Southern Company (the) · NYSE:SO
Southern Company (the) — The Southern Company — Q1 2023 Earnings Presentation
26 slides from Southern Company (the)'s earnings presentation, Apr 27, 2023
Slide 1: First Quarter 2023 Earnings Conference Call
First Quarter 2023 Earnings Conference Call April 27, 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) charges (net of salvage proceeds), associated legal expenses (net of insurance reco
Slide 4: Southern Company – Q1 2023 Update
Southern Company – Q1 2023 Update YTD Adjusted EPS Vogtle Update • Q1 2023 Adjusted EPS of $0.79 • Projected in-service dates unchanged: – $0.70 Q1 2023 estimate – Unit 3 May or June 2023 – $0.97 in Q1 2022 – Unit 4 Late Q4 2023 to end of Q1 2024 • Primary drivers versus prior year: – Milder than no
Slide 5: Q1 2023 Year-Over-Year Adjusted Drivers
Q1 2023 Year-Over-Year Adjusted Drivers1 $0.97 (11¢) 11¢ (18¢) 2¢ (1¢) 3¢ (2¢) (2¢) Weather Rates, Pricing & $0.79 Usage Southern Southern Parent & D&A, Interest, O&M Shares & Other Company Power Other Revenues Taxes & Other Gas Versus normal: D&A ( 14¢) Q1 2023 ( 13¢) Interest & Other ( 5¢) Q1 2022
Slide 6: Q1 2023 & Projected Full Year Adjusted EPS
Q1 2023 & Projected Full Year Adjusted EPS Q1 YTD 2023 Adjusted EPS 2023 Projected Full Year Adjusted EPS Guidance1 $0.06 $0.04 All Other ($0.15) $0.12 $0.39 All Other ($0.63) $3.65 $0.79 Parent to Energy LDCs $0.45 LDCs $0.45 Energy Parent $3.55 Infrastructure Infrastructure LDCs $0.20 under under
Slide 7: Q1 2023 Retail Electricity Sales
Q1 2023 Retail Electricity Sales • Strong customer growth: +11K residential electric customers and +6K residential gas customers • Economic development pipeline in our Southeast service territories remains robust – Q1 2023 announced job creation and capital investment set all-time first quarter reco
Slide 8: Dividend History
Dividend History Dividends Equal to or Greater Than Previous Year for More Than 75 Years Southern Company has a long-standing history of providing a regular, predictable and sustainable return to shareholders through our dividend which is supported by premier state-regulated utilities and energy inf
Slide 9: Update on Vogtle Units 3 & 4
Update on Vogtle Units 3 & 4 Unit 3 • Recent milestones achieved: – Initial criticality – Sync to the grid • Progressing through final start-up testing and commissioning Unit 4 • Started Hot Functional Testing (HFT) in March – Test approximately 80% complete – Lessons learned on Unit 3 continue to b
Slide 10: Vogtle Unit 4 ITAAC Completion Forecast
Vogtle Unit 4 ITAAC Completion Forecast1 35 200 ✓ Start Hot Functional Testing Start Fuel Load Unit 4 In-Service 180 30 Cumulative ITAAC Remaining as of Month-end 29 29 29 160 Total ITAAC Completed 228 25 140 Total ITAAC Remaining 136 Monthly ITAAC Completions 23 120 20 100 15 Actual ITAAC Completio
Slide 11: Vogtle 3 & 4 – Cost Update
Vogtle 3 & 4 – Cost Update (Georgia Power’s share) Estimated Cost of Project ($M) Base project capital cost forecast through Q2 2023/ Q1 20241,2 $10,553 Construction contingency estimate 40 Total project capital cost forecast1,2 $10,593 Net investment as of March 31, 20232 (9,747) Remaining estimate
Slide 12: Appendix
Appendix 12
Slide 13: Q1 2023 Results
Q1 2023 Results Q1 2023 2022 Earnings Per Share As Reported $0.79 $0.97 Less: Estimated Loss on Plants Under Construction1 - - Loss on Extinguishment of Debt2 - - Earnings Per Share Excluding Items $0.79 $0.97 1 Includes charges (net of salvage proceeds), associated legal expenses (net of insurance
Slide 14: Total Energy Mix Comparison
Total Energy Mix Comparison1 2022 Total Energy Mix Q1 YTD 2023 Total Energy Mix Renewables Renewables RenewablesCoal 15% Coal Renewables 15% 14% Coal 15% 20% 21% 18% 20% Nuclear Nuclear Nuclear 16% 15% 15% Nuclear 16% Natural NaturalGas Gas NaturalGas Natural Gas 48% 50% 50% 52% 1Energy mix represen
Slide 15: Capital Markets / Financing
Capital Markets / Financing 15
Slide 16: Long-term Debt Peer Comparison
Long-term Debt Peer Comparison as of March 31, 2023 4.5% Peer 10 Peer 3 Peer 2 Peer 6 Peer 9 Peer 4 Peer 5 4.0% Peer 1 Peer 7 Peer 19 Peer 15 Peer 8 Peer 17 Peer 13 SO Average Coupon (%) Peer 14 Peer 18 Peer 16 3.5% Peer 12 Peer 11 3.0% 2.5% 10 12 14 16 18 20 22 Average Time to Maturity (years) Sour
Slide 17: Long-term Debt Financings
Long-term Debt Financings1 as of April 27, 2023 Actual Projected - Long-term Debt ($ in millions) YTD 2023 2023 (Remaining) 2024 2025 2023R-2025 - Alabama Power - 600 500 500 1,600 Georgia Power 229 1,500 1,300 1,700 4,500 Mississippi Power - 100 250 100 450 State-Regulated Electrics $229 $2,200 $2,
Slide 18: Long-term Debt Maturity Tower
Long-term Debt Maturity Tower1 as of March 31, 2023 Long-term Debt1 $ in millions Alabama Power $10.7B $6,000 Georgia Power $15.0B Mississippi Power $1.5B $5,000 Southern Company Gas Capital2 $4.9B Nicor $2.3B Southern Power $3.0B $4,000 Parent Company $19.0B 500 Total Long-term Debt Maturities3 $56
Slide 19: Long-term Debt Maturity Schedule
Long-term Debt Maturity Schedule1 as of April 27, 2023 Actual Projected - Long-term Debt ($ in millions) YTD 2023 2023 (Remaining) 2024 2025 2023R-2025 - Alabama Power - 300 21 250 571 Georgia Power 121 764 486 131 1,380 Mississippi Power - - 200 11 211 State-Regulated Electrics $121 $1,064 $707 $39
Slide 20: Liquidity and Credit
Liquidity and Credit $ in millions as of March 31, 2023 Over $7.6 billion in committed credit facilities and available liquidity of over $6 billion (in millions) 2023 2024 2025 2026 Total Credit Facility Expirations $ 280 $ 700 $ 125 $ 6,550 $7,655 Alabama Georgia Mississippi Southern Southern Paren
Slide 21: Vogtle 3 & 4
Vogtle 3 & 4 21
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 U3 ~ (2₵) Tax 3-Month Delay at U4 ~ (5₵) Depreciation (15-yr t
Slide 23: Regulatory
Regulatory 23
Slide 24: Vogtle Construction Monitoring (VCM) 28 Schedule
Vogtle Construction Monitoring (VCM) 28 Schedule Link to access Commission Meetings and Hearings: Georgia Public Service Commission - YouTube Docket Number: 29849 February 16, 2023 VCM 28 filing May 5, 2023 Georgia Power and Southern Nuclear testimony filing June 1, 2023 Georgia Power and Southern N
Slide 25: Georgia Power 2023 Fuel Filing (FCR-26) Schedule
Georgia Power 2023 Fuel Filing (FCR-26) Schedule Link to access Commission Meetings and Hearings: Georgia Public Service Commission - YouTube Docket Number: 44902 February 28, 2023 Georgia Power files application and direct testimony April 14, 2023 Staff and intervenor testimony filing April 24, 202
Slide 26: Southern Company
S rN Southern Company