Southern Company (the) · NYSE:SO
Southern Company (the) — The Southern Company — Q2 2022 Earnings Presentation
26 slides from Southern Company (the)'s earnings presentation, Jul 28, 2022
Slide 1: Second Quarter 2022 Earnings Conference Call
Second Quarter 2022 Earnings Conference Call July 28, 2022
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 in accordance with generally accepted accounting principles (GAAP), this presentation also includes historical adjusted earnings and earnings per share (EPS) excluding: (1) charges related to Georgia Power’s construction of Plant Vogtle U
Slide 4: Update on Vogtle Units 3 & 4
Update on Vogtle Units 3 & 4 • Unit 3 projecting Q1 2023 in service – Final 4 ITAACs are not expected to impact start of fuel load which is projected by late October 2022 • Unit 4 projecting Q4 2023 in service – Timely Unit 3 fuel load and start-up, along with a sustained improvement in Unit 4 elect
Slide 5: Vogtle Unit 3 ITAAC Completion Forecast & Major Milestones
Vogtle Unit 3 ITAAC Completion Forecast & Major Milestones 45 Total ITAAC Completed 394 210 40 Total ITAAC Remaining 4 180 Unit 3 In Service 35 ITAAC Remaining as of Month-end 150 Monthly ITAAC Completions 30 29 29 25 120 26 Start Fuel Load 20 21 21 90 15 15 15 60 10 11 103(g) Letter Received 30 5 5
Slide 6: Vogtle Unit 4 Direct Construction & Major Milestones
Vogtle Unit 4 Direct Construction & Major Milestones (Direct Construction is Bechtel’s Scope of Work) MONTHLY % CUMULATIVE % 6% 100% Unit 4 In Service 5% 90% 4% Structural Integrity / ✓ Start Fuel Load 80% Integrated Leak Rate 3% ✓ Initial Energization Test Complete Start Hot Functional Testing 70%
Slide 7: 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 Q1 2023/ Q4 20231,2 $10,393 Construction contingency estimate 60 Total project capital cost forecast1,2 $10,453 Net investment as of June 30, 20222 (8,966) Remaining estimate
Slide 8: Q2 2022 Earnings Results
Q2 2022 Earnings Results Q2 YTD 2022 2021 2022 2021 Earnings Per Share As Reported $1.04 $0.35 $2.01 $1.42 Less: Estimated Loss on Plants Under Construction1 ($0.04) ($0.32) ($0.04) ($0.35) Acquisition and Disposition Impacts $0.01 - - - Wholesale Gas Services2 - ($0.11) - $0.01 Asset Impairments3 -
Slide 9: Q2 2022 & YTD Year-Over-Year Adjusted Drivers
Q2 2022 & YTD Year-Over-Year Adjusted Drivers1 (5¢) 6¢ (4¢) 23¢ (14¢) 16¢ 4¢ (5¢) $1.07 5¢ (1¢) $2.05 Parent & 11¢ Southern Parent & Shares O&M Southern O&M 10¢ Other Southern Power Other Power $1.82 Rates, Company Rates, Pricing, Weather Gas $0.84 Pricing, Usage & Usage & Other Weather Other State-
Slide 10: Q2 2022 Retail Electricity Sales
Q2 2022 Retail Electricity Sales • Strong customer growth with the addition of nearly 12,000 residential electric customers and over 7,000 residential gas customers during the quarter • Port of Savannah recorded record cargo levels in June • Economic development pipeline in our service territories r
Slide 11: Q2 2022 & Projected Full Year Adjusted EPS
Q2 2022 & Projected Full Year Adjusted EPS Q2 YTD 2022 Adjusted EPS 2022 Projected Full Year Adjusted EPS1,2 $0.06 $0.05 $0.22 All Other ($0.26) $0.34 $2.05 All Other ($0.46) $3.60 Energy Parent Energy to LDCs $0.29 LDCs $0.44 Parent $3.50 Infrastructure Infrastructure under under long-term long-ter
Slide 12: Appendix
Appendix 12
Slide 13: Year-Over-Year Total Energy Mix Comparison
Year-Over-Year Total Energy Mix1 Comparison 2021 Total Energy Mix Q2 2022 Total Energy Mix Renewables Coal Renewables Coal 15% 21% 17% 20% Nuclear 16% Nuclear 15% Natural Gas Natural Gas 48% 48% 1Energy mix represents all of the energy used to serve retail and wholesale customers. This energy mix in
Slide 14: Capital Markets / Financing
Capital Markets / Financing 14
Slide 15: Long-term Debt Peer Comparison
Long-term Debt Peer Comparison as of June 30, 2022 4.5% Peer 2 Peer 9 Peer 10 4.0% Peer 4 Peer 3 Peer 19 Peer 1 Peer 7 Peer 13 Peer 5 Average Coupon (%) Peer 17 Peer 8 SO 3.5% Peer 16 Peer 15 Peer 18 Peer 6 Peer 11 3.0% Peer 12 2.5% 10 12 14 16 18 20 22 Average Time to Maturity (years) Source: Bloom
Slide 16: Projected Long-term Debt Financings
Projected Long-term Debt Financings1 as of June 30, 2022 Actual - Projected Long-term Debt ($ in millions) YTD 2022 2022 (Remaining) 2023 2024 2022R-2024 - Alabama Power 700 600 600 - 1,200 Georgia Power 1,500 - 1,500 1,150 2,650 Mississippi Power - - - 200 200 State-regulated Electrics $2,200 $600
Slide 17: Long-term Debt Maturity Schedule
Long-term Debt Maturity Schedule1,2 as of June 30, 2022 Actual Projected - Long-term Debt ($ in millions) YTD 2022 2022 (Remaining) 2023 2024 2022R-2024 - Alabama Power3 550 200 300 21 521 Georgia Power2 570 96 886 486 1,467 Mississippi Power - - - 200 200 State-regulated Electrics $1,120 $296 $1,18
Slide 18: Long-term Debt Maturity Tower
Long-term Debt Maturity Tower1 as of June 30, 2022 Long-term Debt1 $ in millions Alabama Power $9.9B $6,000 Georgia Power2 $14.7B Mississippi Power $1.5B $5,000 Southern Company Gas Capital3 $4.4B Nicor $2.1B Southern Power $3.0B $4,000 Parent Company $16.8B Total Long-term Debt Maturities4 $52.6B 2
Slide 19: Liquidity and Credit
Liquidity and Credit $ in millions as of June 30, 2022 Over $7.6 billion in committed credit facilities and available liquidity of over $6.4 billion (in millions) 2022 2023 2024 2025 2026 Total Credit Facility Expirations $0 $280 $700 $125 $6,550 $7,655 Alabama Georgia Mississippi Southern Southern
Slide 20: Vogtle 3 & 4
Vogtle 3 & 4 20
Slide 21: Projected Financial Impacts Related to Vogtle 3 & 4
Projected Financial Impacts Related to Vogtle 3 & 4 Illustrative Cash Flow Improvement in 2024 Financial Plan1 Projected EPS Impacts of Delays (increases relative to 2021) Vogtle Quarterly Impacts3 EPS4 3-Month Delay at U3 ~ (2₵) Tax 3-Month Delay at U4 ~ (5₵) Depreciation (15-yr tax life) 3Estimate
Slide 22: Vogtle 3 & 4 Major Milestone Definitions
Vogtle 3 & 4 Major Milestone Definitions Initial Energization- Energizing the main transformers to provide the initial supply of off-site power to the plant’s electrical distribution system needed for testing. Individual electrical components – pumps, valve, motors - will be powered providing ‘life’
Slide 23: Vogtle 3 & 4 Major Milestone Definitions
Vogtle 3 & 4 Major Milestone Definitions Cold Hydro Test- Cold Hydro Testing contains several separate tests in different areas of the plant to verify that welds, joints, pipes, and other components of the reactor coolant system, steam-supply system and associated high pressure systems do not leak a
Slide 24: Regulatory
Regulatory 24
Slide 25: Georgia Power 2022 Rate Case Schedule
Georgia Power 2022 Rate Case Schedule Link to access Commission Committee Meetings and Hearings: Georgia Public Service Commission - YouTube Docket Number: 44280 June 24, 2022 Georgia Power files rate case and direct testimony September 19 - 21, 2022 Georgia Power direct hearing October 17, 2022 Sta
Slide 26: ro N
S ro N Southern Company