10-QPeriod: Q2 FY2021

AMEREN CORP Quarterly Report for Q2 Ended Jun 30, 2021

Filed August 6, 2021For Securities:AEE

Summary

Ameren Corporation's (AEE) second-quarter 2021 report shows a mixed financial performance. Net income attributable to common shareholders decreased by 18 cents per diluted share year-over-year for the three months ended June 30, 2021, primarily due to factors at Ameren Missouri and Ameren Transmission. However, for the six-month period, net income attributable to common shareholders increased by 14 cents per diluted share year-over-year, driven by improvements across several segments, including Ameren Illinois Natural Gas and Ameren Missouri. Despite the quarterly dip, the company highlights strategic investments in infrastructure, including renewable energy projects like the Atchison Renewable Energy Center. Regulatory proceedings remain a key focus, with ongoing rate reviews in Missouri and Illinois. The company continues to manage the impacts of the COVID-19 pandemic, including higher accounts receivable balances, while maintaining adequate liquidity and capital resources for planned future investments. Ameren reaffirmed its commitment to disciplined cost management and strategic capital allocation.

Financial Highlights

49 data points
Beta

Revenue

$1.47B

Net Income

$207.00M

14.1% Net Margin

EPS (Diluted)

$0.80

Total Assets

$33.92B

Cash & Equivalents

$99.00M

Free Cash Flow

-$405.00M

Financial Statements
Beta
Revenue$1.47B
Operating Expenses$1.19B
Operating Income$286.00M
Interest Expense$96.00M
Net Income$207.00M
EPS (Basic)$0.81
EPS (Diluted)$0.80
Shares Outstanding (Basic)256.10M
Shares Outstanding (Diluted)257.20M

Key Highlights

  • 1Net income attributable to Ameren common shareholders was $207 million ($0.80/diluted share) for Q2 2021, down from $243 million ($0.98/diluted share) in Q2 2020.
  • 2For the first six months of 2021, net income attributable to common shareholders increased to $440 million ($1.71/diluted share) from $389 million ($1.57/diluted share) in the same period of 2020.
  • 3Ameren Missouri acquired a 300 MW wind generation project (Atchison Renewable Energy Center) for approximately $500 million.
  • 4Capital expenditures for the first six months of 2021 were $1.8 billion, with significant investments in Ameren Missouri, Ameren Transmission, and Ameren Illinois Electric Distribution.
  • 5The company has approximately $2.0 billion in net available liquidity as of June 30, 2021.
  • 6Ameren Missouri filed requests for electric and natural gas rate increases totaling $308 million.
  • 7Ameren Illinois filed for an electric distribution service revenue increase of $60 million for 2022 rates.

Frequently Asked Questions

The decrease in net income for the quarter was primarily due to net income decreases at Ameren Missouri and Ameren Transmission, partially offset by increases at Ameren Illinois Electric Distribution and a reduction in net loss for non-segment activities.

Ameren continues to monitor the pandemic's effects on sales volumes, liquidity, and bad debt expense. While sales volumes are showing gradual improvement, accounts receivable balances that are past due or part of deferred payment arrangements remain higher than historical levels. Regulatory measures are in place to help manage some of these impacts, and Ameren Illinois has bad debt riders for recovery, while Ameren Missouri does not, making it more exposed absent regulatory relief.

Ameren plans significant capital expenditures over the next five years, estimated at up to $17.8 billion from 2021 through 2025. These investments are primarily directed towards its electric and natural gas utility infrastructure, including grid modernization, renewable energy integration, environmental compliance, and system reliability improvements. Ameren Missouri's Smart Energy Plan alone anticipates approximately $8.4 billion in investments from 2021-2025.

Yes, Ameren Missouri has filed requests for electric and natural gas rate increases, with decisions expected by February 2022. Ameren Illinois has also filed for an electric distribution service rate increase, with a decision anticipated by December 2021. These proceedings are crucial for cost recovery and future investment. Additionally, ongoing regulatory matters include transmission formula rate revisions and FERC complaint cases affecting rates.