- 2023 Diluted Earnings Per Share (EPS) were $4.38, Compared to $4.14 in 2022
- 2024 Diluted EPS Guidance Range Established at $4.52 to $4.72
- 2024 through 2028 Diluted EPS Compound Annual Growth Rate Guidance of 6% to 8% using 2024 Guidance Midpoint as a Base
Ameren Corporation (NYSE: AEE) announced 2023 net income attributable to common shareholders of $1,152 million, or $4.38 per diluted share, compared to 2022 net income attributable to common shareholders of $1,074 million, or $4.14 per diluted share.
Earnings results for 2023 were driven by solid operating performance and execution of the company's strategy. Higher earnings were the result of increased infrastructure investments across all business segments. Ameren Missouri earnings benefited from new electric service rates effective July 9, 2023. Earnings were also favorably impacted by lower Ameren Missouri and Ameren Illinois Natural Gas operations and maintenance expenses. Ameren Illinois Electric Distribution earnings benefited from a higher allowed return on equity due to a higher 30-year U.S. Treasury bond yield in 2023 compared to 2022. Ameren Parent earnings benefited from lower income tax expense due, in part, to the effect of favorable market returns on company-owned life insurance (COLI) investments. These favorable factors were partially offset by lower Ameren Missouri electric retail sales, primarily driven by weather, increased interest expense at Ameren Missouri, Ameren Illinois Natural Gas and Ameren Parent and lower energy efficiency performance incentives at Ameren Missouri in 2023 as compared to 2022. Finally, the earnings comparison also reflected higher weighted-average basic common shares outstanding.
"We made significant strides in executing our strategy during 2023 for the benefit of our customers, communities and shareholders," said Martin J. Lyons Jr., chairman, president and chief executive officer of Ameren Corporation. "This included completing substantial energy infrastructure investments, updating Ameren Missouri's Integrated Resource Plan, which calls for a diverse mix of generation investments to most affordably and reliably meet customer needs, and receiving approval to build additional renewable generation and transmission resources. Our continued investments are driving safer, more reliable and resilient service for customers as we transition to a cleaner energy future. We are confident our achievements this year will provide significant long-term value for our customers, communities, shareholders and the environment."
Ameren recorded net income attributable to common shareholders for the three months ended December 31, 2023, of $158 million, or 60 cents per diluted share, compared to net income attributable to common shareholders of $163 million, or 63 cents per diluted share, for the same period in 2022. The year-over-year comparison reflected increased infrastructure investments across all business segments. Ameren Missouri earnings benefited from new electric service rates effective July 9, 2023. Ameren Illinois Electric Distribution earnings benefited from a higher allowed return on equity due to a higher 30-year U.S. Treasury bond yield in 2023 compared to 2022. These favorable factors were more than offset by lower Ameren Missouri electric retail sales driven primarily by milder-than-normal winter temperatures compared to the colder-than-normal winter temperatures in the year-ago quarter and higher interest expense at Ameren Parent.
Earnings and Rate Base Guidance
Ameren expects 2024 diluted earnings per share to be in a range of $4.52 to $4.72. Ameren expects diluted earnings per share to grow at a 6% to 8% compound annual rate from 2024 through 2028, using the 2024 guidance range midpoint of $4.62 per share as the base. Ameren's multi-year earnings growth is expected to be driven by projected rate base growth of approximately 8.2% compounded annually from 2023 through 2028.
"We remain focused on strong, sustainable execution of our strategy, which includes investments to modernize the energy grid and transition to a cleaner energy portfolio in a responsible fashion. This, along with our relentless focus on disciplined cost management and reliability, will continue to deliver superior value for our customers, the communities we serve, our shareholders and the environment," Lyons said.
Ameren's earnings guidance for 2024 and multi-year growth expectations assume normal temperatures and are subject to the effects of, among other things: regulatory, judicial and legislative actions; energy center and energy distribution operations; energy, economic, capital and credit market conditions; customer usage; severe storms; market returns on COLI investments; unusual or otherwise unexpected gains or losses; and other risks and uncertainties outlined, or referred to, in the Forward-looking Statements section of this release.
Ameren Missouri Segment Results
Ameren Missouri 2023 earnings were $545 million, compared to 2022 earnings of $562 million. The year-over-year comparison reflected increased earnings on infrastructure investments, new electric service rates effective July 9, 2023 and lower operations and maintenance expenses. These favorable factors were more than offset by lower electric retail sales driven primarily by weather, lower energy efficiency performance incentives, and higher interest expense.
Ameren Illinois Electric Distribution Segment Results
Ameren Illinois Electric Distribution 2023 earnings were $258 million, compared to 2022 earnings of $202 million. The year-over-year improvement reflected increased earnings on infrastructure investments and a higher allowed return on equity due to a higher average 30-year U.S. Treasury bond yield in 2023 compared to 2022.
Ameren Illinois Natural Gas Segment Results
Ameren Illinois Natural Gas 2023 earnings were $134 million, compared to 2022 earnings of $123 million. The year-over-year improvement reflected increased earnings on infrastructure investments and lower operations and maintenance expenses due, in part, to the effect of favorable market returns on COLI investments. These favorable factors were partially offset by higher interest expense.
Ameren Transmission Segment Results
Ameren Transmission 2023 earnings were $296 million, compared to 2022 earnings of $263 million. The year-over-year improvement reflected increased earnings on infrastructure investments.
Ameren Parent Results (includes items not reported in a business segment)
Ameren Parent results for 2023 reflected a loss of $81 million, compared to a 2022 loss of $76 million. The year-over-year comparison reflected lower tax expense due, in part to, COLI investment performance, which was more than offset by higher interest expense primarily due to higher interest rates.
Analyst Conference Call
Ameren will conduct a conference call for financial analysts at 9 a.m. Central Time on Friday, Feb. 23 to discuss 2023 earnings, 2024 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 "Q4 2023 Earnings Conference Call," where an accompanying slide presentation will also be available. The conference call and presentation will be archived for one year in the "Investors" section of the website under "Quarterly Earnings."
