Southern Company (the) · NYSE:SO
Southern Company (the) — Q1 2016 Earnings Presentation
21 slides from Southern Company (the)'s earnings presentation, Apr 27, 2016
Slide 1: First Quarter 2016 Earnings Conference Call
First Quarter 2016 Earnings Conference Call April 27, 2016
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 project
Slide 3: Vogtle 3&4 Construction Update
Vogtle 3&4 Construction Update Recent Progress Near Term Unit 3 Unit 3 Placed concrete in Shield Building course 2 panels • Placement of the 300-ton deaerator for Unit 3 Installation of component cooling water pumps • Receive first reactor coolant pump Unit 4 Unit 4 Concrete placed for the roof s
Slide 4: Kemper Project Update
Kemper Project Update • Refractory modifications and improvements progressing • Gasifier ‘B’ Fluidization and Refractory Cure complete • Expect first syngas using gasifier ‘B’ on the horizon • Expect initial syngas power production later this summer 4
Slide 5: 2016 Earnings Results
2016 Earnings Results Q1 Reported Earnings Per Share $0.53 Impact of increase in Kemper cost estimate $0.04 Acquisition costs $0.01 Earnings Per Share x-items * $0.58 * Not a measure of financial performance under GAAP. 5
Slide 6: Q1 2016 vs. Q1 2015 Adjusted EPS Drivers
Q1 2016 vs. Q1 2015 Adjusted EPS Drivers +8¢ -6¢ +4¢ -3¢ -1¢ +2¢ -2¢ -1¢ +1¢ -1¢ $0.58 $0.56 +1¢ Weather Non-fuel D&A Other Other O&M Interest Southern Parent & Retail Wholesale Income & Retail Sales Operating Expense Power Other Revenue Operations Deductions Revenues Impacts Traditional Operating C
Slide 7: Retail Sales Growth vs. Prior Year
Retail Sales Growth vs. Prior Year Quarter-to-date As Reported Weather Normal • Strong regional market fundamentals signaling continued economic expansion Residential -7.2% 1.4% Commercial -0.7% 0.8% • Added over 14K residential customers Industrial -0.8% -1.0% • Atlanta’s office market vacancy rate
Slide 8: Dividend Objective: Regular, Predictable, Sustainable
Dividend Objective: Regular, Predictable, Sustainable $2.50 68 consecutive years of dividends equal to or greater than the previous year $2.00 (15 years of consecutive dividend increases) $1.50 $1.00 Dividends Per Share Paid $0.50 $0.00 1948 1952 1956 1960 1964 1968 1972 1976 1980 1984 1988 1992 199
Slide 9: 2016 – 2018 Projected Financing Plan
2016 – 2018 Projected Financing Plan* *Amount and timing of financing is subject to change based upon numerous factors, including market conditions, regulatory approvals, the Southern Company system’s capital requirements and investment opportunities available to Southern Company and its subsidiarie
Slide 10: Appendix
sour ah. COMPANY SOUTHERN COMPANY [MM INVESTOR RELATIONS Appendix
Slide 11: Generation Portfolio Diversity
Generation Portfolio Diversity Capacity Factors Q1 2015 2016 Coal - PRB 58% 51% Coal - Non-PRB 29% 25% Gas - Combined Cycle 74% 72% Energy Mix Q1 2015 2016 Natural Gas 48% 50% Coal 32% 25% Nuclear 16% 17% Hydro/Other 4% 8% 11
Slide 12: Status of Major State Filings for AGL Resources Merger
Status of Major State Filings for AGL Resources Merger • Filed merger approval application on December 18, 2015 Georgia • Evidentiary hearings held on March 15, 2016 • Agreement approved unanimously; Merger approval received on April 14, 2016 • Filed merger approval application on October 8, 2015 •
Slide 13: 2016 Earnings Per Share Q2 Estimate
2016 Earnings Per Share Q2 Estimate = $0.70 per share 13
Slide 14: Vogtle 3&4 Supplemental Information Report
Vogtle 3&4 Supplemental Information Report Filed April 5, 2016 in Docket 29849 Author Theme Paul Bowers CEO of Georgia Power Letter of Introduction Nathan Deal Governor of Georgia Letter of support Shares perspective on how Vogtle advances state and Saxby Chambliss Former U.S. Senator federal intere
Slide 15: 2016 – 2018 CapEx Forecast – by Function
2016 – 2018 CapEx Forecast – by Function Total $billions 2016 2017 2018 '16-'18 New Generation 1.2 0.7 0.4 2.3 Environmental 0.7 0.5 0.6 1.8 Generation Maintenance 1.0 0.7 0.7 2.5 Transmission 0.6 0.7 0.7 2.0 Distribution 0.8 0.9 0.9 2.5 Nuclear Fuel 0.2 0.3 0.3 0.8 Other 0.4 0.4 0.4 1.1 Traditional
Slide 16: 2016 – 2018 CapEx Forecast – by Company
2016 – 2018 CapEx Forecast – by Company Total $billions 2016 2017 2018 '16-'18 Alabama Power 1.3 1.3 1.3 3.9 Georgia Power 2.5 2.4 2.1 7.0 Gulf Power 0.2 0.2 0.2 0.6 Mississippi Power 0.8 0.2 0.3 1.3 Other Subsidiaries 0.1 0.1 0.0 0.2 Traditional OpCo Total 4.9 4.1 3.9 13.0 Southern Power Base 1.6 0
Slide 17: Southern Power Renewable Portfolio – Operational Assets
Southern Power Renewable Portfolio – Operational Assets Size SPC Ownership Original COD Asset Location Offtaker Technology (MW) (MW) PPA Term Date Cimarron 31 28 Colfax Co., NM 25 years Tri State Dec-2010 First Solar Thin Film (Fixed) Apex 20 18 N. Las Vegas, NV 25 years NVE Jul-2012 Trina Crystalli
Slide 18: Southern Power Renewable Portfolio – Projects Under Construction
Southern Power Renewable Portfolio – Projects Under Construction Size SPC Ownership Original COD Asset Location Offtaker Technology (MW) (MW) PPA Term Date Sandhills - Taylor Cobb, Flint, Irwin, Middle Georgia and 147 147 Taylor Co., GA 25 years Q4-2016 First Solar Thin Film (FS Trackers) County (EM
Slide 19: Southern Company and Subsidiary Ratings
Southern Company and Subsidiary Ratings Senior Unsecured (Moody’s/S&P/Fitch) Southern Company Baa1/BBB+/A (N/N/N*) Alabama Power Georgia Power Gulf Power Mississippi Power Southern Power A1/A-/A+ A3/A-/A+ A2/A-/A Baa3/BBB+/A- Baa1/BBB+/BBB+ (S/N/S) (S/N/S) (S/N/S) (N/N/N) (S/N/S) Note: A securities
Slide 20: Long-term Debt Maturity Schedule
Long-term Debt Maturity Schedule $ in millions - as of 3/31/2016 2016 2017 2018 2019 2020 Alabama Power - 561 - 200 250 Georgia Power 450 450 750 500 37 Gulf Power 110 85 - - 175 Mississippi Power (1) 300 811 900 125 7 Southern Power 400 500 350 - 300 Parent 500 800 500 350 600 SO Consolidated (1) 1
Slide 21: Southern Company Liquidity and Credit
Southern Company Liquidity and Credit $ in millions - as of 3/31/2016 • Maturity of syndicated credit facilities is 2020 with total available credit of $4.4 billion • Concurrent with the syndication of the AGL Resources bridge facility, added an additional $1 billion credit facility at the parent le