Southern Company (the) · NYSE:SO
Southern Company (the) — Q1 2014 Earnings Presentation
15 slides from Southern Company (the)'s earnings presentation, Apr 30, 2014
Slide 1: First Quarter 2014 Earnings Conference Call
First Quarter 2014 Earnings Conference Call April 30, 2014
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 future
Slide 3: Operational Performance
Operational Performance • All-time winter peak of 39,130 MW • Crews restored power to nearly 800,000 customers • Fleet optionality translated to over $100M in fuel cost savings Generation Mix Q1 2013 2014 Gas/Oil 47% 35% Coal 32% 45% Nuclear 16% 15% Hydro/Other 5% 5% 3
Slide 4: Vogtle Unit 3 CA20 Placement
Vogtle Unit 3 CA20 Placement 4
Slide 5: Vogtle Construction Update
Vogtle Construction Update Unit 3 Unit 4 Set CA-20 Set containment cradle Progress Concrete under bottom head Preparation for bottom head setting Set turbine island condensers Condenser assembly Cooling tower above 250’ Cooling tower above 50’ Upcoming • Set CA-05 (wall module) • Set
Slide 6: Vogtle – VCM 9 & 10
Vogtle – VCM 9 & 10 Summary of Customer Benefits As reflected in VCM 9 & 10 • $389M of capital spend in 2013 Interest Savings Total • Projected in-service dates of Q4 2017 $750M $2.3B and Q4 2018 for units 3 & 4, respectively DOE LG $250M • $2.3B of anticipated customer benefits PTCs (100%) $800M CW
Slide 7: Kemper IGCC Update
Kemper IGCC Update • First gasifier heat-up targeted for mid to late summer 2014 • Combined cycle expected in-service in summer 2014 • Current cost estimates assume in-service date extension to May 31, 2015 Kemper Project Risks • Labor costs & productivity • Adverse weather conditions • Shortages &
Slide 8: Q1 2014 Earnings Results
Q1 2014 Earnings Results Q1 Earnings Per Share $0.39 Impact of increase in Kemper cost estimate $0.27 Earnings Per Share x-items $0.66 8
Slide 9: Q1 2014 vs. Q1 2013 Adjusted EPS Drivers
Q1 2014 vs. Q1 2013 Adjusted EPS Drivers 1¢ -2¢ 1¢ -1¢ $0.66 1¢ 2¢ 8¢ -1¢ Other Interest Shares Wholesale Operating D&A Expense Revenues Revenue Other Taxes Other Income & Deductions 6¢ Weather 2¢ $0.49 Other Traditional Customer Revenue Effects Operating Growth & Companies 18¢ Usage Q1 2013 Q1 2014
Slide 10: Retail Sales
Retail Sales Q1 As Reported Weather Normal • 2nd coldest Q1 in 20 years Residential 14.8% 1.2% • 10,000 new residential customers Commercial 3.7% -0.2% • Economic development pipeline Industrial 2.8% 2.8% reflects a 58% increase in Total Retail 7.1% 1.3% potential projects Industrial Segment Highlig
Slide 11: Dividend Increase
Dividend Increase 57% increase over the past 13 years +7¢ +7¢ +7¢ +7¢ +7¢ +7¢ +7¢ +6¢ +6¢ +6¢ +3¢ +3¢ +2¢ 11
Slide 12: Appendix
OUTHERN COMPANY
Slide 13: Q2 Estimate = $0.66 per share
2014 Earnings Per Share Q2 Estimate = $0.66 per share 13
Slide 14: Vogtle Unit 3 Nuclear Island – 2014 Activity
Vogtle Unit 3 Nuclear Island – 2014 Activity CA-20 Current View CA-04 CB-65 Auxiliary Building Walls to Elevation 82’6” CA-03 CA-01 CA-20 CA-02 (Inside Vessel) Target Middle Ring Year-End Lower Ring CA-05 (Inside Vessel) View Auxiliary Building Walls to Elevation 100’ Shield Building Panel Installat
Slide 15: Generation Portfolio Diversity
Generation Portfolio Diversity Capacity Factors Q1 2013 2014 Coal - PRB 62% 71% Coal - Non-PRB 25% 45% Gas - Combined Cycle 71% 57% Generation Mix Q1 2013 2014 Gas/Oil 47% 35% Coal 32% 45% Nuclear 16% 15% Hydro/Other 5% 5% 15