The paragraph is an introduction to Ameren Corporation's Fourth Quarter 2024 Earnings Conference Call. It begins with the operator welcoming participants and noting the call's format, including a listen-only mode and a future Q&A session. Andrew Kirk, the Senior Director of Investor Relations and Corporate Modeling, is then introduced as the host. He mentions that the call will discuss forward-looking statements, which may include future expectations and financial performance, and directs listeners to a presentation available on Ameren's investor site. Martin Lyons, the Chairman, President, and CEO, then takes over to discuss the company's 2024 financial results, accomplishments, and future outlook, highlighting strong operational and financial performance for the year.

The article discusses the strategic achievements of a company that has positioned itself to enhance customer satisfaction and provide strong shareholder returns. Looking towards 2025, the company plans to contribute to community economic development, create jobs, and generate tax revenue, resulting in sales growth and the need for increased capital investments. The company remains committed to its Three Pillar strategy: investing in rate-regulated infrastructure, enhancing regulatory frameworks, and optimizing operations. In 2024, the company successfully met key business objectives, investing $4.3 billion in energy infrastructure, securing regulatory approvals, and managing costs. The company announced 2024 adjusted earnings of $4.63 per share, surpassing expectations, and highlighted the positive impact of investments on reliability and customer service while maintaining competitive rates.

The paragraph discusses Ameren Missouri's infrastructure investments that have significantly improved grid resilience, as evidenced by the system's performance during severe winter storms, preventing over 3.5 million minutes of potential outages. It highlights the success of the Smart Energy Plan upgrades, with no issues reported on the updated power lines. The company's financial performance for shareholders is strong, with a 7.6% compound annual growth rate in weather-normalized adjusted earnings per share and a 68% increase in annual dividends since 2013, resulting in a total return of nearly 250%. Looking forward, Ameren plans to invest approximately $4.2 billion in infrastructure by 2025 to enhance safety, security, reliability, and responsiveness. The focus will also be on improving generation plans, achieving regulatory outcomes, advocating for policies to enhance reliability, and attracting new businesses, all while maintaining efficient operations.

The paragraph outlines the company's positive financial outlook and growth strategy. For 2025, earnings are projected to be between $4.85 and $5.05 per share, with an expected annual growth rate of 6% to 8% through 2029 based on a 2025 midpoint of $4.95. Additionally, Ameren's Board has approved a 6% increase in the quarterly dividend, marking the 12th consecutive year of dividend growth, which aligns with the company's earnings growth expectations and targets a payout ratio of 55% to 65%. The company's confidence is supported by investment opportunities in energy infrastructure and robust rate base growth, boosted by specific plans and projects in Missouri and Illinois. These strategic elements underpin a strong total shareholder return proposition and are part of Ameren's five-year investment plan.

The article outlines the company's expected 9.2% compound annual growth rate in their rate base from 2024 to 2029, driven by a 20% increase in their capital plan due to anticipated economic growth and increased sales in Missouri. The region's diverse economy, spanning various sectors, and its appeal for data centers bolster this growth. The company's robust economic development pipeline predicts a 5.5% annual increase in retail sales from 2025 to 2029, a significant rise from previous expectations. They have updated their Preferred Resource Plan to accommodate an expected load growth of 1.5 gigawatts by 2032. Additional construction agreements for 1.5 gigawatts of new load have been signed, pending the acceptance of a modified industrial tariff.

Ameren Missouri is advancing its efforts to support increased energy demand and attract new businesses by submitting a transmission load request to MISO for expedited project review and working on a modified tariff for large industrial customers. The company aims for Missouri Public Service Commission approval by Q2, with hopes to have the tariff effective by year's end. With plans to serve 2 gigawatts of new demand by 2032, they are updating their Preferred Resource Plan as outlined in their September 2023 IRP, now targeting 1.5 gigawatts of additional demand by 2032. The updated plan maintains objectives for a balanced, reliable, and clean energy mix.

The article discusses a new energy investment plan that includes expanding natural gas and battery storage, accelerating solar investments, potentially extending the life of the Sioux Energy Center, and increasing nuclear generation by 2040. This plan aims to add 2.3 gigawatts of capacity by 2035 with an additional $7 billion investment compared to the 2023 plan. Recent developments include three new solar facilities generating 500 megawatts, sufficient for 92,000 homes, with more projects under construction. The Michigan-Pennsylvania-Spanning Transmission Project also progresses, with Ameren leading $1.3 billion in projects to enhance reliability and capacity in Missouri and Illinois.

The paragraph outlines Ameren's involvement in energy infrastructure projects and legislative developments. It details a $6.5 billion project portfolio open for competitive bidding, with $1.8 billion in Illinois, and emphasizes Ameren's strong track record in transmission infrastructure. It also discusses ongoing analysis by MISO for future transmission needs and the development of a new project portfolio. The Missouri legislative session is considering several energy-related bills to enhance energy reliability and economic growth, and Ameren is actively engaging with stakeholders to promote supportive energy policies. Additionally, Ameren has a $63 billion, 10-year investment pipeline aimed at improving the energy grid and creating jobs. Constructive energy policies are deemed essential for achieving regional energy goals and meeting customer expectations.

The paragraph outlines Ameren's value proposition, emphasizing their strategic execution plan for 2025 and beyond, which promises significant value for customers and shareholders. The company anticipates robust earnings growth through a compound annual rate base growth of 9.2% and strategic infrastructure investments across business segments. Ameren offers a compelling opportunity as a high-quality utility growth story with a long-term earnings growth plan of 6% to 8% and a growing dividend, ensuring a strong total return. The company's solid execution track record and experienced management further bolster confidence. Additionally, Ameren reported 2024 adjusted earnings of $4.63 per share, an increase from $4.38 per share in 2023, primarily driven by strategic investments and a 2% growth in weather-normalized retail sales across various sectors.

The paragraph discusses Ameren Missouri's strong industrial sales growth driven by the manufacturing and technology sectors, benefiting from a robust economy. The company has successfully controlled operations and maintenance (O&M) expenses, reducing them by $12 million year-over-year, excluding a one-time charge. This cost management helps keep customer rates below national and Midwest averages. Additionally, in a recent regulatory development, the Missouri PSC staff recommended a $398 million annual revenue increase for Ameren Missouri's electric rates, slightly less than the company's $446 million request, due to differences in return on equity and treatment of the High Prairie Energy Center. The company plans to work with interveners to address these differences.

The paragraph outlines regulatory developments and future plans for utility rate changes in Missouri and Illinois. Evidentiary hearings in Missouri are set for mid-March, with new rates expected by June 1st. In Illinois, the ICC approved a revised grid plan and Multi-Year Rate Plan (MYRP) for 2024-2027, allowing a $309 million revenue increase, slightly below the requested $332 million. This plan aims to support grid safety, reliability, and clean energy goals. Additionally, a $158 million reconciliation adjustment for 2023's revenue requirement will be collected in 2025, replacing the previous $110 million adjustment for 2024. Ameren Illinois has requested a $140 million base rate increase for natural gas distribution, with a decision expected by December. The company is also planning its five-year capital investments.

The paragraph outlines Ameren's planned capital expenditures of $26.3 billion from 2025 to 2029, aiming for a 9.2% annual growth in their rate base. This plan marks a 20% increase from the previous year's proposal, driven by projects like the Ameren Missouri Smart Energy Plan and the Ameren Illinois MYRP order. The investments will adhere to regulatory frameworks regarding returns on equity. Funding will come from operational cash flow, tax deferrals, clean energy tax credits, long-term debt, and approximately $600 million in annual equity issuance, including dividend reinvestment and employee benefit plans.

The paragraph outlines Ameren's 2025 financial strategy and projections. The company plans to issue a mix of debt, totaling $1.9 billion across its entities, and enter into forward sales agreements for $265 million in common stock to support a $4.2 billion investment. Ameren reaffirms its 2025 earnings per share guidance of $4.85 to $5.05, predicting about 7% growth over 2024. It aims to manage operations and maintenance costs to a 1% compound annual growth rate over five years. The company is optimistic about its long-term strategy, focused on strong investment opportunities, robust earnings growth, disciplined cost management, a strong customer growth pipeline, and an attractive dividend, all aimed at delivering consistent value for stakeholders.

The paragraph is part of a question-and-answer session during a call, where Shar Pourreza from Guggenheim Partners asks Martin Lyons to elaborate on the company's growth profile. Specifically, Shar is interested in understanding how the company plans to achieve growth at the top end of their 6% to 8% EPS growth guidance range. Martin Lyons responds by highlighting various positive factors, including sales growth, a capital plan supported by new IRP changes, and financing assumptions. He emphasizes the company's commitment to achieving or exceeding the midpoint of their guidance range, citing a history of delivering results within the upper end of this range. Lyons notes that significant sales growth is expected to start in late 2026 into 2027, with 500 megawatts projected by the end of 2027.

The paragraph discusses a long-term plan to meet growing demand and increase electricity generation capacity by the end of 2029, with significant investments expected in the mid to late part of the period. There's a mention of a large capital expenditure plan, updated from $55 billion to $63 billion, reflecting the company's commitment to future growth. The resource plan update indicates that 1.5 gigawatts of capacity is expected by 2032, and there's discussion about potential options for additional capacity, such as generation capital or retirement extensions. The short-term plan focuses on accelerating previously outlined initiatives.

The paragraph discusses the acceleration of renewable energy investments, such as battery storage and gas-fired generation, with plans to build 2 gigawatts by 2032. There are already 1.8 gigawatts of construction agreements in place, with a potential for tens of thousands of megawatts in new demand across Missouri and Illinois. The company is engaging with data center developers in these states and is optimistic about growth opportunities. There are several Illinois projects in the engineering stage, benefiting from development sites and state incentives. The aim is to help businesses connect to the grid and support economic growth. Shahriar Pourreza congratulates the team, and Durgesh Chopra of Evercore compliments the Investor Relations team for their clear reconciliation report.

The paragraph discusses a financial assessment of a company's balance sheet and capital plan. Michael Moehn responds to Durgesh Chopra's questions about the firm's financial stability and credit ratings, indicating confidence in maintaining a strong balance sheet and positioning for a Baa1/BBB+ credit rating. The company has been proactive in issuing equity to support its fiscal health, meeting Moody's 17% threshold for downgrade prevention and edging closer to an S&P upgrade. Moehn also addresses potential investment opportunities, particularly on the MISO side and the Integrated Resource Plan (IRP), highlighting a $5 billion investment pipeline over ten years associated with long-range transmission planning (LRTP).

The paragraph discusses a capital allocation plan involving approximately $5 billion over several tranches, with $2 billion already allocated in the first five years through Tranche 1 and competitive projects. $1.3 billion has been awarded in Tranche 2, and there are plans to bid on additional competitive projects worth $6.5 billion. Martin Lyons notes that the overall capital plan is considered conservative and achievable. The plan aligns with various strategic initiatives, including Missouri's updated generation plan, Illinois's electric distribution outcomes, and gas spending plans. Despite increased spending, there's a conservative approach to projections, especially in non-generation investments in Missouri. Durgesh Chopra and Martin Lyons conclude the discussion, with the operator introducing the next question from Nicholas Campanella with Barclays.

In the paragraph, Nicholas Campanella asks Martin Lyons about potential growth opportunities within the company's portfolio, particularly regarding Missouri's rate review and potential data center developments. Campanella inquires whether the company would reconsider its growth rate if these opportunities arise. Lyons responds enthusiastically, highlighting the economic development potential in Missouri and Illinois. He mentions that there is good alignment with stakeholders in Missouri to support this growth through investment and regulatory tools. Lyons emphasizes the company's aim to maximize growth and indicates they would not limit it, depending on the necessary investments over time.

The paragraph discusses a projection of 6% to 8% growth over the next five years, with expectations to reach the upper end of the range in the mid to later part of the plan due to anticipated load and rate base growth. Nicholas Campanella asks about the company's capacity plans to serve 2 gigawatts of demand by 2032. Martin Lyons clarifies that this capacity will ramp up over time to meet customer needs, and the current resource plan supports the ability to serve 2 gigawatts by 2032, with potential for more capacity beyond that date. The company is prepared to reevaluate growth projections if tailwinds persist or growth accelerates further.

The paragraph discusses the sales growth outlook for a company's five-year plan, with a projected compound annual growth rate (CAGR) of 5.5%. The growth is primarily driven by significant demand in Missouri, particularly from data centers. Martin Lyons notes that tens of thousands of megawatts of potential demand exist, with 75% coming from data centers and 65% in Missouri. The company has signed 1.5 gigawatts of new construction agreements and aims to handle demand in a fair and timely manner. If the company serves 2 gigawatts by 2032, it would mark a 45% increase in Missouri sales.

The paragraph discusses a company's energy generation goals and progress. It outlines plans to reach 1.5 gigawatts of generation capacity by 2032, with earlier targets of 250 megawatts by 2026 and 1 gigawatt by 2029, building on a foundation of recent growth across residential, commercial, and industrial sectors. Carly Davenport inquires about updated plans in Missouri's Integrated Resource Plan (IRP), focusing on nuclear energy by 2040. Martin Lyons confirms the long-term plans for new nuclear capacity, discussing a balanced energy portfolio, and considers options like Small Modular Reactors (SMRs) or AP1000 designs.

The paragraph outlines the long-term energy strategy for 2045, highlighting that around 70% of resources will be dispatchable, with nearly 40% from nuclear, a little over 30% from gas, and about 30% from renewables. The company plans to leverage its experience with nuclear, especially the Callaway plant in Missouri, while exploring various nuclear technologies without committing financially in the near term. They aim to study technologies and potentially take technology-agnostic actions like construction permitting over the next few years. The conversation ends with expressions of gratitude and a transition to a new question from Julien Dumoulin-Smith of Jefferies, who commends the team's updates on minimal equity needs and rate base progress.

The paragraph involves a discussion about managing regulatory lag and expectations for returns on equity (ROE) within an investment cycle. Michael Moehn emphasizes the importance of managing businesses prudently to achieve returns close to their allowed limits and recognizes the need for careful timing of rate reviews and project implementations to minimize regulatory lag. He highlights their strategy of effective management of operational and maintenance (O&M) costs, including benchmarking and financial analysis, to ensure maximum returns. The aim is to align project planning with timing considerations and legislative outcomes to optimize earnings throughout a five-year period.

The paragraph discusses the company's significant investments in technology over the past several years and the benefits being realized in terms of productivity both in the back office and the field. This, coupled with strategic employee replacements, has led to a $12 million reduction in operating and maintenance expenses year-over-year. The discussion also touches on the need to adjust the timing of rate reviews and improve visibility on sales growth and plans for integrated resources, all of which influence regulatory timing and legislative actions. Martin Lyons adds that a number of legislative initiatives are underway in Missouri, with the legislative session running until May 16th, and mentions familiar issues such as the extension of PISA.

The paragraph discusses the importance of extending the timeframe for natural gas generation investments, as it provides regulatory certainty and supports economic development. It highlights the Missouri First Transmission Act and changes to integrated resource planning as positive steps for improving regional transmission capabilities and supporting economic growth. The passage of Senate Bill 4, which consolidates several relevant bills, is noted as a positive development. The speaker encourages continued monitoring and engagement with these initiatives, as they support investment and economic growth in the state. The conversation concludes with brief remarks and a transition to the next question.

The paragraph is part of a discussion during a conference call involving Michael Moehn and Anthony Crowdell. They discuss plans to add 1,600 megawatts of gas-fired generation by 2030, which is 800 megawatts more than initially planned. Michael Moehn expresses confidence in overcoming supply chain challenges to meet this goal. Anthony then asks about S&P rating thresholds, and Michael explains that their downgrade threshold is 13%, but they are well above that at 17%, suggesting they are closer to an upgrade. The conversation ends with Anthony thanking Michael for the update. Following this exchange, a new question is introduced by William Appicelli from UBS, who inquires about the details of a large load tariff filing, asking if it will include minimum load commitments over a set time period.

The paragraph is a discussion between Bill Appicelli and executives Martin Lyons and Michael Moehn regarding a new load and a Missouri rate case. Lyons mentions that it's too early to determine the structure of the tariff, but they are in discussions with potential customers, focusing on contract details like revenues, costs, and provisions. Appicelli inquires if existing customers will be unaffected by the new load, to which Lyons confirms that they will be neutral, at a minimum. Moehn updates on the Missouri rate case, noting differences in revenue figures between their proposal and staff's, primarily due to return on equity (ROE) assumptions and an issue with the High Prairie wind project. He expresses optimism about settling the rate case constructively.

In the exchange, Jeremy Tonet asks about the company's financing strategy, noting an increase in capital expenditure (CapEx) but minimal additional equity issuance. Michael Moehn attributes this to their strong financial position and careful balance sheet management, aiming to maintain favorable credit ratings. Over the next five years, they expect to maintain a strong threshold metric with Moody's. Tonet suggests that their conservative approach to the balance sheet is beneficial. He also inquires about potential financial benefits from new legislation. Martin Lyons responds that such changes could benefit both customers and shareholders by supporting their capital plans.

In the paragraph, Martin Lyons addresses David Paz's question about potential headwinds affecting their earnings per share (EPS) growth target of 6% to 8% annually. Lyons does not foresee specific headwinds that could put them below the midpoint for next year, 2026. He emphasizes that significant sales growth and rate base growth are expected to ramp up in the latter part of 2026 and into 2027. The conversation concludes with Lyons expressing enthusiasm for future opportunities and looking forward to upcoming conferences, and the operator ends the conference call.

The paragraph informs participants that they can end their call now and expresses gratitude for their involvement.

This summary was generated with AI and may contain some inaccuracies.