Southern Company (the) · NYSE:SO
Southern Company (the) — Q2 2012 Earnings Presentation
20 slides from Southern Company (the)'s earnings presentation, Jul 25, 2012
Slide 1: Second Quarter 2012 Earnings Conference Call
Second Quarter 2012 Earnings Conference Call July 25 25, 2012 1
Slide 2: Cautionary Note Regarding Forward-Looking Statements
Cautionary Note Regarding Forward-Looking Statements C t i information Certain i f ti contained t i d in i this thi presentation t ti is i forward-looking f d l ki information i f ti based b d on currentt expectationst ti andd plans l th t involve that i l risks i k andd uncertainties. t i ti Forwar
Slide 3: A Diverse Generation Portfolio Benefits our Customers
A Diverse Generation Portfolio Benefits our Customers Capacity Factors YTD 2011 YTD 2012 Change Coal - PRB 77% 62% ( ) (15%) Coal - Non-PRB 50% 30% (20%) Gas - Combined Cycle 55% 72% +17% Generation Mix Hydro Hydro YTD 2011 YTD 2012 Nuclear Nuclear Nuclear Nuclear Coal Coal 16% 17% Coall C 35% Gas/O
Slide 4: Low Cost Additions to our Energy Mix
Low Cost Additions to our Energy Mix 6¢ Variable Cost to Customers $5 / MMBtu ¢/kwh h $3 / MMBtu Natural Gas Vogtle 3&4 Combined Cycle (excluding PTCs) ($2-$7 / MMBtu) Ratcliffe IGCC 0¢ • Chart reflects cost ranges for later this decade, although the variable cost benefits and lower potential volati
Slide 5: Plant Ratcliffe IGCC in Kemper County
Plant Ratcliffe IGCC in Kemper County • Target Completion: May 2014 • Current estimate of $2.88B • Appeal pending before MS Supreme Court for financing costs t dduring i construction t ti • Overall cost to customers projected to be less than certified 5
Slide 6: Vogtle Units 3 & 4 Progress to Date
Vogtle Units 3 & 4 Progress to Date • Installed 600 tons of rebar in turbine island • Installed 3,500 tons of rebar and 20,000 cubic yards of concrete for cooling towers • Total concrete produced by onsite batch plant ≈ 150,000 cubic yards • Work is progressing on the nuclear islands • Successfully
Slide 7: Vogtle 3 & 4 Over the Next Several Months
Vogtle 3 & 4 Over the Next Several Months Current Expectations Unit 3 nuclear island rebar Complete Fall 2012 Unit 3 turbine building mudmat and Complete Fall 2012 foundation installation In Progress Nuclear island modules assembly Ongoing Assembly of Unit 4 containment vessel Complete Spring 2013 b
Slide 8: Other 21st Century Generation Projects
Other 21st Century Generation Projects Plant McDonough-Atkinson • Unit 5 on line April 26th • Efficient 840MW natural gas combined cycle • Unit 6 on schedule for Q4 Nacogdoches Power Project • On line June 23rd • 100MW biomass plant • 20 year PPA with City of Austin Apex A Solar S l Facility F ilit
Slide 9: Q2 2012 vs. Q2 2011 EPS Drivers
Q2 2012 vs. Q2 2011 EPS Drivers 5¢ -6¢ 2¢ -2¢ 71¢ 1¢ -2¢ -1¢ 2¢ 69¢ Other -1¢ Usage & Revenue Weather Economic Effects Non-Fuel Parent Growth O&M D&A Shares Interest Income Taxes Traditional Operating Companies -1¢ Q2 2011 Q2 2012 ex-items ex-items* * Excludes +2¢ EPS impact of insurance recovery re
Slide 10: Q2 2012 Retail Sales Growth
Q2 2012 Retail Sales Growth As Reported Weather Normal Residential (4.3%) 2.1% Commercial (1 4%) (1.4%) 1 2% 1.2% Industrial (0.1%) (0.1%) Total Retail (1.9%) 1.0% ~20,000 New Residential Customers in 2012 Industrial Highlights 20,000 Q2 2012 vs. Q2 2011 Q2 +5K Pipelines +12% Q1 +15K 10,000 Transpor
Slide 11: Economic Roundtable
Economic Roundtable • GDP growth of approximately 2% in 2012 • Global economic growth slowing pact g the ― Impacting t e growth g o t of o U.S. U S industrial dust a production p oduct o ― Partially offset by positive impact of low gas prices L consumer confidence • Low fid ti continues t drive to d
Slide 12: 2012 - 2014 Compliance Capital Forecast
2012 - 2014 Compliance Capital Forecast Total ($ millions) 2012 2013 2014 12- 14 ’12-’14 Baghouses 121 196 477 794 Additives Injection Systems 0 100 292 392 Fuel Switching 12 56 220 288 Transmission 13 88 227 328 MATS $147 $440 $1,216 $1,803 Coal Combustion Residuals* 0 32 254 285 Effluent Guideline
Slide 13: Expected Long-term Implications to Coal Fleet
Expected Long-term Implications to Coal Fleet Flagship units, and smaller units utilizing 13 GW common controls, available long term Candidates for retirement and potentially 3 GW – 4 GW unavailable for long-term long term operations 3 GW – 4 GW Fuel F l switching, it hi primarily i il natural t l g
Slide 14: Financing Plan
Financing Plan ($ millions) 2012 Issued Remaining Total 2013 2014 Alabama $ 250 $ 500 $ 750 $ 450 $ 650 Georgia 1,734 800 2,534 1,400 1,200 Gulf 100 - 100 200 300 pp Mississippi 400 475 875 300 200 Southern Power - - - 350 250 Holding Company - - - 400 400 Long-Term Long Term Security Issuances $ 2,
Slide 15: 2012 Earnings Per Share
2012 Earnings Per Share Q3 Estimate st ate = $$1.12 pe per sshare ae Annual Guidance = $2.58 - $2.70 per share 15
Slide 16: Appendix
Appendix 16
Slide 17: A Diverse Generation Portfolio Benefits our Customers
A Diverse Generation Portfolio Benefits our Customers Capacity Factors Q2 2011 Q2 2012 Change Coal - PRB 78% 70% ( ) (8%) Coal - Non-PRB 46% 26% (20%) Gas - Combined Cycle 55% 75% +20% Generation Mix Hydro Hydro Q2 2011 Q2 2012 Nuclear Nuclear 15% 16% Coal Coal C l 38% Gas 54% 29% Gas 45% 17
Slide 18: Updated 2012 - 2014 Compliance Forecast
Updated 2012 - 2014 Compliance Forecast Total ($ millions) 2012 2013 2014 ’12-’14 Alabama 64 154 442 661 Georgia 47 169 439 654 Gulf 32 83 179 295 pp Mississippi 0 6 50 56 Other Subsidiaries 4 28 105 137 MATS $147 $440 $1,216 $1,803 Alabama Al b 2 12 159 174 Georgia 6 54 191 250 Gulf 0 6 23 29 Missi
Slide 19: Change in 2012 - 2014 Compliance Forecast
Change in 2012 - 2014 Compliance Forecast (Compared to Prior Forecast) Total ($ millions) 2012 2013 2014 ’12-’14 Alabama (104) (188) (203) (495) Georgia (69) (16) 182 97 Gulf (11) (9) (63) (83) pp Mississippi ((30)) ((93)) ((247)) ((370)) Other Subsidiaries 0 (14) (66) (80) MATS ($214) ($319) ($398)
Slide 20: 2012 - 2014 Capital Forecast
2012 - 2014 Capital Forecast* Total ($ millions) 2012 2013 2014 ’12-’14 12- 14 Base 5,267 4,381 4,341 13,993 MATS Compliance 147 440 1,216 1,803 Other Compliance 9 82 401 492 Total Capex $5,423 $4,904 $5,958 $16,288 * Reflects updated environmental compliance decisions made through the second quarte