Southern Company (the) · NYSE:SO
Southern Company (the) — Q3 2013 Earnings Presentation
15 slides from Southern Company (the)'s earnings presentation, Oct 30, 2013
Slide 1: Third Quarter 2013 Earnings Conference Call
Third Quarter 2013 Earnings Conference Call October 30, 2013
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 statem
Slide 3: 2013 Regulatory Activities
2013 Regulatory Activities Alabama Power Gulf Power RSE review • Rate Case Rate-stabilizing ― Hearings (December 2013) regulatory orders ― PSC decision (Q1 2014) Georgia Power Mississippi Power VCM 7 Kemper IGCC settlement Integrated Resource Plan ROE review VCM stipulation PEP VCM
Slide 4: Vogtle Units 3 & 4
Vogtle Units 3 & 4 Major Milestones • Unit 3: Final assembly of nuclear island Auxiliary Building (CA-20) (Expected: December 2013) • Unit 4: Nuclear island basemat pour (Expected: November 2013) DOE Loan Guarantee Unit 3 Auxiliary Building Assembly • Conditional Commitment extended to December 31,
Slide 5: Kemper IGCC Update
Kemper IGCC Update • In-service date updated to Q4 2014 • Recorded additional pre-tax loss of $150M • Remaining contingency ≈ $100M Progress • First fire on both combustion turbines • Synced combined cycle to grid 5
Slide 6: Q3 2013 Earnings Results
Q3 2013 Earnings Results Q3 YTD Earnings Per Share $0.97 $1.41 Impact of increase in Kemper cost estimate $0.11 $0.81 Impact of Leveraged Lease Restructure $0.00 $0.02 Earnings Per Share x-items $1.08 $2.24 6
Slide 7: Q3 2013 vs. Q3 2012 Adjusted EPS Drivers
Q3 2013 vs. Q3 2012 Adjusted EPS Drivers 2¢ -7¢ 1¢ $1.11 Retail Customer Revenue 2¢ $1.08 Growth Impacts -2¢ 1¢ -2¢ 2¢ Weather Southern Non-Fuel Power Interest O&M D&A Other Expense Income Traditional Operating Companies -5¢ Q3 2012 Q3 2013 7 Note: Excludes Q3 2013 -11¢ EPS impact of updated Kemper
Slide 8: Retail Sales and Weather Impacts
Retail Sales and Weather Impacts Retail Sales Q3 YTD As Reported Weather Normal As Reported Weather Normal* Residential -5.3% -0.3% -1.4% -0.5% Commercial -1.3% 1.1% -1.5% 0.0% Industrial 2.6% 2.6% 0.4% 0.4% Total Retail -1.5% 1.0% -0.9% -0.1% Industrial Segment Highlights 11% 11% • Extreme weather
Slide 9: 2013 Earnings Per Share: Q4 Estimate
2013 Earnings Per Share Q4 Estimate = $0.44 per share 9
Slide 10: Appendix
10 Appendix SOUTHERN a COMPANY
Slide 11: Financing Plan Update
Financing Plan Update ($ in millions) 2013 2014 2015 Issued Remain Total Projected Projected Alabama $ 0 $ 350 $ 350 $ 500 $ 750 Georgia (1) 939 500 1,439 400 1,900 Gulf 140 0 140 200 100 Mississippi (2) 300 450 750 0 700 Southern Power (3) 300 0 300 400 650 Holding Company 500 0 500 500 0 Long Term
Slide 12: Generation Portfolio Diversity
Generation Portfolio Diversity Capacity Factors Q3 YTD 2012 2013 2012 2013 Coal - PRB 79% 81% 66% 73% Coal - Non-PRB 41% 40% 34% 32% Gas - Combined Cycle 79% 68% 74% 66% Generation Mix Q3 YTD 2012 2013 2012 2013 Gas/Oil 43% 39% 45% 42% Coal 41% 42% 37% 38% Nuclear 15% 16% 16% 16% Hydro/Other 1% 3% 2
Slide 13: YTD13 vs. YTD12 Adjusted EPS Drivers
YTD13 vs. YTD12 Adjusted EPS Drivers 10¢ -6¢ 2¢ -3¢ -2¢ 2¢ -5¢ 1¢ -1¢ 5¢ -1¢ $2.24 -1¢ Weather Interest $2.24 Wholesale Other Non-fuel PPA Expense Income Revenues Operating O&M Expense -1¢ Taxes Shares Customer Retail Revenues D&A Usage & Revenue Growth Impacts Taxes Other Other Than Income Income T
Slide 14: 2013 – 2015 CapEx Forecast - Functional
2013 – 2015 CapEx Forecast - Functional Total ($ billions) 2013 2014 2015 ’13-’15 New Generation $2.2 $0.9 $0.6 $3.8 Environmental Compliance 1.0 1.7 1.2 3.8 T&D Growth 0.5 0.6 0.6 1.7 Maintenance (G, T & D) 1.5 1.5 1.6 4.5 Nuclear Fuel 0.3 0.3 0.3 0.9 General 0.2 0.2 0.3 0.7 Traditional OpCo Total
Slide 15: 2013 – 2015 CapEx Forecast - Company
2013 – 2015 CapEx Forecast - Company Total ($ billions) 2013 2014 2015 ’13-’15 Alabama $1.1 $1.7 $1.7 $4.5 Georgia 2.2 2.4 2.2 6.8 Gulf 0.3 0.5 0.3 1.1 Mississippi 2.0 0.4 0.3 2.7 Other Subsidiaries 0.1 0.2 0.1 0.4 Traditional OpCo Total $5.8 $5.2 $4.5 $15.5 Southern Power 0.9 0.8 0.7 2.4 Total Cape