The Southern Company Q4 FY2023 Earnings Call

· Earnings call transcript and AI-powered summary

Overview

  • Southern Company reported strong adjusted EPS of $3.65 for 2023, at the top of its guidance range and up from 2022 driven by higher utility revenues, lower O&M, and lower taxes.
  • Key 2023 milestones included successful commercial operation of Vogtle Unit 3, nearing completion of Unit 4, major clean-energy and capacity investments, and strong customer growth.
  • 2024 adjusted EPS guidance: $3.95 to $4.05, with a long-term adjusted EPS growth target of 5% to 7% annually.

Operational Highlights

  • Vogtle Unit 3 delivered over 5 million MWh since entering service July 30, 2023.
  • Vogtle Unit 4 achieved initial criticality on February 14, 2024; commercial operation expected Q2 2024, with guidance assuming an April in-service date.
  • Georgia Power projecting unprecedented retail electricity sales growth of about 9% annually from 2025–2028, driven ~80% by data center load.
  • Southern Company’s Southeast service territories experienced robust customer additions: 46,000+ new residential electric customers and 27,000 gas customers in 2023.
  • Weather-adjusted electric sales declined 0.4% YoY due to mild weather and changing usage patterns.

Financial Performance

  • Adjusted EPS: $3.65 for FY 2023 (top of guidance).

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Operator: Good afternoon. My name is Malika, and I will be your conference operator today. At this time, I would like to welcome everyone to the Southern Company Fourth Quarter 2023 Earnings Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. [Operator Instructions] As a reminder, this conference is being recorded, February 15, 2024. I would now like to turn the conference over to Mr. Scott Gammill, Vice President, Investor Relations and Treasurer. Please go ahead, sir. Scott Gammill: Thank you, Malika. Good afternoon, and welcome to Southern Company's fourth quarter 2023 earnings call. Joining me today are Chris Womack, Chairman, President and Chief Executive Officer of Southern Company; and Dan Tucker, Chief Financial Officer. Let me remind you, we'll be making forward-looking statements today in addition to providing historical information. Various important factors could cause actual results to differ materially from those indicated in the forward-looking statements, including those discussed in our Form 10-K and subsequent securities filings. In addition, we'll present non-GAAP financial information on this call. Reconciliations to the applicable GAAP measure are included in the financial information we released this morning as well as the slides for this conference call, which are both available on our Investor Relations website at investor.southerncompany.com. At this time,

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