Ameren Corporation · NYSE:AEE
Ameren — AGA Financial Forum 2017
27 slides from Ameren's conference presentation, May 22, 2017
Slide 1: Lead Today. Transform Tomorrow.
Lead Today. Transform Tomorrow. AGA Financial Forum May 22, 2017 | New York and Boston Investor Meetings | September 2016
Slide 2: Cautionary Statements
Cautionary Statements Use of Non-GAAP Financial Measures In this presentation, Ameren has presented free cash flow, which is a non-GAAP measure. Ameren calculates free cash flow by subtracting its cash flows from investing activities (which include capital expenditures), dividends on common stock, a
Slide 3: Company Description
Company Description 2.4M electric Ameren Segments 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 Ele
Slide 4: Our Value Proposition to Investors and Customers
Our Value Proposition to Investors and Customers Strong Attractive long-term growth Attractive total return outlook dividend potential • Continue to expect 5% to 8% • Annualized equivalent dividend • Attractive earnings growth compound annual EPS growth rate of $1.76 per share provides outlook and y
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 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 7: 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 8: 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 9: Ameren Natural Gas Distribution Systems
Ameren Natural Gas Distribution Systems • One of the nation’s larger natural gas distribution utilities – More than 0.9 million customers with more than 0.8 million in Illinois and more than 0.1 million in Missouri – 21,700 miles of natural gas transmission and distribution mains – 12 underground na
Slide 10: Regional Multi-Value Projects Significant FERC-Regulated Transmission 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 11: Investing Strategically, with Focus on Transmission and Distribution
Investing Strategically, with Focus on Transmission and Distribution 2016 to 2021E Regulated • Expect energy grid will be increasingly important and valuable to a Infrastructure Rate Base1 more sustainable future for our customers, the communities we serve and our shareholders 100% ─ Investing to mo
Slide 12: 2017-2021 Capital Expenditure Funding Plan
2017-2021 Capital Expenditure Funding Plan1 • Cash from operations Ameren Credit Ratings2 ─ Return of capital through depreciation in rates Moody's S&P ─ Return on equity-financed portion of rate base ─ Income tax deferrals and tax assets of ~$1.9-$2.0 billion Ameren Corporation • Income tax deferra
Slide 13: Legislative and Regulatory Update
Legislative and Regulatory Update | AGA Financial Forum | May 22, 2017
Slide 14: Constructive Missouri Electric Rate Review
Constructive Missouri Electric Rate Review Unanimous Stipulation and Agreement approved by MoPSC March 8 • 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 annual
Slide 15: Missouri Utility Legislation Considered in 2017 Regular Session
Missouri Utility Legislation Considered in 2017 Regular Session Ended May 12th • SB 190: The Missouri Economic Development and Infrastructure Investment Act ─ Deferral between rate cases of depreciation on capital projects placed in-service and of return on incremental rate base as well as other reg
Slide 16: Missouri Special Legislative Session
Missouri Special Legislative Session • Governor Greitens has called a special legislative session to begin May 22 at 4 p.m. CDT • Governor has asked General Assembly to enact legislation authorizing MoPSC to: ─ Approve a special electricity rate for an aluminum smelting, steel works or other similar
Slide 17: Select Pending Regulatory Matters
Select Pending Regulatory Matters Illinois Commerce Commission Federal Energy Regulatory Commission • Filed in April 2017 for required annual electric • Complaint cases seeking to reduce allowed distribution service formula rate update base ROE for Ameren Transmission Segment – Filed for $16 million
Slide 18: 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 19: 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 20: Financial Update
Financial Update | AGA Financial Forum | May 22, 2017
Slide 21: 2017 First Quarter Earnings Analysis
2017 First Quarter Earnings Analysis EPS Q1 2016 vs. Q1 2017 Key Earnings Variance Drivers: $0.43 $0.42 Higher Ameren Transmission earnings ─ Increased investments in infrastructure made under modern, constructive regulatory framework $0.11 $0.14 Higher Ameren Illinois Electric Distribution earnings
Slide 22: 2017 EPS Guidance and Select Balance of Year Considerations
2017 EPS Guidance and Select Balance of Year Considerations1 • Affirmed 2017 diluted EPS guidance range of $2.65 to $2.85 • Very mild winter temperatures vs. normal expected to be offset by early resolution of Missouri rate 2017E Diluted EPS review and continued disciplined cost management • Q2-Q4 2
Slide 23: 2017 Cash Flow Guidance
2017 Cash Flow Guidance1 2017 2017 Capital Expenditures ($ millions) Guidance ($ Millions) Net cash provided by operating activities $ 1,990 $2,220 Capital expenditures (2,220) $325 Other cash used in investing activities (35) $375 65% Dividends: common and preferred2 (435) $255 Free cash flow $ (70
Slide 24: Ameren Organizational Structure and External Debt Balances
Ameren Organizational Structure and External Debt Balances $ in millions as of March 31, 2017 Ameren Corporation Sr. Unsecured - $700 Commercial paper - $810 Ameren Missouri Ameren Illinois ATXI Major Projects Sr. Secured - $3,737 Sr. Secured - $2,590 Illinois Rivers Commercial paper - $36 Commercia
Slide 25: Appendix
Appendix | AGA Financial Forum | May 22, 2017
Slide 26: Select Regulatory and Legislative Matters
Select Regulatory and Legislative Matters Missouri General Assembly / Missouri Public Service Commission • Bills from regular session which ended May 12th – SB 190, SB 302 with House Amendments 1 & 2 and SB 124 with House Amendment 1: http://www.senate.mo.gov/17info/BTS_Web/BillList.aspx?SessionType
Slide 27: Glossary of Terms and Abbreviations
Glossary of Terms and Abbreviations ALJ – Administrative Law Judge MWh – Megawatthour ATXI – Ameren Transmission Company of Illinois New Madrid smelter – New Madrid, Missouri aluminum smelter (formerly owned by Noranda Aluminum, Inc.) B – Billion OPEB – Other Post-Employment Benefits CAGR – Compound