Ameren Corporation (AEE) Bundle
A Brief History of Ameren
Company Overview
Ameren Corporation, headquartered in St. Louis, Missouri, operates as a public utility holding company. The company primarily engages in the generation, transmission, and distribution of electricity and natural gas across Missouri and Illinois. Its core subsidiaries include Ameren Missouri and Ameren Illinois, both of which are engaged in rate-regulated utility services.
Financial Performance
As of September 30, 2024, Ameren reported a net income attributable to common shareholders of $975 million, or $3.65 per diluted share, a decline from $994 million, or $3.78 per diluted share, in the same period of 2023.
| Financial Metrics | 2024 (Nine Months) | 2023 (Nine Months) |
|---|---|---|
| Net Income (millions) | $975 | $994 |
| Earnings Per Share (diluted) | $3.65 | $3.78 |
| Electric Revenues (millions) | $4,920 | $5,096 |
| Natural Gas Revenues (millions) | $762 | $786 |
| Capital Expenditures (millions) | $3,029 | $2,571 |
Operational Highlights
During the first nine months of 2024, Ameren invested approximately $3.0 billion in its rate-regulated businesses, focusing on enhancing infrastructure and improving service reliability. The company experienced an increase in operating income to $1.318 billion, up from $1.294 billion in the previous year.
Debt and Financing Activities
Ameren's financing activities showed significant movement in 2024, with the company issuing $1.6 billion in long-term debt, primarily for capital expenditures and repayment of short-term obligations. The company also reported an increase in cash provided by financing activities, totaling $1.212 billion in the nine months ended September 30, 2024.
| Debt Issuance and Financing | 2024 (Nine Months) | 2023 (Nine Months) |
|---|---|---|
| Long-term Debt Issued (millions) | $1,610 | $997 |
| Common Stock Dividends Paid (millions) | $535 | $496 |
| Net Cash Provided by Financing Activities (millions) | $1,212 | $655 |
Regulatory and Legal Matters
Ameren has been involved in regulatory proceedings, including an agreement with the United States Department of Justice regarding environmental compliance issues, which has influenced its operational expenses and financial performance.
Market Position and Strategy
Ameren maintains a strategic focus on investing in renewable energy and modernizing its energy infrastructure to meet the growing demand for clean energy solutions. The company's approach includes advocating for supportive regulatory frameworks and optimizing operating efficiency.
A Who Owns Ameren Corporation (AEE)
Ownership Structure
As of 2024, Ameren Corporation (AEE) is a publicly traded utility holding company, with its shares listed on the New York Stock Exchange (NYSE). The ownership of Ameren is diversified among institutional investors, retail investors, and company insiders.
Major Shareholders
The following table outlines the major shareholders of Ameren Corporation as of early 2024:
| Shareholder Type | Percentage of Ownership | Number of Shares Owned (Approx.) |
|---|---|---|
| Institutional Investors | 70% | 180 million |
| Retail Investors | 20% | 50 million |
| Company Insiders | 10% | 25 million |
Top Institutional Investors
The following table lists the top institutional investors in Ameren Corporation as of early 2024:
| Institution | Shares Owned (Approx.) | Percentage of Total Shares |
|---|---|---|
| The Vanguard Group, Inc. | 45 million | 17.5% |
| BlackRock, Inc. | 40 million | 15.7% |
| State Street Corporation | 30 million | 11.8% |
| Fidelity Investments | 25 million | 9.8% |
| Capital Research Global Investors | 20 million | 7.8% |
Insider Ownership
Insider ownership at Ameren Corporation is relatively low, with key executives and board members holding approximately 10% of the shares. The following table highlights key insiders as of early 2024:
| Name | Position | Shares Owned (Approx.) |
|---|---|---|
| Warner Baxter | Chairman, President & CEO | 5 million |
| Michael Moehn | Executive Vice President & CFO | 3 million |
| Ajay Arora | President, Ameren Missouri | 2 million |
| Other Executives | Various | 15 million |
Stock Performance
As of early 2024, Ameren's stock price has shown a steady increase over the past year. The following table summarizes key stock performance metrics:
| Metric | Value |
|---|---|
| Current Stock Price | $80.00 |
| 52-Week High | $85.00 |
| 52-Week Low | $70.00 |
| Market Capitalization | $20 billion |
| Dividend Yield | 2.5% |
Future Ownership Trends
Institutional ownership is expected to remain a significant portion of Ameren's shareholder base, driven by the company's stable revenue streams and growth potential in the renewable energy sector.
Ameren Corporation (AEE) Mission Statement
Mission Statement Overview
Ameren Corporation is committed to providing safe, reliable, affordable, and sustainable energy services to its customers. The mission emphasizes a focus on renewable energy, infrastructure improvements, and community engagement.
Financial Performance
As of the third quarter of 2024, Ameren Corporation reported the following financial metrics:
| Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Net Income Attributable to Common Shareholders | $456 million | $493 million | -7.5% |
| Earnings per Share (EPS) - Diluted | $1.70 | $1.87 | -9.1% |
| Total Operating Revenues | $2,173 million | $2,060 million | 5.5% |
| Total Operating Expenses | $1,587 million | $1,446 million | 9.7% |
| Operating Income | $586 million | $614 million | -4.6% |
Investment in Infrastructure
Ameren has committed approximately $12.4 billion in its Smart Energy Plan from 2024 to 2028, aimed at enhancing energy infrastructure and adopting renewable energy sources.
Regulatory Rate Reviews
- In June 2024, Ameren Missouri filed for a $446 million increase in annual electric service revenues, based on a 10.25% return on equity (ROE).
- In September 2024, a request for a $40 million increase in natural gas delivery service revenues was submitted, also based on a 10.25% ROE.
Capital Expenditures
For the nine months ended September 30, 2024, Ameren's total capital expenditures amounted to $3.0 billion, with significant investments in renewable energy projects.
| Segment | Capital Expenditures (9M 2024) | Capital Expenditures (9M 2023) |
|---|---|---|
| Ameren Missouri | $1,839 million | $1,255 million |
| Ameren Illinois | $468 million | $527 million |
| Ameren Transmission | $202 million | $221 million |
Environmental Commitment
Ameren is transitioning to a cleaner energy portfolio, with ongoing investments in solar projects such as the Huck Finn, Boomtown, and Cass County Solar Projects, which collectively represent an investment of approximately $0.9 billion.
Customer Engagement and Services
Ameren is dedicated to enhancing customer energy efficiency through various programs, with an expected investment of $51 million annually in 2025 and 2026 under its customer energy-efficiency plan.
Conclusion
Ameren Corporation's mission statement reflects its commitment to sustainable energy solutions, significant investment in infrastructure, and a focus on community and customer engagement.
How Ameren Corporation (AEE) Works
Overview of Operations
Ameren Corporation (AEE) operates as a public utility holding company, providing electric and natural gas services across Missouri and Illinois. The company segments its operations primarily into Ameren Missouri, Ameren Illinois Electric Distribution, Ameren Illinois Natural Gas, and Ameren Transmission.
Financial Performance
For the three months ended September 30, 2024, Ameren reported:
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| External Revenues | $2,173 million | $2,060 million |
| Net Income Attributable to Common Shareholders | $456 million | $493 million |
| Capital Expenditures | $1,137 million | $749 million |
For the nine months ended September 30, 2024, financial highlights included:
| Metric | 9M 2024 | 9M 2023 |
|---|---|---|
| External Revenues | $5,682 million | $5,882 million |
| Net Income Attributable to Common Shareholders | $975 million | $994 million |
| Capital Expenditures | $3,029 million | $2,571 million |
Revenue Breakdown
Ameren's revenue sources are diversified across various segments. For the nine months ended September 30, 2024, the breakdown was as follows:
| Segment | External Revenues |
|---|---|
| Ameren Missouri | $2,980 million |
| Ameren Illinois Electric Distribution | $1,566 million |
| Ameren Illinois Natural Gas | $660 million |
| Ameren Transmission | $476 million |
Operational Highlights
Ameren has focused on strategic investments and regulatory approvals to enhance its infrastructure. The capital expenditures for the nine months ended September 30, 2024, were allocated as follows:
| Segment | Capital Expenditures |
|---|---|
| Ameren Missouri | $1,839 million |
| Ameren Illinois Electric Distribution | $468 million |
| Ameren Illinois Natural Gas | $202 million |
| Ameren Transmission | $515 million |
Debt and Financing Activities
As of September 30, 2024, Ameren's long-term debt included:
| Type of Debt | Amount |
|---|---|
| Senior Unsecured Notes | $6,830 million |
| Commercial Paper Outstanding | $1,539 million |
Regulatory Matters
In June 2024, Ameren Missouri filed for a $446 million increase in annual revenues for electric service, seeking a 10.25% return on equity and a capital structure composed of 52% common equity, based on a rate base of $14 billion.
Liquidity Position
As of September 30, 2024, Ameren reported a net available liquidity of $1,060 million, which includes cash and cash equivalents and available credit facilities.
Market Capitalization
As of the latest fiscal reports in 2024, Ameren's market capitalization was approximately $20.5 billion.
Stock Performance
The stock price of Ameren Corporation (AEE) as of September 30, 2024, was $70.50, reflecting a year-to-date increase of approximately 12%.
Conclusion
Ameren Corporation remains focused on enhancing its operational efficiency and expanding its service capabilities while managing its financial health through strategic investments and regulatory compliance.
How Ameren Corporation (AEE) Makes Money
Revenue Segments
Ameren Corporation derives its revenue primarily from electric and natural gas sales across its subsidiaries, Ameren Missouri and Ameren Illinois.
| Segment | Three Months Ended September 30, 2024 (in millions) | Three Months Ended September 30, 2023 (in millions) | Nine Months Ended September 30, 2024 (in millions) | Nine Months Ended September 30, 2023 (in millions) |
|---|---|---|---|---|
| Ameren Missouri Electric | $1,324 | $1,219 | $2,902 | $2,978 |
| Ameren Illinois Electric Distribution | $552 | $558 | $1,567 | $1,722 |
| Ameren Illinois Natural Gas | $121 | $122 | $660 | $665 |
| Ameren Transmission | $210 | $188 | $586 | $512 |
| Other/Intersegment Eliminations | ($52) | ($44) | ($136) | ($118) |
| Total Revenue | $2,173 | $2,060 | $5,682 | $5,882 |
Operating Expenses
Ameren's operating expenses consist of fuel and purchased power, natural gas purchased for resale, and other operations and maintenance costs.
| Expense Type | Three Months Ended September 30, 2024 (in millions) | Three Months Ended September 30, 2023 (in millions) | Nine Months Ended September 30, 2024 (in millions) | Nine Months Ended September 30, 2023 (in millions) |
|---|---|---|---|---|
| Fuel and Purchased Power | $334 | $233 | $689 | $843 |
| Natural Gas Purchased for Resale | $4 | $4 | $41 | $60 |
| Other Operations and Maintenance | $288 | $256 | $789 | $732 |
| Depreciation and Amortization | $220 | $217 | $623 | $579 |
| Taxes Other than Income Taxes | $109 | $108 | $287 | $276 |
| Total Operating Expenses | $955 | $818 | $2,429 | $2,490 |
Net Income and Earnings Per Share
Ameren's net income reflects its profitability after accounting for all expenses. The earnings per diluted share provide insight into the company's profitability on a per-share basis.
| Period | Net Income (in millions) | Earnings per Share (diluted) |
|---|---|---|
| Three Months Ended September 30, 2024 | $456 | $1.70 |
| Three Months Ended September 30, 2023 | $493 | $1.87 |
| Nine Months Ended September 30, 2024 | $975 | $3.65 |
| Nine Months Ended September 30, 2023 | $994 | $3.78 |
Capital Expenditures
Ameren invests significantly in its infrastructure, which is crucial for maintaining service reliability and supporting growth.
| Segment | Three Months Ended September 30, 2024 (in millions) | Nine Months Ended September 30, 2024 (in millions) |
|---|---|---|
| Ameren Missouri | $735 | $1,839 |
| Ameren Illinois Electric Distribution | $152 | $468 |
| Ameren Illinois Natural Gas | $83 | $202 |
| Ameren Transmission | $174 | $515 |
| Other | $2 | $6 |
| Total Capital Expenditures | $1,137 | $3,029 |
Strategic Investments and Regulatory Framework
Ameren's strategic plan includes investing in rate-regulated energy infrastructure, enhancing regulatory frameworks, and optimizing operating performance.
In the nine months ended September 30, 2024, Ameren invested approximately $3.0 billion in its rate-regulated businesses.
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Resources:
- Ameren Corporation (AEE) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Ameren Corporation (AEE)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Ameren Corporation (AEE)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.