EX-99 2 ex99-pressreleaseq22024.htm EX-99 Document
Exhibit 99
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News
Media Contact:Southern Company Media Relations
404-506-5333 or 1-866-506-5333
southerncompany.com
Investor Relations Contact:
Scott Gammill
404-506-0901
sagammil@southernco.com
August 1, 2024

Southern Company reports second-quarter 2024 earnings

ATLANTA – Southern Company today reported second-quarter earnings of $1.2 billion, or $1.10 per share, in 2024 compared with earnings of $838 million, or 77 cents per share, in the second quarter of 2023. For the six months ended June 30, 2024, Southern Company reported earnings of $2.3 billion, or $2.13 per share, compared with $1.7 billion, or $1.56 per share, for the same period in 2023.

Excluding the items described under “Net Income – Excluding Items” in the table below, Southern Company earned $1.2 billion, or $1.10 per share, during the second quarter of 2024, compared with $868 million, or 79 cents per share, during the second quarter of 2023. For the six months ended June 30, 2024, excluding these items, Southern Company earned $2.3 billion, or $2.13 per share, compared with $1.7 billion, or $1.59 per share, for the same period in 2023.
Non-GAAP Financial Measures
Three Months Ended June
Year-to-Date June
Net Income – Excluding Items (in millions)2024202320242023
Net Income – As Reported$1,203 $838 $2,332 $1,700 
Less:
Estimated Loss on Plants Under Construction17 (3)14 (4)
Tax Impact(18)1 (17)1 
Loss on Extinguishment of Debt
— — — (5)
Tax Impact— — — 1 
Estimated Loss on Qualifying Infrastructure Plant
— (38)— (38)
Tax Impact— 10 — 10 
Net Income – Excluding Items$1,204 $868 $2,335 $1,735 
Average Shares Outstanding – (in millions) 1,096 1,092 1,095 1,092 
Basic Earnings Per Share - Excluding Items$1.10 $0.79 $2.13 $1.59 

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 second quarter of 2024, as compared with the same period in 2023, were higher utility revenues, partially offset by increased interest expense, depreciation and amortization, and income taxes.

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Second-quarter 2024 operating revenues were $6.5 billion, compared with $5.7 billion for the second quarter of 2023, an increase of 12.4%. For the six months ended June 30, 2024, operating revenues were $13.1 billion, compared with $12.2 billion for the corresponding period in 2023, an increase of 7.2%.

“Southern Company businesses performed well during the second quarter of 2024,” said Chairman, President and CEO Christopher C. Womack. “We are pleased with our business fundamentals, and the economies in our service territories, especially those within our Southeastern service footprint, remain strong with continuing customer growth and robust economic development.”

Southern Company’s second-quarter earnings slides with supplemental financial information are available at investor.southerncompany.com.

Southern Company’s financial analyst call will begin at 1 p.m. Eastern Time today, during which Womack 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 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 provider serving 9 million customers across the Southeast and beyond through its family of companies. Providing clean, safe, reliable and affordable energy with excellent service is our mission. The company has electric operating companies in three states, natural gas distribution companies in four states, a competitive generation company, a leading distributed energy company with national capabilities, a fiber optics network and telecommunications services. Through an industry-leading commitment to innovation, resilience and sustainability, we are taking action to meet customers’ and communities’ needs while advancing our goal of net zero greenhouse gas emissions by 2050. Our uncompromising values ensure we put the needs of those we serve at the center of everything we do and are the key to our sustained success. We are transforming energy into economic, environmental and social progress for tomorrow. Our corporate culture and hiring practices have earned the company national awards and recognition from numerous organizations, including Forbes, The Military Times, DiversityInc, Black Enterprise, J.D. Power, Fortune, Human Rights Campaign and more. To learn more, visit southerncompany.com.

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Southern Company
Financial Highlights
(In Millions Except Earnings Per Share)
 Three Months Ended June
Year-To-Date
June
Net Income – As Reported
2024202320242023
Traditional Electric Operating Companies$1,192 $823 $2,012 $1,433 
Southern Power86 85 182 187 
Southern Company Gas108 85 517 393 
Total1,386 993 2,711 2,013 
Parent Company and Other(183)(155)(379)(313)
Net Income – As Reported$1,203 $838 $2,332 $1,700 
Basic Earnings Per Share(1)
$1.10 $0.77 $2.13 $1.56 
Average Shares Outstanding1,096 1,092 1,095 1,092 
Non-GAAP Financial MeasuresThree Months Ended June
Year-To-Date
June
Net Income – Excluding Items
2024202320242023
Net Income – As Reported$1,203 $838 $2,332 $1,700 
Less:
Estimated Loss on Plants Under Construction(2)
17 (3)14 (4)
Tax Impact(18)1 (17)1 
Loss on Extinguishment of Debt(3)
— — — (5)
Tax Impact— — — 1 
Estimated Loss on Qualifying Infrastructure Plant(4)
— (38)— (38)
Tax Impact— 10 — 10 
Net Income – Excluding Items$1,204 $868 $2,335 $1,735 
Basic Earnings Per Share – Excluding Items$1.10 $0.79 $2.13 $1.59 
See Notes on the following page.



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Southern Company
Financial Highlights

Notes
(1)Dilution is not material in any period presented. Diluted earnings per share was $1.09 and $2.12 for the three and six months ended June 30, 2024, respectively, and $0.76 and $1.55 for the three and six months ended June 30, 2023, respectively.
(2)Earnings for the three and six months ended June 30, 2024 include a pre-tax credit to income of $21 million ($16 million after tax) related to the estimated probable loss on Plant Vogtle Units 3 and 4 reflecting a revision to Georgia Power Company's total project capital cost forecast resulting from a reduction in remaining expected site demobilization costs and other contractor obligations. Additionally, earnings for the three and six months ended June 30, 2024 include a $14 million income tax charge related to the remeasuring of deferred tax assets associated with the previously recognized estimated probable loss on Plant Vogtle Units 3 and 4 due to a change in the State of Georgia corporate tax rate. Further charges and/or credits may occur; however, the amount and timing are uncertain. Earnings for the three and six months ended June 30, 2024 and 2023 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 approximately $15 million annually through 2025.
(3)Earnings for the six months ended June 30, 2023 include costs associated with the extinguishment of debt at Southern Company. Similar transaction costs may occur in the future at Southern Company or one of its unregulated subsidiaries; however, the amount and timing of any such costs are uncertain.
(4)Earnings for the three and six months ended June 30, 2023 include a pre-tax charge of $38 million ($28 million after tax) for an estimated loss at Southern Company Gas associated with an Illinois Commerce Commission disallowance related to its review of the Qualifying Infrastructure Plant (QIP) capital investments by Nicor Gas for calendar year 2019 under the QIP Rider, or Investing in Illinois program. Further charges may occur; however, the amount and timing of any such charges are uncertain.

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Southern Company
Significant Factors Impacting EPS
 Three Months Ended June
Year-To-Date
June
 20242023Change20242023Change
Earnings Per Share –
As Reported(1)
$1.10 $0.77 $0.33 $2.13 $1.56 $0.57 
  Significant Factors: 
  Traditional Electric Operating Companies$0.34 $0.53 
Southern Power— (0.01)
Southern Company Gas0.02 0.11 
Parent Company and Other(0.03)(0.05)
Increase in Shares— (0.01)
  Total – As Reported
$0.33 $0.57 
Three Months Ended June
Year-To-Date
June
Non-GAAP Financial Measures20242023Change20242023Change
Earnings Per Share –
Excluding Items
$1.10 $0.79 $0.31 $2.13 $1.59 $0.54 
  Total – As Reported
$0.33 $0.57 
Less:
Estimated Loss on Plants Under Construction(2)
— — 
Loss on Extinguishment of Debt(3)
— — 
Estimated Loss on Qualifying Infrastructure Plant(4)
0.02 0.03 
  Total – Excluding Items
$0.31 $0.54 
See Notes on the following page.

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Southern Company
Significant Factors Impacting EPS

Notes
(1)Dilution is not material in any period presented. Diluted earnings per share was $1.09 and $2.12 for the three and six months ended June 30, 2024, respectively, and $0.76 and $1.55 for the three and six months ended June 30, 2023, respectively.
(2)Earnings for the three and six months ended June 30, 2024 include a pre-tax credit to income of $21 million ($16 million after tax) related to the estimated probable loss on Plant Vogtle Units 3 and 4 reflecting a revision to Georgia Power Company's total project capital cost forecast resulting from a reduction in remaining expected site demobilization costs and other contractor obligations. Additionally, earnings for the three and six months ended June 30, 2024 include a $14 million income tax charge related to the remeasuring of deferred tax assets associated with the previously recognized estimated probable loss on Plant Vogtle Units 3 and 4 due to a change in the State of Georgia corporate tax rate. Further charges and/or credits may occur; however, the amount and timing are uncertain. Earnings for the three and six months ended June 30, 2024 and 2023 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 approximately $15 million annually through 2025.
(3)Earnings for the six months ended June 30, 2023 include costs associated with the extinguishment of debt at Southern Company. Similar transaction costs may occur in the future at Southern Company or one of its unregulated subsidiaries; however, the amount and timing of any such costs are uncertain.
(4)Earnings for the three and six months ended June 30, 2023 include a pre-tax charge of $38 million ($28 million after tax) for an estimated loss at Southern Company Gas associated with an Illinois Commerce Commission disallowance related to its review of the Qualifying Infrastructure Plant (QIP) capital investments by Nicor Gas for calendar year 2019 under the QIP Rider, or Investing in Illinois program. Further charges may occur; however, the amount and timing of any such charges are uncertain.

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Southern Company
EPS Earnings Analysis
Description
Three Months Ended
June
2024 vs. 2023
Year-To-Date
June
2024 vs. 2023
Retail Sales1¢5¢
Retail Revenue Impacts2441
Weather1420
Wholesale and Other Operating Revenues
47
Non-Fuel Operations and Maintenance Expenses(1)
(2)(2)
Depreciation and Amortization(4)(6)
Interest Expense and Other—(6)
Income Taxes(3)(6)
Total Traditional Electric Operating Companies34¢53¢
Southern Power—(1)
Southern Company Gas—9
Parent Company and Other(3)(6)
Increase in Shares—(1)
Total Change in EPS (Excluding Items)31¢54¢
Estimated Loss on Plants Under Construction(2)
——
Loss on Extinguishment of Debt(3)
——
Estimated Loss on Qualifying Infrastructure Plant(4)
23
Total Change in EPS (As Reported)33¢57¢
See Notes on the following page.

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Southern Company
EPS Earnings Analysis

Notes
(1)Excludes gains/losses on asset sales, which are included in "Interest Expense and Other." Includes non-service cost-related benefits income.
(2)Earnings for the three and six months ended June 30, 2024 include a pre-tax credit to income of $21 million ($16 million after tax) related to the estimated probable loss on Plant Vogtle Units 3 and 4 reflecting a revision to Georgia Power Company's total project capital cost forecast resulting from a reduction in remaining expected site demobilization costs and other contractor obligations. Additionally, earnings for the three and six months ended June 30, 2024 include a $14 million income tax charge related to the remeasuring of deferred tax assets associated with the previously recognized estimated probable loss on Plant Vogtle Units 3 and 4 due to a change in the State of Georgia corporate tax rate. Further charges and/or credits may occur; however, the amount and timing are uncertain. Earnings for the three and six months ended June 30, 2024 and 2023 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 approximately $15 million annually through 2025.
(3)Earnings for the six months ended June 30, 2023 include costs associated with the extinguishment of debt at Southern Company. Similar transaction costs may occur in the future at Southern Company or one of its unregulated subsidiaries; however, the amount and timing of any such costs are uncertain.
(4)Earnings for the three and six months ended June 30, 2023 include a pre-tax charge of $38 million ($28 million after tax) for an estimated loss at Southern Company Gas associated with an Illinois Commerce Commission disallowance related to its review of the Qualifying Infrastructure Plant (QIP) capital investments by Nicor Gas for calendar year 2019 under the QIP Rider, or Investing in Illinois program. Further charges may occur; however, the amount and timing of any such charges are uncertain.

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Southern Company
Consolidated Earnings
As Reported
 Three Months Ended JuneYear-To-Date June
 20242023Change20242023Change
(in millions)(in millions)
Retail electric revenues:
Fuel$1,061 $1,006 $55 $2,072 $2,056 $16 
Non-fuel3,425 2,853 572 6,355 5,402 953 
Wholesale electric revenues627 605 22 1,198 1,203 (5)
Other electric revenues210 209 1 409 399 10 
Natural gas revenues831 852 (21)2,538 2,728 (190)
Other revenues309 223 86 537 440 97 
Total operating revenues6,463 5,748 715 13,109 12,228 881 
Fuel and purchased power1,254 1,190 64 2,448 2,482 (34)
Cost of natural gas149 199 (50)754 1,097 (343)
Cost of other sales167 128 39 298 255 43 
Non-fuel operations and maintenance
1,409 1,489 (80)2,881 2,929 (48)
Depreciation and amortization1,182 1,112 70 2,327 2,222 105 
Taxes other than income taxes384 340 44 780 734 46 
Estimated loss on Plant Vogtle Units 3 and 4
(21)— (21)(21)— (21)
Total operating expenses4,524 4,458 66 9,467 9,719 (252)
Operating income1,939 1,290 649 3,642 2,509 1,133 
Allowance for equity funds used during construction51 70 (19)109 135 (26)
Earnings from equity method investments31 29 2 77 78 (1)
Interest expense, net of amounts capitalized694 610 84 1,358 1,192 166 
Other income (expense), net151 142 9 302 286 16 
Income taxes290 98 192 513 194 319 
Net income1,188 823 365 2,259 1,622 637 
Net loss attributable to noncontrolling interests(15)(15)— (73)(78)5 
Net income attributable to Southern Company$1,203 $838 $365 $2,332 $1,700 $632 
Certain prior year data may have been reclassified to conform with current year presentation.

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Southern Company
Kilowatt-Hour Sales and Customers
 Three Months Ended JuneYear-To-Date June
20242023% ChangeWeather Adjusted % Change20242023% ChangeWeather Adjusted % Change
(in millions)(in millions)
Kilowatt-Hour Sales
Total Sales49,897 48,003 3.9 %96,426 94,729 1.8 %
Total Retail Sales37,007 34,969 5.8 %0.6 %72,261 68,351 5.7 %1.1 %
Residential11,889 10,695 11.2 %(1.0)%23,765 21,326 11.4 %0.1 %
Commercial12,666 11,826 7.1 %2.8 %24,140 22,708 6.3 %3.3 %
Industrial12,318 12,317 — %— %24,086 24,040 0.2 %0.2 %
Other134 131 2.1 %1.9 %270 277 (2.4)%(3.0)%
Total Wholesale Sales12,890 13,034 (1.1)%N/A24,165 26,378 (8.4)%N/A
Period Ended June
20242023% Change
(in thousands)
Regulated Utility Customers
Total Regulated Utility Customers8,8738,8000.8%
Traditional Electric Operating Companies4,5184,4631.2%
Southern Company Gas4,3554,3370.4%


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Southern Company
Financial Overview
As Reported
Three Months Ended JuneYear-To-Date June
20242023% Change20242023% Change
(in millions)(in millions)
Southern Company –
Operating Revenues$6,463 $5,748 12.4 %$13,109 $12,228 7.2 %
Earnings Before Income Taxes1,478 921 60.5 %2,772 1,816 52.6 %
Net Income Available to Common1,203 838 43.6 %2,332 1,700 37.2 %
Alabama Power –
Operating Revenues$1,873 $1,689 10.9 %$3,664 $3,336 9.8 %
Earnings Before Income Taxes471 337 39.8 %889 591 50.4 %
Net Income Available to Common369 312 18.3 %702 568 23.6 %
Georgia Power –
Operating Revenues$2,875 $2,391 20.2 %$5,273 $4,567 15.5 %
Earnings Before Income Taxes954 563 69.4 %1,470 911 61.4 %
Net Income Available to Common762 471 61.8 %1,199 767 56.3 %
Mississippi Power –
Operating Revenues$364 $311 17.0 %$706 $702 0.6 %
Earnings Before Income Taxes76 44 72.7 %136 115 18.3 %
Net Income Available to Common61 40 52.5 %111 98 13.3 %
Southern Power –
Operating Revenues$524 $525 (0.2)%$997 $1,033 (3.5)%
Earnings Before Income Taxes84 76 10.5 %108 108 — %
Net Income Available to Common86 85 1.2 %182 187 (2.7)%
Southern Company Gas –
Operating Revenues$831 $852 (2.5)%$2,538 $2,728 (7.0)%
Earnings Before Income Taxes144 114 26.3 %691 525 31.6 %
Net Income Available to Common108 85 27.1 %517 393 31.6 %
See Financial Highlights pages for discussion of certain significant items occurring during the periods.