ST. LOUIS, Nov. 6, 2024 /PRNewswire/ -- Ameren Corporation (NYSE: AEE) today announced third quarter 2024 net income attributable to common shareholders in accordance with generally accepted accounting principles (GAAP) of $456 million, or $1.70 per diluted share, compared to third quarter 2023 net income of $493 million, or $1.87 per diluted share. Excluding certain charges discussed below, Ameren recorded third quarter 2024 adjusted (non-GAAP) net income attributable to common shareholders of $500 million, or $1.87 per diluted share.
Third quarter 2024 adjusted earnings reflected increased infrastructure investments and disciplined cost management driven by solid execution of the company's strategy. These positive factors were offset by higher interest expense at Ameren Parent, lower Ameren Missouri electric retail sales driven by milder summer temperatures compared to the year-ago period and a lower return on equity (ROE) at Ameren Illinois Electric Distribution. Finally, the earnings per diluted share comparison also reflected higher weighted-average basic common shares outstanding.
"We delivered solid third quarter and year-to-date adjusted earnings resulting from infrastructure investments and disciplined cost control. As a result of this solid execution, we expect to deliver 2024 adjusted earnings within a range of $4.55 to $4.69 per share. Looking ahead, we expect our 2025 earnings per share to be in the range of $4.85 to $5.05 per share, with the midpoint representing a 7.1% increase over the midpoint of our 2024 adjusted guidance range. Further, we continue to see significant opportunity for earnings growth in the years ahead as we focus on meeting our customers' growing needs for safe, reliable, affordable and cleaner energy," said Martin J. Lyons, Jr., chairman, president and chief executive officer of Ameren Corporation. "Through consistent execution of our long-term strategy, we expect to drive sustainable earnings and dividend growth for our shareholders."
Ameren recorded GAAP net income attributable to common shareholders for the nine months ended September 30, 2024, of $975 million, or $3.65 per diluted share, compared to net income attributable to common shareholders for the nine months ended September 30, 2023, of $994 million, or $3.78 per diluted share. Excluding certain charges discussed below, Ameren recorded adjusted net income for the nine months ended September 30, 2024, of $1,030 million, or $3.86 per diluted share.
The increase in year-over-year nine month adjusted earnings reflected increased infrastructure investments and disciplined cost control. Further, earnings were positively impacted by new Ameren Missouri electric service rates, higher electric retail sales at Ameren Missouri across all customer classes and new Ameren Illinois Natural Gas service rates. These positive factors were partially offset by increased interest expense at Ameren Missouri and Ameren Parent and a lower ROE at Ameren Illinois Electric Distribution. Finally, the earnings comparison also reflected higher weighted-average basic common shares outstanding.
As reflected in the table below, the following items, relating to matters that had been outstanding for over a decade, were excluded from adjusted earnings:
A reconciliation of three-month and nine-month GAAP to adjusted earnings is as follows:
(In millions, except per share amounts) | ||||||||
Three Months Ended Sep. 30, | Nine Months Ended Sep. 30, | |||||||
2024 | 2023 | 2024 | 2023 | |||||
GAAP Earnings / Diluted EPS | $ 456 | $ 1.70 | $ 493 | $ 1.87 | $ 975 | $ 3.65 | $ 994 | $ 3.78 |
Charge for additional mitigation relief related to | $ 44 | $ 0.17 | $ — | $ — | $ 59 | $ 0.22 | $ — | $ — |
Less: Federal income tax benefit | (10) | (0.04) | — | — | (14) | (0.05) | — | — |
Charge, net of tax benefit | $ 34 | $ 0.13 | $ — | $ — | $ 45 | $ 0.17 | $ — | $ — |
Charge for customer refunds from FERC order | $ 12 | $ 0.05 | $ — | $ — | $ 12 | $ 0.05 | $ — | $ — |
Less: Federal income tax benefit | (2) | (0.01) | — | — | (2) | (0.01) | — | — |
Charge, net of tax benefit | $ 10 | $ 0.04 | $ — | $ — | $ 10 | $ 0.04 | $ — | $ — |
Adjusted Earnings / Diluted EPS | $ 500 | $ 1.87 | $ 493 | $ 1.87 | $ 1,030 | $ 3.86 | $ 994 | $ 3.78 |
Earnings Guidance
Ameren now expects 2024 GAAP diluted earnings per share guidance to be in a range of $4.34 to $4.48, compared to the prior GAAP guidance range of $4.52 to $4.72. Ameren expects 2024 adjusted earnings to be in a range of $4.55 to $4.69, which excludes the charge related to an agreement in principle to settle the New Source Review and Clean Air Act proceeding associated with the Rush Island Energy Center and the charge for customer refunds related to FERC's October 2024 order on MISO's allowed base ROE. Further, Ameren expects 2025 diluted earnings per share to be in a range of $4.85 to $5.05.
GAAP and adjusted earnings guidance for 2024 assumes normal temperatures for the last three months of the year. Earnings guidance for 2025 also assumes normal temperatures, and earnings guidance for 2024 and 2025 is subject to the effects of, among other things: regulatory, judicial and legislative actions; energy center and energy distribution operations; energy, economic and capital market conditions; customer usage; severe storms; market returns on company-owned life insurance investments; unusual or otherwise unexpected gains or losses; and other risks and uncertainties outlined, or referred to, in the Forward-looking Statements section of this press release.
Ameren Missouri Segment Results
Ameren Missouri third quarter 2024 GAAP and adjusted earnings were $381 million and $415 million, respectively, compared to third quarter 2023 earnings of $411 million. Adjusted earnings in 2024 excluded the above-described charge related to an agreement in principle to settle the Rush Island Energy Center New Source Review and Clean Air Act proceeding. The year-over-year adjusted earnings increase reflected earnings on increased infrastructure investments and lower operations and maintenance expenses. These positive factors were partially offset by lower electric retail sales driven by milder summer temperatures compared to the year-ago-period and higher tax expense, primarily due to timing differences.
Ameren Transmission Segment Results
Ameren Transmission third quarter 2024 GAAP and adjusted earnings were $90 million and $100 million, respectively, compared to third quarter 2023 earnings of $86 million. Adjusted earnings in 2024 excluded the above-described charge for customer refunds related to the FERC's October 2024 order on MISO's allowed base ROE. The year-over-year earnings increase reflected earnings on increased infrastructure investments.
Ameren Illinois Electric Distribution Segment Results
Ameren Illinois Electric Distribution third quarter 2024 earnings were $56 million, compared to third quarter 2023 earnings of $66 million. The year-over-year comparison reflected a lower allowed ROE for 2024 under the new multi-year rate plan.
Ameren Illinois Natural Gas Segment Results
Ameren Illinois Natural Gas third quarter 2024 results were a loss of $10 million, compared to a third quarter 2023 loss of $5 million. The year-over-year comparison reflected rate design impacts from new delivery service rates effective November 28, 2023, which are not expected to materially impact full-year results.
Ameren Parent Results (includes items not reported in a business segment)
Ameren Parent third quarter 2024 results were a loss of $61 million, compared to a third quarter 2023 loss of $65 million. The year-over-year comparison reflected lower tax expense due, in part, to timing differences, mostly offset by higher interest expense.
Analyst Conference Call
Ameren will conduct a conference call for financial analysts at 9 a.m. Central Time on Thursday, November 7, 2024, to discuss 2024 earnings, earnings guidance and other matters. Investors, the news media and the public may listen to a live broadcast of the call at AmerenInvestors.com by clicking on "Webcast" under "Latest Quarterly Results," where an accompanying slide presentation will also be available. The conference call and presentation will be archived in the "Investors" section of the website under "Quarterly Earnings."
About Ameren
St. Louis-based Ameren Corporation powers the quality of life for 2.4 million electric customers and more than 900,000 natural gas customers in a 64,000-square-mile area through its Ameren Missouri and Ameren Illinois rate-regulated utility subsidiaries. Ameren Illinois provides electric transmission and distribution service and natural gas distribution service. Ameren Missouri provides electric generation, transmission and distribution service, as well as natural gas distribution service. Ameren Transmission Company of Illinois develops, owns and operates rate-regulated regional electric transmission projects in the Midcontinent Independent System Operator, Inc. For more information, visit Ameren.com, or follow us on X at @AmerenCorp, Facebook.com/AmerenCorp, or LinkedIn/company/Ameren.
Use of Non-GAAP Financial Measures
In this release, Ameren has presented adjusted 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 release. Generally, adjusted earnings or losses include earnings or losses attributable to Ameren common shareholders and exclude income or loss from significant discrete items that management does not consider representative of ongoing earnings, such as the cumulative impact of the first and third quarter 2024 charges for additional mitigation relief related to an agreement in principle to settle the New Source Review and Clean Air Act proceeding and a third quarter 2024 charge for customer refunds related to the FERC's October 2024 order on MISO's allowed base ROE, both of which related to matters that have been ongoing for over ten years. Ameren uses adjusted earnings internally for financial planning and for analysis of performance. Ameren also uses adjusted earnings as the primary performance measurement when communicating with analysts and investors regarding our earnings results and outlook, as the company believes that adjusted earnings allow the company to more accurately compare its ongoing performance across periods. In providing adjusted earnings guidance, there could be differences between adjusted earnings and earnings prepared in accordance with GAAP as a result of our treatment of certain items, such as those described above.
Forward-looking Statements
Statements in this release not based on historical facts are considered "forward-looking" and, accordingly, involve risks and uncertainties that could cause actual results to differ materially from those discussed. Although such forward-looking statements have been made in good faith and are based on reasonable assumptions, there is no assurance that the expected results will be achieved. These statements include (without limitation) statements as to future expectations, beliefs, plans, projections, strategies, targets, estimates, objectives, events, conditions, and financial performance. In connection with the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, we are providing this cautionary statement to identify important factors that could cause actual results to differ materially from those anticipated. The following factors, in addition to those discussed under Risk Factors in Ameren's Annual Report on Form 10-K for the year ended December 31, 2023, and elsewhere in this release and in our other filings with the Securities and Exchange Commission, could cause actual results to differ materially from management expectations suggested in such forward-looking statements:
New factors emerge from time to time, and it is not possible for us to predict all of such factors, nor can we assess the impact of each such factor on the business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained or implied in any forward-looking statement. Given these uncertainties, undue reliance should not be placed on these forward-looking statements. Except to the extent required by the federal securities laws, we undertake no obligation to update or revise publicly any forward-looking statements to reflect new information or future events.
AMEREN CORPORATION (AEE) CONSOLIDATED STATEMENT OF INCOME (Unaudited, in millions, except per share amounts) | |||||||
Three Months Ended | Nine Months Ended | ||||||
2024 | 2023 | 2024 | 2023 | ||||
Operating Revenues: | |||||||
Electric | $ 2,035 | $ 1,921 | $ 4,920 | $ 5,096 | |||
Natural gas | 138 | 139 | 762 | 786 | |||
Total operating revenues | 2,173 | 2,060 | 5,682 | 5,882 | |||
Operating Expenses: | |||||||
Fuel and purchased power | 499 | 430 | 1,154 | 1,518 | |||
Natural gas purchased for resale | 30 | 30 | 214 | 280 | |||
Other operations and maintenance | 520 | 470 | 1,455 | 1,368 | |||
Depreciation and amortization | 388 | 369 | 1,125 | 1,024 | |||
Taxes other than income taxes | 150 | 147 | 416 | 398 | |||
Total operating expenses | 1,587 | 1,446 | 4,364 | 4,588 | |||
Operating Income | 586 | 614 | 1,318 | 1,294 | |||
Other Income, Net | 101 | 101 | 293 | 261 | |||
Interest Charges | 173 | 152 | 492 | 413 | |||
Income Before Income Taxes | 514 | 563 | 1,119 | 1,142 | |||
Income Taxes | 57 | 69 | 140 | 144 | |||
Net Income | 457 | 494 | 979 | 998 | |||
Less: Net Income Attributable to Noncontrolling Interests | 1 | 1 | 4 | 4 | |||
Net Income Attributable to Ameren Common Shareholders | $ 456 | $ 493 | $ 975 | $ 994 | |||
Earnings per Common Share – Basic | $ 1.71 | $ 1.88 | $ 3.66 | $ 3.79 | |||
Earnings per Common Share – Diluted | $ 1.70 | $ 1.87 | $ 3.65 | $ 3.78 | |||
Weighted-average Common Shares Outstanding – Basic | 266.8 | 262.8 | 266.6 | 262.5 | |||
Weighted-average Common Shares Outstanding – Diluted | 267.3 | 263.4 | 266.9 | 263.2 |
AMEREN CORPORATION (AEE) CONSOLIDATED BALANCE SHEET (Unaudited, in millions) | |||
September 30, | December 31, | ||
ASSETS | |||
Current Assets: | |||
Cash and cash equivalents | $ 17 | $ 25 | |
Accounts receivable - trade (less allowance for doubtful accounts) | 651 | 494 | |
Unbilled revenue | 348 | 319 | |
Miscellaneous accounts receivable | 70 | 106 | |
Inventories | 792 | 733 | |
Current regulatory assets | 226 | 365 | |
Other current assets | 153 | 139 | |
Total current assets | 2,257 | 2,181 | |
Property, Plant, and Equipment, Net | 35,720 | 33,776 | |
Investments and Other Assets: | |||
Nuclear decommissioning trust fund | 1,333 | 1,150 | |
Goodwill | 411 | 411 | |
Regulatory assets | 1,915 | 1,810 | |
Pension and other postretirement benefits | 581 | 581 | |
Other assets | 1,081 | 921 | |
Total investments and other assets | 5,321 | 4,873 | |
TOTAL ASSETS | $ 43,298 | $ 40,830 | |
LIABILITIES AND EQUITY | |||
Current Liabilities: | |||
Current maturities of long-term debt | $ 300 | $ 849 | |
Short-term debt | 1,539 | 536 | |
Accounts and wages payable | 717 | 1,136 | |
Taxes accrued | 206 | 54 | |
Customer deposits | 205 | 176 | |
Other current liabilities | 600 | 594 | |
Total current liabilities | 3,567 | 3,345 | |
Long-term Debt, Net | 16,422 | 15,121 | |
Deferred Credits and Other Liabilities: | |||
Accumulated deferred income taxes and tax credits, net | 4,477 | 4,176 | |
Regulatory liabilities | 5,562 | 5,512 | |
Asset retirement obligations | 798 | 772 | |
Other deferred credits and liabilities | 510 | 426 | |
Total deferred credits and other liabilities | 11,347 | 10,886 | |
Shareholders' Equity: | |||
Common stock | 3 | 3 | |
Other paid-in capital, principally premium on common stock | 7,264 | 7,216 | |
Retained earnings | 4,576 | 4,136 | |
Accumulated other comprehensive loss | (10) | (6) | |
Total shareholders' equity | 11,833 | 11,349 | |
Noncontrolling Interests | 129 | 129 | |
Total equity | 11,962 | 11,478 | |
TOTAL LIABILITIES AND EQUITY | $ 43,298 | $ 40,830 |
AMEREN CORPORATION (AEE) CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited, in millions) | |||
Nine Months Ended | |||
2024 | 2023 | ||
Cash Flows From Operating Activities: | |||
Net income | $ 979 | $ 998 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 1,142 | 1,063 | |
Amortization of nuclear fuel | 59 | 56 | |
Amortization of debt issuance costs and premium/discounts | 14 | 12 | |
Deferred income taxes and investment tax credits, net | 145 | 128 | |
Allowance for equity funds used during construction | (48) | (39) | |
Stock-based compensation costs | 22 | 21 | |
Other | 84 | 12 | |
Changes in assets and liabilities | (451) | (220) | |
Net cash provided by operating activities | 1,946 | 2,031 | |
Cash Flows From Investing Activities: | |||
Capital expenditures | (3,029) | (2,571) | |
Nuclear fuel expenditures | (57) | (63) | |
Purchases of securities – nuclear decommissioning trust fund | (499) | (156) | |
Sales and maturities of securities – nuclear decommissioning trust fund | 480 | 136 | |
Other | (1) | (2) | |
Net cash used in investing activities | (3,106) | (2,656) | |
Cash Flows From Financing Activities: | |||
Dividends on common stock | (535) | (496) | |
Dividends paid to noncontrolling interest holders | (4) | (4) | |
Short-term debt, net | 1,002 | 272 | |
Maturities of long-term debt | (849) | (100) | |
Issuances of long-term debt | 1,610 | 997 | |
Issuances of common stock | 30 | 28 | |
Employee payroll taxes related to stock-based compensation | (8) | (20) | |
Debt issuance costs | (19) | (12) | |
Other | (15) | (10) | |
Net cash provided by financing activities | 1,212 | 655 | |
Net change in cash, cash equivalents, and restricted cash | 52 | 30 | |
Cash, cash equivalents, and restricted cash at beginning of year(a) | 272 | 216 | |
Cash, cash equivalents, and restricted cash at end of period(b) | $ 324 | $ 246 |
(a) | Includes $25 million of cash and cash equivalents and $247 million of restricted cash as of December 31, 2023. |
(b) | Includes $17 million of cash and cash equivalents and $307 million of restricted cash as of September 30, 2024. |
AMEREN CORPORATION (AEE) OPERATING STATISTICS | |||||||
Three Months Ended | Nine Months Ended | ||||||
September 30, | September 30, | ||||||
2024 | 2023 | 2024 | 2023 | ||||
Electric Sales - kilowatthours (in millions): | |||||||
Ameren Missouri | |||||||
Residential | 3,636 | 3,691 | 10,108 | 9,942 | |||
Commercial | 3,753 | 3,796 | 10,410 | 10,300 | |||
Industrial | 1,094 | 1,071 | 3,099 | 3,010 | |||
Street lighting and public authority | 14 | 16 | 47 | 51 | |||
Ameren Missouri retail load subtotal | 8,497 | 8,574 | 23,664 | 23,303 | |||
Off-system | 748 | 1,108 | 3,363 | 3,379 | |||
Ameren Missouri total | 9,245 | 9,682 | 27,027 | 26,682 | |||
Ameren Illinois Electric Distribution | |||||||
Residential | 3,120 | 3,207 | 8,453 | 8,270 | |||
Commercial | 3,225 | 3,266 | 8,772 | 8,836 | |||
Industrial | 2,880 | 2,847 | 8,270 | 8,126 | |||
Street lighting and public authority | 95 | 96 | 293 | 295 | |||
Ameren Illinois Electric Distribution total | 9,320 | 9,416 | 25,788 | 25,527 | |||
Ameren Total | 18,565 | 19,098 | 52,815 | 52,209 | |||
Electric Revenues (in millions): | |||||||
Ameren Missouri | |||||||
Residential | $ 590 | $ 590 | $ 1,326 | $ 1,274 | |||
Commercial | 465 | 468 | 1,048 | 1,026 | |||
Industrial | 108 | 107 | 246 | 243 | |||
Other, including street lighting and public authority | 6 | 3 | 51 | 60 | |||
Ameren Missouri retail load subtotal | $ 1,169 | $ 1,168 | $ 2,671 | $ 2,603 | |||
Off-system sales and capacity | 155 | 51 | 231 | 375 | |||
Ameren Missouri total | $ 1,324 | $ 1,219 | $ 2,902 | $ 2,978 | |||
Ameren Illinois Electric Distribution | |||||||
Residential | $ 339 | $ 330 | $ 947 | $ 1,049 | |||
Commercial | 184 | 189 | 512 | 582 | |||
Industrial | 38 | 40 | 130 | 136 | |||
Other, including street lighting and public authority | (9) | (1) | (22) | (45) | |||
Ameren Illinois Electric Distribution total | $ 552 | $ 558 | $ 1,567 | $ 1,722 | |||
Ameren Transmission | |||||||
Ameren Illinois Transmission(a) | $ 155 | $ 136 | $ 422 | $ 363 | |||
ATXI | 55 | 53 | 165 | 150 | |||
Eliminate affiliate revenues | — | (1) | (1) | (1) | |||
Ameren Transmission total | $ 210 | $ 188 | $ 586 | $ 512 | |||
Other and intersegment eliminations(a) | (51) | (44) | (135) | (116) | |||
Ameren Total | $ 2,035 | $ 1,921 | $ 4,920 | $ 5,096 |
(a) | Includes $35 million, $33 million, $90 million, and $87 million, respectively, of electric operating revenues from transmission services provided to the Ameren Illinois Electric Distribution segment. |
AMEREN CORPORATION (AEE) OPERATING STATISTICS | |||||||
Three Months Ended | Nine Months Ended | ||||||
September 30, | September 30, | ||||||
2024 | 2023 | 2024 | 2023 | ||||
Gas Sales - dekatherms (in millions): | |||||||
Ameren Missouri | 2 | 2 | 13 | 13 | |||
Ameren Illinois Natural Gas | 27 | 25 | 115 | 115 | |||
Ameren Total | 29 | 27 | 128 | 128 | |||
Gas Revenues (in millions): | |||||||
Ameren Missouri | $ 18 | $ 18 | $ 103 | $ 123 | |||
Ameren Illinois Natural Gas | 121 | 122 | 660 | 665 | |||
Eliminate affiliate revenues | (1) | (1) | (1) | (2) | |||
Ameren Total | $ 138 | $ 139 | $ 762 | $ 786 | |||
September 30, | December 31, | ||||||
2024 | 2023 | ||||||
Common Stock: | |||||||
Shares outstanding (in millions) | 266.9 | 266.3 | |||||
Book value per share | $ 44.33 | $ 42.62 |
SOURCE Ameren Corporation