Earnings call transcript Q1 2023

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Operator

Greetings, and welcome to Ameren Corporation's First Quarter 2023 Earnings Conference Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded.

It is now my pleasure to introduce your host Andrew Kirk, Director of Investor Relations for Ameren Corporation. Mr. you, Thank Kirk.

begin. You may

Andrew Kirk

and good you, morning. Thank

as On President and call Senior management Vice Financial team. with the members Michael me our Lyons, Executive Officer; Chief and Marty are President as Chief Ameren our other of today Moehn, the well Executive and Officer;

of redistribution This broadcast of time-sensitive as is is today's of prohibited. accurate that contains date live this call only data the broadcast and

the We our amereninvestors.com a have on homepage by presentation be speakers. will that referenced posted

SEC of the call forward-looking X are comments made about As expectations, conference that Page noted to the financial statements. those the which section forward-looking to presentation, filings during this similar may release future could the as on refer commonly more our referred in matters, statements news contain Please various results performance information plans, from cause projections, and about materially issued to differ yesterday actual factors we statements for anticipated. as as well

Now X. here's Marty, who Page will start on

Marty Lyons

everyone, for Thanks, quarter Good discuss joining XXXX earnings thank first we as morning, our Andrew. today results. us and you

plan team strategic execute and deliver our environment for foundation shareholders continues successfully a of the allowing laying all to strong on while to for customers, business our future. consistently the dedicated us our Our segments across

carbon rise and objective X, growth. limit global strong strategic the governance focus our stewardship, degrees Agreement of to to These And balancing as shown areas on X.X Celsius. the Page goals value sustainable our sustainability consistent environmental incorporate impact, our reduction are social proposition plan temperature with integrates Paris four of of which pillars the

being industry and customers we a many leader and in highlight the communities inclusion. also items we equity are doing Here of diversity for our an including few

ERGs. DiversityInc company and among supplier be a that Hall or honored company Ameren top as resource the XXth DiversityInc first all We earlier its employee week ESG diversity, industries utility added. to philanthropy also are Ameren only and recognized to this groups of Fame, named for

the and than companies has to believe diversity value made an commitment our forward explicit more other serve. all is in to communities foundational and of we that decades, It a For work as two we our with to to company team the equity life. fostering vibrant our within inclusion look we best sharing quality cultures and practices together mission We create communities. to power is

sustainable a Further, focused of by on corporate our is the of led diverse execution a our Directors strong manner. governance overseeing strategic plan Board in

growth the which Finally, this best page the our among summarizes remains proposition sustainable in industry.

continue over we have future. billion As mentioned of $XX in a to of investment and pipeline a the opportunities the call on grid energy February, robust cleaner our enable to to transition modernize

effectively our updated called Future. Leading Energy take into our been and published demonstrates value we read practices Today, how available which integrating investor we Sustainable Way some have amereninvestors.com values I to time at our sustainability sustainability corporate strong proposition. our It's to strategy. presentation you more The about sustainability a encourage to

first now per of we quarter per share our first of XXXX are compared quarter share to X. on announced quarter the Page The to this slide. first of earnings $X in earnings Turning drivers $X.XX XXXX. outlined key Yesterday, results of

share. to per share I'm our on $X.XX quarter, $X.XX of our in remain result first range execution deliver report guidance that a pleased to earnings we strong As the XXXX track to of per within

Page some of objectives to our business key I February, strategic XXXX. call highlighted in On the Moving X. for

to of on been X, achieving We key outlined we accomplishments Page date. our have On objectives. laser-focused these several

investments of the efficiency safety to year. to service and first side customers. three this see page, can resiliency, on segments These As will significant invested have the of of we our business our you this capital improve each of months continue right in reliability, during

and to XX benefiting continue focus miles and as coupled from service or switches installed Missouri electric on new Ameren substation. and Illinois, gas quarter, customers one XX upgraded energized the new During underground switches XX,XXX circuits reinforced X,XXX In replacing smart are we distribution pipes. XX mechanically cable smart almost electric over poles meters, our smart on

business is expected complete transmission upgraded the substations transmission or the upgraded new miles new transmission of XXX our lines Further, to XX in half of first or and year.

major I'd these appreciation dedication storm including the events work and It teams the tornadoes, which system Ameren despite noting of our like improvements my service responded customers. hard to to express to impacted all were team's that restore to and start year. for and worth is accomplished to several safely rapidly minor

to lost service saw our pleased hours. a result to for say dedication Thank customers and your XX that of I of that again power restored within storms as communities. customers XX% am these you

matters. Moving regulatory to on

We compounded service and X% customer are for increased rates constructive Missouri have April the and X, Missouri settlement pleased The residential will of Missouri If plant prior Electric XXXX million calls subject revenue rate approximately increase is Ameren annually in April. agreement annual approval. into stipulation accounting. Public to Service review with Commission approved, the since Ameren $XXX and opting to

outcomes touch effective constructive since which Missouri Missouri infrastructure significant benefits moment. providing meaningful more continues investments customers at which a contributed investments to clean our I'll achieved customers. have in in Illinois to We've is XXXX improvement on make XXXX. regulatory through least for to to This framework year a XX% in These additional and regulatory reliability this Ameren to Ameren related transition, energy Missouri constructive allow

Center. performance the operational strong week to at on maintenance To matters. on planned last ensure initiated a summer over Callaway generator we operational months, the outage coming Moving the Energy

week. be back the expect We to online next center energy

improvement we and to our reliable, as we business our disciplined through bills focused transform continuous possible low and ensure keeping through our operating management, customers. cost optimizing Finally, provide sustainably for investment as cleaner as safe, performance energy remain we customer on resilient

Moving to page X.

$X.X assigned is procurement of MISO discussed we've study transmission Ameren work completed billion the Detail past, X design potential a map for of XXXX. projects As projects outlining a underway. planning, road the in Tranche through project and to

proposals. remaining competitive Missouri Illinois of proposal preparing the begun and for and in we projects million be in process request have our are to $XXX issued on of MISO's the

the submit proposal bid to projects place of Orient Denny evaluation relating later to into course to Fairport line first expect month. is over - competitive the and three our and expected XXXX We the mid-XXXX. process take The for this -

Looking be and ahead X first anticipates to projects the Tranche Tranche year. X, MISO's half for MISO will analysis projects early of underway of in potential and year XXXX. well next of the the of portfolios will approved continue the is remainder into

Finn of in Boomtown Missouri In Moving for necessity in Solar Ameren the Illinois. Project and or now XX. and two CCNs solar projects, Solar February Project located and the to the page certificates approved Huck Missouri convenience PSC April, Missouri's

project support to enough Huck with facility Renewable The Construction Finn power will largest to will Energy to Missouri operation, project approximately compliance expected which it is create our this in XXX produce of XX,XXX be date. the homes. jobs. energy approximately once will Standard And solar

the addition in supported PSC be In Boomtown by which XXX-megawatt Ameren approved Missouri's April, Missouri project. Renewable the Program, Solutions will

subscribed. available this energy organizations own is and Participating are organizations and midsized industrial the participants to future program in to innovative meet large renewable for of to customers and commercial can their fully goals. their municipalities XXX% up needs XX subscription-based which This is enroll initial program, across Missouri.

project Vandalia that engineering, Missouri larger-scale has Central Missouri. be agreement center say Solar built Missouri. Further located This the and construction fully I'm renewable and represents in an entered the to Project to energy developed by into excited first Ameren XX-megawatt Ameren will supply construct

CCN We to for the expect with for a PSC project Missouri file this midyear.

approach consistent projects projects and generation few We energy are measured renewable expect months. which These Plan, thoughtful Resource next to the our announce with includes transition to in additional Missouri's portfolio. Integrated solar Ameren a

to enable vehicles and to service EVs XX. our advancement made of electric infrastructure cover Turning or across both provide our in will will Missouri supporting and progress incentive investment that page territory I in being region. Illinois

as our to vehicle continue states state programs advanced a both in adoption expect electric and result addition our in We in increased region EV and federal growth of see funding. to further

the infrastructure XXXX. the road development focus electric and by at electric ICC and EV rates vehicles this on its which through million and a In will with charging one electrification we encouraging and customers. million XXXX goal $XX program, having for adoption also program expands equity the March, Illinois' Illinois in Ameren vehicle on governor's low-income incentives Through support programs, approved on existing beneficial plan, least of provides

XXXX. In in by already million operation Missouri, barriers and extended part This fast-charging the approved the includes aims approximately PSC of Along corridors, XXXX. XX eliminate as to charging and in This our are ports Charge it this $XX Program the of in and Missouri X,XXX Ahead vehicle multi-dwelling electric XXXX adoption. stations public workplaces program. highway addition program incentivize

for benefits We to and participating in and our Corridor adoption rates are the the lower transition. electric of National including we advance initiative. will Institute's addition, load Edison clean vehicles provide In Electric believe strong energy customers growth importantly due Charging supporting

page Moving XX. to

robust $XX making energy investment of Looking ahead stakeholders over opportunities all deliver grid will the by next decade, have a pipeline smarter billion our stronger, of value cleaner. our of significant to and that we

of Of economies. our for also thousands create jobs local investments course, our

delivering energy and country's will needs a energy constructive meeting robust transition fashion customers' investment a a future our infrastructure to and cleaner critical on support Maintaining be policies energy that in to expectations. our in responsible

earnings through rate February, investment included from compares frameworks. primarily expectation growth supported annual their peers. an updated by which segments compound growth and base infrastructure with of expect regulatory by of that allocation resulting to Turning our X% long-term compound to a favorably dividend deliver based we our annual is each to earnings five-year In growth, Combined, strategic XXXX plan, our page total of XX. regulated return earnings X% in we utility growth constructive on our rate strong attractive strong, operating of driven This growth X.X% XXXX. to

execute done. have to team thank us four joining our you am to confident today. get experienced our our Again as business an and in it plans all segments of for we all I across investment and ability strategies dedicated

the to turn over Michael. will I now call

Michael Moehn

good Marty, and everyone. morning, Thanks

presentation. year earnings each per drivers Turning Yesterday ago quarter. of now segment. our $X of XXXX share $X.XX key the This we to for compared to earnings share, page page reported first per XX quarter impacting at summarizes

earnings under Illinois regulatory Distribution see Gas frameworks, we Natural increased experienced can investment. infrastructure Illinois in growth Ameren you driven and Electric our As Transmission, constructive by

our combined diverse XX years, we a strong result were Missouri's by driven business February disciplined mix as warmest in cost and quarter of the to the able management. Ameren during performance and earnings While January declined deliver earnings

Moving to the start. of a years, Despite in XX warmest page we're off XX. to strong one winters experiencing

$X.XX to temperatures, the to range earnings through We be due impact earnings quarter to management. cost $X.XX in of XXXX expected offset first is expect continue to be $X.XX per share. disciplined mild The to share per

encourage I XXXX considerations in these On for your earnings the are in supplemental These year. this expectations you the of you the key consideration our earnings year. take guidance highlighted of assumptions to select page, earnings for for as develop impacting call remainder we've February. remainder discussed to and our the the results quarterly drivers into

return did including by The XX provide Ameren be details, and fuel agreement was rates continuation for electric or the effective black page Pending equity, non-unanimous for our was clause. riders $XXX agreement a the base. revenue review. settlement on to The to Ameren did rate certain service capital for X. expected review April, PSC now stipulation Ameren electric trackers Missouri In Missouri reached adjustment July on not Turning structure specify approval rate increase. new electric including key annual Missouri stipulation and million Missouri in the details agreement a are box rate of

its January, In XX. out years. annual a MYRP four filed MYRP plan multi-year next ICC. lays includes and increase distribution Page the the rate for with revenue our investment grid to plan Illinois Ameren that The supports Electric Distribution our request or monetization Moving first electric

rate in equity return is $X.X base XX%. $XXX Our average a of on increase million equity XX.X% for an ratio and on request billion, of rate based XXXX of an

XX% phase-in XXXX for the the to of customers requested provision filing increase from rate includes be Our and collected in XXXX. proposal

Thursday, XXXX. and and We testimony next rates decision January ICC XX expect with an staff effective intervening May December by

following additional this on of MYRP find can key our slide. You components

annual amount distribution Illinois additional revenue Turning full XX April, decision requirements the and XXXX requesting reconciliation, from rate is by actual required filed our we the Page be matters. other the XXXX. an In to An $XXX ICC reconcile customers million cost. collected would to electric in December regulatory to and

a Natural increase, base. ROE, review XX% $XXX a In January, rate requesting $X.X Illinois Ameren million and our a billion ratio a equity on filed we XX.X% based rate Gas

and in an late today effective We expect early staff intervenor and testimony decision November by ICC December. rates with

On financing XX provide Page we a update.

offering the mortgage and debt. good Proceeds X.XX% to first refinance position. continue our On bonds We used issued of million of Ameren $XXX very feel capital March about expenditures were financial XXXX. due short-term fund XX, Missouri to

strong fund our by to million X.X balance our of Further, and consisting infrastructure sheet common in we plan, million of we a to maintain this approximately robust end credit issue $XXX expect while us equity, of approximately ratings year. for shares the order

These were our previously shares program. under equity ATM sold forward

Additionally, forward together needs, we in support DRPlus sales XXX(k) and have of the our with agreements begun issuance of enter XXXX into equity to our programs. our

support expected and Our our equity in ATM beyond. equity is XXXX to program needs

continue Finally, We're XX. to We're executing strong in we turning well-positioned strategy. Page execute continue successfully plan. to expect earnings to our XXXX our to and a strong to start as we deliver off growth

Ameren favorably per disciplined attractive peers. driven total, the robust attractive As dividend. strong we cost continue shareholder expect return look longer base this offer an will an of Further, term, believe compare to growth share growth earnings management. we shares our total we investors the continue and growth have In to we to story. with by rate growth

That your We concludes now prepared questions. remarks. our invite

Operator

you. Thank

We conducting question. is will first [Operator from session. now Instructions] question-and-answer be Our Tonet a with proceed your JPMorgan. question Please with Jeremy

Robin Shillock

is or legislative first session, your you've right legislation updates has transmission Missouri This been influenced any left And MISO the Robin in any refusal or Jeremy. in recent the additionally, for state? opportunities on With supporting? that other Shillock for legislative this one the outlook Hi. Missouri developments week of on

Marty Lyons

been in May of Yes. Marty of session. And a ends little p.m. right right that's legislative been Look, we've refusal left, XX legislature. just is we of at legislation by have along the you're the supportive first the got way moving X:XX bit on Lyons This time

Both you've action bills certainly the XXX approach session. committees the we heard Bill see any have House Bill following those there. bills and whether in so, on support And XXX been been of and probably and there's Senate end legislative we'll we the as efforts

rapidly a right and first legislation state cost built that competitive we to a at refusal believe So, again, in It infrastructure continue be of would more transmission to certainly is positive. allow level. our

hard So, the We'll It's whether see piece go we're very to of through, supportive it various the predict through. given whether priorities legislation, any legislature that. gets has. will it of

terms our path whether thoughts would of our your influencing in any latter part the question, I that's on say, of forward, But no. of

as energy As ahead, look both in clean transmission. infrastructure, renewable we well a to as we continue meaning, delivery invest reliable reliable energy energy, transition,

that forward, of think maintain to first do So, important to pursue can infrastructure we'll build-out We continue those reliable thanks that things. efficiently But refusal are things keep effectively like happen sure make for your forging system. right so question. and and a good we'll

Robin Shillock

Thank Great. you.

Operator

comments. Mr. [Operator to back like Instructions] to for time. Lyons, closing no this questions further I'd the over turn there floor you at are

Marty Lyons

Okay. all Well, us you thank today. for joining

year. we our remarks, on in the start prepared heard XXXX focused deliver to continuing remain we've you a and of had for remainder the As strong to

the of up in So, is on a we invite you couple of to coming look many you forward at seeing here which weeks. shareholder XX to join Financial AGA meeting May and we our Forum annual

great have thank that, a you, and day. With everybody

Operator

teleconference. today's concludes This

your we you this participation. may your and thank at disconnect lines time, for You

Ameren (AEE) 5 May 232023 Q1 Earnings call transcript