ST. LOUIS, May 4, 2017 /PRNewswire/ -- Ameren
Corporation (NYSE: AEE) today announced first quarter 2017 net
income attributable to common shareholders of $102 million, or $0.42 per share, compared to first quarter 2016
net income attributable to common shareholders of $105 million, or $0.43 per share.
The year-over-year first quarter earnings decrease reflected
lower 2017 electric retail sales at Ameren Missouri primarily
driven by very mild winter temperatures, as well as lower tax
benefits associated with share-based compensation. These factors
were partially offset by the favorable impact of a 2017 change in
the timing of interim period revenue recognition at the Ameren
Illinois Electric Distribution segment. This reflected the recently
enacted Illinois Future Energy Jobs Act, which decoupled electric
distribution revenues from sales volumes. Earnings in 2017 also
benefited from higher electric transmission and electric
distribution infrastructure investments made by Ameren Transmission
Company of Illinois (ATXI) and
Ameren Illinois under modern, constructive regulatory frameworks,
as well as an increased allowed return on equity at the Ameren
Illinois Electric Distribution segment.
"We remain on track to deliver within our 2017 earnings guidance
range of $2.65 to $2.85 per share
despite very mild first quarter weather," said Warner L. Baxter, chairman, president and chief
executive officer of Ameren Corporation. "Our team continued to
successfully execute our strategy, including allocating capital to
jurisdictions with modern, constructive regulatory frameworks,
managing costs in a disciplined manner and reaching a constructive
agreement with all parties in Ameren Missouri's recently concluded
electric rate review. We expect this execution to deliver superior
value to our customers and shareholders."
Earnings Guidance
Ameren continues to expect 2017 earnings to be in a range of
$2.65 to $2.85 per diluted share
despite warmer-than-normal first quarter temperatures.
Earnings guidance for 2017 assumes normal temperatures for the
last nine months of this year and is subject to the effects of,
among other things: 30-year U.S. Treasury bond yields; regulatory,
judicial and legislative actions; energy center and energy
distribution operations; energy, economic, capital and credit
market conditions; severe weather; 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 first quarter 2017 earnings were $5 million, compared to first quarter 2016
earnings of $14 million. The
year-over-year earnings decrease reflected lower 2017 electric
retail sales primarily driven by very mild winter temperatures,
which reduced earnings by an estimated $9
million (and $18 million
compared to normal temperatures), as well as higher depreciation
expenses. These unfavorable factors were partially offset by lower
other operations and maintenance expenses not subject to riders or
regulatory tracking mechanisms.
Ameren Illinois Electric Distribution Segment Results
Ameren Illinois Electric Distribution first quarter 2017
earnings were $30 million, compared
to first quarter 2016 earnings of $11
million. The year-over-year earnings improvement included a
$20 million increase due to a change
in the timing of interim period revenue recognition reflecting the
recently enacted Illinois Future Energy Jobs Act, which decoupled
electric distribution revenues from sales volumes. This change in
timing of revenue recognition increases first, second and fourth
quarter revenue while decreasing third quarter revenue, with no
effect on full-year earnings. Earnings in 2017 also benefited from
higher infrastructure investments, as well as an increased allowed
return on equity due to a higher projected average 30-year U.S.
Treasury bond yield in 2017, compared to 2016.
Ameren Illinois Natural Gas Segment Results
Ameren Illinois Natural Gas first quarter 2017 earnings were
$33 million, comparable to first
quarter 2016 earnings of $35
million.
Ameren Transmission Segment Results
Ameren Transmission first quarter 2017 earnings were
$34 million, compared to first
quarter 2016 earnings of $27 million.
The year-over-year earnings improvement reflected increased
infrastructure investments.
Other Results
There were no first quarter 2017 earnings for items not reported
in a segment, compared to first quarter 2016 earnings of
$18 million. The year-over-year
earnings decrease reflected lower tax benefits associated with
share-based compensation.
Analyst Conference Call
Ameren will conduct a conference call for financial analysts at
9 a.m. Central Time on Thursday, May 4, to discuss 2017 earnings,
earnings guidance, and regulatory and other matters. Investors, the
news media and the public may listen to a live Internet broadcast
of the call at Amereninvestors.com by clicking on "Webcast" under
"Q1 2017 Earnings Conference Call," where an accompanying slide
presentation will also be available. The conference call and
presentation will be archived for one year in the "Investor News
and Events" section of the website under "Events and
Presentations."
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 and natural gas transmission and distribution
service while Ameren Missouri provides vertically integrated
electric service, with generating capacity of over 10,200
megawatts, and natural gas distribution service. Ameren
Transmission Company of Illinois
develops regional electric transmission projects. For more
information, visit Ameren.com, or follow us at @AmerenCorp,
Facebook.com/AmerenCorp, or LinkedIn/company/Ameren.
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, strategies, 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, 2016, 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:
- regulatory, judicial, or legislative actions, including any
federal income tax reform and changes in regulatory policies and
ratemaking determinations, such as those that may result from the
complaint case filed in February 2015
with the Federal Energy Regulatory Commission seeking a reduction
in the allowed base return on common equity under the Midcontinent
Independent System Operator tariff, Ameren Illinois' April 2017 annual electric distribution service
formula rate update filing, and future regulatory, judicial, or
legislative actions that change regulatory recovery
mechanisms;
- the effect of Ameren Illinois participating in a
performance-based formula ratemaking process under the Illinois
Energy Infrastructure Modernization Act (IEIMA), including the
direct relationship between Ameren Illinois' return on common
equity and 30-year United States Treasury bond yields, and the
related financial commitments;
- the effects of changes in federal, state, or local laws and
other governmental actions, including monetary, fiscal, and energy
policies;
- the effects of changes in federal, state, or local tax laws,
regulations, interpretations, or rates and any challenges to the
tax positions we have taken;
- the effects on demand for our services resulting from
technological advances, including advances in customer energy
efficiency and private generation sources, which generate
electricity at the site of consumption and are becoming more
cost-competitive;
- the effectiveness of Ameren Missouri's customer energy
efficiency programs and the related revenues and performance
incentives earned under its MEEIA plans;
- Ameren Illinois' achievement of Future Energy Jobs Act electric
energy efficiency goals, and the resulting impact on its allowed
return on program investments;
- our ability to align overall spending, both operating and
capital, with frameworks established by our regulators in our
attempt to earn our allowed return on equity;
- the timing of increasing capital expenditure and operating
expense requirements and our ability to recover these costs in a
timely manner;
- the cost and availability of fuel, such as ultra-low-sulfur
coal, natural gas, and enriched uranium used to produce
electricity; the cost and availability of purchased power and
natural gas for distribution; and the level and volatility of
future market prices for such commodities, including our ability to
recover the costs for such commodities and our customers' tolerance
for the related rate increases;
- disruptions in the delivery of fuel, failure of our fuel
suppliers to provide adequate quantities or quality of fuel, or
lack of adequate inventories of fuel, including nuclear fuel
assemblies from Westinghouse, the Callaway Energy Center's only
Nuclear Regulatory Commission-licensed supplier of such assemblies,
which is currently in bankruptcy proceedings;
- the effectiveness of our risk management strategies and our use
of financial and derivative instruments;
- the ability to obtain sufficient insurance, including insurance
for Ameren Missouri's Callaway Energy Center, or, in the absence of
insurance, the ability to recover uninsured losses from our
customers;
- business and economic conditions, including their impact on
interest rates, collection of our receivable balances, and demand
for our products;
- disruptions of the capital markets, deterioration in our credit
metrics, or other events that may have an adverse effect on the
cost or availability of capital, including short-term credit and
liquidity;
- the actions of credit rating agencies and the effects of such
actions;
- the impact of adopting new accounting guidance and the
application of appropriate accounting rules and guidance;
- the impact of weather conditions and other natural phenomena on
us and our customers, including the impact of system outages;
- the construction, installation, performance, and cost recovery
of generation, transmission, and distribution assets;
- the effects of breakdowns or failures of equipment in the
operation of natural gas transmission and distribution systems and
storage facilities, such as leaks, explosions and mechanical
problems, and compliance with natural gas safety regulations;
- the effects of our increasing investment in electric
transmission projects, our ability to obtain all of the necessary
approvals to complete the projects, and the uncertainty as to
whether we will achieve our expected returns in a timely
manner;
- operation of Ameren Missouri's Callaway Energy Center,
including planned and unplanned outages, and decommissioning
costs;
- the effects of strategic initiatives, including mergers,
acquisitions and divestitures, and any related tax
implications;
- the impact of current environmental regulations and new, more
stringent, or changing requirements, including those related to
carbon dioxide, other emissions and discharges, cooling water
intake structures, coal combustion residuals, and energy
efficiency, that are enacted over time and that could limit or
terminate the operation of certain of Ameren Missouri's energy
centers, increase our costs or investment requirements, result in
an impairment of our assets, cause us to sell our assets, reduce
our customers' demand for electricity or natural gas, or otherwise
have a negative financial effect;
- the impact of complying with renewable energy portfolio
requirements in Missouri;
- labor disputes, work force reductions, future wage and employee
benefits costs, including changes in discount rates, mortality
tables, and returns on benefit plan assets;
- the inability of our counterparties to meet their obligations
with respect to contracts, credit agreements, and financial
instruments;
- the cost and availability of transmission capacity for the
energy generated by Ameren Missouri's energy centers or required to
satisfy Ameren Missouri's energy sales;
- legal and administrative proceedings;
- the impact of cyber attacks, which could result in the loss of
operational control of energy centers and electric and natural gas
transmission and distribution systems and/or the loss of data, such
as customer data and account information; and
- acts of sabotage, war, terrorism, or other intentionally
disruptive acts.
New factors emerge from time to time and it is not possible for
management to predict all of such factors, nor can it 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
March 31,
|
|
2017
|
|
2016
|
Operating
Revenues:
|
|
|
|
Electric
|
$
|
1,206
|
|
|
$
|
1,102
|
|
Gas
|
308
|
|
|
332
|
|
Total operating
revenues
|
1,514
|
|
|
1,434
|
|
Operating
Expenses:
|
|
|
|
Fuel
|
206
|
|
|
203
|
|
Purchased
power
|
180
|
|
|
138
|
|
Gas purchased for
resale
|
130
|
|
|
152
|
|
Other operations and
maintenance
|
405
|
|
|
400
|
|
Depreciation and
amortization
|
221
|
|
|
207
|
|
Taxes other than
income taxes
|
118
|
|
|
114
|
|
Total operating
expenses
|
1,260
|
|
|
1,214
|
|
Operating
Income
|
254
|
|
|
220
|
|
Other Income and
Expenses:
|
|
|
|
Miscellaneous
income
|
15
|
|
|
20
|
|
Miscellaneous
expense
|
9
|
|
|
7
|
|
Total other
income
|
6
|
|
|
13
|
|
Interest
Charges
|
99
|
|
|
95
|
|
Income Before
Income Taxes
|
161
|
|
|
138
|
|
Income
Taxes
|
57
|
|
|
31
|
|
Net
Income
|
104
|
|
|
107
|
|
Less: Net Income
Attributable to Noncontrolling Interests
|
2
|
|
|
2
|
|
Net Income
Attributable to Ameren Common Shareholders
|
$
|
102
|
|
|
$
|
105
|
|
|
|
|
|
Earnings per
Common Share – Basic and Diluted
|
$
|
0.42
|
|
|
$
|
0.43
|
|
|
|
|
|
Average Common
Shares Outstanding – Basic
|
242.6
|
|
|
242.6
|
|
AMEREN CORPORATION
(AEE)
CONSOLIDATED
BALANCE SHEET
(Unaudited, in
millions)
|
|
|
March 31,
2017
|
|
December 31,
2016
|
ASSETS
|
|
|
|
Current
Assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
8
|
|
|
$
|
9
|
|
Accounts receivable -
trade (less allowance for doubtful accounts)
|
457
|
|
|
437
|
|
Unbilled
revenue
|
228
|
|
|
295
|
|
Miscellaneous
accounts receivable
|
67
|
|
|
63
|
|
Inventories
|
467
|
|
|
527
|
|
Current regulatory
assets
|
118
|
|
|
149
|
|
Other current
assets
|
105
|
|
|
113
|
|
Total current
assets
|
1,450
|
|
|
1,593
|
|
Property, Plant,
and Equipment, Net
|
20,298
|
|
|
20,113
|
|
Investments and
Other Assets:
|
|
|
|
Nuclear
decommissioning trust fund
|
635
|
|
|
607
|
|
Goodwill
|
411
|
|
|
411
|
|
Regulatory
assets
|
1,485
|
|
|
1,437
|
|
Other
assets
|
532
|
|
|
538
|
|
Total investments and
other assets
|
3,063
|
|
|
2,993
|
|
TOTAL
ASSETS
|
$
|
24,811
|
|
|
$
|
24,699
|
|
LIABILITIES AND
EQUITY
|
|
|
|
Current
Liabilities:
|
|
|
|
Current maturities of
long-term debt
|
$
|
681
|
|
|
$
|
681
|
|
Short-term
debt
|
914
|
|
|
558
|
|
Accounts and wages
payable
|
460
|
|
|
805
|
|
Taxes
accrued
|
77
|
|
|
46
|
|
Interest
accrued
|
100
|
|
|
93
|
|
Customer
deposits
|
106
|
|
|
107
|
|
Current regulatory
liabilities
|
144
|
|
|
110
|
|
Other current
liabilities
|
280
|
|
|
274
|
|
Total current
liabilities
|
2,762
|
|
|
2,674
|
|
Long-term Debt,
Net
|
6,597
|
|
|
6,595
|
|
Deferred Credits
and Other Liabilities:
|
|
|
|
Accumulated deferred
income taxes, net
|
4,321
|
|
|
4,264
|
|
Accumulated deferred
investment tax credits
|
53
|
|
|
55
|
|
Regulatory
liabilities
|
1,982
|
|
|
1,985
|
|
Asset retirement
obligations
|
641
|
|
|
635
|
|
Pension and other
postretirement benefits
|
768
|
|
|
769
|
|
Other deferred
credits and liabilities
|
481
|
|
|
477
|
|
Total deferred
credits and other liabilities
|
8,246
|
|
|
8,185
|
|
Ameren Corporation
Shareholders' Equity:
|
|
|
|
Common
stock
|
2
|
|
|
2
|
|
Other paid-in
capital, principally premium on common stock
|
5,522
|
|
|
5,556
|
|
Retained
earnings
|
1,563
|
|
|
1,568
|
|
Accumulated other
comprehensive loss
|
(23)
|
|
|
(23)
|
|
Total Ameren
Corporation shareholders' equity
|
7,064
|
|
|
7,103
|
|
Noncontrolling
Interests
|
142
|
|
|
142
|
|
Total
equity
|
7,206
|
|
|
7,245
|
|
TOTAL LIABILITIES
AND EQUITY
|
$
|
24,811
|
|
|
$
|
24,699
|
|
AMEREN CORPORATION
(AEE)
CONDENSED
CONSOLIDATED STATEMENT OF CASH FLOWS
(Unaudited, in
millions)
|
|
|
Three Months Ended
March 31,
|
|
2017
|
|
2016
|
Cash Flows From
Operating Activities:
|
|
|
|
Net income
|
$
|
104
|
|
|
$
|
107
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
Depreciation and
amortization
|
217
|
|
|
210
|
|
Amortization of
nuclear fuel
|
24
|
|
|
24
|
|
Amortization of debt
issuance costs and premium/discounts
|
6
|
|
|
6
|
|
Deferred income taxes
and investment tax credits, net
|
51
|
|
|
42
|
|
Allowance for equity
funds used during construction
|
(6)
|
|
|
(8)
|
|
Share-based
compensation costs
|
4
|
|
|
6
|
|
Other
|
(4)
|
|
|
(3)
|
|
Changes in assets and
liabilities
|
(65)
|
|
|
(35)
|
|
Net cash provided
by operating activities
|
331
|
|
|
349
|
|
Cash Flows From
Investing Activities:
|
|
|
|
Capital
expenditures
|
(504)
|
|
|
(496)
|
|
Nuclear fuel
expenditures
|
(27)
|
|
|
(21)
|
|
Purchases of
securities – nuclear decommissioning trust fund
|
(64)
|
|
|
(130)
|
|
Sales and maturities
of securities – nuclear decommissioning trust fund
|
58
|
|
|
125
|
|
Other
|
(2)
|
|
|
12
|
|
Net cash used in
investing activities
|
(539)
|
|
|
(510)
|
|
Cash Flows From
Financing Activities:
|
|
|
|
Dividends on common
stock
|
(107)
|
|
|
(103)
|
|
Dividends paid to
noncontrolling interest holders
|
(2)
|
|
|
(2)
|
|
Short-term debt,
net
|
356
|
|
|
280
|
|
Maturities of
long-term debt
|
—
|
|
|
(260)
|
|
Share-based
payments
|
(39)
|
|
|
(32)
|
|
Other
|
(1)
|
|
|
(1)
|
|
Net cash provided
by (used in) financing activities
|
207
|
|
|
(118)
|
|
Net change in cash
and cash equivalents
|
(1)
|
|
|
(279)
|
|
Cash and cash
equivalents at beginning of year
|
9
|
|
|
292
|
|
Cash and cash
equivalents at end of period
|
$
|
8
|
|
|
$
|
13
|
|
AMEREN CORPORATION
(AEE)
OPERATING
STATISTICS
|
|
|
Three Months Ended
March 31,
|
|
2017
|
|
2016
|
Electric Sales -
kilowatthours (in millions):
|
|
|
|
Ameren
Missouri
|
|
|
|
Residential
|
3,227
|
|
|
3,477
|
|
Commercial
|
3,357
|
|
|
3,469
|
|
Industrial
|
1,035
|
|
|
1,302
|
|
Off-system and
other
|
3,221
|
|
|
1,926
|
|
Ameren Missouri
total
|
10,840
|
|
|
10,174
|
|
Ameren Illinois
Electric Distribution
|
|
|
|
Residential
|
2,717
|
|
|
2,904
|
|
Commercial
|
2,917
|
|
|
2,835
|
|
Industrial
|
2,736
|
|
|
2,831
|
|
Street
Lighting/Public Authority
|
132
|
|
|
144
|
|
Ameren Illinois
Electric Distribution total
|
8,502
|
|
|
8,714
|
|
Eliminate affiliate
sales
|
(168)
|
|
|
(198)
|
|
Ameren
Total
|
19,174
|
|
|
18,690
|
|
Electric Revenues
(in millions):
|
|
|
|
Ameren
Missouri
|
|
|
|
Residential
|
$
|
290
|
|
|
$
|
298
|
|
Commercial
|
231
|
|
|
240
|
|
Industrial
|
58
|
|
|
68
|
|
Off-system and
other
|
167
|
|
|
88
|
|
Ameren Missouri
total
|
$
|
746
|
|
|
$
|
694
|
|
Ameren Illinois
Electric Distribution
|
|
|
|
Residential
|
|
|
|
Delivery
service
|
$
|
137
|
|
|
$
|
117
|
|
Power supply and
other cost recovery
|
82
|
|
|
87
|
|
Commercial
|
|
|
|
Delivery
service
|
80
|
|
|
61
|
|
Power supply and
other cost recovery
|
53
|
|
|
51
|
|
Industrial
|
|
|
|
Delivery
service
|
17
|
|
|
13
|
|
Power supply and
other cost recovery
|
11
|
|
|
8
|
|
Street
Lighting/Public Authority
|
|
|
|
Delivery
service
|
6
|
|
|
8
|
|
Power supply and
other cost recovery
|
3
|
|
|
4
|
|
Other
|
(4)
|
|
|
3
|
|
Ameren Illinois
Electric Distribution total
|
$
|
385
|
|
|
$
|
352
|
|
Ameren
Transmission
|
|
|
|
Ameren Illinois
Transmission(a)
|
$
|
60
|
|
|
$
|
51
|
|
ATXI
|
42
|
|
|
32
|
|
Ameren Transmission
total
|
$
|
102
|
|
|
$
|
83
|
|
Other and
intersegment eliminations
|
(27)
|
|
|
(27)
|
|
Ameren
Total
|
$
|
1,206
|
|
|
$
|
1,102
|
|
|
|
(a)
|
Includes $6 million
and $11 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
|
|
March
31,
|
|
2017
|
|
2016
|
Gas Sales -
dekatherms (in millions):
|
|
|
|
Ameren
Missouri
|
6
|
|
|
7
|
|
Ameren Illinois
Natural Gas
|
58
|
|
|
62
|
|
Ameren
Total
|
64
|
|
|
69
|
|
Gas Revenues (in
millions):
|
|
|
Ameren
Missouri
|
$
|
44
|
|
|
$
|
47
|
|
Ameren Illinois
Natural Gas
|
264
|
|
|
285
|
|
Ameren
Total
|
$
|
308
|
|
|
$
|
332
|
|
|
March 31,
2017
|
|
December 31,
2016
|
Common
Stock:
|
|
|
|
Shares outstanding
(in millions)
|
242.6
|
|
|
242.6
|
|
Book value per
share
|
$
|
29.12
|
|
|
$
|
29.28
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/ameren-nyse-aee-announces-first-quarter-2017-results-and-affirms-2017-earnings-guidance-300451476.html
SOURCE Ameren Corporation