Ameren Corporation · NYSE:AEE
Ameren — Wolfe Research Utilities, Midstream & Clean Energy Conference 2024
39 slides from Ameren's conference presentation, Oct 2, 2024
Slide 1: Powering a Reliable, Sustainable Tomorrow
Powering a Reliable, Sustainable Tomorrow Wolfe Research Utilities, Midstream & Clean Energy Conference Oct. 2, 2024
Slide 2: Cautionary Statements
Cautionary Statements Use of Non-GAAP Financial Measures In this presentation, Ameren has presented weather-normalized and core earnings per share, which are non-GAAP financial measures and may not be comparable to those of other companies. A reconciliation of GAAP to non-GAAP information is include
Slide 3: Company Description
Company Description Fully rate-regulated electric and natural gas utility Ameren Businesses 2.4M electric Ameren Missouri customers • Electric transmission, distribution, and generation business and a natural gas distribution business in Missouri regulated by MoPSC 0.9M gas • Serves 1.2 million elec
Slide 4: Our Value Proposition for Customers, Shareholders and the Environment
Our Value Proposition for Customers, Shareholders and the Environment Attractive dividend Strong long-term and long-term dividend growth Attractive total growth outlook outlook return potential • Expect 6% to 8% EPS CAGR 2024-20281,2 • Annualized equivalent dividend rate of • Track record of deliver
Slide 5: Strong Track Record of EPS and Dividend Growth
Strong Track Record of EPS and Dividend Growth Weather-Normalized Core Dividends Paid per Share3 Total Shareholder Earnings per Diluted Share1 and Payout as a % of WN EPS Return $4.50 +112% or $2.80 ~+58% 2013 to 2023 $4.62 180% $4.25 ~7.8% CAGR 2013 to 2023 $4.41 $2.60 $2.68 | 58% , 2013 to 2023 17
Slide 6: Our Strategic Plan
Our Strategic Plan INVEST ENHANCE OPTIMIZE Enhance regulatory Invest in rate regulated Optimize operating frameworks and advocate energy infrastructure performance for responsible policies To capitalize on opportunities to benefit our customers, communities, shareholders and the environment Wolfe Re
Slide 7: Four Regulatory Frameworks
Four Regulatory Frameworks FERC-regulated: Formula ratemaking Ameren • Allowed ROE is 10.52%, including MISO participation adder of 50 basis points; ~56% average equity ratio Transmission • Rates reset each Jan. 1 based on forward-looking calculation with annual reconciliation ICC-regulated: Future
Slide 8: Expect to Deliver Strong Long-Term EPS and Dividend Growth
Expect to Deliver Strong Long-Term EPS and Dividend Growth • Expect 2024 EPS in a range of $4.52 to $4.721 – Midpoint represents 6.2% EPS growth compared to 2023 original guidance midpoint of $4.35 Original EPS Guidance • Remain on track to deliver strong long-term earnings growth – Expect 6% to 8%
Slide 9: Strategically Allocated Rate Base Growth
Strategically Allocated Rate Base Growth1 Increased five-year infrastructure investment plan by $2.2B2 $21.9 Billion of Regulated Infrastructure Investment 2023 to 2028E Regulated Five-Year Rate 2024-2028 Infrastructure Rate Base3,4 Base CAGR4,5 Ameren Illinois ($ billions) Ameren Illinois $36.4 Ele
Slide 10: Expected 2024-2028 Funding Plan
Expected 2024-2028 Funding Plan1 • Cash from Operations – ~$2 billion of income tax deferrals and tax asset utilization • Income tax deferrals primarily driven by capital expenditures • Includes utilization of ~$60 million of federal and state tax credit carryforwards at year- end 2023 • 15% corpora
Slide 11: Ameren Missouri New Generation Projects
Ameren Missouri New Generation Projects Cleaner, More Reliable Energy Through a Balanced Energy Portfolio Simple Solar Cycle Gas Cass Bowling Huck Finn1,2 Boomtown2,3 Vandalia2 Split Rail Castle Bluff County2,3 Green2 Facility size 200 MW 150 MW 150 MW 50 MW 50 MW 300 MW 800 MW Agreement Build- Buil
Slide 12: Robust Customer Growth Opportunities
Robust Customer Growth Opportunities Facilitating Growth in Our Region While Delivering Value for All Customers • Robust pipeline of potential customers conducting formal engineering reviews Economic Development Pipeline of locations in our territory Represents Thousands of MW of Potential New Deman
Slide 13: MISO Long-Range Transmission Planning Projects
MISO Long-Range Transmission Planning Projects Meeting Our Customers’ Needs Through Geographic Energy Diversity and Increased Import Capacity • MISO proposed Tranche 2.1 projects estimated to cost $21.8 billion1; expect MISO approval Dec. 12, 2024 – Portfolio focuses on creating high-voltage transmi
Slide 14: Focused on Disciplined Cost Management to Drive Affordability
Focused on Disciplined Cost Management to Drive Affordability Optimize operating performance to benefit our customers, shareholders and the environment • Track record of disciplined cost management – Target flat operations and maintenance expenses through 2028 • Enhanced continuous improvement and d
Slide 15: Investing in the Energy Grid
Investing in the Energy Grid • Investing to modernize energy grid, making it cleaner, safer, more reliable, resilient and secure – Ameren Missouri Smart Energy Plan filed with the MoPSC supporting infrastructure investment to 2023-2028E Regulated modernize the grid Infrastructure Rate Base – Expect
Slide 16: Robust Investment Opportunities Across All Businesses Over Next Decade
Robust Investment Opportunities Across All Businesses Over Next Decade1 Modernizing the grid and investing in cleaner generation Investment Plan 2024-2028 $55B+ ($ billions) $21.9 Strong Pipeline of Regulated Infrastructure Investments $4.1 2024-2033 $1.8 • Modernize electric and gas transmission an
Slide 17: Financial and Regulatory Updates
Financial and Regulatory Updates Ameren Transmission Monopole Tower 2024
Slide 18: 2024 Earnings Analysis for Six Months Ended June 30
2024 Earnings Analysis for Six Months Ended June 30 ↑ Ameren Missouri earnings — New electric service rates effective July 9, 2023: +$0.09 — Higher electric retail sales: ~+$0.08 Diluted EPS2 • Weather vs. 2023: ~+$0.05; vs. normal ~+$0.00 YTD June 2023 vs. YTD June 2024 • WN sales vs. 2023 (excl. M
Slide 19: 2024 Financings, Credit Ratings and External Debt Balances
Credit Ratings4 and 2024 Financings External Debt Balances Debt Financing • On Jan. 9, Ameren Missouri issued $350 million of 5.25% first mortgage bonds due 20541 As of June 30, 2024 $ in millions Moody's S&P • On Apr. 4, Ameren Missouri issued $500 million of 5.20% first Ameren Corporation (Issuer:
Slide 20: Missouri Electric Regulatory Matters
Missouri Electric Regulatory Matters 2024 Missouri Electric Rate Review Filing • $446 million annual revenue increase request filed June 28 with MoPSC Ameren Missouri – ROE: 10.25% Residential Electric Rates 2 – Equity ratio: 52.0% ¢/kWh – Rate base: $14 billion (Dec. 31, 2024 estimate) – Test year
Slide 21: Missouri Electric Regulatory Matters, Cont'd
Missouri Electric Regulatory Matters, Cont’d Securitization of Rush Island • In June 2024, MoPSC approved securitization of ~$470 million of costs associated with the Rush Island Energy Center – Includes undepreciated plant and decommissioning costs – Requested costs not securitized expected to be r
Slide 22: Federal Regulatory Matters
Federal Regulatory Matters Rush Island New Source Review Proceedings • In Dec. 2021, Ameren Missouri announced its intention to accelerate the Rush Island Energy Center retirement, in lieu of installing a flue gas desulfurization scrubber system • In March 2024, the District Court1 ordered parties t
Slide 23: Illinois Regulatory Matters
Illinois Regulatory Matters Electric Distribution Reconciliation for 2023 • In July 2024, updated request for a $158 million reconciliation adjustment to the 2023 revenue requirement reflecting actual costs – Based on 2023 year-end rate base of $4.2 billion, 9.84% ROE, and 50% equity ratio – Include
Slide 24: Illinois Electric Distribution Multi-Year Rate Plan for 2024 - 2027
Illinois Electric Distribution Multi-Year Rate Plan for 2024 - 2027 ICC Order on Rehearing Order on Rehearing Key Components 2024 2025 2026 2027 • In June 2024, ICC approved a cumulative revenue increase of $285 million1 reflecting a base level of grid reliability investment Revenue Requirement $1,1
Slide 25: Summary
Summary Expect to deliver strong earnings growth in 2024 with guidance in a range of $4.52 to $4.72 per diluted share1 Successfully executing our strategy; well-positioned for future growth • Focused on delivering a cleaner and sustainable energy future in a responsible manner Strong long-term growt
Slide 26: Appendix
Appendix Ameren Missouri’s Montgomery Community Solar Energy Center in service March 2022
Slide 27: Our Sustainability Value Proposition
Our Sustainability Value Proposition ENVIRONMENTAL STEWARDSHIP SOCIAL IMPACT • Responsibly transitioning to a cleaner and more diverse portfolio • Delivered value to customers in 2023 while focused on safety ‒ Target carbon reductions from 2005 levels: 60% by 2030; 85% by 2040; net ‒ Ameren-supplied
Slide 28: Missouri Integrated Resource Plan filed with MoPSC Sep. 2023
Missouri Integrated Resource Plan filed with MoPSC Sep. 20233 Least-cost approach to reliably meet customer energy needs in an environmentally responsible manner • Carbon emissions1: Targets substantial reductions; 60% by 2030, 85% by 2040 and net-zero by 2045 • Coal: All energy centers retired by 2
Slide 29: Ameren Missouri Smart Energy Plan filed with MoPSC
Ameren Missouri Smart Energy Plan filed with MoPSC on Feb. 23 Investing in rate regulated energy infrastructure to benefit our customers, shareholders and the environment • $1.7 billion invested in 2023 to support reliability, address aged infrastructure and provide clean energy to the customers and
Slide 30: Building a Brighter and Cleaner Energy Future
Building a Brighter and Cleaner Energy Future Innovative Programs to Meet Customer Needs and Rising Expectations Utility-owned solar Subscription program generation in MO that available to MO residential benefits diverse Neighborhood Community and small business communities with jobs training, solar
Slide 31: Ameren Illinois Electric Distribution Multi-Year Rate Plan Performance Metrics
Ameren Illinois Electric Distribution Multi-Year Rate Plan Performance Metrics Adjustment / Metric Description Incentive (+/- bps) Improve System Average Interruption Duration Index (SAIDI) systemwide; improve interruption and 1. Reliability duration outages (SAIDI, SAIFI, CEMI, and CELID) in enviro
Slide 32: Illinois Regulatory Matters
Illinois Regulatory Matters Natural Gas Distribution • On Nov. 16, 2023, ICC approved a $112 million annual base rate increase; includes $77 million that would otherwise be recovered in 2024 under riders – 2024 future test year – 9.44% allowed return on equity and 50% common equity ratio – $2.85 bil
Slide 33: Long-Term Debt Maturities and Interest Rates
Long-Term Debt Maturities and Interest Rates Issuer 20241 2025 2026 2027 2028 $350 million 3.65% senior unsecured notes $450 million 2.50% $500 million 1.95% $450 million 1.75% Ameren Corp. senior unsecured notes senior unsecured notes senior unsecured notes $600 million 5.70% senior unsecured notes
Slide 34: Ameren's Estimated Coal-Related Revenues in 2023
Ameren’s Estimated Coal-Related Revenues in 2023 Return on Investment Revenues Cost Recovery3 Revenues $1.97B1 x $1.97B1 x ($98M x $466M + 51.9%2 x 48.1% x 25%) / (1 $171M x $131M + 9.59%2 = 3.93% = - 25%) 17%1 = $265M = $98M $37M $33M $29M $862M $7,500M 14% Return on Interest Tax Expense Property F
Slide 35: GAAP to Core Earnings Per Share Reconciliations
GAAP to Core Earnings Per Share Reconciliations Year Ended Dec. 31, 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 GAAP Earnings / Diluted EPS $1.18 $2.40 $2.59 $2.68 $2.14 $3.32 $3.35 $3.50 $3.84 $4.14 $4.38 Exclude results from discontinued operations 0.87 — (0.01) — — — — — — — — Less: In
Slide 36: Weather-Normalized Earnings per Share Reconciliations
Weather-Normalized Earnings per Share Reconciliations Year Ended Dec. 31, 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Core1 Diluted EPS $2.10 $2.40 $2.56 $2.68 $2.83 $3.37 $3.35 $3.50 $3.84 $4.14 $4.38 Ameren Missouri weather impact 0.03 0.05 (0.04) 0.16 (0.07) 0.43 0.04 (0.05) 0.02 0.19
Slide 37: Investor Relations Calendar
Investor Relations Calendar SEPTEMBER 2024 OCTOBER 2024 SUN. MON. TUES. WED. THUR. FRI. SAT. SUN. MON. TUES. WED. THUR. FRI. SAT. 1 2 3 4 5 6 7 1 2 3 4 5 Wolfe Barclays Baltimore Power & Conf. Investor Leaders Meetings Conf. 8 9 10 11 12 13 14 6 7 8 9 10 11 12 Q3 Quiet Period Begins 15 16 17 18 19 2
Slide 38: Select Regulatory and Legislative Matters
Select Regulatory and Legislative Matters Missouri Public Service Commission • Pending electric rate review filling: Docket No. ER-2024-0319 • Pending CCN for Castle Bluff Energy Center: EA-2024-0237 • Pending gas rate review filing: Docket No. GR-2024-0369 • Order approving multi-project CCN for So
Slide 39: Glossary of Terms and Abbreviations
Glossary of Terms and Abbreviations ATXI – Ameren Transmission Company of Illinois kWh – Kilowatt-hour AFUDC – Allowance for Funds Used During Construction LRTP – Long Range Transmission Planning B – Billion LT – Long-term bps – Basis points M – Million CAGR – Compound annual growth rate MEEIA – Mis
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