Ameren Corporation · NYSE:AEE
Ameren — Evercore ISI Utility Conference 2018
27 slides from Ameren's conference presentation, Jan 11, 2018
Slide 1: Lead Today. Transform Tomorrow.
Lead Today. Transform Tomorrow. Evercore ISI Utility Conference Jan. 11, 2018
Slide 2: Cautionary Statements
Cautionary Statements Tax Reform Information provided in this presentation does not reflect changes to federal corporate income tax law enacted in December 2017, except as noted. Ameren plans to discuss impacts of these changes on its next earnings conference call, scheduled for mid-February 2018. U
Slide 3: Company Description
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 4: 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 5: 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 • Expect 5% to 8% compound annual • Annualized equivalent dividend rate of • Attractive combined earnings growth EPS growth from 2016 through 20201,2 $1.83 per share
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: Successfully Executing Our Strategic Plan in 2017
Successfully Executing Our Strategic Plan in 2017 • On track to deliver strong core earnings results for 2017 – 2017 core diluted EPS guidance range of $2.73 to $2.871; excludes Q3 and expected Q4 non-cash charges for the revaluation 2017E Core1 of deferred taxes resulting from 2017 changes in Illin
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 Feb. 2017 five-year plan – does not reflect potential ~$1B wind investment $10.8 Billion of Regulated 2016 to 2021E Regulated Five-Year Rate Infrastructure Investment1,2 Infrastructure Rate Base1,3 Base CAGR 2017-2021 ($ Billions) Ameren
Slide 10: Transitioning Generation to Cleaner, More Diverse Energy Portfolio
Transitioning Generation to Cleaner, More Diverse Energy Portfolio • Ameren Missouri filed its preferred 20-year Integrated Resource Plan with MoPSC in Sept. ─ Plan included addition of at least 700 MWs of wind generation1 by 2020 ─ Would achieve compliance with Missouri Renewable Energy Standard (M
Slide 11: Federal Income Tax Reform
Federal Income Tax Reform • Key utility provisions included in legislation enacted in Dec. 2017 ─ Corporate tax rate reduced to 21% from 35% beginning Jan. 1, 2018 ─ Interest deductibility retained for regulated utilities ─ End to bonus depreciation for regulated utilities ─ State and local tax dedu
Slide 12: Proposed Missouri Energy Legislation
Proposed Missouri Energy Legislation • Key Provisions of Senate Bill 5641 ─ Deferral between rate cases, as a regulatory asset, of depreciation on capital expenditures placed in-service and of return on incremental rate base2 • Regulatory asset added to rate base in next rate case filing and recover
Slide 13: Select Regulatory Matters
Select Regulatory Matters Ameren Illinois electric delivery service • In Dec. 2017, the ICC approved a $17 million net annual decrease in electric formula rates effective Jan. 2018, in line with Ameren Illinois’ request – Each year’s electric distribution service earnings are a function of the rate
Slide 14: 2017 Earnings Analysis for Nine Months Ended Sept. 30
2017 Earnings Analysis for Nine Months Ended Sept 30 Core1 Diluted EPS Key Earnings Variance Drivers: Nine Months Ended Sept. 30 Lower Ameren Illinois Electric Distribution earnings ─ Change in timing of interim period revenue recognition reflecting Future Energy Jobs Act, which decoupled revenues f
Slide 15: 2017 EPS Guidance and Select Balance of Year Considerations
2017 EPS Guidance and Select Balance of Year Considerations1 • 2017 GAAP diluted EPS guidance range narrowed to $2.67 to $2.81 – Includes Q3 non-core, non-cash Ameren Parent charge for revaluation of deferred taxes resulting from July 2017 2017E Core2 increase in Illinois income tax rate: ~$(0.06) D
Slide 16: Select 2018 Earnings Considerations Compared to 2017
Select 2018 Earnings Considerations Compared to 20171 Higher average estimated rate base: ~$2.92 billion compared to ~$2.52 billion in 2017 reflecting Ameren infrastructure investments ─ Outcome of second MISO ROE complaint case is uncertain Transmission • ALJ initial decision was 10.2% but MISO tra
Slide 17: Summary
Summary Expect to deliver 2017 core earnings within a range of $2.73 to $2.87 per diluted share1 Successfully executing our strategy Strong long-term growth outlook • Expect 5% to 8% compound annual EPS growth from 2016 through 20202,3 • Expect 6% compound annual rate base growth from 2016 through 2
Slide 18: Appendix
\4 Appendix
Slide 19: Ameren Organizational Structure and External Debt Balances
Ameren Organizational Structure and External Debt Balances1 $ in millions as of Sept. 30, 2017 Ameren Corporation (Baa1/BBB+) Sr. Unsecured (Baa1/BBB) - $700 Commercial paper (P-2/A-2) - $277 Ameren Missouri Ameren Illinois ATXI (Baa1/BBB+) (A3/BBB+) (A2/-) Sr. Secured (A2/A) - $3,712 Sr. Secured (A
Slide 20: 2017 Long-Term Debt Financings
2017 Long-Term Debt Financings Long-term Debt Maturities Outlook As of Dec. 31, 2017 ($ in Millions) • In June, Ameren Missouri issued $400 million of 2.95% senior secured notes due 2027 $1,000 ─ Proceeds applied to repay $425 million of 6.4% senior secured notes $750 • In June, ATXI priced $450 mil
Slide 21: 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 22: 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 23: 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 24: GAAP to Core Earnings Reconciliation
GAAP to Core Earnings Reconciliation (In millions, except per share amounts) Three Months Nine Months 2016 2017 2016 2017 GAAP Earnings / Diluted EPS $ 369 $ 1.52 $ 288 $ 1.18 $ 621 $ 2.56 $ 583 $ 2.39 Charge for revaluation of deferred taxes — — 22 0.09 — — 22 0.09 Less: Federal income tax benefit
Slide 25: Select Regulatory Matters
Select Regulatory Matters Missouri Public Service Commission • Senate Bill 564: http://www.senate.mo.gov/18info/pdf-bill/intro/SB564.pdf • House Bill 1575: http://www.house.mo.gov/billtracking/bills181/hlrbillspdf/5137H.01I.pdf • 2017 Integrated Resource Plan: https://www.ameren.com/missouri/environ
Slide 26: Investor Relations Calendar
Investor Relations Calendar JANUARY 2018 FEBRUARY 2018 SUN. MON. TUES. WED. THUR. FRI. SAT. SUN. MON. TUES. WED. THUR. FRI. SAT. 1 2 3 4 5 6 1 2 3 7 8 9 10 11 12 13 4 5 6 7 8 9 10 Evercore Q4 Quiet ISI Utility Period, Conf. begins 14 15 16 17 18 19 20 11 12 13 14 15 16 17 Q3 2017 Earnings Release 21
Slide 27: Glossary of Terms and Abbreviations
Glossary of Terms and Abbreviations ALJ – Administrative Law Judge MISO – Midcontinent Independent System Operator, Inc. ATXI – Ameren Transmission Company of Illinois MoPSC – Missouri Public Service Commission B – Billion MW – Megawatt CAGR – Compound annual growth rate ROE – Return on Equity CCN –