• Adjusted Earnings Per Share (EPS): $1.87 for Q3 2024, unchanged from Q3 2023.
• 2024 Adjusted EPS Guidance: $4.55 to $4.69.
• 2025 EPS Guidance: $4.85 to $5.05, midpoint represents a 7.1% increase over 2024 midpoint.
• Infrastructure Investment: $3 billion year-to-date in 2024.
• New Solar Generation: 500 megawatts expected in service by year-end 2024.
• Missouri Retail Sales Growth: Weather normalized retail sales growth year-to-date across all customer classes.
• Employment Growth: Greater Saint Louis region ranked fourth among large metro areas in August for employment growth.
• New Load Commitments: Approximately 350 megawatts from data centers, manufacturing, and other industries.
• Rush Island Energy Center Retirement: Safely retired on October 15, 2024.
• Missouri PSC Approved Investment: $900 million for Castle Bluff Energy Center.
• Long-term Investment Pipeline: More than $55 billion over the coming decade.

• Warning! GuruFocus has detected 8 Warning Signs with AEE.

Release Date: November 07, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Ameren Corp (NYSE:AEE) reported third quarter 2024 adjusted earnings of $1.87 per share, consistent with the same period in 2023, meeting expectations.
• The company has a robust investment pipeline of more than $55 billion over the next decade, which is expected to drive significant value for stakeholders.
• Ameren Corp (NYSE:AEE) is experiencing strong economic growth in the St. Louis region, with high employment growth and strong weather-normalized retail sales growth across all customer classes in Missouri.
• The company has successfully closed on three solar energy centers totaling 500 megawatts, expected to be in service by the end of the year, supporting its clean energy transition.
• Ameren Corp (NYSE:AEE) has issued 2025 earnings guidance, projecting a 7.1% increase over the midpoint of its 2024 adjusted guidance range, demonstrating confidence in its growth trajectory.

Negative Points

• The company faced charges related to the Rush Island Energy Center and a FERC order, impacting GAAP earnings for the third quarter.
• Ameren Corp (NYSE:AEE) is dealing with ongoing regulatory proceedings, including those related to the Rush Island Energy Center and MISO's allowed base ROE.
• The company anticipates higher interest expenses in 2025, which could impact earnings.
• There is potential duplication in the economic development pipeline, as many potential customers are evaluating multiple sites, which could affect load growth projections.
• Ameren Corp (NYSE:AEE) faces challenges in balancing the cost of incremental investments needed to serve new and existing customers fairly.

Q & A Highlights

Q: Could you elaborate on the strategy behind providing 2025 guidance amid ongoing regulatory proceedings? How should we think about the 2025 range relative to potential regulatory outcomes? A: Martin Lyons, CEO: We have a long history of growing at 7% or above, and our goal is to deliver at the midpoint or higher within our range. Factors like cooling inflation, a strong local economy, and customer growth opportunities give us confidence in our ability to deliver within the 2025 range. We believe we can adjust our plans to meet the guidance despite any regulatory developments.

Q: Regarding economic development opportunities, how do you factor in potential double counting of customer interest across different utilities? A: Martin Lyons, CEO: We acknowledge potential double counting as many customers evaluate multiple sites. We are working methodically with potential customers to assess site viability, transmission access, and necessary generation. We aim to finalize construction agreements before announcing any load growth.

Q: Can you elaborate on the customer cost benefits related to the transmission projects? A: Martin Lyons, CEO: The customer benefits range from 1.3 to 5.6 times the portfolio cost, as assessed by MISO. These projects are expected to lower customer costs over time, although exact rate impacts are not specified.

Q: Is there a preference for new customer interest in Missouri versus Illinois, and what drives this interest? A: Martin Lyons, CEO: We see data center interest in both states, with about 65% in Missouri and 35% in Illinois. Each state offers unique attractions, and the impact on earnings will differ due to the regulatory frameworks in each state.

Q: How do you view the potential for accelerating tranche two transmission projects? A: Martin Lyons, CEO: While tranche two projects are expected to be in service between 2032 and 2034, we are looking to accelerate them if possible. There is no reason tranche one and tranche two work cannot overlap, and we aim to expedite these projects for customer benefit.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.