10-QPeriod: Q1 FY2022

AMEREN CORP Quarterly Report for Q1 Ended Mar 31, 2022

Filed May 6, 2022For Securities:AEE

Summary

Ameren Corporation (AEE) reported solid financial results for the first quarter of 2022, demonstrating increased profitability compared to the prior year period. Net income attributable to Ameren common shareholders rose to $252 million, or $0.97 per diluted share, up from $233 million, or $0.91 per diluted share, in the first quarter of 2021. This improvement was driven by higher rate base investments across all segments, improved regulatory outcomes at Ameren Illinois Electric Distribution, and the absence of certain one-time charges that impacted the prior year. The company's operating revenues increased to $1.88 billion from $1.57 billion year-over-year, primarily due to higher electric and natural gas revenues, reflecting colder weather in the current period and the full recovery of implemented rate increases. Despite increased operating expenses, particularly in fuel and other operations and maintenance, Ameren managed to expand its operating income and overall profitability, showcasing effective cost management and the benefits of its regulated rate structures. The company maintained a strong liquidity position, with $1.2 billion in net available liquidity, and reaffirmed its commitment to significant capital investments in infrastructure and renewable energy projects.

Financial Statements
Beta
Revenue$1.88B
Operating Expenses$1.55B
Operating Income$331.00M
Interest Expense$104.00M
Net Income$252.00M
EPS (Basic)$0.98
EPS (Diluted)$0.97
Shares Outstanding (Basic)257.90M
Shares Outstanding (Diluted)259.00M

Key Highlights

  • 1Net income attributable to Ameren common shareholders increased by $19 million (8%) to $252 million for the three months ended March 31, 2022, compared to $233 million in the prior year.
  • 2Diluted earnings per share rose by $0.06 (6.6%) to $0.97 for the first quarter of 2022, compared to $0.91 in the prior year.
  • 3Total operating revenues increased by $313 million (20%) to $1.88 billion, driven by higher electric and natural gas revenues.
  • 4Capital expenditures of $774 million were made during the first three months of 2022, primarily for rate-regulated businesses, reflecting ongoing investment in infrastructure.
  • 5The company maintained a strong liquidity position with $1.2 billion in net available liquidity as of March 31, 2022.
  • 6Ameren Missouri is planning accelerated retirement of the Rush Island Energy Center, subject to regulatory and grid operator approvals, which could have significant implications for future operations and costs.

Frequently Asked Questions

Ameren's earnings growth in Q1 2022 was primarily driven by increased rate base investments across all segments, a higher recognized Return on Equity (ROE) at Ameren Illinois Electric Distribution, and the absence of certain unfavorable items from the prior year, such as the impact of a FERC order related to inventory recovery. Additionally, increased electric retail sales at Ameren Missouri, attributed to colder temperatures, contributed positively.

Total operating revenues increased by 20% to $1.88 billion for the three months ended March 31, 2022, compared to $1.57 billion in the same period of 2021. This increase was primarily due to higher electric revenues driven by colder weather and rate adjustments, and higher natural gas revenues.

Ameren Missouri is seeking to retire the Rush Island Energy Center earlier than previously planned, in lieu of installing a flue gas desulfurization system. This plan is subject to modification by the district court and requires assessment and approval from the Midcontinent Independent System Operator (MISO) regarding potential grid reliability impacts. The Missouri Public Service Commission (MoPSC) staff is also reviewing the accelerated retirement. Ameren Missouri expects to finance associated costs through securitized utility tariff bonds.

Ameren plans significant capital expenditures, estimated at up to $18.0 billion from 2022 through 2026, to enhance its electric and natural gas utility infrastructure. These investments focus on reliability, grid modernization, renewable energy integration, and environmental compliance. The company expects to fund these through a combination of debt and equity issuances, with an ongoing equity contribution plan and an at-the-market (ATM) program.