10-QPeriod: Q3 FY2013

AMEREN CORP Quarterly Report for Q3 Ended Sep 30, 2013

Filed November 8, 2013For Securities:AEE

Summary

Ameren Corporation's (AEE) Q3 2013 filing shows a slight decrease in net income from continuing operations year-over-year, primarily due to cooler weather impacting electric demand and regulatory adjustments in Missouri. The company is actively working on divesting its Merchant Generation business, with expected closure by the end of 2013. This strategic move aims to improve earnings predictability and allow Ameren to focus exclusively on its rate-regulated operations. Despite some operational headwinds, Ameren is investing in infrastructure improvements and transmission projects, anticipating future growth driven by these regulated assets and constructive regulatory frameworks. Overall, the filing indicates a stable operational performance with a clear strategic shift towards a more focused, rate-regulated business model. Investors should monitor the progress and impact of the Merchant Generation divestiture and ongoing regulatory developments.

Financial Highlights

47 data points
Beta

Revenue

$1.64B

Net Income

$302.00M

18.4% Net Margin

EPS (Diluted)

$1.24

Total Assets

$22.39B

Cash & Equivalents

$169.00M

Free Cash Flow

$178.00M

Financial Statements
Beta
Revenue$1.64B
Operating Expenses$1.07B
Operating Income$567.00M
Interest Expense$88.00M
Net Income$302.00M
EPS (Basic)$1.25
EPS (Diluted)$1.24
Shares Outstanding (Basic)242.60M
Shares Outstanding (Diluted)245.10M

Key Highlights

  • 1Net income from continuing operations for the three months ended September 30, 2013, was $305 million, a slight decrease from $309 million in the prior year period.
  • 2Ameren is on track to complete the divestiture of its Merchant Generation business by the end of 2013, which is expected to enhance earnings predictability.
  • 3Cooler summer weather in Q3 2013 negatively impacted electric demand and revenues compared to the warmer weather of Q3 2012.
  • 4A regulatory decision in Missouri resulted in a reduction of revenues and earnings related to certain partial requirements sales.
  • 5Ameren Missouri and Ameren Illinois saw increased revenues from base rate increases and regulatory adjustments in their respective jurisdictions.
  • 6Capital expenditures were significant, with a focus on transmission projects and infrastructure improvements across its regulated businesses.
  • 7The company maintained a strong liquidity position with access to substantial credit facilities.

Frequently Asked Questions

The primary reasons for the decrease in net income from continuing operations were cooler weather conditions impacting electric demand compared to a warmer prior year, and a regulatory adjustment in Missouri related to prior partial requirements sales which led to a revenue reduction.

Ameren expects to complete the divestiture of its Merchant Generation business by the end of 2013. Regulatory approvals from FERC and FCC have been received, and the sale of certain energy centers to Medina Valley has been completed, with a subsequent sale to Rockland Capital anticipated by year-end.

Ameren's rate-regulated segments, Ameren Missouri and Ameren Illinois, benefited from rate increases and regulatory adjustments that became effective in January 2013. These increases helped to offset some of the negative impacts from weather and operational factors.

Ameren plans to invest significantly in its regulated businesses, particularly in electric transmission projects like the Illinois Rivers project, as well as infrastructure modernization. These investments are driven by a strategy to enhance regulatory frameworks and grow the rate base to support future earnings and dividend growth.