Ameren Corporation · NYSE:AEE
Ameren — AGA Financial Forum 2024
40 slides from Ameren's conference presentation, May 20, 2024
Slide 1: Powering a Reliable, Sustainable Tomorrow
Powering a Reliable, Sustainable Tomorrow AGA Financial Forum May 20-21, 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 and operations and maintenance expenses excluding COLI, which are non-GAAP financial measures and may not be comparable to those of other companies. A re
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 AGA Fina
Slide 7: Four Regulatory Frameworks
Four Regulatory Frameworks FERC-regulated: Formula ratemaking Ameren • Allowed ROE is 10.52%, includes 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 t
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 Solar Projects
Ameren Missouri Solar Projects Investing in rate regulated energy infrastructure to benefit our customers, communities, shareholders and the environment Huck Bowling Boomtown2,3 Split Rail Vandalia2 Cass County3 Finn1,2 Green2 Facility size 200-MW 150-MW 300-MW 50-MW 50-MW 150-MW Agreement Build- Bu
Slide 12: MISO Long-Range Transmission Planning Roadmap
MISO Long-Range Transmission Planning Roadmap Investing in rate regulated energy infrastructure to benefit our customers, communities, shareholders and the environment • In Apr. 2024, ATXI was awarded third and final Tranche 1 competitive project – Denny-Zachary-Thomas Hill-Maywood project represent
Slide 13: 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 14: 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 15: Financial and Regulatory Updates
Financial and Regulatory Updates Ameren Transmission Monopole Tower 2024
Slide 16: 2024 First Quarter Earnings Analysis – Key Drivers
2024 First Quarter Earnings Analysis – Key Drivers ↓ Parent Company and Other results — Reduced tax benefits for share-based compensation: $(0.03) Diluted EPS2 ↓ Ameren Missouri earnings Q1 2023 vs. Q1 2024 — Higher operations and maintenance expenses 1: $(0.07) • Charge for proposed additional miti
Slide 17: Financing, Credit Ratings and External Debt Balances
Credit Ratings2 and Financing External Debt Balances Debt Financing • On Jan. 9, 2024, Ameren Missouri issued $350 million of 5.25% first mortgage bonds due 2054 As of Mar. 31, 2024 $ in millions Moody's S&P – Net proceeds were used to fund capital expenditures and/or Ameren Corporation (Issuer: Baa
Slide 18: Missouri Electric Regulatory Matters
Missouri Electric Regulatory Matters Securitization of Rush Island • On Nov. 21, 2023, filed for securitization of costs associated with the Rush Island Energy Center – Requested ~$519 million be securitized and recovered – Includes undepreciated plant, decommissioning costs, materials and supplies
Slide 19: 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 20: Illinois Regulatory Matters
Illinois Regulatory Matters Electric Distribution Reconciliation for 2023 • In Apr. 2024, requested $160 million reconciliation adjustment to the 2023 revenue requirement reflecting actual costs – Based on 2023 year-end rate base, ROE, and 50% equity ratio – Includes investments related to 2023 stor
Slide 21: Illinois Multi-Year Rate Plan for 2024 - 2027
Illinois Multi-Year Rate Plan for 2024 - 2027 Electric Distribution Rehearing1 • In Apr. 2024, Ameren Illinois requested a cumulative revenue increase AIC REHEARING REQUEST from 2023 of $305 million Key Components 2024 2025 2026 2027 – Includes 2023 rate base and base level of grid reliability inves
Slide 22: Illinois Multi-Year Rate Plan for 2024 - 2027, cont’d
Illinois Multi-Year Rate Plan for 2024 - 2027, cont’d Electric Distribution Revised MYRP1 AIC REVISED MYRP REQUEST • In Mar. 2024, Ameren Illinois filed revised Multi-Year Grid Plan and Key Components 2024 2025 2026 2027 Multi-Year Rate Plan requesting a cumulative revenue increase Revenue Requireme
Slide 23: 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 24: Appendix
Appendix Ameren Missouri’s Montgomery Community Solar Energy Center in service March 2022
Slide 25: 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 26: Missouri Integrated Resource Plan filed with MoPSC Sept. 2023
Missouri Integrated Resource Plan filed with MoPSC Sept. 2023 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 27: 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 28: 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 29: Illinois Multi-Year Rate Plan for 2024 - 2027
Illinois Multi-Year Rate Plan for 2024 - 2027 Electric Distribution MYRP ICC Dec. Order • In Dec. 2023, ICC approved a cumulative revenue increase from 2023 of $142 million versus Ameren Illinois’ request of $444 million – ICC rejected Multi-Year Grid Plan and adopted alternative rate base and reven
Slide 30: 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 31: 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 32: Federal Energy Legislation
Federal Energy Legislation • Inflation Reduction Act enacted in Aug. 2022 – Enhances affordability of the clean energy transition for customers in Missouri and Illinois • Ameren Missouri customers expected to save ~$1.6 billion by 2033, as result of wind and solar tax credits1 • Ameren Illinois cust
Slide 33: 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 • Maintaining focus on continuous impro
Slide 34: 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 35: 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 36: 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 37: 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 38: Investor Relations Calendar
Investor Relations Calendar MAY 2024 JUNE 2024 SUN. MON. TUES. WED. THUR. FRI. SAT. SUN. MON. TUES. WED. THUR. FRI. SAT. `1 2 3 4 1 Q1 2024 Earnings Call 5 6 7 8 9 10 11 2 3 4 5 6 7 8 Annual Share- holder Meeting 12 13 14 15 16 17 18 9 10 11 12 13 14 15 19 20 21 22 23 24 25 16 17 18 19 20 21 22 AGA
Slide 39: Select Regulatory and Legislative Matters
Select Regulatory and Legislative Matters Missouri Public Service Commission • Right of First Refusal bill (HB1449 and SB805): https://house.mo.gov/ and https://www.senate.mo.gov/ • Power Predictability and Reliability Act bill (HB1746 and SB 740/1422): https://house.mo.gov/ and https://www.senate.m
Slide 40: Glossary of Terms and Abbreviations
Glossary of Terms and Abbreviations ATXI – Ameren Transmission Company of Illinois ITC – Investment Tax Credit 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 MEE