10-KPeriod: FY2021

AMEREN CORP Annual Report, Year Ended Dec 31, 2021

Filed February 23, 2022For Securities:AEE

Summary

Ameren Corporation (AEE) reported strong financial performance for the year ended December 31, 2021, with net income attributable to common shareholders increasing to $990 million, or $3.84 per diluted share, compared to $871 million, or $3.50 per diluted share, in 2020. This growth was driven by increased infrastructure investments across all business segments, higher electric retail sales in Ameren Missouri due to improving economic conditions and weather, and favorable rate orders in Ameren Missouri. The company's core strategy remains focused on investing in its regulated utility operations, enhancing regulatory frameworks, and capitalizing on investment opportunities for the benefit of both customers and shareholders. Ameren has a robust capital expenditure plan, projecting investments of $16.6 billion to $18.0 billion from 2022 through 2026 to maintain and upgrade its electric and natural gas infrastructure, including investments in grid modernization and renewable energy initiatives. The company's liquidity position remains strong, with $1.8 billion in available liquidity at the end of 2021, providing ample resources to fund its capital programs and operational needs.

Financial Highlights

48 data points
Beta

Revenue

$6.39B

Net Income

$990.00M

15.5% Net Margin

EPS (Diluted)

$3.84

Total Assets

$35.73B

Cash & Equivalents

$8.00M

Free Cash Flow

-$1.82B

Financial Statements
Beta
Revenue$6.39B
Operating Expenses$5.06B
Operating Income$1.33B
Interest Expense$383.00M
Net Income$990.00M
EPS (Basic)$3.86
EPS (Diluted)$3.84
Shares Outstanding (Basic)256.30M
Shares Outstanding (Diluted)257.60M

Key Highlights

  • 1Ameren's net income attributable to common shareholders increased by 14% to $990 million in 2021, with diluted earnings per share rising to $3.84 from $3.50 in 2020.
  • 2The company plans significant capital expenditures of $16.6 billion to $18.0 billion from 2022 through 2026, primarily for infrastructure upgrades, grid modernization, and renewable energy investments.
  • 3Ameren Missouri saw a 3% increase in electric margins, driven by higher sales volumes and a favorable regulatory rate order.
  • 4Ameren Illinois Electric Distribution and Ameren Transmission experienced strong margin growth of 8% and 11% respectively, supported by regulatory rate adjustments and increased investment in infrastructure.
  • 5The company maintained a strong liquidity position, with $1.8 billion in available liquidity at the end of 2021, supporting its operational and capital expenditure plans.
  • 6Ameren's Board of Directors increased the quarterly common stock dividend to $0.59 per share, reflecting confidence in the company's financial performance and outlook.
  • 7The company continues to manage commodity price risks through hedging strategies and cost recovery mechanisms, which mitigate the impact of market fluctuations on earnings.

Frequently Asked Questions

Ameren operates through four main segments: Ameren Missouri, Ameren Illinois Electric Distribution, Ameren Illinois Natural Gas, and Ameren Transmission. In 2021, Ameren Missouri's electric margins increased due to higher sales volumes and a favorable rate order. Ameren Illinois Electric Distribution and Ameren Transmission saw margin growth driven by regulatory adjustments and infrastructure investments. Ameren Illinois Natural Gas also reported margin increases.

Ameren projects capital expenditures between $16.6 billion and $18.0 billion from 2022 through 2026. These investments are primarily focused on enhancing electric and natural gas infrastructure, grid modernization, and renewable energy integration. The company plans to fund these expenditures through a combination of long-term debt, equity issuances (including an ongoing ATM program), and operating cash flows.

The COVID-19 pandemic affected Ameren's operations by shifting sales volumes between customer classes (higher residential, lower commercial/industrial). While total sales volumes in 2021 were comparable to pre-pandemic levels, the company continued to monitor impacts on liquidity, bad debt expense, and supply chains. Regulatory mechanisms in place helped to mitigate some of these impacts by allowing for the recovery of certain pandemic-related costs and forgone revenues.

Ameren's operations are heavily regulated by the MoPSC, ICC, and FERC. These regulatory bodies determine customer rates and recovery mechanisms for investments and operating costs. Key frameworks include formula ratemaking for transmission and performance-based ratemaking for electric distribution, which help to align revenues with investments and mitigate regulatory lag. Ameren actively engages with regulators to advocate for constructive frameworks that support investments and customer value.