Ameren Corporation · NYSE:AEE
Ameren — Debt Investor Presentation (September 2017)
27 slides from Ameren's debt investor presentation, Sep 19, 2017
Slide 1: Lead Today. Transform Tomorrow.
Lead Today. Transform Tomorrow. Boston and New York Fixed Income Investor Meetings Sept. 19-20, 2017
Slide 2: Cautionary Statements
Cautionary Statements Use of Non-GAAP Financial Measures In this presentation, Ameren has presented core earnings guidance, 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 on the slide where the non-GAAP
Slide 3: Ameren Corporation Representatives
Ameren Corporation Representatives Bruce Steinke Ryan Martin Doug Fischer Senior Vice President, Vice President Senior Director, Finance and and Treasurer Investor Relations Chief Accounting Officer 3 | Boston and New York Fixed Income Investor Meetings | Sept. 19-20, 2017
Slide 4: Company Description and Ameren Businesses
Company Description 2.4M electric Ameren Businesses customers Fully rate-regulated electric Ameren Missouri and gas utility • Electric generation, transmission and distribution business 0.9M gas and a natural gas distribution business in Missouri regulated Corporate Headquarters customers by MoPSC E
Slide 5: Ameren Organizational Structure and External Debt Balances
Ameren Organizational Structure and External Debt Balances1 $ in millions as of June 30, 2017 Ameren Corporation (Baa1/BBB+) Sr. Unsecured (Baa1/BBB) - $700 Commercial paper (P-2/A-2) - $6732 Ameren Missouri Ameren Illinois ATXI (Baa1/BBB+) (Baa1/BBB+) (A2/-) Sr. Secured (A2/A) - $3,712 Sr. Secured
Slide 6: 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 7: Solid Operating Performance
Solid Operating Performance Electric rates Delivery system reliability Generating plant Strong safety performance are low has improved performance remains solid Average Residential Safety Distribution System Baseload Energy Electricity Prices1 Performance Reliability2 Center Performance Recordable L
Slide 8: Our Regulatory Frameworks
Our Regulatory Frameworks FERC-regulated: Formula ratemaking • Allowed ROE is 10.82%, 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 treatment for ATXI’s
Slide 9: Investing Strategically, Consistent with Regulatory Frameworks
Investing Strategically, Consistent with Regulatory Frameworks $10.8 Billion of Regulated 2016 to 2021E Regulated 5-Yr Rate Infrastructure Investment1,2 Infrastructure Rate Base1,3 Base CAGR 2017-2021 ($ Billions) Ameren Illinois Natural Gas +6% % of CAGR $17.9 Total 6% $1.4B, Ameren $3.8 Ameren Ill
Slide 10: Executing Our Strategy in 2017 and Beyond
Executing Our Strategy in 2017 and Beyond 2016 to 2021E Regulated • Expect energy grid will be increasingly more important and valuable Infrastructure Rate Base1 to our customers, communities we serve and our shareholders ─ Investing to modernize electric and gas transmission and distribution operat
Slide 11: 2017-2021 Capital Expenditure Funding Plan
2017-2021 Capital Expenditure Funding Plan1 • Cash from operations ─ Return of capital through depreciation in rates ─ Return on equity-financed portion of rate base ─ Income tax deferrals and tax assets of ~$1.9 - $2.0 billion • Income tax deferrals driven primarily by capital expenditures • Includ
Slide 12: Financial Strategy
Financial Strategy • Strong liquidity profile ‒ $2.1 billion of combined credit under facilities maturing in Dec. 2021 • $1.1 billion Illinois credit facility ($800 million sublimit for Ameren Illinois; $500 million for Ameren Corp.) • $1.0 billion Missouri credit facility ($800 million sublimit for
Slide 13: 2017 Long-Term Debt Financings
2017 Long-Term Debt Financings • In June, Ameren Missouri issued $400 million of 2.95% Long-term Debt Maturities Outlook senior secured notes due 2027 As of June 30, 2017 ($ in Millions) ─ Proceeds applied to repay $425 million of 6.4% senior secured notes $1,000 • In June, ATXI priced $450 million
Slide 14: Summary
Summary Successfully executing our strategy Disciplined and proactive financial management • Strong liquidity profile • Strong credit metrics and capital structure • Disciplined cost management and dividend policy Strong long-term growth outlook • Expect 5% to 8% compound annual EPS growth from 2016
Slide 15: Appendix
\V Appendix
Slide 16: Constructive Missouri Electric Rate Review
Constructive Missouri Electric Rate Review Unanimous Stipulation and Agreement approved by MoPSC • Increases annual base electric revenue requirement by $92 million ─ Removes negative effect of lower sales to New Madrid smelter • Decreases base level of net energy costs by $54 million annually, excl
Slide 17: Constructive Illinois Legislation
Constructive Illinois Legislation • Future Energy Jobs Act enacted in Dec. 2016; effective June 2017 • Enhances and extends Ameren Illinois’ Electric Distribution regulatory framework ─ Extends constructive formula ratemaking through 2022 • Enables continuation of Ameren Illinois’ strong rate base g
Slide 18: Illinois Electric and Gas Service Rate Updates
Illinois Electric and Gas Service Rate Updates Illinois electric distribution service Electric Rate Update • $17 million net revenue requirement decrease filed with ICC in annual formula rate update Schedule: consisting of: Nov. 6, 2017 (tentative) – $29 million increase to reflect 2016 recoverable
Slide 19: Regional Multi-Value Projects Significant FERC-Regulated Investment
Regional Multi-Value Significant FERC-Regulated Projects Transmission Investment • Planned $2.8 billion investment – 2017-20211 ─ $0.6 billion of regional multi-value projects at ATXI ─ $2.2 billion of local reliability and connecting portions of regional multi-value projects at Ameren Illinois • To
Slide 20: Pending FERC ROE Case
Pending FERC ROE Case Ameren Transmission service • Pending complaint case to reduce MISO’s FERC-allowed base ROE – ALJ initial decision issued June 30, 2016 recommended a 9.70% base ROE • If approved by FERC, would result in total allowed ROE of 10.20% vs. current 10.82%, both include 50 basis poin
Slide 21: Potential Federal Income Tax Reform
Potential Federal Income Tax Reform • Ameren supports thoughtful, comprehensive tax reform that would drive economic growth, job creation and benefit our customers, communities and other key stakeholders by: ─ Lowering the corporate tax rate ─ Maintaining interest deductibility ─ Preserving state an
Slide 22: Successfully Executing Our Strategic Plan in 2017
Successfully Executing Our Strategic Plan in 2017 Net Income YTD 2016 vs. YTD 2017 • Major projects proceeding as planned (in Millions) ─ Contributing to solid operational performance $295 ─ Delivering benefits to customers $252 $33 • Achieved constructive Missouri Electric Rate Review $26 ─ Remain
Slide 23: 2017 Earnings Analysis for Six Months Ended June 30
2017 Earnings Analysis for Six Months Ended June 30 EPS YTD 2016 vs. YTD 2017 Key Earnings Variance Drivers: $1.21 Higher Ameren Illinois Electric Distribution earnings ─ 2017 change in timing of interim period revenue recognition reflecting Future Energy $1.04 Jobs Act, which decoupled revenues fro
Slide 24: 2017 EPS Guidance and Select Balance of Year Considerations
2017 EPS Guidance1 and Select Balance of Year Considerations • 2017 GAAP diluted EPS guidance range reaffirmed at $2.65 to $2.85 – Includes expected Q3 non-core, non-cash charge, primarily at Ameren Parent, for revaluation of deferred taxes resulting from increase in Illinois income tax rate effecti
Slide 25: Select Regulatory Matters
Select Regulatory Matters Missouri Public Service Commission • Request for CCN for ATXI’s Mark Twain transmission project: Docket No. EA-2017-0345 • Working proceeding regarding emerging issues: Docket No. EW-2017-0245 • Website: https://www.efis.psc.mo.gov/mpsc/DocketSheet.html Illinois Commerce Co
Slide 26: Investor Relations Calendar
Investor Relations Calendar SEPTEMBER 2017 OCTOBER 2017 SUN. MON. TUES. WED. THUR. FRI. SAT. SUN. MON. TUES. WED. THUR. FRI. SAT. 1 2 1 2 3 4 5 6 7 3 4 5 6 7 8 9 8 9 10 11 12 13 14 Barclays Q3 Quiet Conf. Period 10 11 12 13 14 15 16 15 16 17 18 19 20 21 17 18 19 20 21 22 23 22 23 24 25 26 27 28 Bost
Slide 27: Glossary of Terms and Abbreviations
Glossary of Terms and Abbreviations ALJ – Administrative Law Judge MoPSC – Missouri Public Service Commission ATXI – Ameren Transmission Company of Illinois MW – Megawatt B – Billion OPEB – Other Post-Employment Benefits CAGR – Compound annual growth rate ROE – Return on Equity CCN – Certificate of