Southern Company (the) · NYSE:SO
Southern Company (the) — Q3 2015 Earnings Presentation
16 slides from Southern Company (the)'s earnings presentation, Oct 28, 2015
Slide 1: Third Quarter 2015 Earnings Conference Call
Third Quarter 2015 Earnings Conference Call October 28, 2015
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: Recent Southern Power Project Announcements
Recent Southern Power Project Announcements Thus far in 2015, Southern Power has contracted over 1,000 MW of renewables at an average contract length of ~22 years 2015 Facility Location Type Owned MW Contract Length Expected COD Decatur – Parkway GA Solar 84 25-yr 2015 1st Quarter Decatur – County G
Slide 4: Vogtle 3&4 Dispute Resolution Proposal
Vogtle 3&4 Dispute Resolution Proposal Key Provisions of Term Sheet Expected Benefits of Settlement • Current claims dismissed, • Projected rate impacts remain including lawsuits and potential well within 6% to 8% projection extension of such claims • Reaffirms the current schedule • EPC agreement t
Slide 5: Proposed settlement cost could be significantly less than potential claims
Proposed settlement cost could be significantly less than current and potential regulatory change claims Potential Future Claims Under Original EPC Regulatory Change Payment Structure (Georgia Power’s share) Provision 1. $120 million already paid under EPC contract as part of dispute resolution proc
Slide 6: Vogtle 3&4 Construction Update
Vogtle 3&4 Construction Update Recent Progress Near Term Set Unit 3 CA01 • Place concrete in Shield Set first course of Building panels to +100ft Unit 3 Shield • Begin concrete fill of Building panels Unit 3 CA20 module walls Substantial structural • Unit 3 turbine deck concrete steel installatio
Slide 7: Kemper Project Update
Kemper Project Update Expected in-service date for remainder of project remains 1st half 2016 • Combined cycle operating reliably and efficiently • Encouraging results from fluidization and other start-up activities Working towards next set of milestones Upcoming regulatory dates • Commissioning of
Slide 8: 2015 Earnings Results
2015 Earnings Results Q3 YTD Earnings Per Share $1.05 $2.30 Impact of increase in Kemper cost estimate $0.11 $0.13 MCAR settlement costs - $0.01 AGL acquisition costs $0.01 $0.01 Earnings Per Share x-items $1.17 $2.45 8
Slide 9: Q3 2015 vs. Q3 2014 Adjusted EPS Drivers
Q3 2015 vs. Q3 2014 Adjusted EPS Drivers +3¢ -1¢ -3¢ Wholesale +9¢ Operations +4¢ -2¢ Weather -1¢ Non-fuel -1¢ $1.17 O&M -1¢ D&A Shares Taxes Other Interest Southern Expense Power +1¢ $1.09 Retail Retail Sales Revenue Impacts Traditional Operating Companies +6¢ Q3 2014 Q3 2015 Note: Excludes Q3 2015
Slide 10: Retail Sales Growth vs. Prior Year
Retail Sales Growth vs. Prior Year Quarter-to-date Year-to-date As Reported Weather Normal* As Reported Weather Normal* Residential 2.7% 0.1% 0.9% 0.5% Commercial 1.9% 1.0% 1.1% 0.8% Industrial -0.6% -0.6% 0.4% 0.5% Total Retail Sales 1.3% 0.2% 0.8% 0.6% The economy has continued to grow supported b
Slide 11: Southern Power Capital Expenditures Update
Southern Power Capital Expenditures Update We have identified expected value accretive investment opportunities which exceed our original growth placeholders As of October 28 As of October 28 As of February 4 As of February 4 ? $1.4B $1.3B $0.6B $2.3B Placeholder Base (Identified) $1.0B Placeholder
Slide 12: Q4 Estimate = $0.43 per share
Q4 Estimate = $0.43 per share 12
Slide 13: Appendix
SOUTHERN PN COMPANY SOUTHERN COMPANY MM INVESTOR RELATIONS Appendix
Slide 14: 2015 – 2017 Projected Financing Plan
2015 – 2017 Projected Financing Plan Excludes $7-8 billion of anticipated debt financing related to the proposed AGL acquisition ($ in millions) 2015 2016 2017 2015 - 2017 Issued Remaining Total Projected Projected Total Projected Debt Issuances Georgia DOE Loan $ 600 $ 400 $ 1,000 $ 450 $ 350 $ 1,8
Slide 15: Status of Major State Filings for AGL Merger
Status of Major State Filings for AGL Merger Stakeholder Progress on Key Milestones Filed Approved Georgia • Merger application filing TBD • Filed merger approval application on October 8, 2015 Illinois • Hearing scheduled for March 8, 2016 Maryland • Merger application filing TBD New Jersey • Filed
Slide 16: Generation Portfolio Diversity
Generation Portfolio Diversity Capacity Factors Q3 YTD 2014 2015 2014 2015 Coal - PRB 83% 79% 73% 61% Coal - Non-PRB 44% 42% 44% 33% Gas - Combined Cycle 71% 74% 59% 66% Energy Mix Q3 YTD 2014 2015 2014 2015 Natural Gas 42% 45% 38% 46% Coal 42% 38% 43% 36% Nuclear 14% 15% 15% 15% Hydro/Other 2% 2% 4