissions cleaner, more diverse portfolio in a responsible fashion – Preferred plan1 includes addition of at least 700 MWs of wind Percent Reductions from 2005 generation b
Slide 19: ESG: Social and Governance Focus – Culture of Sustainability
ESG: Social and Governance Focus – Culture of Sustainability Hyperlinked below • Diverse Board of Directors focused on strong accountability and governance – Board committed to maintaining a balance of perspectives, qualifications, qualities and skills DI • 50% are women or ethnically diverse – All
Slide 20: Summary
Summary Expect to deliver strong earnings growth in 2019 with guidance in a range of $3.15 to $3.35 per diluted share1 Successfully executing our strategy; well positioned for future growth Strong long-term growth outlook • Expect 6% to 8% compound annual EPS growth from 2018 through 20232,3,4 • Exp
Slide 21: Appendix
RZ “7 Ameren
Slide 22: 2019 First Quarter Earnings Analysis
2019 First Quarter Earnings Analysis Key Earnings Variance Drivers ↑ Ameren Illinois Natural Gas earnings — Higher delivery service rates incorporating increased infrastructure Diluted EPS investments and higher allowed ROE: +$0.02 Q1 2018 vs. Q1 2019 — Change in rate design; not expected to impact
Slide 23: 2019 EPS Guidance and Select Balance of the Year Considerations
2019 EPS Guidance and Select Balance of the Year Considerations1 • Affirmed 2019 diluted EPS guidance range of $3.15 to $3.35 • Select considerations for Q2-Q4 2019 EPS compared to Q2-Q4 2018 2019E Diluted EPS core EPS – Ameren Missouri return to normal weather in 2019: Q2 ~$(0.21); Q3 ~$(0.06); $3.
Slide 24: 2019 Long-Term Debt Financings and Maturities; Ameren Credit Ratings
2019 Long-Term Debt Ameren Credit Ratings Financings and Maturities and External Debt Balances1 • On Mar. 6, Ameren Missouri issued $450 As of Mar. 31, 2019 $ in millions Moody's S&P million of 3.50% first mortgage bonds due 2029 Ameren Corporation (Issuer: Baa1/BBB+) – Proceeds used to repay short-
Slide 25: 2018 GAAP to Core Earnings Reconciliation
2018 GAAP to Core Earnings Reconciliation (in millions, except per share amounts) Year Ended Dec. 31, 2018 GAAP Earnings / Diluted EPS $815 $3.32 Charge for revaluation of deferred taxes resulting from decreased federal 13 0.05 income tax rate Core Earnings / Diluted EPS $828 $3.37 • Core earnings f
Slide 26: Investor Relations Calendar
Investor Relations Calendar MAY 2019 AUGUST 2019 SUN. MON. TUES. WED. THUR. FRI. SAT. SUN. MON. TUES. WED. THUR. FRI. SAT. 1 2 3 4 1 2 3 Q1 2019 Annual Q2 2019 Q2 2019 Quiet Shareholder Quiet Period, Earnings Period, Meeting Cont’d Call Cont’d 5 6 7 8 9 10 11 4 5 6 7 8 9 10 Q1 Earnings Call & WF / E
Slide 27: Select Regulatory Matters
Select Regulatory Matters Missouri Public Service Commission • Senate Bill 564: http://www.senate.mo.gov/18info/pdf-bill/perf/SB564.pdf • Order approving Renewable Choice Program agreement: Docket No. ET-2018-0063 • Order approving CCN for up to 400-MW wind facility and use of RESRAM: Docket No. EA-
Slide 28: Glossary of Terms and Abbreviations
Glossary of Terms and Abbreviations AFUDC – Allowance for funds used during construction MEEIA – Missouri Energy Efficiency Investment Act ALJ – Administrative Law Judge MISO – Midcontinent Independent System Operator, Inc. ATXI – Ameren Transmission Company of Illinois MoPSC – Missouri Public Servi