Ameren Corporation · NYSE:AEE
Ameren — Q1 2019 Earnings Presentation
24 slides from Ameren's earnings presentation, May 9, 2019
Slide 1: Building a Brighter Energy Future
Building a Brighter Energy Future First Quarter 2019 Earnings May 9, 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: Business Update
Business Update Warner Baxter Chairman, President and Chief Executive Officer Ameren Corporation
Slide 4: Earnings and Guidance Summary
Earnings and Guidance Summary • Affirm 2019 diluted EPS guidance range of $3.15 to $3.35 Diluted EPS Q1 2018 vs. Q1 2019 • Key Q1 Earnings Variance Drivers $0.78 ↑ Higher Ameren Illinois Natural Gas delivery service rates and change in rate design $0.62 ↑ Increased earnings on infrastructure investm
Slide 5: Executing Our Strategy
Executing Our Strategy Our Strategic Plan • Investing in and operating our utilities in a manner consistent with Capital Expenditures existing regulatory frameworks YTD Mar. 31, 2019 • Enhancing regulatory frameworks and advocating for responsible ($ millions) energy and economic policies $536 • Cre
Slide 6: 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 • Pursuing ownership of at least 700 MWs of wind generation by 2020 with multiple developers to comply with Missouri’s RES • Entered in
Slide 7: 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 8: Long-Term Total Return Outlook
Long-Term Total Return Outlook • Expect 6% to 8% EPS CAGR from 2018-20231,2,3 – Primarily driven by strong rate base growth 2018-2023E Regulated Five-Year Rate • Expect ~8% rate base CAGR from 2018-20231 Infrastructure Rate Base1,4 Base CAGR1 – Includes ~$1 billion wind generation investment related
Slide 9: Financial Update
Financial Update Marty Lyons Executive Vice President and Chief Financial Officer Ameren Corporation
Slide 10: 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 11: 2019 EPS Guidance and Select Balance of the Year Considerations
2019 EPS Guidance and Select Balance of the Year Considerations • Affirm 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); $3.35
Slide 12: 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 13: 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 o
Slide 14: Summary
Summary Expect to deliver strong earnings growth in 2019 with guidance in a range of $3.15 to $3.35 per diluted share 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 20231,2,3 • Expe
Slide 15: Appendix
RZ “7 Ameren
Slide 16: 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 17: 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 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: 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 21: 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 22: Investor Relations Calendar
Investor Relations Calendar MAY 2019 SUN. MON. TUES. WED. THUR. FRI. SAT. 1 2 3 4 Q1 2019 Annual Quiet Shareholder Period, Meeting Cont’d 5 6 7 8 9 10 11 Q1 Earnings Call & WF / EJ Mtg. 12 13 14 15 16 17 18 19 20 21 22 23 24 25 AGA Conf. AGA Conf. 26 27 28 29 30 31 May 2 Annual Shareholder Meeting M
Slide 23: 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 24: 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