Southern Company (the) · NYSE:SO
Southern Company (the) — The Southern Company — Q2 2024 Earnings Presentation
20 slides from Southern Company (the)'s earnings presentation, Aug 1, 2024
Slide 1: Second Quarter 2024 Earnings Conference Call
Second Quarter 2024 Earnings Conference Call August 1, 2024
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, project
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) estimated loss on plants under construction, (2) costs associated with the extingui
Slide 4: Q2 2024 Earnings Results
Q2 2024 Earnings Results Q2 YTD 2024 2023 2024 2023 Earnings Per Share As Reported $1.10 $0.77 $2.13 $1.56 Less: Estimated Loss on Plants Under Construction1 - - - - Loss on Extinguishment of Debt2 - - - - Estimated Loss on Qualifying Infrastructure Plant3 - ($0.02) - ($0.03) Earnings Per Share Excl
Slide 5: Q2 2024 & YTD Year-Over-Year Adjusted Drivers
Q2 2024 & YTD Year-Over-Year Adjusted Drivers1 7¢ (18¢) 46¢ 9¢ (1¢) 4¢ (7¢) (6¢) 25¢ (2¢) (1¢) $2.13 (2¢) Other (3¢) $1.10 Revenues D&A, Southern Parent & Shares Other O&M 2 Southern Power Other Revenues D&A, O&M 2 Interest, Company Interest, Parent & 20¢ Taxes & Gas Taxes & Other Other 14¢ Other Ra
Slide 6: YTD 2024 & Projected Full Year Adjusted EPS
YTD 2024 & Projected Full Year Adjusted EPS YTD 2024 Adjusted EPS 2024 Projected Full Year Adjusted EPS Guidance1,2 $0.07 $0.08 $0.38 All Other ($0.71) $4.05 $0.07 $0.22 All Other ($0.37) Energy To Energy $2.13 LDCs $0.50 Infrastructure Parent 3.95 Parent LDCs $0.35 Infrastructure under under long-t
Slide 7: Retail Electricity Sales
Retail Electricity Sales • Robust Q2 2024 customer growth: +14K residential electric customers and +6K residential gas customers • Strong weather-normal commercial sales growth driven by increased customer usage, including accelerated usage by existing data centers – Existing data center sales +17%
Slide 8: Southern Company Value Proposition - Objective of Regular, Predictable and Sustainable
Southern Company Value Proposition - Objective of Regular, Predictable and Sustainable Strategy: Maximize long-term value to shareholders through a customer-, community-, and relationship-focused business model that produces sustainable levels of return for investors Objective of maintaining a high
Slide 9: Appendix
Appendix 9
Slide 10: Total Energy Mix Comparison
Total Energy Mix Comparison 1 2023 Total Energy Mix Q2 YTD 2024 Total Energy Mix Renewables Renewables Renewables 15% Coal Coal Coal 14% 16% 17% 21% 17% Nuclear Nuclear 16% 17% Nuclear 19% Natural Gas Natural Gas Natural Gas 48% 52% 48% 1Energy mix represents all of the energy the Southern Company s
Slide 11: We are well positioned for the growth opportunity...
We are well positioned for the growth opportunity... Experience and Discipline • Deep understanding of Flexible Pricing Framework utility economics and marginal costs to serve • Existing PSC-approved • Decades of experience Institutional Wherewithal pricing frameworks with competition for new custom
Slide 12: ...and our long-standing approach helps ensure all customers benefit
...and our long-standing approach helps ensure all customers benefit The 3 key questions raised by stakeholders: Will the load materialize? Is the pricing appropriate? What protections are in place? Our robust load We employ robust models to A risk-adjusted load forecast, forecasting process ascerta
Slide 13: Our process for risk adjusting the electricity sales forecast
Our process for risk adjusting the electricity sales forecast Potential Selecting Early Selecting Selected a Potential Lower Load Electric Stages State SO Utility Delays Materialization Provider Forecast of Load to Serve Adjustments are based on experience and continuous engagement with customers 13
Slide 14: Our plans include a diverse mix of projected resource additions
Our plans include a diverse mix of projected resource additions State-Regulated Electric Utilities 2023-2030 Battery Storage 19% ~80% of planned Natural Gas (converted from coal) capacity additions are 10% zero carbon-emitting Solar +9.5GW New Natural 51% technologies Gas 9% Nuclear 11% 14
Slide 15: Capital Markets / Financing
Capital Markets / Financing 15
Slide 16: Long-term Financings
Long-term Financings 1 as of August 1, 2024 Actual Projected Remaining Long-term Debt ($ in millions) YTD 2024 2024 2025 2026 2024R-2026 Alabama Power - 300 450 300 1,050 Georgia Power 1,400 600 2,000 1,000 3,600 Mississippi Power 250 - - - - State-Regulated Electrics $1,650 $900 $2,450 $1,300 $4,65
Slide 17: Long-term Debt Maturity Tower
Long-term Debt Maturity Tower 1 as of August 1, 2024 $7,000 Long-term Debt1 Alabama Power $11.3B $6,000 Georgia Power $18.0B Mississippi Power $1.7B 2 Southern Company Gas Capital $5.1B $5,000 Nicor Gas $2.5B Southern Power $2.7B $4,000 Parent Company $21.6B 4176 3 Total Long-term Debt Maturities $6
Slide 18: Long-term Debt Maturity Schedule
Long-term Debt Maturity Schedule 1 as of August 1, 2024 Actual Projected Remaining Long-term Debt ($ in millions) YTD 2024 2024 2025 2026 2024R-2026 Alabama Power 21 - 250 45 295 Georgia Power 43 443 831 424 1,698 Mississippi Power 200 - 11 65 76 2 State-Regulated Electrics $274 $533 $1,091 $534 $2,
Slide 19: Liquidity and Credit
Liquidity and Credit $ in millions as of June 30, 2024 Over $7.9 billion in committed credit facilities and available liquidity of nearly $6.7 billion (in millions) 2025 2026 2027 2028 2029 Total Credit Facility Expirations $580 $650 $275 - $6,400 $7,905 Alabama Georgia Mississippi Southern Southern
Slide 20: Southern Company
S rN Southern Company