Southern Company (the) · NYSE:SO
Southern Company (the) — Q1 2011 Earnings Presentation
11 slides from Southern Company (the)'s earnings presentation, Apr 27, 2011
Slide 1: 1st Quarter 2011 Earnings Conference Call
1st Quarter 2011 Earnings Conference Call April 27, 2011
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, statements concerning custom
Slide 3: Impact of Events in Japan
Impact of Events in Japan • Most likely, consequences of review of Fukushima will apply to the current fleet of nuclear reactors in the U.S., particularly older technologies • We believe the impact to Vogtle 3&4 should be minimal : – Not in a seismically sensitive area – 130 miles from nearest coast
Slide 4: Vogtle 3 & 4 Risk Sharing / Incentive Mechanism
Vogtle 3 & 4 Risk Sharing / Incentive Mechanism Schedule • April 27th: Georgia Power testimony • June 10th: Staff testimony • June 24th: Georgia Power rebuttal testimony • July 6th: Hearings • August 2nd: Decision 4
Slide 5: Year-over-year EPS Drivers
Year-over-year EPS Drivers 12¢ -7¢ -5¢ Weather $0.60 1¢ -3¢ Retail Wholesale Other -6¢ Revenue Revenue Non-Fuel Impacts O&M GPC COR -1¢ D&A Other -1¢ -2¢ 3¢ -1¢ $0.50 Taxes Shares Income Other Income Southern Taxes Power Traditional Operating Companies -12¢ Q1 2010 Q1 2011 5
Slide 6: Q1 Retail KWh Sales Growth
Q1 Retail KWh Sales Growth 6.7% 1.4% Weather- -0.9% -0.8% normal As reported -3.3% -3.9% -12.6% Industrial Residential Commercial Total Retail Industrial Sector Highlights • Southeast economy continues to benefit from steady worldwide demand for exports Primary Metals +18% • Personal income increasi
Slide 7: Near-term Job Creation in the Southeast
Near-term Job Creation in the Southeast Over 12,600 new jobs associated with new facilities, relocations and expansions > 3,800 Jobs Thyssen Krupp Golden Dragon > 5,000 Jobs Austal Military (BRAC) Mercedes KIA FedEx Gulfstream Health Lean > 1,800 Jobs > 2,000 Jobs Navy Federal CU Clearwire Stion Mil
Slide 8: Capital Expenditures and Financing Plan
Capital Expenditures and Financing Plan $5.0B - $6.4B $5.3B - $5.8B Potential Compliance Investments* = $0.7B-$2.9B $5.0B - $5.2B $0.5B - $1.9B Potential environmental controls, replacement generation $0.2B - $0.7B capacity, and/or transmission upgrades. Compliance $0.1B- $0.3B strategy will be dete
Slide 9: Recent Dividend Action
Recent Dividend Action • 7¢ dividend increase effective with 2Q11 dividend payment • New dividend rate is $1.89 per share (47.25¢ per quarter) • Marks the 254th consecutive quarterly dividend • 10th year in a row that we have increased the dividend 9
Slide 10: 2011 EPS Guidance
2011 EPS Guidance Annual Guidance = $2.48 - $2.56 per share Q2 Estimate = $0.62 per share 10
Slide 11: EPA Proposed Utility MACT
EPA Proposed Utility MACT • Unreasonable timeframe • Threatens electric reliability • Will increase electricity prices • Need a realistic compliance schedule 11