Southern Company (the) · NYSE:SO
Southern Company (the) — The Southern Company — Q3 2022 Earnings Presentation
26 slides from Southern Company (the)'s earnings presentation, Oct 27, 2022
Slide 1: Third Quarter 2022 Earnings Conference Call
Third Quarter 2022 Earnings Conference Call October 27, 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/(credits) related to Georgia Power’s construction of Plan
Slide 4: Southern Company – Q3 2022 Update
Southern Company – Q3 2022 Update Vogtle Update Strong YTD Adjusted EPS • Projected in-service dates unchanged: • Q3 2022 Adjusted EPS of $1.31 – Unit 3 Q1 2023 vs. $1.23 in Q3 2021 – Unit 4 Q4 2023 • YTD 2022 Adjusted EPS of $3.35 vs. $3.05 YTD 2021 • Georgia Power’s share of total capital cost • P
Slide 5: Update on Vogtle Units 3 & 4
Update on Vogtle Units 3 & 4 Unit 3 • Recent milestones achieved: – All ITAAC complete letter – Receipt of 103(g) finding – 157 fuel assemblies in the reactor core • Next major milestone, initial criticality, projected in January 2023 Unit 4 • Electrical production levels support projected December
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 / Integrated Leak Rate ✓ Start Fuel Load 80% Test Complete 3% ✓ Initial Energization Start Hot Functional Testing 70%
Slide 7: Q3 2022 Earnings Results
Q3 2022 Earnings Results Q3 YTD 2022 2021 2022 2021 Earnings Per Share As Reported $1.36 $1.04 $3.38 $2.46 Less: Estimated Loss on Plants Under Construction1 $0.04 ($0.19) $0.01 ($0.55) Acquisition and Disposition Impacts2 $0.01 $0.01 $0.02 $0.01 Wholesale Gas Services3 - - - $0.02 Asset Impairments
Slide 8: Q3 2022 & YTD Year-Over-Year Adjusted Drivers
Q3 2022 & YTD Year-Over-Year Adjusted Drivers1 14¢ (5¢) 36¢ (19¢) 5¢ (9¢) 2¢ 2¢ (4¢) 7¢ (3¢) $3.35 (3¢) $1.31 2¢ Southern Southern Parent & 13¢ Southern Parent & $1.23 O&M Shares $3.05 O&M Southern Shares Company Power Power Other Other Rates, Pricing, Company Weather Rates, Gas Weather Usage & Othe
Slide 9: Q3 2022 Retail Electricity Sales
Q3 2022 Retail Electricity Sales • Robust customer growth: nearly +11,000 residential electric customers and over +8,000 residential gas customers during the quarter • Port of Savannah grew container volumes by nearly 10% in Q3 22 versus Q3 21 • Economic development pipeline in our service territori
Slide 10: Q3 2022 & Projected Full Year Adjusted EPS
Q3 2022 & Projected Full Year Adjusted EPS Q3 YTD 2022 Adjusted EPS 2022 Projected Full Year Adjusted EPS Guidance1 $0.05 $0.04 $0.33 All Other ($0.41) All Other $3.35 $0.41 ($0.54) Energy Parent $3.58 Energy Parent LDCs $0.34 Infrastructure LDCs $0.45 Infrastructure under under long-term long-term
Slide 11: Appendix
Appendix 11
Slide 12: Year-Over-Year Total Energy Mix Comparison
Year-Over-Year Total Energy Mix1 Comparison 2021 Total Energy Mix Q3 YTD 2022 Total Energy Mix Renewables Renewables 15% Coal 15% Coal 21% 20% Nuclear Nuclear 16% 15% Natural Gas Natural Gas 48% 50% 1Energy mix represents all of the energy used to serve retail and wholesale customers. This energy mi
Slide 13: Capital Markets / Financing
Capital Markets / Financing 13
Slide 14: Long-term Debt Peer Comparison
Long-term Debt Peer Comparison as of September 30, 2022 4.5% Peer 10 Peer 2 Peer 9 4.0% Peer 4 Peer 3 Peer 5 Peer 1 Peer 19 Peer 7 Peer 8 Average Coupon (%) Peer 13 SO Peer 17 Peer 15 3.5% Peer 6 Peer 16 Peer 14 Peer 18 Peer 11 3.0% Peer 12 2.5% 10 12 14 16 18 20 22 Average Time to Maturity (years)
Slide 15: Long-term Debt Financings
Long-term Debt Financings1 as of October 27, 2022 Actual - Projected Long-term Debt ($ in millions) YTD 2022 2022 (Remaining) 2023 2024 2022R-2024 - Alabama Power 1,700 - 300 - 300 Georgia Power 1,500 - 1,500 1,150 2,650 Mississippi Power - - - 200 200 State-regulated Electrics $3,200 $0 $1,800 $1,3
Slide 16: Long-term Debt Maturity Schedule
Long-term Debt Maturity Schedule1 as of September 30, 2022 Actual Projected - Long-term Debt ($ in millions) YTD 2022 2022 (Remaining) 2023 2024 2022R-2024 - Alabama Power2 550 200 300 21 521 Georgia Power2 644 21 886 486 1,393 Mississippi Power - - - 200 200 State-regulated Electrics $1,194 $221 $1
Slide 17: Long-term Debt Maturity Tower
Long-term Debt Maturity Tower1 as of September 30, 2022 Long-term Debt1 $ in millions Alabama Power $10.9B $6,000 Georgia Power $14.6B Mississippi Power $1.5B $5,000 Southern Company Gas Capital2 $4.9B Nicor $2.2B Southern Power $3.0B $4,000 Parent Company $16.8B Total Long-term Debt Maturities3 $54
Slide 18: Liquidity and Credit
Liquidity and Credit $ in millions as of September 30, 2022 Over $7.6 billion in committed credit facilities and available liquidity of over $7.3 billion (in millions) 2022 2023 2024 2025 2026 Total Credit Facility Expirations $0 $280 $700 $125 $6,550 $7,655 Alabama Georgia Mississippi Southern Sout
Slide 19: Vogtle 3 & 4
Vogtle 3 & 4 19
Slide 20: Vogtle 3 & 4 – Cost Update
Vogtle 3 & 4 – Cost Update (Georgia Power’s share) Estimated Cost of Project ($M) Base project capital cost forecast through Q1 2023/ Q4 20231,2 $10,334 Construction contingency estimate 49 Total project capital cost forecast1,2 $10,383 Net investment as of September 30, 20222 (9,280) Remaining esti
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 Open Vessel Testing- Verifies the water flows between the primary systems and the reactor vessel and that the pumps, motors, valves, pipes and other system components function as designed. Cold Hydro Test- Cold Hydro Testing contains several separate tests in
Slide 23: Regulatory
Regulatory 23
Slide 24: 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 27 - 29, 2022 Georgia Power direct hearing October 20, 2022 Sta
Slide 25: Vogtle Construction Monitoring (VCM) 27 Schedule
Vogtle Construction Monitoring (VCM) 27 Schedule Link to access Commission Committee Meetings and Hearings: Georgia Public Service Commission - YouTube Docket Number: 29849 August 31, 2022 VCM 27 filing October 27, 2022 Georgia Power and Southern Nuclear testimony filing December 6, 2022 Georgia Pow
Slide 26: ro N
S ro N Southern Company