Southern Company (the) · NYSE:SO
Southern Company (the) — Q3 2014 Earnings Presentation
12 slides from Southern Company (the)'s earnings presentation, Oct 29, 2014
Slide 1: Third Quarter 2014 Earnings Conference Call
Third Quarter 2014 Earnings Conference Call October 29, 2014
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 project
Slide 3: Kemper IGCC Update
Kemper IGCC Update Capped Cost Increase Project Update Non-schedule costs $108M Construction essentially complete Schedule-related costs $310M CC in-service since August 9th • Equivalent forced outage rate of <1% Total cost increase $418M Expected in-service date for remainder of project: 1st half 2
Slide 4: Vogtle Construction Site as of October 2014
Vogtle Construction Site as of October 2014 Transmission Turbine Island Condenser Turbine Island Assembly Unit 4 Unit 3 Heavy Lift Derrick Nuclear Island Annex Building Nuclear Island 4
Slide 5: Vogtle Construction Update
Vogtle Construction Update Unit 3 Unit 4 Progress Progress Set CA05 (wall module) (pic below) First concrete placement inside bottom head (pic below) Set containment lower ring Complete 500Kv switchyard foundations Continue CA01 module assembly Continue CA20 module fabrication Nuclear
Slide 6: Q3 2014 Earnings Results
Q3 2014 Earnings Results Q3 YTD Earnings Per Share $0.80 $1.88 Impact of increase in Kemper cost estimate $0.29 $0.55 Earnings Per Share x-items $1.09 $2.43 6
Slide 7: Q3 2014 vs. Q3 2013 Adjusted EPS Drivers
Q3 2014 vs. Q3 2013 Adjusted EPS Drivers 6¢ -6¢ 6¢ -1¢ -1¢ 1¢ -3¢ Weather Non-fuel O&M D&A Other Taxes Other -2¢ Income & 1¢ Deductions SPC $1.09 $1.08 Other Shares Economic Revenue Growth Effects Traditional Operating Companies 6¢ Q3 2013 Q3 2014 Note: Excludes Q3 2014 & Q3 2013 EPS impacts of -29¢
Slide 8: Retail Sales Growth vs. Prior Year
Retail Sales Growth vs. Prior Year Quarter-to-date Year-to-date Top Performing Segments As Weather As Weather QTD YTD Reported Normal Reported Normal Primary Metals 12.2% 10.3% Residential 5.0% -0.3% 7.2% 0.1% Transportation 7.4% 6.7% Commercial 1.1% -1.1% 2.0% -0.5% Stone, Clay, Glass 7.0% 5.2% Ind
Slide 9: 2014 Adjusted Earnings Per Share
2014 Adjusted Earnings Per Share Adjusted EPS* YTD Actual $2.43 Q4 Estimate $0.37 2014 Year-end Estimate $2.80 2014 Guidance*: $2.72 - $2.80 *Excludes YTD 2014 EPS impact of -55¢ for updated Kemper Project cost estimates; GAAP EPS is $1.88 for YTD 2014 & is expected to be $2.25 for FY 2014 9
Slide 10: Solar
Solar Solar Gen 2 Georgia Power 3 new projects with the U.S. Army totaling 90MW Locations: Forts Benning, Gordon, & Stewart Largest solar generation installations operating on any U.S. military base Location: Imperial County, California Capacity: 150 MW* Acquired from First Solar on October 23rd Nam
Slide 11: Appendix
Appendix OUTHERN aA COMPANY
Slide 12: Generation Portfolio Diversity
Generation Portfolio Diversity Capacity Factors Q3 YTD 2013 2014 2013 2014 Coal - PRB 81% 83% 73% 73% Coal - Non-PRB 40% 44% 32% 44% Gas - Combined Cycle 68% 76% 66% 64% Energy Mix Q3 YTD 2013 2014 2013 2014 Natural Gas 39% 43% 42% 39% Coal 42% 41% 38% 42% Nuclear 16% 14% 16% 15% Hydro/Other 3% 2% 4