Ameren Corporation · NYSE:AEE
Ameren — Q1 2018 Earnings Presentation
21 slides from Ameren's earnings presentation, May 9, 2018
Slide 1: Purpose-Driven Performance
Purpose-Driven Performance First Quarter 2018 Earnings May 9, 2018
Slide 2: Cautionary Statements
Cautionary Statements Use of Non-GAAP Financial Measures In this presentation, Ameren has presented core earnings per share, 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 in this presentation. Generally
Slide 3: Business Update
Business Update Warner Baxter Chairman, President and Chief Executive Officer, Ameren Corp.
Slide 4: Earnings and Guidance Summary
Earnings and Guidance Summary 2018 Diluted EPS Guidance Range of • Affirm 2018 diluted EPS guidance range of $2.95 to $3.15 $2.95 EPS to $3.15 Q1 2017 vs. Q1 2018 • Key Q1 Earnings Variance Drivers1 Higher Ameren Missouri electric service rates effective April 1, $0.62 2017: +$0.09 Higher Ameren Mis
Slide 5: Executing Our Strategy
Executing Our Strategy Our Strategic Plan Capital Expenditures YTD March 31, 2018 • Investing in and operating our utilities in a manner consistent with existing ($ Millions) regulatory frameworks • Enhancing regulatory frameworks and advocating for responsible energy and $576 economic policies • Cr
Slide 6: Executing Our Strategy – Pending Missouri Legislation
Executing Our Strategy – Pending Missouri Legislation Enhancing regulatory frameworks and advocating for responsible energy and economic policies • SB 5641 has passed Senate and is ready to be considered by full House of Representatives ─ If bill passes House without amendment, it will be sent to Go
Slide 7: Executing Our Strategy – Proposed Wind Investment
Executing Our Strategy – Proposed Wind Investment Creating and capitalizing on opportunities for investment for the benefit of our customers and shareholders • Ameren Missouri pursuing ownership of at least 700 MWs, ~$1 billion investment, with multiple wind developers ─ Expect to file CCN requests
Slide 8: Long-Term Total Return Outlook Rate Base Growth Plan 2017-2022
Long-Term Total Return Outlook Rate Base Growth Plan 2017-20222 • Expect 5% to 7% compound annual EPS growth from Regulated Rate Base3 Five-Year Rate 2017 through 20221,2 ($ Billions) Base CAGR ─ Primarily driven by strong rate base growth • Expect ~7% compound annual rate base growth from ~+7% $20.
Slide 9: Financial Update
Financial Update Marty Lyons Executive Vice President and Chief Financial Officer, Ameren Corp.
Slide 10: 2018 First Quarter Earnings Analysis
2018 First Quarter Earnings Analysis1 Key Earnings Variance Drivers: Diluted EPS Higher Ameren Missouri earnings Q1 2017 vs. Q1 2018 ─ Higher electric rates effective April 1, 2017: +$0.09 ─ Higher electric retail sales primarily due to colder winter temperatures compared to very $0.62 mild temperat
Slide 11: 2018 EPS Guidance and Select Balance of Year Considerations
2018 EPS Guidance and Select Balance of Year Considerations • Affirm 2018 diluted EPS guidance range of $2.95 to $3.15 2018E • Q2-Q4 2018 EPS compared to Q2-Q4 2017 core1 EPS2 Diluted EPS Ameren Missouri absence of Callaway refueling and maintenance outage: ~+$0.11 primarily in Q4 Increased transmis
Slide 12: Select Regulatory Matters
Select Regulatory Matters Ameren Transmission • In Mar. 2018, FERC approved MISO transmission owners request to pass savings from lower federal income tax rate to customers retroactive to Jan. 1, 2018: ~$27 million and ~$23 million for Ameren Illinois and ATXI, respectively, for 2018 • Second compla
Slide 13: Select Regulatory Matters, Cont’d
Select Regulatory Matters, Cont’d Ameren Illinois Natural Gas • Requesting $44 million annual natural gas distribution rate increase from ICC; includes ~$42 million that would otherwise be recovered in 2019 under qualifying infrastructure plant (QIP) rider – Incorporates agreements with ICC Staff fo
Slide 14: Summary
Summary Expect to deliver strong earnings growth in 2018 with guidance in a range of $2.95 to $3.15 per diluted share Successfully executing our strategy Strong long-term growth outlook • Expect 5% to 7% compound annual EPS growth from 2017 through 20221 • Expect ~7% compound annual rate base growth
Slide 15: Appendix
_ Appendix
Slide 16: Pending Missouri Legislation
Pending Missouri Legislation • Key provisions of SB 564 for electric utility service ─ Defer for future recovery 85% of depreciation expense and return on rate base1 related to plant placed-in-service between rate cases • Regulatory asset added to rate base in next rate case filing and recovered ove
Slide 17: 2017 GAAP to Core Earnings Reconciliation
2017 GAAP to Core Earnings Reconciliation Three-Months Ended Year-Ended (in millions, except per share amounts) Sept. 30, 2017 Dec. 31, 2017 Dec. 31, 2017 GAAP Earnings / Diluted EPS $ 288 $ 1.18 $ (60) $ (0.24) $ 523 $ 2.14 Charge for revaluation of deferred taxes resulting 22 0.09 — — 22 0.09 from
Slide 18: 2018 Long-Term Debt Financings and Maturities; Credit Ratings
2018 Long-Term Debt Financings Ameren Credit Ratings and and Maturities External Debt Balances1 • On Apr. 6, Ameren Missouri issued $425 million of As of March 31, 2018 $ in 4.00% first mortgage bonds due 2048 millions Moody's S&P – Proceeds used to repay short-term debt, including short-term Ameren
Slide 19: Select Regulatory Matters
Select Regulatory Matters Missouri Public Service Commission • Senate Bill 564: http://www.senate.mo.gov/18info/pdf-bill/perf/SB564.pdf • Proceeding regarding effects of federal tax reform on customer rates: Docket No. ER-2018-0226 • Working proceeding regarding emerging issues: Docket No. EW-2017-0
Slide 20: Investor Relations Calendar
Investor Relations Calendar MAY 2018 SUN. MON. TUES. WED. THUR. FRI. SAT. 1 2 3 4 5 Q1 Quiet Annual Period, Shareholder Cont’d Meeting 6 7 8 9 10 11 12 Q1 New York UBS Utility Earnings Investor Conference Call Meetings 13 14 15 16 17 18 19 W. Fargo / Ed. Jones Mtg. 20 21 22 23 24 25 26 West Coast We
Slide 21: Glossary of Terms and Abbreviations
Glossary of Terms and Abbreviations ALJ – Administrative Law Judge kW - Kilowatt ATXI – Ameren Transmission Company of Illinois M – Million B – Billion MEEIA – Missouri Energy Efficiency Investment Act CAGR – Compound annual growth rate MISO – Midcontinent Independent System Operator, Inc. CCN – Cer