ST. LOUIS, May 9, 2018 /PRNewswire/ -- Ameren
Corporation (NYSE: AEE) today announced first quarter 2018 net
income attributable to common shareholders of $151 million, or $0.62 per share, compared to first quarter 2017
net income attributable to common shareholders of $102 million, or $0.42 per share.
The increase in year-over-year first quarter earnings reflected
higher Ameren Missouri electric service rates, effective
April 1, 2017, and higher Ameren
Missouri electric retail sales, primarily due to colder winter
temperatures compared to very mild temperatures in the year-ago
period. The comparison also benefited from earnings on increased
infrastructure investments made at Ameren Transmission, Ameren
Illinois Electric Distribution and Ameren Illinois Natural Gas.
While Ameren's effective income tax rate was lower in 2018 compared
to 2017 reflecting federal tax reform, this benefit was almost
entirely offset by a reduction in revenue reflecting the expected
pass through of those savings to customers.
"We are on track to deliver within our 2018 earnings guidance
range of $2.95 to $3.15 per share," said Warner L. Baxter, chairman, president and chief
executive officer of Ameren Corporation. "Our team continues to
successfully execute our strategy, including allocating capital to
jurisdictions with modern, constructive regulatory frameworks and
managing costs in a disciplined manner.
"Further, we continue to advocate for forward-thinking
Missouri electric utility
legislation currently under consideration by the Missouri General
Assembly," Baxter said. "This legislation would support Ameren
Missouri's ability to invest approximately $1 billion of incremental capital over the next
five years to modernize Missouri's
electric grid. In addition, the legislation would create jobs and
provide significant customer benefits, including passing the
benefits of the lower federal income tax rate on to customers in a
very timely fashion."
Earnings Guidance
Today, Ameren also affirmed its 2018 earnings guidance range of
$2.95 to $3.15 per diluted share.
Earnings guidance for 2018 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 storms; 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 2018 earnings were $38 million, compared to first quarter 2017
earnings of $5 million. The increase
in year-over-year earnings reflected higher electric service rates,
as well as higher electric retail sales primarily due to colder
winter temperatures compared to very mild temperatures in the
year-ago period. These favorable factors were partially offset by
increased other operations and maintenance expenses, primarily
reflecting higher-than-normal scheduled non-nuclear plant outage
costs.
Ameren Illinois Electric Distribution Segment Results
Ameren Illinois Electric Distribution first quarter 2018
earnings were $33 million, compared
to first quarter 2017 earnings of $30
million. The year-over-year improvement reflected increased
earnings on infrastructure investments. The allowed return on
equity, which is based on the average 30-year U.S. Treasury bond
yield, was comparable for 2018 and 2017.
Ameren Illinois Natural Gas Segment Results
Ameren Illinois Natural Gas first quarter 2018 earnings were
$42 million, compared to first
quarter 2017 earnings of $33 million.
The year-over-year improvement reflected increased earnings on
infrastructure investments and benefits of federal tax reform.
Ameren Transmission Segment Results
Ameren Transmission first quarter 2018 earnings were
$37 million, compared to first
quarter 2017 earnings of $34 million.
The year-over-year improvement reflected increased earnings on
infrastructure investments.
Other Results
Other results, which includes items not reported in a business
segment, were $1 million of earnings
for the first quarter of 2018, compared to no earnings for the
first quarter of 2017.
Analyst Conference Call
Ameren will conduct a conference call for financial analysts at
9 a.m. Central Time on Wednesday, May
9, to discuss 2018 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 "Q1 2018 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 & 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 10,300 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, 2017, 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 the
effects of the Tax Cut and Jobs Act of 2017 (TCJA) and any 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 Missouri's proceedings with the Missouri Public Service
Commission to pass through to its customers the effect of the
reduction in the federal statutory corporate income tax rate
enacted under the TCJA, Ameren Illinois' natural gas regulatory
rate review filed with the Illinois Commerce Commission in
January 2018, Ameren Illinois'
April 2018 annual electric
distribution formula rate update filing, and future regulatory,
judicial, or legislative actions that change regulatory recovery
mechanisms and the resulting impacts on our results of operations,
financial position, and liquidity;
- the effect of Ameren Illinois' participation in
performance-based formula ratemaking frameworks under the Illinois
Energy Infrastructure Modernization Act and the Illinois Future
Energy Jobs Act (FEJA), 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, amendments or technical
corrections to the TCJA, 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 Missouri Energy Efficiency Investment
Act programs;
- Ameren Illinois' ability to achieve the FEJA 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 and to
recover these costs in a timely manner in our attempt to earn our
allowed returns on equity;
- 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, zero
emission credits, renewable energy credits, and natural gas for
distribution; and the level and volatility of future market prices
for such commodities and credits, including our ability to recover
the costs for such commodities and credits and our customers'
tolerance for any related price 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 Electric Company, LLC, the Callaway
Energy Center's only Nuclear Regulatory Commission-licensed
supplier of such assemblies;
- 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, including as a result of the implementation of the TCJA,
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 as well as potential wind and solar
generation 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;
- 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 negative opinions of us or our utility services
that our customers, legislators, or regulators may have or develop,
which could result from a variety of factors, including failures in
system reliability, failure to implement our investment plans or
protect sensitive customer information, increases in rates, or
negative media coverage;
- the impact of complying with renewable energy portfolio
requirements in Missouri and
Illinois and with the zero
emission standard in Illinois;
- 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, among other things,
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, employee, financial, and
operating system 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,
|
|
2018
|
|
2017
|
Operating
Revenues:
|
|
|
|
Electric
|
$
|
1,223
|
|
|
$
|
1,207
|
|
Natural
gas
|
362
|
|
|
308
|
|
Total operating
revenues
|
1,585
|
|
|
1,515
|
|
Operating
Expenses:
|
|
|
|
Fuel
|
188
|
|
|
206
|
|
Purchased
power
|
163
|
|
|
180
|
|
Natural gas purchased
for resale
|
171
|
|
|
130
|
|
Other operations and
maintenance
|
431
|
|
|
418
|
|
Depreciation and
amortization
|
234
|
|
|
221
|
|
Taxes other than
income taxes
|
125
|
|
|
118
|
|
Total operating
expenses
|
1,312
|
|
|
1,273
|
|
Operating
Income
|
273
|
|
|
242
|
|
Other Income,
Net
|
23
|
|
|
18
|
|
Interest
Charges
|
101
|
|
|
99
|
|
Income Before
Income Taxes
|
195
|
|
|
161
|
|
Income
Taxes
|
42
|
|
|
57
|
|
Net
Income
|
153
|
|
|
104
|
|
Less: Net Income
Attributable to Noncontrolling Interests
|
2
|
|
|
2
|
|
Net Income
Attributable to Ameren Common Shareholders
|
$
|
151
|
|
|
$
|
102
|
|
|
|
|
|
Earnings per
Common Share – Basic and Diluted
|
$
|
0.62
|
|
|
$
|
0.42
|
|
|
|
|
|
Weighted-average
Common Shares Outstanding – Basic
|
242.9
|
|
|
242.6
|
|
AMEREN CORPORATION
(AEE)
|
CONSOLIDATED
BALANCE SHEET
|
(Unaudited, in
millions)
|
|
|
March 31,
2018
|
|
December 31,
2017
|
ASSETS
|
|
|
|
Current
Assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
30
|
|
|
$
|
10
|
|
Accounts receivable -
trade (less allowance for doubtful accounts)
|
514
|
|
|
445
|
|
Unbilled
revenue
|
258
|
|
|
323
|
|
Miscellaneous
accounts receivable
|
98
|
|
|
70
|
|
Inventories
|
453
|
|
|
522
|
|
Current regulatory
assets
|
130
|
|
|
144
|
|
Other current
assets
|
84
|
|
|
98
|
|
Total current
assets
|
1,567
|
|
|
1,612
|
|
Property, Plant,
and Equipment, Net
|
21,666
|
|
|
21,466
|
|
Investments and
Other Assets:
|
|
|
|
Nuclear
decommissioning trust fund
|
698
|
|
|
704
|
|
Goodwill
|
411
|
|
|
411
|
|
Regulatory
assets
|
1,205
|
|
|
1,230
|
|
Other
assets
|
532
|
|
|
522
|
|
Total investments and
other assets
|
2,846
|
|
|
2,867
|
|
TOTAL
ASSETS
|
$
|
26,079
|
|
|
$
|
25,945
|
|
LIABILITIES AND
EQUITY
|
|
|
|
Current
Liabilities:
|
|
|
|
Current maturities of
long-term debt
|
$
|
1,170
|
|
|
$
|
841
|
|
Short-term
debt
|
960
|
|
|
484
|
|
Accounts and wages
payable
|
497
|
|
|
902
|
|
Taxes
accrued
|
91
|
|
|
52
|
|
Interest
accrued
|
97
|
|
|
99
|
|
Customer
deposits
|
115
|
|
|
108
|
|
Current regulatory
liabilities
|
130
|
|
|
128
|
|
Other current
liabilities
|
285
|
|
|
326
|
|
Total current
liabilities
|
3,345
|
|
|
2,940
|
|
Long-term Debt,
Net
|
6,766
|
|
|
7,094
|
|
Deferred Credits
and Other Liabilities:
|
|
|
|
Accumulated deferred
income taxes, net
|
2,564
|
|
|
2,506
|
|
Accumulated deferred
investment tax credits
|
47
|
|
|
49
|
|
Regulatory
liabilities
|
4,363
|
|
|
4,387
|
|
Asset retirement
obligations
|
636
|
|
|
638
|
|
Pension and other
postretirement benefits
|
541
|
|
|
545
|
|
Other deferred
credits and liabilities
|
445
|
|
|
460
|
|
Total deferred
credits and other liabilities
|
8,596
|
|
|
8,585
|
|
Ameren Corporation
Shareholders' Equity:
|
|
|
|
Common
stock
|
2
|
|
|
2
|
|
Other paid-in
capital, principally premium on common stock
|
5,546
|
|
|
5,540
|
|
Retained
earnings
|
1,699
|
|
|
1,660
|
|
Accumulated other
comprehensive loss
|
(17)
|
|
|
(18)
|
|
Total Ameren
Corporation shareholders' equity
|
7,230
|
|
|
7,184
|
|
Noncontrolling
Interests
|
142
|
|
|
142
|
|
Total
equity
|
7,372
|
|
|
7,326
|
|
TOTAL LIABILITIES
AND EQUITY
|
$
|
26,079
|
|
|
$
|
25,945
|
|
AMEREN CORPORATION
(AEE)
|
CONDENSED
CONSOLIDATED STATEMENT OF CASH FLOWS
|
(Unaudited, in
millions)
|
|
|
Three Months Ended
March 31,
|
|
2018
|
|
2017
|
Cash Flows From
Operating Activities:
|
|
|
|
Net income
|
$
|
153
|
|
|
$
|
104
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
Depreciation and
amortization
|
230
|
|
|
217
|
|
Amortization of
nuclear fuel
|
24
|
|
|
24
|
|
Amortization of debt
issuance costs and premium/discounts
|
5
|
|
|
6
|
|
Deferred income taxes
and investment tax credits, net
|
26
|
|
|
51
|
|
Allowance for equity
funds used during construction
|
(5)
|
|
|
(6)
|
|
Stock-based
compensation costs
|
6
|
|
|
4
|
|
Other
|
2
|
|
|
(4)
|
|
Changes in assets and
liabilities
|
(183)
|
|
|
(65)
|
|
Net cash provided
by operating activities
|
258
|
|
|
331
|
|
Cash Flows From
Investing Activities:
|
|
|
|
Capital
expenditures
|
(579)
|
|
|
(504)
|
|
Nuclear fuel
expenditures
|
(12)
|
|
|
(27)
|
|
Purchases of
securities – nuclear decommissioning trust fund
|
(38)
|
|
|
(40)
|
|
Sales and maturities
of securities – nuclear decommissioning trust fund
|
34
|
|
|
34
|
|
Other
|
(2)
|
|
|
(2)
|
|
Net cash used in
investing activities
|
(597)
|
|
|
(539)
|
|
Cash Flows From
Financing Activities:
|
|
|
|
Dividends on common
stock
|
(111)
|
|
|
(107)
|
|
Dividends paid to
noncontrolling interest holders
|
(2)
|
|
|
(2)
|
|
Short-term debt,
net
|
475
|
|
|
356
|
|
Issuances of common
stock
|
17
|
|
|
—
|
|
Repurchases of common
stock for stock-based compensation
|
—
|
|
|
(24)
|
|
Employee payroll
taxes related to stock-based compensation
|
(19)
|
|
|
(15)
|
|
Other
|
—
|
|
|
(1)
|
|
Net cash provided
by financing activities
|
360
|
|
|
207
|
|
Net change in
cash, cash equivalents, and restricted cash
|
21
|
|
|
(1)
|
|
Cash, cash
equivalents, and restricted cash at beginning of
year
|
68
|
|
|
52
|
|
Cash, cash
equivalents, and restricted cash at end of period
|
$
|
89
|
|
|
$
|
51
|
|
AMEREN CORPORATION
(AEE)
|
OPERATING
STATISTICS
|
|
|
Three Months
Ended
|
|
March 31,
|
|
2018
|
|
2017
|
Electric Sales -
kilowatthours (in millions):
|
|
|
|
Ameren
Missouri
|
|
|
|
Residential
|
3,780
|
|
|
3,227
|
|
Commercial
|
3,528
|
|
|
3,357
|
|
Industrial
|
1,053
|
|
|
1,035
|
|
Street lighting and
public authority
|
29
|
|
|
33
|
|
Ameren Missouri
retail load subtotal
|
8,390
|
|
|
7,652
|
|
Off-system
|
2,549
|
|
|
3,188
|
|
Ameren Missouri
total
|
10,939
|
|
|
10,840
|
|
Ameren Illinois
Electric Distribution
|
|
|
|
Residential
|
3,071
|
|
|
2,717
|
|
Commercial
|
2,977
|
|
|
2,917
|
|
Industrial
|
2,794
|
|
|
2,736
|
|
Street lighting and
public authority
|
146
|
|
|
132
|
|
Ameren Illinois
Electric Distribution total
|
8,988
|
|
|
8,502
|
|
Eliminate affiliate
sales
|
(78)
|
|
|
(168)
|
|
Ameren
Total
|
19,849
|
|
|
19,174
|
|
Electric Revenues
(in millions):
|
|
|
|
Ameren
Missouri
|
|
|
|
Residential
|
$
|
332
|
|
|
$
|
290
|
|
Commercial
|
252
|
|
|
232
|
|
Industrial
|
61
|
|
|
58
|
|
Other, including
street lighting and public authority
|
27
|
|
|
29
|
|
Ameren Missouri
retail load subtotal
|
$
|
672
|
|
|
$
|
609
|
|
Off-system
|
69
|
|
|
138
|
|
Ameren Missouri
total
|
$
|
741
|
|
|
$
|
747
|
|
Ameren Illinois
Electric Distribution
|
|
|
|
Residential
|
$
|
219
|
|
|
$
|
219
|
|
Commercial
|
124
|
|
|
133
|
|
Industrial
|
35
|
|
|
28
|
|
Other, including
street lighting and public authority
|
22
|
|
|
5
|
|
Ameren Illinois
Electric Distribution total
|
$
|
400
|
|
|
$
|
385
|
|
Ameren
Transmission
|
|
|
|
Ameren Illinois
Transmission(a)
|
$
|
62
|
|
|
$
|
60
|
|
ATXI
|
42
|
|
|
42
|
|
Ameren Transmission
total
|
$
|
104
|
|
|
$
|
102
|
|
Other and
intersegment eliminations
|
(22)
|
|
|
(27)
|
|
Ameren
Total
|
$
|
1,223
|
|
|
$
|
1,207
|
|
|
(a)
|
Includes $13 million
and $6 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,
|
|
2018
|
|
2017
|
Gas Sales -
dekatherms (in millions):
|
|
|
|
Ameren
Missouri
|
9
|
|
|
6
|
|
Ameren Illinois
Natural Gas
|
68
|
|
|
58
|
|
Ameren
Total
|
77
|
|
|
64
|
|
Gas Revenues (in
millions):
|
|
|
Ameren
Missouri
|
$
|
51
|
|
|
$
|
44
|
|
Ameren Illinois
Natural Gas
|
311
|
|
|
264
|
|
Ameren
Total
|
$
|
362
|
|
|
$
|
308
|
|
|
March 31,
|
|
December
31,
|
|
2018
|
|
2017
|
Common
Stock:
|
|
|
|
Shares outstanding
(in millions)
|
243.6
|
|
|
242.6
|
|
Book value per
share
|
$
|
29.68
|
|
|
$
|
29.61
|
|
View original content with
multimedia:http://www.prnewswire.com/news-releases/ameren-nyse-aee-announces-first-quarter-2018-results-300645327.html
SOURCE Ameren Corporation