Southern Company (the) · NYSE:SO
Southern Company (the) — The Southern Company — Q3 2023 Earnings Presentation
21 slides from Southern Company (the)'s earnings presentation, Nov 2, 2023
Slide 1: Third Quarter 2023 Earnings Conference Call
Third Quarter 2023 Earnings Conference Call November 2, 2023
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 per share (EPS) in accordance with generally accepted accounting principles (GAAP), this presentation also includes historical adjusted EPS excluding: (1) charges/(credits) related to Georgia Power’s construction of Plant Vogtle Units 3 a
Slide 4: Southern Company – Q3 2023 Update
Southern Company – Q3 2023 Update Q3 and YTD Adjusted EPS Vogtle 3 & 4 Update • Q3 2023 Adjusted EPS of $1.42 • Unit 3 performance – $1.30 Q3 2023 estimate – 100% reactor power since in-service – $1.31 in Q3 2022 – 2M+ megawatt hours delivered to customers • Total capital cost forecast remains uncha
Slide 5: Georgia Power 2023 Integrated Resource Plan (IRP) Update
Georgia Power 2023 Integrated Resource Plan (IRP) Update • >6GW of projected peak load growth by 2030/2031 Cumulative Winter Peak Load Growth 8GW • Proposed plan helps ensure resilience, reliability, 2022 IRP 2023 IRP Update and flexibility on behalf of customers 6GW – Additional renewables & storag
Slide 6: Q3 2023 Earnings Results
Q3 2023 Earnings Results Q3 YTD 2023 2022 2023 2022 Earnings Per Share As Reported $1.30 $1.36 $2.86 $3.38 Less: Estimated Loss on Plants Under Construction1 ($0.12) $0.04 ($0.12) $0.01 Acquisition and Disposition Impacts2 - $0.01 - $0.02 Loss on Extinguishment of Debt3 - - - - Estimated Loss on Qua
Slide 7: Q3 2023 & YTD Year-Over-Year Adjusted Drivers
Q3 2023 & YTD Year-Over-Year Adjusted Drivers1 6¢ (9¢) 7¢ 0¢ 0¢ (1¢) (1¢) $1.42 $3.35 (14¢) 9¢ 10¢ (36¢) Southern Southern Parent & Shares 2¢ (5¢) $1.31 Rates, Pricing, D&A, 15¢ (0¢) (6¢) O&M Company Power Other $3.01 Usage & Interest, Weather Weather Gas Rates, Pricing, Southern Other Southern Pare
Slide 8: Q3 2023 & Projected Full-Year Adjusted EPS
Q3 2023 & Projected Full-Year Adjusted EPS YTD 2023 Adjusted EPS 2023 Projected Full-Year Adjusted EPS Guidance1 $0.06 $0.06 $0.34 All Other ($0.47) $0.40 All Other ($0.63) Energy Parent $3.01 Energy $3.60 LDCs $0.35 LDCs $0.47 Parent Infrastructure Infrastructure under under long-term long-term con
Slide 9: Q3 2023 Retail Electricity Sales
Q3 2023 Retail Electricity Sales • Strong YTD customer growth: +35K residential electric customers and +19K residential gas customers • Strong commercial growth and usage were offset by return to office dynamic in residential sales • Industrial sales continue to be driven by weakness in chemical, pa
Slide 10: Appendix
Appendix 10
Slide 11: Total Energy Mix Comparison
Total Energy Mix Comparison1 2022 Total Energy Mix Q3 YTD 2023 Total Energy Mix Renewables Renewables Renewables Renewables Coal Coal Coal 15% 15% 15% 15% 20% 21% 17% 20% Nuclear Nuclear Nuclear Nuclear 16% 15% 15% 16% Natural Gas Natural Natural Gas Natural Gas Gas 48% 50% 50% 52% 1Energy mix repre
Slide 12: Capital Markets / Financing
Capital Markets / Financing 12
Slide 13: Long-term Debt Peer Comparison
Long-term Debt Peer Comparison as of September 30, 2023 4.5% Peer 2 Peer 10 Peer 9 Peer 4 Peer 3 4.0% Peer 5 Peer 1 Peer 7 Peer 19 Peer 17 Peer 8 Peer 15 Average Coupon (%) Peer 18 Peer 16 3.5% Peer 6 Peer 14 Peer 11 3.0% Peer 12 2.5% 8 10 12 14 16 18 20 22 Average Time to Maturity (years) Source: B
Slide 14: Long-term Debt Financings
Long-term Debt Financings 1 as of November 2, 2023 Actual Projected Remaining Long-term Debt ($ in millions) YTD 2023 2023 2024 2025 2023R-2025 Alabama Power 526 300 500 500 1,300 Georgia Power 1,979 500 750 1,700 2,950 Mississippi Power 100 - 250 100 350 State-Regulated Electrics $2,605 $800 $1,500
Slide 15: Long-term Debt Maturity Tower
Long-term Debt Maturity Tower1 as of November 2, 2023 $7,000 Long-term Debt1 Alabama Power $11.3B Georgia Power $15.9B $6,000 Mississippi Power $1.6B Southern Company Gas Capital $5.1B $5,000 Nicor $2.6B Southern Power $2.7B $4,000 Parent Company $19.9B Total Long-term Debt Maturities3 $59.2B 4176 $
Slide 16: Long-term Debt Maturity Schedule
Long-term Debt Maturity Schedule1 as of November 2, 2023 Actual Projected Remaining Long-term Debt ($ in millions) YTD 2023 2023 2024 2025 2023R-2025 Alabama Power - 300 21 250 571 Georgia Power 864 21 486 131 638 Mississippi Power - - 200 11 211 State-Regulated Electrics $864 $321 $707 $391 $1,420
Slide 17: Liquidity and Credit
Liquidity and Credit $ in millions as of September 30, 2023 Over $7.6 billion in committed credit facilities and available liquidity of over $7.0 billion (in millions) 2024 2025 2026 2028 Total Credit Facility Expirations $280 $125 $800 $6,400 $7,605 Alabama Georgia Mississippi Southern Southern Par
Slide 18: Vogtle 3 & 4
Vogtle 3 & 4 18
Slide 19: Vogtle 3 & 4 – Cost Update
Vogtle 3 & 4 – Cost Update (Georgia Power’s share) Estimated Cost of Project ($M) Base project capital cost forecast through March 20241,2 $10,736 Construction contingency estimate 17 Total project capital cost forecast1,2 $10,753 Net investment as of September 30, 20232 (10,495) Remaining estimate
Slide 20: Projected Financial Impacts Related to Vogtle 3 & 4
Projected Financial Impacts Related to Vogtle 3 & 4 Illustrative Annualized Cash Flow Improvement Projected EPS Impacts of Delays Post Vogtle Unit 4 In-Service1 (increases relative to 2021) Vogtle Quarterly Impacts3 EPS4 3-Month Delay at U4 ~ (9₵) Tax Depreciation (15-yr tax life) 3 Estimated quarte
Slide 21: Southern Company
S rN Southern Company