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ST. LOUIS, Nov. 3, 2022 /PRNewswire/ -- Ameren Corporation (AEE" href="/company/AEE" onmouseover="handlePagePreview('company','AEE')" style="color:#4007a2 !important; text-decoration:underline !important; font-weight:bold;">NYSE: AEEAEE-pp">) today announced third quarter 2022 net income attributable to common shareholders of $452 million, or $1.74 per diluted share, compared to third quarter 2021 net income attributable to common shareholders of $425 million, or $1.65 per diluted share.
Third quarter 2022 results reflected earnings on increased infrastructure investments made across all business segments driven by strong execution of the company's strategy. Year-over-year quarterly earnings comparisons were positively impacted by new Ameren Missouri electric service rates effective Feb. 28, 2022. They were also favorably impacted by a higher allowed return on equity at Ameren Illinois Electric Distribution due to a higher projected average annual 30-year U.S. Treasury bond yield in 2022. These favorable factors were partially offset by increased interest expense, primarily due to increased long-term debt outstanding at Ameren Missouri and Ameren Parent, as well as a higher effective tax rate at Ameren Parent, primarily driven by company-owned life insurance (COLI) investment performance in 2022.
"Execution on all elements of our strategy, including significant investments in infrastructure in each of our business segments, continues to drive value for our customers," said Martin J. Lyons, Jr., president and chief executive officer of Ameren Corporation. "Due to strong execution of our strategy, we are narrowing our 2022 earnings per share guidance range to $4.00 to $4.15."
Ameren recorded net income attributable to common shareholders for the nine months ended September 30, 2022, of $911 million, or $3.51 per diluted share, compared to net income attributable to common shareholders for the nine months ended September 30, 2021, of $865 million, or $3.36 per diluted share.
The increase in year-over-year nine month earnings reflected increased infrastructure investments made across all business segments driven by strong execution of the company's strategy. Results improved at Ameren Missouri due to new electric service rates effective Feb. 28, 2022, and higher weather-driven electric retail sales. Earnings also benefited from a higher allowed return on equity at Ameren Illinois Electric Distribution due to a higher projected average annual 30-year U.S. Treasury bond yield in 2022. Ameren Illinois Natural Gas earnings increased due to higher delivery service rates effective in late January 2021. Earnings at Ameren Transmission were also positively impacted by the absence of the March 2021 FERC order addressing the historical recovery of materials and supplies inventories. These positive factors were partially offset by higher operations and maintenance expenses at Ameren Missouri and Ameren Illinois Natural Gas driven, in part, by unfavorable market returns in 2022 on COLI investments compared to favorable market returns in the year-ago period, in addition to an increase in energy center-related costs and the absence in 2022 of a deferral of incurred COVID-19 costs to a regulatory asset at Ameren Missouri. Finally, the earnings comparison also reflected a higher effective tax rate at Ameren Parent, primarily driven by COLI investment performance, as well as increased interest expense, primarily due to increased long-term debt outstanding at Ameren Missouri and Ameren Parent.
Earnings Guidance
Today, Ameren narrowed its 2022 earnings guidance range to $4.00 to $4.15 per diluted share compared to the prior range of $3.95 to $4.15 per diluted share. Earnings guidance for 2022 assumes normal temperatures for the last three months of the year and is subject to the effects of, among other things: the impact of COVID-19; 30-year U.S. Treasury bond yields; regulatory, judicial and legislative actions; energy center and energy distribution operations; energy, economic and capital market conditions; severe storms; unusual or otherwise unexpected gains or losses; and other risks and uncertainties outlined, or referred to, in the Forward-looking Statements section of this press release.
Ameren Missouri Segment Results
Ameren Missouri third quarter 2022 earnings were $397 million, compared to third quarter 2021 earnings of $375 million. The year-over-year improvement reflected new electric service rates effective Feb. 28, 2022 and higher electric retail sales. These factors were partially offset by an increase in operations and maintenance expenses driven, in part, by unfavorable market returns on COLI investments in 2022, as well as increased interest expense, primarily due to increased long-term debt outstanding.
Ameren Illinois Electric Distribution Segment Results
Ameren Illinois Electric Distribution third quarter 2022 earnings were $51 million, compared to third quarter 2021 earnings of $36 million. The year-over-year improvement reflected earnings on increased infrastructure investments and a higher allowed return on equity based on a higher projected average annual 30-year U.S. Treasury bond yield in 2022.
Ameren Transmission Segment Results
Ameren Transmission third quarter 2022 earnings were $78 million, compared to third quarter 2021 earnings of $73 million. The year-over-year improvement reflected earnings on increased infrastructure investments.
Ameren Illinois Natural Gas Segment Results
Ameren Illinois Natural Gas third quarter 2022 earnings reflected a loss of $4 million, compared to a third quarter 2021 loss of $8 million. The year-over-year improvement reflected earnings on increased infrastructure investments.
Ameren Parent Results (includes items not reported in a business segment)
Ameren Parent results for the third quarter of 2022 reflected a loss of $70 million, compared to a third quarter 2021 loss of $51 million. The year-over-year comparison reflected a higher effective tax rate, primarily driven by COLI investment performance, as well as increased interest expense, primarily due to increased long-term debt outstanding.
Analyst Conference Call
Ameren will conduct a conference call for financial analysts at 9 a.m. Central Time on Friday, Nov. 4, to discuss 2022 earnings, earnings guidance and other matters. Investors, the news media and the public may listen to a live broadcast of the call at AmerenInvestors.com by clicking on "Webcast" under "Ameren Corporation Q3 2022 Earnings," where an accompanying slide presentation will also be available. The conference call and presentation will be archived in the "Investor News & Events" section of the website under "Events and Presentations."
About Ameren
St. Louis-based Ameren Corporation powers the quality of life for 2.4 million electric customers and more than 900,000 natural gas customers in a 64,000-square-mile area through its Ameren Missouri and Ameren Illinois rate-regulated utility subsidiaries. Ameren Illinois provides electric transmission and distribution service and natural gas distribution service. Ameren Missouri provides electric generation, transmission and distribution service, as well as natural gas distribution service. Ameren Transmission Company of Illinois develops, owns and operates rate-regulated regional electric transmission projects in the Midcontinent Independent System Operator, Inc. For more information, visit Ameren.com, or follow us on Twitter at @AmerenCorp, Facebook.com/AmerenCorp, or LinkedIn/company/Ameren.
Forward-looking Statements
Statements in this release not based on historical facts are considered "forward-looking" and, accordingly, involve risks and uncertainties that could cause actual results to differ materially from those discussed. Although such forward-looking statements have been made in good faith and are based on reasonable assumptions, there is no assurance that the expected results will be achieved. These statements include (without limitation) statements as to future expectations, beliefs, plans, projections, strategies, targets, estimates, objectives, events, conditions, and financial performance. In connection with the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, we are providing this cautionary statement to identify important factors that could cause actual results to differ materially from those anticipated. The following factors, in addition to those discussed under Risk Factors in Ameren's Annual Report on Form 10-K for the year ended December 31, 2021, and elsewhere in this release and in our other filings with the Securities and Exchange Commission, could cause actual results to differ materially from management expectations suggested in such forward-looking statements:
New factors emerge from time to time, and it is not possible for management to predict all of such factors, nor can it assess the impact of each such factor on the business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained or implied in any forward-looking statement. Given these uncertainties, undue reliance should not be placed on these forward-looking statements. Except to the extent required by the federal securities laws, we undertake no obligation to update or revise publicly any forward-looking statements to reflect new information or future events.
AMEREN CORPORATION (AEE) CONSOLIDATED STATEMENT OF INCOME (Unaudited, in millions, except per share amounts) | |||||||
Three Months Ended September 30, | Nine Months Ended | ||||||
2022 | 2021 | 2022 | 2021 | ||||
Operating Revenues: | |||||||
Electric | $ 2,140 | $ 1,668 | $ 4,971 | $ 4,108 | |||
Natural gas | 166 | 143 | 940 | 741 | |||
Total operating revenues | 2,306 | 1,811 | 5,911 | 4,849 | |||
Operating Expenses: | |||||||
Fuel | 117 | 184 | 376 | 422 | |||
Purchased power | 563 | 159 | 1,058 | 479 | |||
Natural gas purchased for resale | 58 | 45 | 431 | 275 | |||
Other operations and maintenance | 475 | 457 | 1,427 | 1,289 | |||
Depreciation and amortization | 350 | 290 | 965 | 856 | |||
Taxes other than income taxes | 144 | 142 | 415 | 392 | |||
Total operating expenses | 1,707 | 1,277 | 4,672 | 3,713 | |||
Operating Income | 599 | 534 | 1,239 | 1,136 | |||
Other Income, Net | 58 | 56 | 180 | 151 | |||
Interest Charges | 126 | 94 | 356 | 290 | |||
Income Before Income Taxes | 531 | 496 | 1,063 | 997 | |||
Income Taxes | 78 | 70 | 148 | 128 | |||
Net Income | 453 | 426 | 915 | 869 | |||
Less: Net Income Attributable to Noncontrolling Interests | 1 | 1 | 4 | 4 | |||
Net Income Attributable to Ameren Common Shareholders | $ 452 | $ 425 | $ 911 | $ 865 | |||
Earnings per Common Share – Basic | $ 1.75 | $ 1.66 | $ 3.53 | $ 3.38 | |||
Earnings per Common Share – Diluted | $ 1.74 | $ 1.65 | $ 3.51 | $ 3.36 | |||
Weighted-average Common Shares Outstanding – Basic | 258.4 | 257.3 | 258.2 | 255.9 | |||
Weighted-average Common Shares Outstanding – Diluted | 259.5 | 258.6 | 259.3 | 257.2 |
AMEREN CORPORATION (AEE) CONSOLIDATED BALANCE SHEET (Unaudited, in millions) | |||
September 30, | December 31, | ||
ASSETS | |||
Current Assets: | |||
Cash and cash equivalents | $ 7 | $ 8 | |
Accounts receivable - trade (less allowance for doubtful accounts) | 665 | 434 | |
Unbilled revenue | 366 | 301 | |
Miscellaneous accounts receivable | 62 | 85 | |
Inventories | 695 | 592 | |
Current regulatory assets | 346 | 319 | |
Current collateral assets | 145 | 66 | |
Other current assets | 232 | 163 | |
Total current assets | 2,518 | 1,968 | |
Property, Plant, and Equipment, Net | 30,608 | 29,261 | |
Investments and Other Assets: | |||
Nuclear decommissioning trust fund | 910 | 1,159 | |
Goodwill | 411 | 411 | |
Regulatory assets | 1,405 | 1,289 | |
Pension and other postretirement benefits | 813 | 756 | |
Other assets | 992 | 891 | |
Total investments and other assets | 4,531 | 4,506 | |
TOTAL ASSETS | $ 37,657 | $ 35,735 | |
LIABILITIES AND EQUITY | |||
Current Liabilities: | |||
Current maturities of long-term debt | $ 155 | $ 505 | |
Short-term debt | 1,221 | 545 | |
Accounts and wages payable | 820 | 1,095 | |
Taxes accrued | 216 | 74 | |
Current regulatory liabilities | 179 | 113 | |
Other current liabilities | 584 | 494 | |
Total current liabilities | 3,175 | 2,826 | |
Long-term Debt, Net | 13,577 | 12,562 | |
Deferred Credits and Other Liabilities: | |||
Accumulated deferred income taxes and tax credits, net | 3,785 | 3,499 | |
Regulatory liabilities | 5,658 | 5,848 | |
Asset retirement obligations | 771 | 757 | |
Other deferred credits and liabilities | 361 | 414 | |
Total deferred credits and other liabilities | 10,575 | 10,518 | |
Shareholders' Equity: | |||
Common stock | 3 | 3 | |
Other paid-in capital, principally premium on common stock | 6,548 | 6,502 | |
Retained earnings | 3,636 | 3,182 | |
Accumulated other comprehensive income | 14 | 13 | |
Total shareholders' equity | 10,201 | 9,700 | |
Noncontrolling Interests | 129 | 129 | |
Total equity | 10,330 | 9,829 | |
TOTAL LIABILITIES AND EQUITY | $ 37,657 | $ 35,735 |
AMEREN CORPORATION (AEE) CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited, in millions) | |||
Nine Months Ended | |||
2022 | 2021 | ||
Cash Flows From Operating Activities: | |||
Net income | $ 915 | $ 869 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 1,016 | 903 | |
Amortization of nuclear fuel | 46 | 37 | |
Amortization of debt issuance costs and premium/discounts | 17 | 17 | |
Deferred income taxes and investment tax credits, net | 137 | 139 | |
Allowance for equity funds used during construction | (31) | (30) | |
Stock-based compensation costs | 18 | 17 | |
Other | 63 | 11 | |
Changes in assets and liabilities | (582) | (771) | |
Net cash provided by operating activities | 1,599 | 1,192 | |
Cash Flows From Investing Activities: | |||
Capital expenditures | (2,437) | (2,613) | |
Nuclear fuel expenditures | (22) | (19) | |
Purchases of securities – nuclear decommissioning trust fund | (176) | (411) | |
Sales and maturities of securities – nuclear decommissioning trust fund | 163 | 404 | |
Other | 14 | (7) | |
Net cash used in investing activities | (2,458) | (2,646) | |
Cash Flows From Financing Activities: | |||
Dividends on common stock | (457) | (423) | |
Dividends paid to noncontrolling interest holders | (4) | (4) | |
Short-term debt, net | 675 | 63 | |
Maturities of long-term debt | (450) | — | |
Issuances of long-term debt | 1,118 | 1,423 | |
Issuances of common stock | 29 | 297 | |
Redemptions of Ameren Illinois preferred stock | — | (13) | |
Employee payroll taxes related to stock-based compensation | (16) | (17) | |
Debt issuance costs | (11) | (15) | |
Other | — | (13) | |
Net cash provided by financing activities | 884 | 1,298 | |
Net change in cash, cash equivalents, and restricted cash | 25 | (156) | |
Cash, cash equivalents, and restricted cash at beginning of year | 155 | 301 | |
Cash, cash equivalents, and restricted cash at end of period | $ 180 | $ 145 |
AMEREN CORPORATION (AEE) OPERATING STATISTICS | |||||||
Three Months Ended | Nine Months Ended | ||||||
September 30, | September 30, | ||||||
2022 | 2021 | 2022 | 2021 | ||||
Electric Sales - kilowatthours (in millions): | |||||||
Ameren Missouri | |||||||
Residential | 3,780 | 3,803 | 10,688 | 10,484 | |||
Commercial | 3,803 | 3,819 | 10,551 | 10,413 | |||
Industrial | 1,085 | 1,121 | 3,096 | 3,139 | |||
Street lighting and public authority | 17 | 18 | 54 | 58 | |||
Ameren Missouri retail load subtotal | 8,685 | 8,761 | 24,389 | 24,094 | |||
Off-system | 1,531 | 2,109 | 6,100 | 4,512 | |||
Ameren Missouri total | 10,216 | 10,870 | 30,489 | 28,606 | |||
Ameren Illinois Electric Distribution | |||||||
Residential | 3,270 | 3,442 | 9,098 | 9,052 | |||
Commercial | 3,273 | 3,327 | 8,979 | 8,931 | |||
Industrial | 2,888 | 2,849 | 8,311 | 8,256 | |||
Street lighting and public authority | 101 | 106 | 314 | 327 | |||
Ameren Illinois Electric Distribution total | 9,532 | 9,724 | 26,702 | 26,566 | |||
Eliminate affiliate sales | (46) | (120) | (140) | (264) | |||
Ameren Total | 19,702 | 20,474 | 57,051 | 54,908 | |||
Electric Revenues (in millions): | |||||||
Ameren Missouri | |||||||
Residential | $ 564 | $ 537 | $ 1,267 | $ 1,177 | |||
Commercial | 430 | 412 | 968 | 899 | |||
Industrial | 99 | 98 | 229 | 221 | |||
Other, including street lighting and public authority | 22 | 6 | 101 | 129 | |||
Ameren Missouri retail load subtotal | $ 1,115 | $ 1,053 | $ 2,565 | $ 2,426 | |||
Off-system | 223 | 60 | 401 | 117 | |||
Ameren Missouri total | $ 1,338 | $ 1,113 | $ 2,966 | $ 2,543 | |||
Ameren Illinois Electric Distribution | |||||||
Residential | $ 407 | $ 258 | $ 954 | $ 705 | |||
Commercial | 233 | 143 | 571 | 402 | |||
Industrial | 47 | 26 | 145 | 94 | |||
Other, including street lighting and public authority | (15) | 1 | (29) | 26 | |||
Ameren Illinois Electric Distribution total | $ 672 | $ 428 | $ 1,641 | $ 1,227 | |||
Ameren Transmission | |||||||
Ameren Illinois Transmission(a) | $ 117 | $ 108 | $ 320 | $ 277 | |||
ATXI | 53 | 52 | 146 | 149 | |||
Eliminate affiliate revenues | (1) | — | (1) | — | |||
Ameren Transmission total | $ 169 | $ 160 | $ 465 | $ 426 | |||
Other and intersegment eliminations(a) | (39) | (33) | (101) | (88) | |||
Ameren Total | $ 2,140 | $ 1,668 | $ 4,971 | $ 4,108 |
(a) | Includes $31 million, $18 million, $75 million, and $49 million, respectively, of electric operating revenues from transmission services provided to the Ameren Illinois Electric Distribution segment. |
AMEREN CORPORATION (AEE) OPERATING STATISTICS | |||||||
Three Months Ended | Nine Months Ended | ||||||
September 30, | September 30, | ||||||
2022 | 2021 | 2022 | 2021 | ||||
Gas Sales - dekatherms (in millions): | |||||||
Ameren Missouri | 2 | 2 | 15 | 15 | |||
Ameren Illinois Natural Gas | 27 | 27 | 129 | 126 | |||
Ameren Total | 29 | 29 | 144 | 141 | |||
Gas Revenues (in millions): | |||||||
Ameren Missouri | $ 21 | $ 16 | $ 130 | $ 99 | |||
Ameren Illinois Natural Gas | 146 | 127 | 811 | 642 | |||
Eliminate affiliate revenues | (1) | — | (1) | — | |||
Ameren Total | $ 166 | $ 143 | $ 940 | $ 741 | |||
September 30, | December 31, | ||||||
2022 | 2021 | ||||||
Common Stock: | |||||||
Shares outstanding (in millions) | 258.5 | 257.7 | |||||
Book value per share | $ 39.46 | $ 37.64 |
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SOURCE Ameren Corporation