Southern Company (the) · NYSE:SO
Southern Company (the) — The Southern Company — Q3 2024 Earnings Presentation
21 slides from Southern Company (the)'s earnings presentation, Oct 31, 2024
Slide 1: Third Quarter 2024 Earnings Conference Call
Third Quarter 2024 Earnings Conference Call October 31, 2024
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, financial objectives, project
Slide 3: Non-GAAP Financial Measures
Non-GAAP Financial Measures In addition to including earnings per share (EPS) in accordance with generally accepted accounting principles (GAAP), this presentation also includes historical adjusted EPS excluding: (1) estimated loss on plants under construction, (2) acquisition and disposition impact
Slide 4: Hurricane Helene
Hurricane Helene Most destructive storm in Georgia Power’s history 4
Slide 5: Hurricane Helene
Hurricane Helene Damage to Infrastructure 11,800+ power poles broken Throughout the storm's path, damage to the grid's 1,500+ miles of downed power lines infrastructure was so severe that crews were 5,800+ transformers damaged rebuilding rather than simply restoring 345+ transmission structures rebu
Slide 6: Q3 2024 Earnings Results
Q3 2024 Earnings Results Q3 YTD 2024 2023 2024 2023 Earnings Per Share As Reported $1.40 $1.30 $3.53 $2.86 Less: Estimated Loss on Plants Under Construction1 - ($0.12) ($0.01) ($0.12) Acquisition and Disposition Impacts2 - - - - Loss on Extinguishment of Debt3 - - - - Estimated Loss on Qualifying In
Slide 7: Q3 2024 & YTD Year-Over-Year Adjusted Drivers
Q3 2024 & YTD Year-Over-Year Adjusted Drivers1 10¢ (30¢) 4¢ (13¢) 74¢ 29¢ (11¢) 5¢ (2¢) (10¢) Other (9¢) $3.56 Other Revenues (1¢) Revenues (4¢) D&A, D&A, (2¢) Interest, O&M 2 Southern Southern Parent & $1.42 (1¢) Interest, (2¢) $1.43 19¢ Company Power Shares O&M Taxes & Other Taxes & Southern South
Slide 8: YTD 2024 & Projected Full Year Adjusted EPS
YTD 2024 & Projected Full Year Adjusted EPS YTD 2024 Adjusted EPS 2024 Projected Full Year Adjusted EPS Guidance1 $0.10 $0.09 $0.40 All Other ($0.74) $0.32 All Other ($0.57) $0.07 Energy $4.05 Energy Parent $3.56 Parent LDCs $0.37 Infrastructure Infrastructure LDCs $0.50 under under long-term long-t
Slide 9: Retail Electricity Sales
Retail Electricity Sales • Robust Q3 2024 customer growth: +12K residential electric customers and +7K residential gas customers • Industrial sales gains for the quarter are led by pipeline, chemicals, and transportation segments • Usage by existing data centers within the commercial class were +10%
Slide 10: Southern Company Value Proposition - Objective of Regular, Predictable and Sustainable
Southern Company Value Proposition - Objective of Regular, Predictable and Sustainable Strategy: Maximize long-term value to shareholders through a customer-, community-, and relationship-focused business model that produces sustainable levels of return for investors Objective of maintaining a high
Slide 11: Appendix
Appendix 11
Slide 12: Total Energy Mix Comparison
Total Energy Mix Comparison 1 2023 Total Energy Mix Q3 YTD 2024 Total Energy Mix Renewables Renewables Renewables Coal Coal Coal 15% 14% 14% 17% 21% 18% Nuclear Nuclear Nuclear 16% 17% 18% Natural Gas Gas Natural Natural Gas 48% 52% 50% 1Energy mix represents all of the energy the Southern Company s
Slide 13: We are well positioned for the growth opportunity...
We are well positioned for the growth opportunity... Experience and Discipline • Deep understanding of Flexible Pricing Framework utility economics and marginal costs to serve • Existing PSC-approved • Decades of experience Institutional Wherewithal pricing frameworks with competition for new custom
Slide 14: ...and our long-standing approach helps ensure all customers benefit
...and our long-standing approach helps ensure all customers benefit The 3 key questions raised by stakeholders: Will the load materialize? Is the pricing appropriate? What protections are in place? Our robust load We employ robust models to A risk-adjusted load forecast, forecasting process ascerta
Slide 15: Our process for risk adjusting the electricity sales forecast
Our process for risk adjusting the electricity sales forecast Potential Selecting Early Selecting Selected a Potential Lower Load Electric Stages State SO Utility Delays Materialization Provider Forecast of Load to Serve Adjustments are based on experience and continuous engagement with customers 15
Slide 16: Capital Markets / Financing
Capital Markets / Financing 16
Slide 17: Long-term Financings
Long-term Financings1 as of October 31, 2024 Actual Projected Remaining Long-term Debt ($ in millions) YTD 2024 2024 2025 2026 2024R-2026 Alabama Power - 750 300 1,050 Georgia Power 1,400 600 2,000 1,000 3,600 Mississippi Power 250 - - - - State-Regulated Electrics $1,650 $600 $2,750 $1,300 $4,650 S
Slide 18: Long-term Debt Maturity Tower
Long-term Debt Maturity Tower1 as of October 31, 2024 Long-term Debt1 $7,000 Alabama Power $11.3B Georgia Power $17.5B $6,000 Mississippi Power $1.7B 2 Southern Company Gas Capital $5.5B $5,000 Nicor Gas $2.7B Southern Power $2.7B Parent Company $21.5B $4,000 Total Long-term Debt Maturities 3 $63.0B
Slide 19: Long-term Debt Maturity Schedule
Long-term Debt Maturity Schedule1 as of October 31, 2024 Actual Projected Remaining Long-term Debt ($ in millions) YTD 2024 2024 2025 2026 2024R-2026 Alabama Power 21 - 250 45 295 Georgia Power 464 21 831 424 1,276 Mississippi Power 200 - 11 65 76 2 State-Regulated Electrics $696 $111 $1,091 $534 $1
Slide 20: Liquidity and Credit
Liquidity and Credit $ in millions as of September 30, 2024 Over $7.9 billion in committed credit facilities and available liquidity of nearly $6.7 billion (in millions) 2025 2026 2027 2028 2029 Total Credit Facility Expirations $580 $650 $275 - $6,400 $7,905 Alabama Georgia Mississippi Southern Sou
Slide 21: Southern Company
Ss at, Southern Company