Southern Company (the) · NYSE:SO
Southern Company (the) — The Southern Company — Q1 2024 Earnings Presentation
22 slides from Southern Company (the)'s earnings presentation, May 2, 2024
Slide 1: First Quarter 2024 Earnings Conference Call
First Quarter 2024 Earnings Conference Call May 2, 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, 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) charges (net of salvage proceeds), associated legal expenses (net of insurance reco
Slide 4: Vogtle Units 3 and 4 Have Been Successfully Completed
Vogtle Units 3 and 4 Have Been Successfully Completed Plant Vogtle is Now the Largest Generator of Clean Energy in the United States 4
Slide 5: Q1 2024 Earnings Results
Q1 2024 Earnings Results Q1 2024 2023 Earnings Per Share As Reported $1.03 $0.79 Less: Estimated Loss on Plants Under Construction1 - - Loss on Extinguishment of Debt2 - - Earnings Per Share Excluding Items $1.03 $0.79 1 Includes charges (net of salvage proceeds), associated legal expenses (net of i
Slide 6: Q1 2024 Year-Over-Year Adjusted Drivers
Q1 2024 Year-Over-Year Adjusted Drivers1 23¢ (10¢) 9¢ (1¢) (3¢) $1.03 Southern Power Parent & D&A, Interest, Southern Other 6¢ Taxes & Other Company Gas $0.79 Rates, Pricing, Usage & Other Weather Revenues State-Regulated Electric Utilities = +19¢ Key Drivers + Investment in state-regulated utilitie
Slide 7: Q1 2024 & Projected Full Year Adjusted EPS
Q1 2024 & Projected Full Year Adjusted EPS Q1 YTD 2024 Adjusted EPS 2024 Projected Full Year Adjusted EPS Guidance1,2 $0.07 $0.07 $0.38 All Other ($0.19) $0.07 ($0.71) $4.05 $0.12 All Other $1.03 Energy To Energy Parent LDCs $0.50 Infrastructure Parent 3.95 LDCs $0.28 Infrastructure under under long
Slide 8: Retail Electricity Sales
Retail Electricity Sales • Robust customer growth: +13K residential electric customers and +7K residential gas customers • Strong commercial sales growth driven by increased customer usage and existing data centers – Data center sales +12% for the quarter • Industrial sales starting to show signs of
Slide 9: 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 10: ...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 11: 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 11
Slide 12: 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% 12
Slide 13: Dividend History
Dividend History Dividends Equal to or Greater Than Previous Year for 77 Years Southern Company has a long-standing history of providing a regular, predictable and sustainable return to shareholders through our dividend which is supported by premier state-regulated utilities and energy infrastructur
Slide 14: 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 15: Appendix
Appendix 15
Slide 16: Total Energy Mix Comparison
Total Energy Mix Comparison1 2023 Total Energy Mix Q1 YTD 2024 Total Energy Mix Renewables Renewables Renewables Coal Coal Coal 15% 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 sy
Slide 17: Capital Markets / Financing
Capital Markets / Financing 17
Slide 18: Long-term Financings
Long-term Financings 1 as of May 2, 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 2 Mississippi Power 250 - - - - State-Regulated Electrics $1,650 $900 $2,450 $1,300 $4,650
Slide 19: Long-term Debt Maturity Tower
Long-term Debt Maturity Tower1 as of May 2, 2024 $6,000 Long-term Debt1 Alabama Power $11.3B Georgia Power $18.0B $5,000 Mississippi Power $1.8B Southern Company Gas Capital $5.1B Nicor Gas $2.5B $4,000 Southern Power $2.7B Parent Company $20.1B 4176 500 2250 Total Long-term Debt Maturities2 $61.5B
Slide 20: Long-term Debt Maturity Schedule
Long-term Debt Maturity Schedule1 as of May 2, 2024 Actual Projected Remaining Long-term Debt ($ in millions) YTD 2024 2024 2025 2026 2024R-2026 Alabama Power 21 - 250 45 295 Georgia Power 21 464 831 424 1,719 Mississippi Power - 200 11 65 276 2 State-Regulated Electrics $53 $754 $1,091 $534 $2,380
Slide 21: Liquidity and Credit
Liquidity and Credit $ in millions as of March 31, 2024 Over $7.6 billion in committed credit facilities and available liquidity of nearly $4.6 billion (in millions) 2024 2025 2026 2027 2028 Total Credit Facility Expirations $280 - $800 $125 $6,400 $7,605 Alabama Georgia Mississippi Southern Souther
Slide 22: Southern Company
S rN Southern Company