Southern Company (the) · NYSE:SO
Southern Company (the) — Q1 2017 Earnings Presentation
16 slides from Southern Company (the)'s earnings presentation, May 3, 2017
Slide 1: Earnings Conference Call First Quarter 2017
Earnings Conference Call First Quarter 2017 May 3, 2017
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 negotia
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) estimated probable losses relating to Mississippi Power’s constru
Slide 4: Southern Company Update
Southern Company Update • Strong financial and operational results across our major businesses • Southern Company Gas delivered as expected • Southern Company Board of Directors increased the dividend by $0.08 cents per share • Resilient long-term financial objectives and value proposition 4
Slide 5: Vogtle 3 & 4
Vogtle 3 & 4 • Since the Westinghouse bankruptcy filing, work has continued at the site with meaningful improvements in productivity • Interim Assessment Agreement with Westinghouse extended to May 12, 2017 • Negotiations for a services agreement with Westinghouse are in progress • Comprehensive sch
Slide 6: Kemper Project Update
Kemper Project Update • Both gasifiers are currently in outage with work progressing on various systems • Work at the site remains focused on sustaining gasification reliability in support of an in-service declaration • Mississippi Power expects to file its Kemper rate filing with the Mississippi PS
Slide 7: 2017 Q1 Earnings Results: Earnings Per Share As Reported
2017 Q1 Earnings Results Q1 2017 2016 Earnings Per Share As Reported $0.66 $0.53 Kemper IGCC Impacts* $0.05 $0.04 Loss on Plant Scherer Unit 3 $0.02 - Acquisition and Integration costs - $0.01 Wholesale Gas Services ($0.07) - Earnings Per Share Excluding Items $0.66 $0.58 * Kemper IGCC impacts for 2
Slide 8: Q1 2017 vs. Q1 2016 Adjusted EPS Drivers
Q1 2017 vs. Q1 2016 Adjusted EPS Drivers 19¢ (7¢) (5¢) Parent / Other 66¢ 2¢ Shares 58¢ (1¢) GAS Southern Power Traditional Electric Operating Companies Q1 2016 Q1 2017 Excluding • Estimated losses associated with the Kemper IGCC project and additional AFUDC equity as a result of extending the sched
Slide 9: 2017 Q1 and Projected Full Year Adjusted EPS
2017 Q1 and Projected Full Year Adjusted EPS 2017 Q1 Adjusted EPS 2017 Projected Full Year Adjusted EPS 3¢ $0.09 (7¢) 66¢ ($0.29) $3.02 9¢ All Other $2.78 $2.78 $0.38 All Other Parent / Other to Parent / Other Q1 Earnings $2.90 $2.78 Energy 61¢ Energy Infrastructure Infrastructure under long-term un
Slide 10: Southern Company 2017 Financings
Southern Company 2017 Financings 1 As of April 30, 2017 $1.4 billion long-term debt issued year-to-date / $4 billion remaining to be issued in 2017 1,400 Potential Sr. Debt 1,200 Projected DOE Draw 2 3 $400 Projected First Mortgage Bonds (NICOR) 1,000 Projected Sr. Debt Projected Equity Issued Year-
Slide 11: Our Value Proposition & Financial Objectives
Our Value Proposition & Financial Objectives SO Board increased the dividend by +8¢ 8 cents per share on April 17, 2017 +7¢ • Superior risk-adjusted total +7¢ shareholder return +7¢ +7¢ • A high degree of financial +7¢ integrity and strong investment +7¢ +7¢ grade credit ratings +7¢ +7¢ • Strong, su
Slide 12: Appendix
Appendix 12
Slide 13: 2017 Q1 Earnings Results Reconciliation
2017 Q1 Earnings Results Reconciliation Q1 (millions) 2017 2016 Net Income As Reported $658 $489 Estimated Loss on Kemper IGCC 108 53 Tax Impact (41) (20) Loss on Plant Scherer Unit 3 33 - Tax Impact (13) - Acquisition and Integration costs 4 20 Tax Impact (1) (6) Wholesale Gas Services (114) - Tax
Slide 14: Southern Company Liquidity and Credit
Southern Company Liquidity and Credit As of March 31, 2017 Over $8.4 billion in combined committed credit facilities and available liquidity of nearly $4.8 billion (in millions) 2017 2018 2019 2020 Total Consolidated Credit Facilities Expirations $423 $3,620 - $4,400 $8,443 Alabama Georgia Gulf Miss
Slide 15: Long-Term Debt Maturity Schedule
Long-term Debt Maturity Schedule As of March 31, 2017 (in millions) 2017 2018 2019 2020 2021 5Y Total Alabama Power $361 - $200 $250 $310 $1,121 Georgia Power 450 750 500 494 369 2,563 Gulf Power 85 - - 175 - 260 Mississippi Power 35 1,751 125 7 270 2,188 Southern Power 560 670 600 300 300 2,430 GAS
Slide 16: Vogtle Construction Update
Vogtle Construction Update Unit 3 Unit 4 Progress Progress Completed Auxiliary Bldg Walls & Floors to EL. 82’6” Placed concrete Placed concrete in CA20 module walls to EL. 85’ in courses 05 & 06 of Shield Building inside containment to EL. 87’6” on the west side in cylindrical wall RC-