10-QPeriod: Q3 FY2022

AMEREN CORP Quarterly Report for Q3 Ended Sep 30, 2022

Filed November 4, 2022For Securities:AEE

Summary

Ameren Corporation (AEE) reported solid financial results for the nine months ended September 30, 2022, with net income attributable to common shareholders increasing to $911 million, or $3.51 per diluted share, compared to $865 million, or $3.36 per diluted share, in the same period of 2021. This growth was driven by increased rate base investments across its utility segments and favorable regulatory outcomes, particularly in Missouri and Illinois, which allowed for higher recognized returns and base rate revenues. The company continues to execute its long-term strategy, investing significantly in its infrastructure, including grid modernization and renewable energy integration. Despite inflationary pressures and rising interest rates, Ameren's regulatory mechanisms, such as trackers and formula ratemaking, provide a degree of cost recovery and mitigate some of the adverse impacts. The company's robust liquidity position and access to capital markets remain strong, supporting its ongoing capital expenditure plans.

Financial Highlights

49 data points
Beta

Revenue

$2.31B

Net Income

$452.00M

19.6% Net Margin

EPS (Diluted)

$1.74

Total Assets

$37.66B

Cash & Equivalents

$7.00M

Free Cash Flow

-$172.00M

Financial Statements
Beta
Revenue$2.31B
Operating Expenses$1.71B
Operating Income$599.00M
Interest Expense$126.00M
Net Income$452.00M
EPS (Basic)$1.75
EPS (Diluted)$1.74
Shares Outstanding (Basic)258.40M
Shares Outstanding (Diluted)259.50M

Key Highlights

  • 1Net income attributable to Ameren common shareholders increased by 5.3% year-over-year for the nine months ended September 30, 2022, reaching $911 million.
  • 2Diluted earnings per share grew to $3.51 for the nine-month period, up from $3.36 in the prior year.
  • 3Capital expenditures for the first nine months of 2022 totaled $2.4 billion, reflecting continued investment in utility infrastructure across its segments.
  • 4Ameren Missouri filed a request for a $316 million annual revenue increase for electric service, with a decision expected by June 2023.
  • 5Ameren Illinois is seeking an $84 million annual increase in electric distribution service rates, with a decision expected by December 2022.
  • 6The company's consolidated debt-to-total capitalization ratio remained manageable at 59% for Ameren, 49% for Ameren Missouri, and 45% for Ameren Illinois as of September 30, 2022.
  • 7Ameren maintained strong liquidity with $1.1 billion in net available liquidity as of September 30, 2022.

Frequently Asked Questions

Ameren's earnings growth was primarily driven by increased rate base investments across its utility segments (Ameren Missouri and Ameren Illinois), a higher recognized Return on Equity (ROE) at Ameren Illinois Electric Distribution, and increased base rate revenues at Ameren Missouri following a December 2021 regulatory order. Higher retail electric sales volumes at Ameren Missouri due to seasonal weather patterns also contributed positively.

Ameren utilizes regulatory mechanisms such as trackers, riders, and formula ratemaking, where applicable, to pass through prudently incurred costs for fuel, purchased power, and natural gas supply to customers. While these mechanisms mitigate some impacts, inflationary pressures and rising interest rates could still affect the company's ability to control costs, make substantial investments, and earn allowed returns within regulatory frameworks, while keeping rates affordable for customers.

Ameren plans significant capital expenditures over the next five years, totaling up to $18.0 billion across its subsidiaries. These investments are primarily directed towards improving electric and natural gas utility infrastructure, enhancing system reliability, modernizing the grid, meeting renewable energy targets, ensuring environmental compliance, and other system upgrades.

Yes, several significant regulatory proceedings are underway. Ameren Missouri has requested a $316 million annual increase in electric service revenues, with a decision expected mid-2023. Ameren Illinois is seeking an $84 million increase in electric distribution service rates, with a decision expected by December 2022. Additionally, Ameren Illinois is pursuing an increase of $17 million for its electric customer energy-efficiency programs, with a decision also expected by December 2022.