8-K
SOUTHERN CO (SO)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
| Date of Report (Date of earliest event reported) | October 27, 2022 | |||||
|---|---|---|---|---|---|---|
| Commission<br>File Number | Registrant,<br>State of Incorporation,<br>Address and Telephone Number | I.R.S. Employer<br>Identification No. | ||||
| --- | --- | --- | 1-3526 | The Southern Company | 58-0690070 | |
| --- | --- | --- |
(A Delaware Corporation)
30 Ivan Allen Jr. Boulevard, N.W.
Atlanta, Georgia 30308
(404) 506-5000
| 1-3164 | Alabama Power Company | 63-0004250 |
|---|
(An Alabama Corporation)
600 North 18th Street
Birmingham, Alabama 35203
(205) 257-1000
| 1-6468 | Georgia Power Company | 58-0257110 |
|---|
(A Georgia Corporation)
241 Ralph McGill Boulevard, N.E.
Atlanta, Georgia 30308
(404) 506-6526
| 001-11229 | Mississippi Power Company | 64-0205820 |
|---|
(A Mississippi Corporation)
2992 West Beach Boulevard
Gulfport, Mississippi 39501
(228) 864-1211
| 001-37803 | Southern Power Company | 58-2598670 |
|---|
(A Delaware Corporation)
30 Ivan Allen Jr. Boulevard, N.W.
Atlanta, Georgia 30308
(404) 506-5000
| 1-14174 | Southern Company Gas | 58-2210952 |
|---|
(A Georgia Corporation)
Ten Peachtree Place, N.E.
Atlanta, Georgia 30309
(404) 584-4000
The names and addresses of the registrants have not changed since the last report.
This combined Form 8-K is furnished separately by six registrants: The Southern Company, Alabama Power Company, Georgia Power Company, Mississippi Power Company, Southern Power Company and Southern Company Gas. Information contained herein relating to each registrant is furnished by each registrant solely on its own behalf. Each registrant makes no representation as to information relating to the other registrants.
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrants under any of the following provisions:
| ☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
|---|---|
| ☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
| Registrant | Title of each class | Trading<br>Symbol(s) | Name of each exchange<br>on which registered |
|---|---|---|---|
| The Southern Company | Common Stock, par value $5 per share | SO | New York Stock Exchange |
| The Southern Company | Series 2017B 5.25% Junior Subordinated Notes due 2077 | SOJC | New York Stock Exchange |
| The Southern Company | 2019 Series A Corporate Units | SOLN | New York Stock Exchange |
| The Southern Company | Series 2020A 4.95% Junior Subordinated Notes due 2080 | SOJD | New York Stock Exchange |
| The Southern Company | Series 2020C 4.20% Junior Subordinated Notes due 2060 | SOJE | New York Stock Exchange |
| The Southern Company | Series 2021B 1.875% Fixed-to-Fixed Reset Rate Junior Subordinated Notes due 2081 | SO 81 | New York Stock Exchange |
| Alabama Power Company | 5.00% Series Class A Preferred Stock | ALP PR Q | New York Stock Exchange |
| Georgia Power Company | Series 2017A 5.00% Junior Subordinated Notes due 2077 | GPJA | New York Stock Exchange |
| Southern Power Company | Series 2016B 1.850% Senior Notes due 2026 | SO/26A | New York Stock Exchange |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). (Response applicable to each registrant)
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
| Item 2.02 | Results of Operations and Financial Condition |
|---|
The information in this Current Report on Form 8-K, including the exhibits attached hereto, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities under that Section. Furthermore, such information, including the exhibits attached hereto, shall not be deemed to be incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing.
On October 27, 2022, The Southern Company (“Southern Company”) issued a press release regarding its earnings for the three-month and nine-month periods ended September 30, 2022. A copy of this release is being furnished as Exhibit 99.01 to this Current Report on Form 8-K. In addition, certain additional information regarding the financial results for the three-month and nine-month periods ended September 30, 2022 is being furnished as Exhibits 99.02 through 99.07 to this Current Report on Form 8-K.
Use of Non-GAAP Financial Measures
Exhibits 99.01, 99.02, 99.03 and 99.04 to this Current Report on Form 8-K include earnings and earnings per share in accordance with generally accepted accounting principles (“GAAP”) for the three-month and nine-month periods ended September 30, 2022 and 2021. These exhibits also include earnings and earnings per share (1) for the three-month and nine-month periods ended September 30, 2022 and 2021, excluding (a) charges and credits (net of salvage proceeds), associated legal expenses (net of insurance recoveries), and tax impacts related to plants under construction and (b) acquisition and disposition impacts and (2) for the three-month and nine-month periods ended September 30, 2021, excluding (a) earnings from the Wholesale Gas Services business and (b) impairment charges associated with investments in a leveraged lease and a gas pipeline project. The attached exhibits include additional information regarding these excluded items, as well as reconciliations of each non-GAAP financial measure to the most comparable financial measure under GAAP. Southern Company believes the
presentation of earnings and earnings per share, excluding these items, is useful to investors because it provides investors with additional information to evaluate the performance of Southern Company’s ongoing business activities. Southern Company management also uses earnings and earnings per share, excluding the effect of these items, to evaluate the performance of Southern Company’s ongoing business activities. The presentation of this additional information is not meant to be considered a substitute for financial measures prepared in accordance with GAAP.
Exhibits
The exhibits hereto contain business segment information for Alabama Power Company, Georgia Power Company, Mississippi Power Company, Southern Power Company and Southern Company Gas. Accordingly, this report is also being furnished on behalf of each such registrant.
The following exhibits relate to the three-month and nine-month periods ended September 30, 2022:
| Exhibit 99.01 | Press Release. |
|---|---|
| Exhibit 99.02 | Financial Highlights. |
| Exhibit 99.03 | Significant Factors Impacting EPS. |
| Exhibit 99.04 | EPS Earnings Analysis. |
| Exhibit 99.05 | Consolidated Earnings. |
| Exhibit 99.06 | Kilowatt-Hour Sales and Customers. |
| Exhibit 99.07 | Financial Overview. |
| Exhibit 104 | Cover Page Interactive Data File – The cover page iXBRL tags are embedded within the inline XBRL document. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, each of the registrants has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Date: October 27, 2022 | THE SOUTHERN COMPANY | |
|---|---|---|
| By | /s/Ann P. Daiss | |
| Ann P. Daiss<br>Comptroller | ||
| ALABAMA POWER COMPANY<br>GEORGIA POWER COMPANY<br>MISSISSIPPI POWER COMPANY<br>SOUTHERN POWER COMPANY<br>SOUTHERN COMPANY GAS | ||
| By | /s/Melissa K. Caen | |
| Melissa K. Caen<br>Assistant Secretary |
3
Document
| Exhibit 99.01 | ||
|---|---|---|
| News | ||
| Media Contact: | Southern Company Media Relations | |
| 404-506-5333 or 1-866-506-5333 | ||
| www.southerncompany.com | ||
| Investor Relations Contact: | ||
| Scott Gammill | ||
| 404-506-0901 | ||
| sagammil@southernco.com | ||
| October 27, 2022 |
Southern Company reports third-quarter 2022 earnings
ATLANTA – Southern Company today reported third-quarter earnings of $1.5 billion, or $1.36 per share, in 2022 compared with $1.1 billion, or $1.04 per share, in 2021. For the nine months ended September 30, 2022, Southern Company reported earnings of $3.6 billion, or $3.38 per share, compared with $2.6 billion, or $2.46 per share, for the same period in 2021.
Excluding the items described under “Net Income – Excluding Items” in the table below, Southern Company earned $1.4 billion, or $1.31 per share, during the third quarter of 2022, compared with $1.3 billion, or $1.23 per share, during the third quarter 2021. For the nine months ended September 30, 2022, excluding these items, Southern Company earned $3.6 billion, or $3.35 per share, compared with $3.2 billion, or $3.05 per share, for the same period in 2021.
| Non-GAAP Financial Measures | Three Months Ended September | Year-to-Date September | ||||||
|---|---|---|---|---|---|---|---|---|
| Net Income - Excluding Items (in millions) | 2022 | 2021 | 2022 | 2021 | ||||
| Net Income - As Reported | $ | 1,472 | $ | 1,101 | $ | 3,611 | $ | 2,608 |
| Less: | ||||||||
| Estimated Loss on Plants Under Construction | 62 | (271) | 7 | (779) | ||||
| Tax Impact | (16) | 69 | (2) | 198 | ||||
| Acquisition and Disposition Impacts | 14 | 119 | 19 | 120 | ||||
| Tax Impact | — | (112) | (2) | (112) | ||||
| Wholesale Gas Services | — | — | — | 18 | ||||
| Tax Impact | — | 1 | — | (3) | ||||
| Asset Impairments | — | (2) | — | (91) | ||||
| Tax Impact | — | (7) | — | 19 | ||||
| Net Income - Excluding Items | $ | 1,412 | $ | 1,304 | $ | 3,589 | $ | 3,238 |
| Average Shares Outstanding - (in millions) | 1,082 | 1,061 | 1,070 | 1,060 | ||||
| Basic Earnings Per Share - Excluding Items | $ | 1.31 | $ | 1.23 | $ | 3.35 | $ | 3.05 |
NOTE: For more information regarding these non-GAAP adjustments, see the footnotes accompanying the Financial Highlights page of the earnings package.
Adjusted earnings drivers for the third quarter 2022, as compared with the same period in 2021, were higher revenues associated with increased usage, rates and pricing at the company’s regulated utilities,
Third-quarter 2022 operating revenues were $8.4 billion, compared with $6.2 billion for the third quarter of 2021, an increase of 34.3 percent. For the nine months ended September 30, 2022, operating revenues were $22.2 billion, compared with $17.3 billion for the corresponding period in 2021, an increase of 28.2 percent. These increases were primarily due to higher fuel costs.
“Our premier, state-regulated electric and gas utilities continued to perform well during the third quarter,” commented Chairman, President and CEO, Thomas A. Fanning. “The economies within our service territories remain strong, and customer growth outpaced our expectations.”
Added Fanning, “At Plant Vogtle Unit 3, we successfully completed initial fuel load with the safe transfer of all 157 fuel assemblies from the spent fuel pool to the reactor core. This historic milestone marks the completion of another critical step toward start-up and commercial operation of Unit 3.”
Southern Company’s third-quarter earnings slides with supplemental financial information, including earnings guidance, are available at http://investor.southerncompany.com.
Southern Company’s financial analyst call will begin at 1 p.m. Eastern Time today, during which Fanning and Chief Financial Officer Daniel S. Tucker will discuss earnings and provide a general business update. Investors, media and the public may listen to a live webcast of the call and view associated slides at http://investor.southerncompany.com. A replay of the webcast will be available on the site for 12 months.
About Southern Company
Southern Company (NYSE: SO) is a leading energy company serving 9 million customers through its subsidiaries. The company provides clean, safe, reliable and affordable energy through electric operating companies in three states, natural gas distribution companies in four states, a competitive generation company serving wholesale customers across America, a leading distributed energy infrastructure company, a fiber optics network and telecommunications services. Southern Company brands are known for excellent customer service, high reliability and affordable prices below the national average. For more than a century, we have been building the future of energy and developing the full portfolio of energy resources, including carbon-free nuclear, advanced carbon capture technologies, natural gas, renewables, energy efficiency and storage technology. Through an industry-leading commitment to innovation and a low-carbon future, Southern Company and its subsidiaries develop the customized energy solutions our customers and communities require to drive growth and prosperity. Our uncompromising values ensure we put the needs of those we serve at the center of everything we do and govern our business to the benefit of our world. Our corporate culture and hiring practices have been recognized nationally by the U.S. Department of Defense, G.I. Jobs magazine, DiversityInc, Black Enterprise, Forbes and the Women’s Choice Award. To learn more, visit www.southerncompany.com.
Document
| Exhibit 99.02 | ||||||||
|---|---|---|---|---|---|---|---|---|
| Page 1 | ||||||||
| Southern Company | ||||||||
| Financial Highlights | ||||||||
| (In Millions of Dollars Except Earnings Per Share) | ||||||||
| Three Months Ended September | Year-To-Date September | |||||||
| Net Income–As Reported (See Notes) | 2022 | 2021 | 2022 | 2021 | ||||
| Traditional Electric Operating Companies | $ | 1,445 | $ | 1,085 | $ | 3,256 | $ | 2,352 |
| Southern Power | 95 | 78 | 265 | 211 | ||||
| Southern Company Gas | 83 | 56 | 516 | 389 | ||||
| Total | 1,623 | 1,219 | 4,037 | 2,952 | ||||
| Parent Company and Other | (151) | (118) | (426) | (344) | ||||
| Net Income–As Reported | $ | 1,472 | $ | 1,101 | $ | 3,611 | $ | 2,608 |
| Basic Earnings Per Share1 | $ | 1.36 | $ | 1.04 | $ | 3.38 | $ | 2.46 |
| Average Shares Outstanding (in millions) | 1,082 | 1,061 | 1,070 | 1,060 | ||||
| End of Period Shares Outstanding (in millions) | 1,089 | 1,060 | ||||||
| Non-GAAP Financial Measures | Three Months Ended September | Year-To-Date September | ||||||
| Net Income–Excluding Items (See Notes) | 2022 | 2021 | 2022 | 2021 | ||||
| Net Income–As Reported | $ | 1,472 | $ | 1,101 | $ | 3,611 | $ | 2,608 |
| Less: | ||||||||
| Estimated Loss on Plants Under Construction2 | 62 | (271) | 7 | (779) | ||||
| Tax Impact | (16) | 69 | (2) | 198 | ||||
| Acquisition and Disposition Impacts3 | 14 | 119 | 19 | 120 | ||||
| Tax Impact | — | (112) | (2) | (112) | ||||
| Wholesale Gas Services4 | — | — | — | 18 | ||||
| Tax Impact | — | 1 | — | (3) | ||||
| Asset Impairments5 | — | (2) | — | (91) | ||||
| Tax Impact | — | (7) | — | 19 | ||||
| Net Income–Excluding Items | $ | 1,412 | $ | 1,304 | $ | 3,589 | $ | 3,238 |
| Basic Earnings Per Share–Excluding Items | $ | 1.31 | $ | 1.23 | $ | 3.35 | $ | 3.05 |
| - See Notes on the following page. |
Exhibit 99.02
Page 2
Southern Company
Financial Highlights
Notes
(1)Dilution is not material in any period presented. Diluted earnings per share was $1.35 and $3.36 for the three and nine months ended September 30, 2022 and was $1.03 and $2.44 for the three and nine months ended September 30, 2021, respectively.
(2)Earnings for the three and nine months ended September 30, 2022 include a net credit of $70 million pre tax ($52 million after tax) and $18 million pre tax ($13 million after tax), respectively, earnings for the three months ended September 30, 2021 include a charge of $264 million pre tax ($197 million after tax), and earnings for the nine months ended September 30, 2021 include charges totaling $772 million pre tax ($576 million after tax) for estimated probable losses on Georgia Power Company's construction of Plant Vogtle Units 3 and 4. Further charges and credits may occur; however, the amount and timing are uncertain. Earnings for the three and nine months ended September 30, 2022 and 2021 also include charges (net of salvage proceeds), associated legal expenses (net of insurance recoveries), and tax impacts related to Mississippi Power Company's integrated coal gasification combined cycle facility project in Kemper County, Mississippi. Mississippi Power Company expects to incur additional pre-tax period costs to complete dismantlement of the abandoned gasifier-related assets and site restoration activities, including related costs for compliance and safety, asset retirement obligation accretion, and property taxes, net of salvage, totaling $10 million to $20 million annually through 2025.
(3)Earnings for the three and nine months ended September 30, 2022 include a $14 million pre-tax ($11 million after-tax) gain as a result of the early termination of the transition services agreement related to the 2019 sale of Gulf Power. Earnings for the three and nine months ended September 30, 2021 include a preliminary $121 million pre-tax ($93 million after-tax) gain on the sale of Sequent, as well as $85 million in additional tax expense resulting from the sale. Further impacts may result from future acquisition and disposition activities; however, the amount and timing of any such impacts are uncertain.
(4)Earnings for the three and nine months ended September 30, 2021 include results of the Wholesale Gas Services business. Presenting earnings and earnings per share excluding Wholesale Gas Services provided an additional measure of operating performance that excluded the volatility resulting from mark-to-market and lower of weighted average cost or current market price accounting adjustments. Amounts subsequent to the July 1, 2021 sale of Sequent represent final income adjustments.
(5)Earnings for the three and nine months ended September 30, 2021 include pre-tax impairment charges of $2 million ($9 million after tax) and $84 million ($67 million after tax), respectively, related to Southern Company Gas' investment in the PennEast Pipeline project. Earnings for the nine months ended September 30, 2021 also include a pre-tax impairment charge of $7 million ($6 million after tax) related to a leveraged lease investment. Southern Company Gas expects to record a pre-tax impairment charge totaling approximately $125 million ($95 million after tax) in the fourth quarter 2022 related to the pending sale of two natural gas storage facilities. Additional impairment charges may occur in the future; however, the amount and timing of any such charges are uncertain.
Document
| Exhibit 99.03 | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Page 1 | ||||||||||||
| Southern Company | ||||||||||||
| Significant Factors Impacting EPS | ||||||||||||
| Three Months Ended September | Year-To-Date September | |||||||||||
| 2022 | 2021 | Change | 2022 | 2021 | Change | |||||||
| Earnings Per Share– | ||||||||||||
| As Reported1 (See Notes) | $ | 1.36 | $ | 1.04 | $ | 0.32 | $ | 3.38 | $ | 2.46 | $ | 0.92 |
| Significant Factors: | ||||||||||||
| Traditional Electric Operating Companies | $ | 0.34 | $ | 0.85 | ||||||||
| Southern Power | 0.02 | 0.05 | ||||||||||
| Southern Company Gas | 0.03 | 0.12 | ||||||||||
| Parent Company and Other | (0.04) | (0.07) | ||||||||||
| Increase in Shares | (0.03) | (0.03) | ||||||||||
| Total–As Reported | $ | 0.32 | $ | 0.92 | ||||||||
| Three Months Ended September | Year-To-Date September | |||||||||||
| Non-GAAP Financial Measures | 2022 | 2021 | Change | 2022 | 2021 | Change | ||||||
| Earnings Per Share– | ||||||||||||
| Excluding Items (See Notes) | $ | 1.31 | $ | 1.23 | $ | 0.08 | $ | 3.35 | $ | 3.05 | $ | 0.30 |
| Total–As Reported | $ | 0.32 | $ | 0.92 | ||||||||
| Less: | ||||||||||||
| Estimated Loss on Plants Under Construction2 | 0.23 | 0.56 | ||||||||||
| Acquisition and Disposition Impacts3 | — | 0.01 | ||||||||||
| Wholesale Gas Services4 | — | (0.02) | ||||||||||
| Asset Impairments5 | 0.01 | 0.07 | ||||||||||
| Total–Excluding Items | $ | 0.08 | $ | 0.30 | ||||||||
| - See Notes on the following page. |
Exhibit 99.03
Page 2
Southern Company
Significant Factors Impacting EPS
Notes
(1)Dilution is not material in any period presented. Diluted earnings per share was $1.35 and $3.36 for the three and nine months ended September 30, 2022 and was $1.03 and $2.44 for the three and nine months ended September 30, 2021, respectively.
(2)Earnings for the three and nine months ended September 30, 2022 include a net credit of $70 million pre tax ($52 million after tax) and $18 million pre tax ($13 million after tax), respectively, earnings for the three months ended September 30, 2021 include a charge of $264 million pre tax ($197 million after tax), and earnings for the nine months ended September 30, 2021 include charges totaling $772 million pre tax ($576 million after tax) for estimated probable losses on Georgia Power Company's construction of Plant Vogtle Units 3 and 4. Further charges and credits may occur; however, the amount and timing are uncertain. Earnings for the three and nine months ended September 30, 2022 and 2021 also include charges (net of salvage proceeds), associated legal expenses (net of insurance recoveries), and tax impacts related to Mississippi Power Company's integrated coal gasification combined cycle facility project in Kemper County, Mississippi. Mississippi Power Company expects to incur additional pre-tax period costs to complete dismantlement of the abandoned gasifier-related assets and site restoration activities, including related costs for compliance and safety, asset retirement obligation accretion, and property taxes, net of salvage, totaling $10 million to $20 million annually through 2025.
(3)Earnings for the three and nine months ended September 30, 2022 include a $14 million pre-tax ($11 million after-tax) gain as a result of the early termination of the transition services agreement related to the 2019 sale of Gulf Power. Earnings for the three and nine months ended September 30, 2021 include a preliminary $121 million pre-tax ($93 million after-tax) gain on the sale of Sequent, as well as $85 million in additional tax expense resulting from the sale. Further impacts may result from future acquisition and disposition activities; however, the amount and timing of any such impacts are uncertain.
(4)Earnings for the three and nine months ended September 30, 2021 include results of the Wholesale Gas Services business. Presenting earnings and earnings per share excluding Wholesale Gas Services provided an additional measure of operating performance that excluded the volatility resulting from mark-to-market and lower of weighted average cost or current market price accounting adjustments. Amounts subsequent to the July 1, 2021 sale of Sequent represent final income adjustments.
(5)Earnings for the three and nine months ended September 30, 2021 include pre-tax impairment charges of $2 million ($9 million after tax) and $84 million ($67 million after tax), respectively, related to Southern Company Gas' investment in the PennEast Pipeline project. Earnings for the nine months ended September 30, 2021 also include a pre-tax impairment charge of $7 million ($6 million after tax) related to a leveraged lease investment. Southern Company Gas expects to record a pre-tax impairment charge totaling approximately $125 million ($95 million after tax) in the fourth quarter 2022 related to the pending sale of two natural gas storage facilities. Additional impairment charges may occur in the future; however, the amount and timing of any such charges are uncertain.
Document
| Exhibit 99.04 | ||
|---|---|---|
| Page 1 | ||
| Southern Company | ||
| EPS Earnings Analysis | ||
| Description | Three Months Ended September 2022 vs. 2021 | Year-To-Date September 2022 vs. 2021 |
| Retail Sales | 6¢ | 13¢ |
| Retail Revenue Impacts | 11 | 32 |
| Weather | 2 | 13 |
| Wholesale & Other Operating Revenues | 2 | 4 |
| Non-Fuel O&M(*) | (5) | (19) |
| Depreciation and Amortization, Interest Expense, Other | (4) | (7) |
| Income Taxes | (1) | (6) |
| Total Traditional Electric Operating Companies | 11¢ | 30¢ |
| Southern Power | 2 | 5 |
| Southern Company Gas | 2 | 7 |
| Parent and Other | (4) | (9) |
| Increase in Shares | (3) | (3) |
| Total Change in EPS (Excluding Items) | 8¢ | 30¢ |
| Estimated Loss on Plants Under Construction1 | 23 | 56 |
| Acquisition and Disposition Impacts2 | — | 1 |
| Wholesale Gas Services3 | — | (2) |
| Asset Impairments4 | 1 | 7 |
| Total Change in EPS (As Reported) | 32¢ | 92¢ |
| (*) Includes non-service cost-related benefits income | ||
| - See additional Notes on the following page. |
Exhibit 99.04
Page 2
Southern Company
EPS Earnings Analysis
Notes
(1)Earnings for the three and nine months ended September 30, 2022 include a net credit of $70 million pre tax ($52 million after tax) and $18 million pre tax ($13 million after tax), respectively, earnings for the three months ended September 30, 2021 include a charge of $264 million pre tax ($197 million after tax), and earnings for the nine months ended September 30, 2021 include charges totaling $772 million pre tax ($576 million after tax) for estimated probable losses on Georgia Power Company's construction of Plant Vogtle Units 3 and 4. Further charges and credits may occur; however, the amount and timing are uncertain. Earnings for the three and nine months ended September 30, 2022 and 2021 also include charges (net of salvage proceeds), associated legal expenses (net of insurance recoveries), and tax impacts related to Mississippi Power Company's integrated coal gasification combined cycle facility project in Kemper County, Mississippi. Mississippi Power Company expects to incur additional pre-tax period costs to complete dismantlement of the abandoned gasifier-related assets and site restoration activities, including related costs for compliance and safety, asset retirement obligation accretion, and property taxes, net of salvage, totaling $10 million to $20 million annually through 2025.
(2)Earnings for the three and nine months ended September 30, 2022 include a $14 million pre-tax ($11 million after-tax) gain as a result of the early termination of the transition services agreement related to the 2019 sale of Gulf Power. Earnings for the three and nine months ended September 30, 2021 include a preliminary $121 million pre-tax ($93 million after-tax) gain on the sale of Sequent, as well as $85 million in additional tax expense resulting from the sale. Further impacts may result from future acquisition and disposition activities; however, the amount and timing of any such impacts are uncertain.
(3)Earnings for the three and nine months ended September 30, 2021 include results of the Wholesale Gas Services business. Presenting earnings and earnings per share excluding Wholesale Gas Services provided an additional measure of operating performance that excluded the volatility resulting from mark-to-market and lower of weighted average cost or current market price accounting adjustments. Amounts subsequent to the July 1, 2021 sale of Sequent represent final income adjustments.
(4)Earnings for the three and nine months ended September 30, 2021 include pre-tax impairment charges of $2 million ($9 million after tax) and $84 million ($67 million after tax), respectively, related to Southern Company Gas' investment in the PennEast Pipeline project. Earnings for the nine months ended September 30, 2021 also include a pre-tax impairment charge of $7 million ($6 million after tax) related to a leveraged lease investment. Southern Company Gas expects to record a pre-tax impairment charge totaling approximately $125 million ($95 million after tax) in the fourth quarter 2022 related to the pending sale of two natural gas storage facilities. Additional impairment charges may occur in the future; however, the amount and timing of any such charges are uncertain.
Document
| Exhibit 99.05 | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Southern Company | ||||||||||||
| Consolidated Earnings | ||||||||||||
| As Reported | ||||||||||||
| (In Millions of Dollars) | ||||||||||||
| Three Months Ended September | Year-To-Date September | |||||||||||
| 2022 | 2021 | Change | 2022 | 2021 | Change | |||||||
| Retail Electric Revenues- | ||||||||||||
| Fuel | $ | 2,320 | $ | 1,186 | $ | 1,134 | $ | 4,942 | $ | 2,899 | $ | 2,043 |
| Non-Fuel | 3,641 | 3,365 | 276 | 9,421 | 8,593 | 828 | ||||||
| Wholesale Electric Revenues | 1,197 | 731 | 466 | 2,798 | 1,822 | 976 | ||||||
| Other Electric Revenues | 185 | 179 | 6 | 554 | 525 | 29 | ||||||
| Natural Gas Revenues | 857 | 623 | 234 | 3,998 | 2,994 | 1,004 | ||||||
| Other Revenues | 178 | 154 | 24 | 519 | 513 | 6 | ||||||
| Total Operating Revenues | 8,378 | 6,238 | 2,140 | 22,232 | 17,346 | 4,886 | ||||||
| Fuel and Purchased Power | 3,068 | 1,522 | 1,546 | 6,534 | 3,642 | 2,892 | ||||||
| Cost of Natural Gas | 294 | 129 | 165 | 1,840 | 943 | 897 | ||||||
| Cost of Other Sales | 92 | 71 | 21 | 275 | 255 | 20 | ||||||
| Non-Fuel O&M | 1,547 | 1,446 | 101 | 4,621 | 4,257 | 364 | ||||||
| Depreciation and Amortization | 922 | 896 | 26 | 2,728 | 2,658 | 70 | ||||||
| Taxes Other Than Income Taxes | 352 | 312 | 40 | 1,073 | 969 | 104 | ||||||
| Estimated Loss on Plant Vogtle Units 3 and 4 | (70) | 264 | (334) | (18) | 772 | (790) | ||||||
| Gain on Dispositions, net | (20) | (125) | 105 | (53) | (179) | 126 | ||||||
| Total Operating Expenses | 6,185 | 4,515 | 1,670 | 17,000 | 13,317 | 3,683 | ||||||
| Operating Income | 2,193 | 1,723 | 470 | 5,232 | 4,029 | 1,203 | ||||||
| Allowance for Equity Funds Used During Construction | 59 | 49 | 10 | 163 | 140 | 23 | ||||||
| Earnings from Equity Method Investments | 28 | 30 | (2) | 109 | 35 | 74 | ||||||
| Interest Expense, Net of Amounts Capitalized | 511 | 451 | 60 | 1,461 | 1,352 | 109 | ||||||
| Other Income (Expense), net | 132 | 131 | 1 | 414 | 290 | 124 | ||||||
| Income Taxes | 414 | 372 | 42 | 891 | 550 | 341 | ||||||
| Net Income | 1,487 | 1,110 | 377 | 3,566 | 2,592 | 974 | ||||||
| Dividends on Preferred Stock of Subsidiaries | 3 | 4 | (1) | 10 | 11 | (1) | ||||||
| Net Income (Loss) Attributable to Noncontrolling Interests | 12 | 5 | 7 | (55) | (27) | (28) | ||||||
| NET INCOME ATTRIBUTABLE TO SOUTHERN COMPANY | $ | 1,472 | $ | 1,101 | $ | 371 | $ | 3,611 | $ | 2,608 | $ | 1,003 |
Notes
- Certain prior year data may have been reclassified to conform with current year presentation.
Document
| Exhibit 99.06 | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Southern Company | ||||||||||||
| Kilowatt-Hour Sales and Customers | ||||||||||||
| (In Millions of KWHs) | ||||||||||||
| Three Months Ended September | Year-To-Date September | |||||||||||
| 2022 | 2021 | Change | Weather Adjusted Change | 2022 | 2021 | Change | Weather Adjusted Change | |||||
| Kilowatt-Hour Sales- | ||||||||||||
| Total Sales | 56,606 | 54,134 | 4.6 | % | 156,874 | 146,576 | 7.0 | % | ||||
| Total Retail Sales- | 41,490 | 40,441 | 2.6 | % | 1.8 | % | 113,716 | 109,747 | 3.6 | % | 1.6 | % |
| Residential | 14,467 | 14,063 | 2.9 | % | 1.3 | % | 38,632 | 36,941 | 4.6 | % | 0.4 | % |
| Commercial | 13,827 | 13,458 | 2.7 | % | 2.0 | % | 37,060 | 35,701 | 3.8 | % | 2.0 | % |
| Industrial | 13,048 | 12,762 | 2.2 | % | 2.2 | % | 37,575 | 36,632 | 2.6 | % | 2.6 | % |
| Other | 148 | 158 | (6.2) | % | (6.3) | % | 449 | 473 | (5.0) | % | (5.0) | % |
| Total Wholesale Sales | 15,116 | 13,693 | 10.4 | % | N/A | 43,158 | 36,829 | 17.2 | % | N/A | ||
| (In Thousands of Customers) | ||||||||||||
| Period Ended September | ||||||||||||
| 2022 | 2021 | Change | ||||||||||
| Regulated Utility Customers- | ||||||||||||
| Total Utility Customers- | 8,722 | 8,656 | 0.8% | |||||||||
| Total Traditional Electric | 4,422 | 4,373 | 1.1% | |||||||||
| Southern Company Gas | 4,300 | 4,283 | 0.4% |
Document
| Exhibit 99.07 | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Southern Company | ||||||||||||
| Financial Overview | ||||||||||||
| As Reported | ||||||||||||
| (In Millions of Dollars) | ||||||||||||
| Three Months Ended September | Year-To-Date September | |||||||||||
| 2022 | 2021 | % Change | 2022 | 2021 | % Change | |||||||
| Southern Company – | ||||||||||||
| Operating Revenues | $ | 8,378 | $ | 6,238 | 34.3 | % | $ | 22,232 | $ | 17,346 | 28.2 | % |
| Earnings Before Income Taxes | 1,901 | 1,482 | 28.3 | % | 4,457 | 3,142 | 41.9 | % | ||||
| Net Income Available to Common | 1,472 | 1,101 | 33.7 | % | 3,611 | 2,608 | 38.5 | % | ||||
| Alabama Power – | ||||||||||||
| Operating Revenues | $ | 2,444 | $ | 1,904 | 28.4 | % | $ | 6,023 | $ | 5,019 | 20.0 | % |
| Earnings Before Income Taxes | 694 | 655 | 6.0 | % | 1,660 | 1,566 | 6.0 | % | ||||
| Net Income Available to Common | 525 | 499 | 5.2 | % | 1,256 | 1,189 | 5.6 | % | ||||
| Georgia Power – | ||||||||||||
| Operating Revenues | $ | 3,889 | $ | 2,856 | 36.2 | % | $ | 9,218 | $ | 7,050 | 30.8 | % |
| Earnings Before Income Taxes | 1,084 | 649 | 67.0 | % | 2,272 | 1,111 | 104.5 | % | ||||
| Net Income Available to Common | 858 | 536 | 60.1 | % | 1,851 | 1,030 | 79.7 | % | ||||
| Mississippi Power – | ||||||||||||
| Operating Revenues | $ | 510 | $ | 378 | 34.9 | % | $ | 1,279 | $ | 988 | 29.5 | % |
| Earnings Before Income Taxes | 79 | 60 | 31.7 | % | 188 | 155 | 21.3 | % | ||||
| Net Income Available to Common | 62 | 50 | 24.0 | % | 150 | 133 | 12.8 | % | ||||
| Southern Power – | ||||||||||||
| Operating Revenues | $ | 1,180 | $ | 679 | 73.8 | % | $ | 2,618 | $ | 1,610 | 62.6 | % |
| Earnings Before Income Taxes | 143 | 92 | 55.4 | % | 259 | 181 | 43.1 | % | ||||
| Net Income Available to Common | 95 | 78 | 21.8 | % | 265 | 211 | 25.6 | % | ||||
| Southern Company Gas – | ||||||||||||
| Operating Revenues | $ | 857 | $ | 623 | 37.6 | % | $ | 3,998 | $ | 2,994 | 33.5 | % |
| Earnings Before Income Taxes | 110 | 189 | (41.8) | % | 677 | 613 | 10.4 | % | ||||
| Net Income Available to Common | 83 | 56 | 48.2 | % | 516 | 389 | 32.6 | % |
Notes
- See Financial Highlights pages for discussion of certain significant items occurring during the periods