Southern Company (the) · NYSE:SO
Southern Company (the) — The Southern Company — Q1 2021 Earnings Presentation
24 slides from Southern Company (the)'s earnings presentation, Apr 29, 2021
Slide 1: First Quarter 2021 Earnings Conference Call
First Quarter 2021 Earnings Conference Call April 29, 2021
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) a charge related to Georgia Power’s construction of Plant Vogtle
Slide 4: Q1 2021 Highlights
Q1 2021 Highlights • Adjusted first quarter earnings of $0.98 per share, greatly exceeded estimate – Economic recovery in Southeast region is trending better than our expectation – Operating subsidiaries performed in a resilient manner throughout winter storm season • Vogtle Unit 3 Hot Functional Te
Slide 5: Vogtle Unit 3
Vogtle Unit 3 • Hot Functional Testing marks the last series of major tests prior to fuel load – Unit will be operated on integrated basis • Major remaining risks include: – Successful completion of Hot Functional Testing – Completion of construction, testing, and system turnovers leading to Fuel Lo
Slide 6: Vogtle Unit 4 Direct Construction & Major Milestones
Vogtle Unit 4 Direct Construction & Major Milestones (Direct Construction is Bechtel’s Scope of Work) 6 Milestone bars and lines represent the range of potential start dates for each milestone with the left side of each indicating currently targeted start dates under the aggressive site work plan an
Slide 7: Vogtle 3 & 4 Cost Estimate
Vogtle 3 & 4 Cost Estimate Total contingency and schedule cost margin of $175 million Projected Estimated Cost of Project ($M) (Georgia Power's 45.7% share) Base project capital cost forecast through December 2021 / August 2022 $7,770 Schedule cost margin utilized 208 Unit 4 Schedule cost margin to
Slide 8: Q1 2021 Earnings Results
Q1 2021 Earnings Results First Quarter 2021 2020 Earnings Per Share As Reported $1.07 $0.82 Less: Estimated Loss on Plants Under Construction1 ($0.03) - Acquisition and Disposition Impacts2 - $0.02 Wholesale Gas Services $0.12 $0.02 Earnings Per Share Excluding Items $0.98 $0.78 1 Includes a charge
Slide 9: Q1 2021 Year-Over-Year Adjusted EPS Drivers
Q1 2021 Year-Over-Year Adjusted EPS Drivers 1 4¢ $0.98 8¢ 2¢ 6¢ Southern Southern Company Power $ 0.78 Rates, Pricing, Gas Weather Usage, & Other State-Regulated Electrics Q1 Drivers + Customer growth and investment in state-regulated utilities, offset by COVID-19 impacts in Q1 2021 + Weather (-3 ce
Slide 10: COVID-19 Sales Impacts and 2021 Outlook
COVID-19 Sales Impacts and 2021 Outlook • Estimated 2021 weather-normal total retail kilowatt-hour sales are expected to increase 2% to 3% compared to 2020 • Q1 2021 weather-normal total retail kilowatt-hour sales were better than expected – Weather-normal kilowatt-hour sales declined by ~1.5% versu
Slide 11: Service Territory Economic Update
Service Territory Economic Update • Economies in our service territories United States, Projected Year of Return to Pre-Recession Peak of Non-Farm Employment are showing strong signs of recovery • Economic development activity remains robust – Over 3,600 jobs and $2.2 billion of investment announced
Slide 12: Q1 YTD 2021 and Projected Full Year Adjusted EPS
Q1 YTD 2021 and Projected Full Year Adjusted EPS Q1 YTD 2021 Adjusted EPS1 2021 Projected Full Year Adjusted EPS3 $0.06 $0.08 ($0.12) $0.32 All Other ($0.49) $3.35 $0.12 All Other $0.98 to Energy Parent LDCs $0.39 Parent $3.25 Infrastructure Energy LDCs $0.17 under Infrastructure long-term under con
Slide 13: Dividend History
Dividend History 73 Years of Dividends Equal to or Greater Than Previous Year Southern Company has a long-standing history of providing a regular, predictable and sustainable return to shareholders through our dividend which is supported by premier state-regulated utilities and energy infrastructure
Slide 14: Business Strategy Update
Business Strategy Update • Southern Company became the first major U.S. utility to publish a Sustainable Financing Framework in January – Southern Power issued a green bond and Georgia Power issued a sustainable bond under the framework in Q1 2021 • Southern Power now owns ~5,000 MW of renewable gen
Slide 15: Greenhouse Gas Emissions Reductions Goals
Greenhouse Gas Emissions Reductions Goals 2007 2020 2025 2050 50% Baseline Reduced1 Net Zero Reduction 52% Goal Goal 1 The reduction in GHG emissions from 2019 to 2020 was primarily driven by milder weather, decreased customer energy usage resulting from the COVID-19 pandemic, and the continued tran
Slide 16: Appendix
Appendix
Slide 17: Year-Over-Year Total Energy Mix Comparison
Year-Over-Year Total Energy Mix1 Comparison 2020 Total Energy Mix YTD 2021 Total Energy Mix Renewables Renewables 15% 15% Coal Coal 17% 22% Nuclear Nuclear 17% 16% Natural Gas Natural Gas 51% 47% 1Energy mix represents all of the energy used to serve retail and wholesale customers. This energy mix i
Slide 18: Capital Markets / Financing
Capital Markets / Financing
Slide 19: Projected Long-term Debt Financings
Projected Long-term Debt Financings1 as of April 28, 2021 Actual Projected Long-term Debt ($ in millions) YTD 2021 2021 (Remaining) 2022 2023 2021-2023 Alabama Power $400 $700 $650 $1,750 Georgia Power $750 1,000 750 1,500 3,250 Mississippi Power 400 100 - 500 State-regulated Electrics $750 $1,800 $
Slide 20: Long-term Debt Maturity Schedule
Long-term Debt Maturity Schedule1,2 as of March 31, 2021 Long-term Debt ($ in millions) YTD 2021 2021 (Remaining) 2022 2023 2021-2023 Alabama Power3 $265 $750 $300 $1,315 Georgia Power $350 84 603 878 1,565 Mississippi Power 330 15 25 370 State-regulated Electrics $350 $679 $1,368 $1,203 $3,250 Sout
Slide 21: Liquidity and Credit
Liquidity and Credit1 as of March 31, 2021 Over $7.7 billion in committed credit facilities and available liquidity of $7.2 billion (in millions) 2021 2022 2023 2024 Total Credit Facility Expirations $33 $675 $125 $6,900 $7,733 Alabama Georgia Mississippi Southern Southern (in millions) Power Power
Slide 22: Vogtle 3 & 4
Vogtle 3 & 4
Slide 23: 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 24: 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