Southern Company (the) · NYSE:SO
Southern Company (the) — Q2 2013 Earnings Presentation
14 slides from Southern Company (the)'s earnings presentation, Jul 31, 2013
Slide 1: Second Quarter 2013 Earnings Conference Call
Second Quarter 2013 Earnings Conference Call July 31, 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 projec
Slide 3: Regulatory Agenda
Regulatory Agenda • Alabama Power RSE Review (dockets 18117 & 18416) – Decision expected in Q3 Georgia Power IRP (docket 36948) • 8th Vogtle Construction Monitoring (VCM) (docket 29849) – Decision scheduled October 15th • Georgia Power 2013 Rate Case (docket 36989) – Decision scheduled December 17
Slide 4: Vogtle Units 3 & 4 – Construction
Vogtle Units 3 & 4 – Construction Progress Unit 3 Unit 4 Nuclear Island Set containment vessel bottom head Rebar installation / CR10 assembly Turbine Island Condenser assembly continues Basemat rebar and concrete installation Cooling Tower Vertical construction continues Column setting c
Slide 5: Kemper IGCC
Kemper IGCC Project Update Results Of Project Review Progress • Placed lignite mine in-service • Increased our estimate to complete the • Completed significant portion of project by $450 million start-up activities for CC • Will not seek recovery of plant costs above • 90% of the piping fabricated a
Slide 6: Q2 2013 Earnings Results
Q2 2013 Earnings Results Q2 YTD Earnings Per Share $0.34 $0.43 Impact of increase in Kemper cost estimate $0.32 $0.70 Impact of Leverage Lease Restructure $0.00 $0.02 Earnings Per Share x-items $0.66 $1.15 6
Slide 7: Q2 2013 vs. Q2 2012 Adjusted EPS Drivers
Q2 2013 vs. Q2 2012 Adjusted EPS Drivers 5¢ -4¢ 2¢ -2¢ 1¢ -1¢ $0.69 -1¢ -1¢ 1¢ -2¢ Weather PPA D&A Other Income Expense Income Taxes -1¢ Retail Retail Wholesale Non-Fuel Sales Revenue Revenues O&M $0.66 Impacts Southern Power Parent & Other Traditional Operating Companies +0¢ Q2 2012 Q2 2013 Note: E
Slide 8: Retail Sales and Economic Outlook
Retail Sales and Economic Outlook Economic Roundtable • Southeast is on track to outgrow the nation, led by Georgia • U.S. GDP is expected to be 1.5% - 2.0% for the second half of 2013 • Real estate and retailers in the region are more upbeat • Regional manufacturers have a more tempered view Retail
Slide 9: Financing Plan Update
Financing Plan Update ($ in millions) 2013 2014 2015 Issued Remain Total Projected Projected Alabama $ 0 $ 350 $ 350 $ 500 $ 750 Georgia (1) 668 700 1,368 400 1,900 Gulf 140 0 140 200 100 Mississippi (2) 300 450 750 700 0 Southern Power (3) 300 0 300 400 650 Holding Company 0 500 500 500 0 Long Term
Slide 10: Q3 Estimate = $1.13 per share
2013 Earnings Per Share Q3 Estimate = $1.13 per share 10
Slide 11: Appendix
11 Appendix SOUTHERN PX COMPANY
Slide 12: Generation Portfolio Diversity
Generation Portfolio Diversity Capacity Factors Q2 YTD 2012 2013 2012 2013 Coal - PRB 71% 75% 62% 68% Coal - Non-PRB 34% 30% 30% 28% Gas - Combined Cycle 70% 60% 72% 65% Generation Mix Q2 YTD 2012 2013 2012 2013 Gas/Oil 45% 39% 45% 43% Coal 38% 39% 35% 36% Nuclear 16% 16% 17% 16% Hydro/Other 1% 5% 3
Slide 13: 2013 – 2015 CapEx Forecast - Functional
2013 – 2015 CapEx Forecast - Functional Total ($ billions) 2013 2014 2015 ’13-’15 New Generation $1.8 $1.2 $0.6 $3.6 Environmental Compliance 1.0 1.5 1.1 3.6 T&D Growth 0.5 0.6 0.6 1.7 Maintenance (G, T & D) 1.5 1.5 1.6 4.5 Nuclear Fuel 0.3 0.3 0.3 0.9 General 0.2 0.2 0.3 0.7 Traditional OpCo Total
Slide 14: 2013 – 2015 CapEx Forecast - Company
2013 – 2015 CapEx Forecast - Company Total ($ billions) 2013 2014 2015 ’13-’15 Alabama $1.2 $1.5 $1.5 $4.3 Georgia 2.2 2.4 2.2 6.8 Gulf 0.3 0.5 0.3 1.1 Mississippi 1.5 0.7 0.3 2.5 Other Subsidiaries 0.1 0.2 0.1 0.4 Traditional OpCo Total $5.3 $5.3 $4.4 $15.1 Southern Power 0.9 0.8 0.7 2.4 Total Cape