Southern Company (the) · NYSE:SO
Southern Company (the) — The Southern Company — Q3 2020 Earnings Presentation
22 slides from Southern Company (the)'s earnings presentation, Oct 29, 2020
Slide 1: Third Quarter 2020 Earnings Conference Call
Third Quarter 2020 Earnings Conference Call October 29, 2020
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, earning
Slide 3: Non-GAAP Financial Measures
Non-GAAP Financial Measures In addition to including earnings in accordance with generally accepted accounting principles (GAAP), this presentation also includes historical adjusted earnings and earnings per share (EPS) excluding: (1) impacts related to (a) the sale of Gulf Power, (b) the sales of P
Slide 4: Q3 2020 Highlights
Q3 2020 Highlights • Strong adjusted financial results for the quarter of $1.22 per share, well above our earnings estimate of $1.15 per share – COVID-19 revenue impact less than expected for the quarter – Cost control efforts and warm weather substantially mitigated impact of COVID-19 – Expect 2020
Slide 5: Vogtle 3 & 4
Vogtle 3 & 4 • We are focused on meeting November 2021 and November 2022 regulatory-approved in-service dates – Unit 3 transitions to site working plan that reflects the current expectation for remaining milestones and an in-service date during Q3 2021 – Unit 4 continues to utilize an aggressive sit
Slide 6: Vogtle Unit 3 Direct Construction & Major Milestones
Vogtle Unit 3 Direct Construction & Major Milestones (Direct Construction is Bechtel’s Scope of Work) * Milestone bars and lines represent the range of potential start dates for each milestone with the left side of each indicating currently expected start dates under the site work plan and the right
Slide 7: Vogtle 3 & 4 Cost Estimate
Vogtle 3 & 4 Cost Estimate No Change to Total Capital Cost Forecast Projected Estimated Cost of Project ($M) (Georgia Power's 45.7% share) Base project capital cost forecast to May $7,770 Schedule cost margin to November utilized $91 Schedule cost margin to November remaining 156 Total base project
Slide 8: Q3 2020 Earnings Results
Q3 2020 Earnings Results 3Q YTD 2020 2019 2020 2019 Earnings Per Share As Reported $1.18 $1.26 $2.58 $4.12 Less: Acquisition and Disposition Impacts1 - ($0.01) $0.02 $1.29 Estimated Loss on Plants Under Construction2 - - ($0.11) ($0.01) Asset Impairment3 - ($0.06) ($0.07) ($0.06) Wholesale Gas Servi
Slide 9: Q3 2020 & YTD Year-Over-Year Adjusted Drivers
Q3 2020 & YTD Year-Over-Year Adjusted Drivers 1 (10¢) $2.84 (21¢) 5¢ (2¢) (1¢) (4¢) $1.34 6¢ $2.78 11¢ 1¢ (1¢) (2¢) (1¢) $1.22 Southern Southern Parent & 1¢ O&M Company Power Other Shares Rates, Rates, Southern Southern Parent & Weather Gas Weather Shares Pricing, Pricing, Company Power Other Usage,
Slide 10: Q3 YTD 2020 and Projected Full Year Adjusted EPS
Q3 YTD 2020 and Projected Full Year Adjusted EPS Q3 YTD 2020 Adjusted EPS1 2020 Projected Full Year Adjusted EPS $0.09 $0.04 $0.29 ($0.44) $0.25 All Other ($0.32) All Other $2.78 $3.22 Energy Parent Energy Parent LDCs $0.27 LDCs $0.36 Infrastructure Infrastructure under under long-term long-term con
Slide 11: COVID-19 Sales Impacts-to-Date and 2020 Outlook
COVID-19 Sales Impacts-to-Date and 2020 Outlook 3Q 2020 Weather-normal sales vs. COVID-19 WN Projection 5% 0% • 3Q 2020 weather-normal total retail kilowatt hour sales were consistent with projections -5% – Expect 2020 full-year weather-normal kilowatt hour sales decline of ~3% versus initial expect
Slide 12: 3Q 2020 Financing Activity – Over $3.4 Billion Capital Raised
3Q 2020 Financing Activity – Over $3.4 Billion Capital Raised All-time lowest Second lowest fixed- Lowest 5Y, 30Y, and Lowest 10-yr coupon All-time lowest 10-yr corporate hybrid coupon rate hybrid coupon at 40Y all-in coupons in across Southern coupon issued by at time of issuance time of issuance U
Slide 13: Significant Year-Over-Year Decrease in Coal Generation
Significant Year-Over-Year Decrease in Coal Generation1 2019 Total Energy Mix 2020 YTD Total Energy Mix Renewables Renewables 12% 15% Coal 16% Coal 22% Nuclear 16% Nuclear 17% Natural Gas Natural Gas 52% 50% 1Energy mix represents all of the energy used to serve retail and wholesale customers. This
Slide 14: Summary
Summary • Targeting Net Zero greenhouse gas emissions by 2050 – Project to achieve our 2030 50% reduction goal as early as 2025 – Path to net zero requires a diverse mix of technologies and solutions – Remain the industry leader in research and development » U.S. DOE renewed agreement for Southern C
Slide 15: Appendix
Appendix
Slide 16: Capital Markets / Financing
Capital Markets / Financing
Slide 17: Projected Long-term Debt Financings
Projected Long-term Debt Financings1 Actual Projected 2,3 Long-term Debt ($ in millions) YTD 2020 2020 (Remaining) 2021 2022 2020 - 2022 Alabama Power $600 - $450 $900 $1,350 Georgia Power4 2,019 330 1,450 800 2,580 Mississippi Power5 - - 400 - 400 State-regulated Electrics $2,619 $330 $2,300 $1,700
Slide 18: 2020-2022 maturities total $5.95 billion
Long-term Debt Maturity Schedule1,2,3 2020-2022 maturities total $5.95 billion Long-term Debt ($ in millions) Remaining 2020 2021 2022 2020-2022 Alabama Power4 - $310 $750 $1,060 Georgia Power $18 523 526 1,067 Mississippi Power - 330 15 345 State-regulated Electrics $18 $1,163 $1,291 $2,472 Souther
Slide 19: Liquidity and Credit
Liquidity and Credit1 as of 9/30/2020 Over $7.7 billion in committed credit facilities and available liquidity of $9.6 billion (in millions) 2020 2021 2022 2023 2024 Total Credit Facility Expirations - $33 $675 $125 $6,900 $7,733 Alabama Georgia Mississippi Southern Southern (in millions) Power Powe
Slide 20: Vogtle 3 & 4
Vogtle 3 & 4
Slide 21: Vogtle 3 & 4 Major Milestone Definitions
Vogtle 3 & 4 Major Milestone Definitions Initial Energization- Energizing the main transformers to provide the initial supply of off-site power to the plant’s electrical distribution system needed for testing. Individual electrical components – pumps, valve, motors - will be powered providing ‘life’
Slide 22: Vogtle 3 & 4 Major Milestone Definitions
Vogtle 3 & 4 Major Milestone Definitions Cold Hydro Test- Cold Hydro Testing contains several separate tests in different areas of the plant to verify that welds, joints, pipes, and other components of the reactor coolant system, steam-supply system and associated high pressure systems do not leak a