Southern Company (the) · NYSE:SO
Southern Company (the) — The Southern Company — Q2 2023 Earnings Presentation
23 slides from Southern Company (the)'s earnings presentation, Aug 3, 2023
Slide 1: Second Quarter 2023 Earnings Conference Call
Second Quarter 2023 Earnings Conference Call August 3, 2023
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, earning
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) a charge related to Georgia Power’s construction of Plant Vogtle Units 3 and 4; (2)
Slide 4: Southern Company Value Proposition
Southern Company Value Proposition Southern Company’s strategy is to maximize long-term value to shareholders through a customer-, community- and relationship-focused business model that produces sustainable levels of return on energy infrastructure Success factors for a premium utility ✓Credibility
Slide 5: Southern Company – Q2 2023 Update
Southern Company – Q2 2023 Update Q2 and YTD Adjusted EPS Vogtle Update • Q2 2023 Adjusted EPS of $0.79 • Unit 3 achieved commercial operation on – $0.75 Q2 2023 estimate July 31, 2023 – $1.07 in Q2 2022 • Unit 4 projected in-service date unchanged – Late Q4 2023 to end of Q1 2024 • YTD 2023 Adjuste
Slide 6: Q2 2023 Earnings Results
Q2 2023 Earnings Results Q2 YTD 2023 2022 2023 2022 Earnings Per Share As Reported $0.77 $1.04 $1.56 $2.01 Less: Estimated Loss on Plants Under Construction1 - ($0.04) - ($0.04) Acquisition and Disposition Impacts - $0.01 - - Loss on Extinguishment of Debt2 - - - - Estimated Loss on Qualifying Infra
Slide 7: Q2 2023 & YTD Year-Over-Year Adjusted Drivers
Q2 2023 & YTD Year-Over-Year Adjusted Drivers1 $1.07 (12¢) $2.05 (23¢) (8¢) 4¢ (27¢) Weather (9¢) 5¢ 0¢ (1¢) (1¢) Weather 7¢ (1¢) 2¢ (4¢) Rates, Pricing, (2¢) $0.79 Rates, Pricing, (4¢) $1.59 Usage & Other Southern Southern Usage & Other Southern Southern Parent & Revenues Parent & Revenues D&A, D&A
Slide 8: Q2 2023 & Projected Full Year Adjusted EPS
Q2 2023 & Projected Full Year Adjusted EPS YTD 2023 Adjusted EPS 2023 Projected Full Year Adjusted EPS Guidance1,2 $0.07 $0.04 $0.22 All Other ($0.30) $0.39 All Other ($0.63) $3.65 $1.59 Energy Parent Energy to LDCs $0.28 LDCs $0.45 LDCs $0.45 Parent $3.55 Infrastructure Infrastructure under under l
Slide 9: Q2 2023 Retail Electricity Sales
Q2 2023 Retail Electricity Sales • Strong YTD customer growth: +24K residential electric customers and +13K residential gas customers • Positive residential and commercial growth and strong commercial usage; industrial trend tracking with U.S. industrial production, which continues to contract Q2 20
Slide 10: A Strong Trajectory of Residential Customer Additions
A Strong Trajectory of Residential Customer Additions (rolling 12 months by quarter) 65,000 55,000 45,000 35,000 25,000 15,000 Jun-13 Mar-15 Dec-16 Sep-18 Jun-20 Mar-22 Jun - 23 10
Slide 11: Historically mild weather through the first 6 months of 2023
Historically mild weather through the first 6 months of 2023 2023 represents the fewest aggregate degree days on record in 129 years Total Degree Days1 January through June (1895 to 2023) 2023 0.16 2023 represents the largest negative EPS impact on record 0.12 0.08 Weather Impact on EPS2 (vs. Normal
Slide 12: Update on Vogtle Units 3 & 4
Update on Vogtle Units 3 & 4 Unit 3 ✓Unit 3 achieved commercial operation on July 31st Unit 4 ✓Completed Hot Functional Testing in May ✓Received all 157 fuel assemblies ✓Submitted all ITAAC complete letter in July ✓Received 103(g) finding from the NRC in July • Fuel load projected August to October
Slide 13: Appendix
Appendix 13
Slide 14: Total Energy Mix Comparison
Total Energy Mix Comparison1 2022 Total Energy Mix Q2 YTD 2023 Total Energy Mix Renewables Renewables Renewables Coal 15% 15% Coal Renewables 15% 16%Coal 20% 21% 16% 20% Nuclear Nuclear Nuclear Nuclear 16% 15% 15% 17% Natural NaturalGas Gas NaturalGas Natural Gas 48% 50% 50% 51% 1Energy mix represen
Slide 15: Capital Markets / Financing
Capital Markets / Financing 15
Slide 16: Long-term Debt Financings
Long-term Debt Financings 1 as of August 3, 2023 Actual Projected Long-term Debt ($ in millions) YTD 2023 2023 (Remaining) 2024 2025 2023R-2025 Alabama Power 200 500 500 500 1,500 2 Georgia Power 1,979 750 750 1,700 3,200 Mississippi Power 100 - 250 100 350 State-Regulated Electrics $2,279 $1,250 $1
Slide 17: Long-term Debt Maturity Tower
Long-term Debt Maturity Tower1 as of August 3, 2023 Long-term Debt1 $6,000 Alabama Power $10.9B Georgia Power $15.9B Mississippi Power $1.6B $5,000 Southern Company Gas Capital2 $4.9B Nicor $2.3B $4,000 Southern Power $3.0B Parent Company $18.6B 500 Total Long-term Debt Maturities3 $57.5B 2250 4176
Slide 18: Long-term Debt Maturity Schedule
Long-term Debt Maturity Schedule1 as of August 3, 2023 Actual Projected Long-term Debt ($ in millions) YTD 2023 2023 (Remaining) 2024 2025 2023R-2025 Alabama Power - 300 21 250 571 Georgia Power 2 843 43 486 131 659 Mississippi Power - - 200 11 211 State-Regulated Electrics $843 $343 $707 $391 $1,44
Slide 19: Liquidity and Credit
Liquidity and Credit as of June 30, 2023 Over $7.5 billion in committed credit facilities and available liquidity of over $7.8 billion (in millions) 2024 2025 2026 2028 Total Credit Facility Expirations $ 830 $ 125 $ 150 $ 6,400 $7,505 Alabama Georgia Mississippi Southern Southern Parent (in million
Slide 20: Vogtle 3 & 4
Vogtle 3 & 4 20
Slide 21: Vogtle 3 & 4 – Cost Update
Vogtle 3 & 4 – Cost Update (Georgia Power’s share) Estimated Cost of Project ($M) Base project capital cost forecast through July 2023/ March 20241,2 $10,576 Construction contingency estimate 17 Total project capital cost forecast1,2 $10,593 Net investment as of June 30, 20232 (9,944) Remaining esti
Slide 22: Projected Financial Impacts Related to Vogtle 3 & 4
Projected Financial Impacts Related to Vogtle 3 & 4 Illustrative Annualized Cash Flow Improvement Projected EPS Impacts of Delays Post Vogtle Unit 4 In-Service1 (increases relative to 2021) Vogtle Quarterly Impacts3 EPS4 3-Month Delay at U4 ~ (5₵) Tax Depreciation (15-yr tax life) 3Estimated quarter
Slide 23: Southern Company
S rN Southern Company