Southern Company (the) · NYSE:SO
Southern Company (the) — The Southern Company — Q1 2020 Earnings Presentation
23 slides from Southern Company (the)'s earnings presentation, Apr 30, 2020
Slide 1: First Quarter 2020 Earnings Conference Call
First Quarter 2020 Earnings Conference Call April 30, 2020
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) impacts related to (a) the sale of Gulf Power Company, (b) the sa
Slide 4: Q1 2020 Highlights
Q1 2020 Highlights • Adjusted first quarter earnings exceeded estimate • Top priority remains employee health and safety • We are well prepared to manage the impacts of the COVID-19 pandemic – Operational performance has remained strong – No expected supply chain disruptions for utility operations o
Slide 5: Vogtle 3 & 4
Vogtle 3 & 4 • Safety of the workforce and surrounding community remains paramount and will continue to guide our decision making • Next few months are pivotal as we adjust to a smaller, more streamlined workforce and seek to stabilize and increase productivity • We still expect to meet November 202
Slide 6: Vogtle 3 & 4
Vogtle 3 & 4 • Through March, production for Unit 3 was generally consistent with the refined aggressive site work plan – Mechanical, electrical and subcontract activities started to build a backlog, which has continued • COVID-19 pandemic has impacted productivity levels and pace of activity comple
Slide 7: Vogtle Unit 3 Direct Construction & Major Milestones
Vogtle Unit 3 Direct Construction & Major Milestones (Direct Construction is Bechtel’s Scope of Work) MONTHLY % CUMULATIVE % 6% 100% Unit 3 In-service 5% Fuel Load 90% Start Hot Functional Testing 4% Margin to regulatory 80% Initial Energization Start Cold Hydro Testing approved in-service 3% Sta
Slide 8: Q1 2020 Earnings Results
Q1 2020 Earnings Results 2020 2019 Earnings Per Share As Reported $0.82 $2.01 Less: Acquisition and Disposition Impacts1 $0.02 $1.26 Wholesale Gas Services $0.02 $0.05 Earnings Per Share Excluding Items $0.78 $0.70 1. Represents impacts related to the sales of Gulf Power and Plant Mankato and other
Slide 9: Q1 2020 Year-Over-Year Adjusted EPS Drivers
Q1 2020 Year-Over-Year Adjusted EPS Drivers 1 3¢ (0¢) (1¢) (1¢) 9¢ $0.78 Southern Parent & $0.70 (2¢) Southern Power2 Shares Other Company Rates, Pricing, Gas Weather Usage, and Other State-Regulated Electrics + Investment in State-Regulated Utilities - Weather (-10 cents vs. normal in 2020) - Paren
Slide 10: COVID-19 Business Impacts
COVID-19 Business Impacts • We do not expect COVID-19 impacts to materially affect our long-term outlook: – Expected long-term EPS growth rate remains 4% to 6% – $40 billion, 5-year capital investment plan remains unchanged – No projected equity issuances through 2024 – Liquidity is strong with good
Slide 11: COVID-19 Sales Impacts-to-Date and 2020 Outlook
COVID-19 Sales Impacts-to-Date and 2020 Outlook Estimated COVID-19 impacts-to-date on retail sales for weeks ending… Our baseline projections indicate an overall 2020 weather normal annualized impact on retail sales of 2% - 5% March 20 March 27 April 3 April 10 April 17 April 24 4% 0% 2% Residential
Slide 12: Continued to Enhance an Already Strong Liquidity Profile
Continued to Enhance an Already Strong Liquidity Profile SO Liquidity 12/31/19 ($B) SO Liquidity 3/31/20 ($B) $10.0 $10.0 $8.0 $8.0 $6.4B Net $7.6B Net $6.0 Liquidity $6.0 Credit Credit Facilities Liquidity Facilities $4.0 $4.0 PCBs $2.0 $2.0 PCBs Cash Cash CP CP $0.0 $0.0 CP = Commercial Paper; PCB
Slide 13: Q1 2020 and Projected Full Year Adjusted EPS
Q1 2020 and Projected Full Year Adjusted EPS Q1 2020 Adjusted EPS1 2020 Projected Full Year Adjusted EPS3 $0.08 $0.04 $0.29 ($0.11) All Other ($0.45) $3.22 $0.08 All Other to $0.78 Energy Parent LDCs $0.36 Parent $3.10 Energy Infrastructure LDCs $0.16 Infrastructure under under long-term long-term c
Slide 14: Appendix
Appendix
Slide 15: Significant Year-Over-Year Decrease in Coal Generation
Significant Year-Over-Year Decrease in Coal Generation1 2019 Total Energy Mix 2020 YTD Total Energy Mix Renewables / Renewables / Other Other 12% 18% Coal 13% Coal 22% Nuclear 16% Nuclear 17% Natural Gas Natural Gas 52% 50% 1Energy mix represents all of the energy used to serve retail and wholesale
Slide 16: Capital Markets / Financing
Capital Markets / Financing
Slide 17: Projected Long-term Debt Financings
Projected Long-term Debt Financings1 Actual Projected 2 Long-term Debt ($ in millions) YTD 2020 2020 (Remaining) 2021 2022 2020 - 2022 Alabama Power $300 $450 $900 $1,650 Georgia Power3 $1,500 850 1,450 800 3,100 Mississippi Power4 - 400 - 400 State-regulated Electrics $1,500 $1,150 $2,300 $1,700 $5
Slide 18: Long-term Debt Maturity Schedule
Long-term Debt Maturity Schedule1,2 Remaining 2020-2022 maturities total ~$7 billion Long-term Debt ($ in millions) Remaining 2020 2021 2022 2020-2022 Alabama Power3 $250 $310 $750 $1,310 Georgia Power 48 389 517 954 Mississippi Power - 330 15 345 State-regulated Electrics $298 $1,029 $1,282 $2,609
Slide 19: Liquidity and Credit
Liquidity and Credit1 as of 3/31/2020 Over $7.7 billion in committed credit facilities and available liquidity of $7.6 billion (in millions) 2020 2021 2022 2023 2024 Total Credit Facility Expirations $33 - $675 $125 $6,900 $7,733 Alabama Georgia Mississippi Southern Southern (in millions) Power Powe
Slide 20: Vogtle 3 & 4
Vogtle 3 & 4
Slide 21: North America's Building Trades Unions Salute Southern Company's Vogtle Project
North America’s Building Trades Unions Salute Southern Company’s Vogtle Project https://nabtu.org/press_releases/north-americas-building-trades-unions-salute-southern-companys-vogtle-project-for-reaching-another-significant-milestone/ WASHINGTON – March 28, 2020 – North America’s Building Trades Uni
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