Southern Company (the) · NYSE:SO
Southern Company (the) — Merger or Acquisition (August 2015)
12 slides from Southern Company (the)'s merger presentation, Aug 24, 2015
Slide 1: Southern Company to acquire AGL Resources
Southern Company to acquire AGL Resources August 24, 2015 Doing Energy Better
Slide 2: Cautionary Statement Regarding Forward-Looking Information
Cautionary Statement Regarding Forward-Looking Information This communication contains forward-looking statements which are made pursuant to safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include statements, among other things, concer
Slide 3: Additional Information
Additional Information Additional Information and Where to Find It AGL Resources expects to announce a shareholder meeting soon to obtain shareholder approval in connection with the proposed merger between AGL Resources and Southern Company. In connection with the shareholder meeting, AGL Resources
Slide 4: Agenda
Agenda Transaction Overview Strategic Rationale AGL Resources Overview Combined Company Profile Q&A 4
Slide 5: Transaction Overview
Transaction Overview Southern Company to acquire AGL Resources for $66 per share in cash A premium of 36.3% to AGL Resources shareholders based on the August 21, 2015 20-day volume-weighted average price AGL Resources to become the 3rd largest operating subsidiary of Southern Company Expect
Slide 6: Transaction Overview – Major Approvals
Transaction Overview – Major Approvals AGL Resources shareholder approval required Hart-Scott-Rodino Key state approvals required Georgia Public Service Commission Illinois Commerce Commission New Jersey Board of Public Utilities Maryland Public Service Commission Virginia State Corporati
Slide 7: Strategic Rationale
Strategic Rationale Advances customer-focused business model Doing Energy Better Strengthens our mostly-regulated earnings profile Make Energy Better A broader platform for long-term Move Energy Better success as end-use energy consumption evolves So That Customers Combined natural gas Can U
Slide 8: AGL Resources Overview
AGL Resources Overview ~70% of earnings from regulated operations, growing to ~80% Largest gas-only LDC, serving approximately 4.5 million customers in 7 states Retail marketer of natural gas and related services for over 1 million customers in 24 states Established and growing midstream ope
Slide 9: AGL Resources Value Drivers
AGL Resources Value Drivers 95% of projected capital investments are for regulated utilities and pipelines Minimal regulatory lag for LDC investments Long-term contracts for pipeline investments Constructive regulatory jurisdictions Strong margin contribution from retail markets Solid ba
Slide 10: Combined Profile
Combined Profile Retail Regulated Rate Base Over 1,500 bcf per year $50B $44B $43B (2014 – company filings) of combined natural gas $32B $28B $27B consumption and $22B $17B $7B $7B throughput volume $5B $5B Over $50B of projected SO SO DUK NEE + EXC + AEP D ETR NI SRE GAS ATO +GAS HE POM regulat
Slide 11: Combined Outlook
Combined Outlook Accretive to on-going EPS in the first full year Expected long-term EPS growth of 4% to 5% Supports a strong credit profile and preserves the ability to invest in additional value-accretive projects Opportunity to raise dividend growth rate, subject to board approval Priorit
Slide 12: Summary
Summary Two leading corporate citizens combining to better serve customers, communities and shareholders Creates an expanded platform that will allow us to succeed well into the future Positions combined company to capture growth opportunities in natural gas infrastructure Doing Energy Better
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