Southern Company (the) · NYSE:SO
Southern Company (the) — Q2 2011 Earnings Presentation
12 slides from Southern Company (the)'s earnings presentation, Jul 27, 2011
Slide 1: 2nd Quarter 2011 Earnings Conference Call
2nd Quarter 2011 Earnings Conference Call July 27, 2011
Slide 2: Cautionary Note Regarding Forward-Looking Statements
Cautionary Note Regarding Forward-Looking Statements Certain information contained in this presentation is forward-looking information based on current expectations and plans that involve risks and uncertainties. Forward- looking information includes, among other things, statements concerning custom
Slide 3: Strategic Priorities
Strategic Priorities Complete Support Building Vogtle & Ratcliffe of National Preserve and Enhance Energy Policy the Circle of Life Promote Smart Value and Energy Develop People 3
Slide 4: Q2 2011 vs. Q2 2010 Earnings Drivers
Q2 2011 vs. Q2 2010 Earnings Drivers 14¢ 1¢ -1¢ 1¢ -5¢ Weather Wholesale Other GPC COR Revenue -4¢ -2¢ 1¢ -1¢ 2¢ -2¢ D&A -1¢ AFUDC Interest Taxes $0.71 Income Southern Shares Other Taxes Power 2¢ $0.62 Retail Retail Revenue Sales Impacts Traditional Operating Companies +9¢ Q2 2010 Q2 2011 4
Slide 5: Q2 Retail KWh Sales Growth
Q2 Retail KWh Sales Growth 3.3% 2.2% 1.6% As reported 1.2% 1.5% Weather- 0.0% normal -0.4% Industrial Residential Commercial Total Retail Industrial Sector Highlights • All major industrial segments, with the exception of stone, clay, glass, and textiles, Petroleum +18.7% experienced year-over-year
Slide 6: Economic Roundtable
Economic Roundtable • Economic recovery is protracted • Exports and the auto industry continue to fuel growth in chemicals and primary metals • Productivity gains continue while employment lags • Construction related sectors remain flat • GDP growth for 2011 expected to be 2.4% to 2.8%, with 2.8% to
Slide 7: Southeast Continues to Grow
Southeast Continues to Grow Porsche: 100 jobs Mercedes Benz: 1,600 jobs Triumph: 250 jobs Kia: 1,000 jobs Hyundai: 200 jobs Gulfstream: 1,000 jobs Lakeside Steel: 80 to 280 jobs Stion: 1,000 jobs Navy Federal: 800 jobs Austal: 2,000 jobs Clearwire: 500 jobs Chevron: 1,000 jobs 7
Slide 8: Regulatory Updates
Regulatory Updates • Gulf Power Base Rate Case – First base rate increase request in 10 years – Requesting $93.5 million base rate increase – Final decision expected early 2012 • Alabama Power Rate Structure Change – Elimination of tax-related adjustment effective October 1 – Q4 revenue of approxima
Slide 9: 2011 EPS Guidance
2011 EPS Guidance Annual Guidance = $2.48 - $2.56 per share Q3 Estimate = $1.02 per share 9
Slide 10: April Storms
April Storms 10
Slide 11: Appendix
Appendix uw SOUTHERN aS COMPANY
Slide 12: Capital Markets Comparison
Capital Markets Comparison 6.25% PSEG 4% Dominion 6% 5.75% Wisconsin Energy 14% AEP 6% NextEra 15% Average Cost (%) Entergy Corp. 33% Con Edison 2% Progress Energy 3% 5.25% Exelon Corp. 0% 4.75% Duke Energy 1% Gulf 26% Alabama 18% Southern Co. 23% 4.25% Georgia 29% Mississippi 50% 3.75% 7 9 11 13 15