10-KPeriod: FY2013

AMEREN CORP Annual Report, Year Ended Dec 31, 2013

Filed March 3, 2014For Securities:AEE

Summary

Ameren Corporation's (AEE) 2013 10-K filing highlights a strategic shift towards focusing exclusively on its rate-regulated utility operations following the divestiture of its merchant generation business. The company's core segments, Ameren Missouri and Ameren Illinois, operate in stable, regulated environments, which Ameren plans to leverage for future investments, particularly in electric transmission projects. The filing details significant capital expenditure plans for the next five years, emphasizing upgrades to infrastructure and compliance with environmental regulations. Financially, Ameren reported a net income of $289 million for 2013, a significant improvement from the net loss reported in 2012, largely due to the cessation of discontinued operations. The company maintained a strong liquidity position with substantial credit capacity available. Key to Ameren's strategy is navigating the complex regulatory landscape, with a focus on achieving constructive regulatory outcomes and minimizing regulatory lag to ensure timely recovery of investments and earn a fair return for shareholders.

Financial Statements
Beta
Revenue$5.84B
Operating Expenses$4.65B
Operating Income$1.18B
Interest Expense$398.00M
Net Income$289.00M
EPS (Basic)$1.19
EPS (Diluted)$1.18
Shares Outstanding (Basic)242.60M
Shares Outstanding (Diluted)244.50M

Key Highlights

  • 1Ameren completed the divestiture of its merchant generation business (New AER and other energy centers) in 2013, marking a strategic pivot to focus solely on its rate-regulated utility operations.
  • 2The company plans significant capital investments, projected between $8 billion and $9 billion from 2014 through 2018, primarily directed towards electric transmission projects and infrastructure modernization.
  • 3Ameren Missouri is expected to file an electric service rate case in July 2014, including costs for major capital projects like the Callaway energy center's nuclear reactor head replacement and Labadie energy center precipitator upgrades.
  • 4Ameren Illinois continues to operate under the IEIMA's performance-based formula ratemaking framework for electric delivery service, which includes annual revenue requirement reconciliations and performance standards.
  • 5The company's net income attributable to Ameren Corporation from continuing operations was $512 million in 2013, compared to $516 million in 2012.
  • 6At December 31, 2013, Ameren reported available liquidity of approximately $1.7 billion, comprised of cash on hand and amounts available under existing credit agreements.
  • 7Ameren's stock performance (AEE) showed a positive trend, with a total shareholder return of approximately 41.9% over the five years ended December 31, 2013, compared to the S&P 500's 128.2% return over the same period.

Frequently Asked Questions

Following the divestiture of its merchant generation business, Ameren is now focused exclusively on its rate-regulated electric, natural gas, and electric transmission utility operations.

Ameren projects significant capital spending between $8 billion and $9 billion from 2014 through 2018, with a substantial portion allocated to FERC-regulated electric transmission projects and infrastructure upgrades within its regulated utilities.

Ameren Missouri is planning to file an electric service rate case in July 2014 and continues to seek regulatory frameworks that reduce regulatory lag, allowing for more timely cash flows and a better opportunity to earn fair returns on its investments.

Ameren reported a net income of $289 million for 2013, a substantial improvement from the 2012 net loss. This improvement was significantly influenced by the cessation of discontinued operations, which included large asset impairments in 2012 and a loss on disposal related to the New AER divestiture in 2013.