Core Insights - Georgia Power has launched its first grid-connected battery energy storage system (BESS) at the Mossy Branch facility, which has a capacity of 65 megawatts (MW) and can supply energy back to the grid for four hours, enhancing the resilience of Georgia's electric grid [1][3][4] Group 1: Project Overview - The Mossy Branch Battery Energy Storage System was approved by the Georgia Public Service Commission as part of Georgia Power's 2019 Integrated Resource Plan (IRP) [3] - The facility is designed to connect directly with the electric grid, allowing it to charge and discharge energy efficiently [2][3] - The project aims to improve the reliability of the electric system and support renewable energy resources by storing excess energy for later use [3] Group 2: Strategic Importance - Kim Greene, Georgia Power's CEO, emphasized the importance of battery energy storage in making the grid more reliable, especially during extreme weather events [4] - The Mossy Branch facility represents a significant milestone in Georgia Power's collaboration with the Georgia PSC to enhance the state's power grid [4] Group 3: Future Developments - Georgia Power is actively developing additional BESS projects, including a 265 MW project in Cherokee County expected to be operational by the end of 2026 [5] - The company plans to procure an additional 1,000 MW of battery energy storage through competitive bidding processes in the coming years [6] - Recently announced projects include 500 MW of new BESS, with specific capacities located near military bases and other strategic sites [6]

Core Insights - Alan McIntyre has been appointed as the Vice President of Engineering and Operations at Southern Linc, where he will lead a team focused on providing reliable wireless voice and data services for Southern Company and government customers [1][2]. Leadership and Experience - McIntyre brings 30 years of experience in wireless telecommunications, having previously served as Engineering Director at Southern Linc, where he oversaw the LTE technology transformation and the construction of two geographically redundant core data centers and 1,300 LTE cell sites [3]. - His contributions include the installation of VoLTE and mission-critical push-to-talk (MCPTT) sub-systems, facilitating thousands of conversions of voice and data devices to LTE [3]. Industry Contributions - McIntyre has significant expertise in wireless spectrum management, having participated in FCC proceedings that provided Southern Linc with contiguous spectrum and enabled broadband operations [4]. - He was also involved in auction teams that successfully acquired licenses in multiple FCC-conducted spectrum auctions [4]. Educational Background - McIntyre holds a Bachelor's degree in Electrical Engineering and an MBA in Management Information Systems from Auburn University, where he has served on the board advising the Wireless Engineering Research and Education Center since 2017 [5]. Company Overview - Southern Linc is a subsidiary of Southern Company, providing secure LTE voice and data services to electric utilities and various businesses and public sector agencies across Alabama, Georgia, and southeastern Mississippi [6]. - The CriticalLinc™ network offers over-the-air encryption from devices to towers and supports encryption from towers to the network's core data centers [6].

Group 1 - The sector has underperformed the S&P 500 by more than 90 points over the past ten years [1] - Year-to-date performance of the sector is a remarkable 29%, making it one of the best-performing sectors [1]

Financial Data and Key Metrics Changes - For Q3 2024, adjusted earnings were $1.43 per share, a $0.01 increase from Q3 2023, driven by investments in state-regulated utilities and customer growth, offset by higher interest, depreciation, and operating expenses [15][16] - For the nine months ended September 30, 2024, adjusted earnings per share were $3.56, compared to $3.01 for the same period in 2023, influenced by weather-related impacts [16] - The adjusted EPS estimate for Q4 is $0.49, leading to a projected full-year adjusted earnings of $4.05 per share [17] Business Line Data and Key Metrics Changes - Weather-normalized total retail electricity sales were flat compared to Q3 2023, with a 0.4% negative impact from Hurricane Helene [17] - Strong electricity sales were noted in the chemical, pipeline, and transportation segments, with data center power usage up 10% year-over-year [18] - Residential customer additions included 12,000 in electric businesses and 7,000 in natural gas distribution [19] Market Data and Key Metrics Changes - Economic development in electric service territories was robust, with 42 companies establishing or expanding operations, generating over 5,000 potential new jobs and approximately $2.6 billion in capital investments [20] - Alabama Power experienced its strongest quarter in years, driven by announcements in metals, renewable energy, and chemicals [21] Company Strategy and Development Direction - The company is positioned to benefit from projected energy demand growth, supported by disciplined planning and regulatory processes [24] - The focus remains on maintaining a disciplined approach while exploring growth opportunities in the energy sector [40][70] Management's Comments on Operating Environment and Future Outlook - Management expressed pride in the team's response to Hurricane Helene and emphasized the importance of community commitment [5][11] - The company is optimistic about future growth, with a focus on long-term planning and regulatory alignment [24][92] Other Important Information - The estimated cost for storm-related restoration and rebuild from Hurricane Helene is approximately $1.1 billion, with potential changes as actual costs are finalized [13][14] - The company has deferred all storm costs, with a process in place for recovery through regulatory channels [27] Q&A Session Summary Question: Will all storm costs be deferred and what is the recovery process? - All costs have been deferred, and the recovery process will be determined by regulatory decisions, which have historically been constructive [26][27] Question: How has the load growth pipeline developed in Georgia? - The pipeline has seen commitments grow from 3,600 megawatts to 8,000 megawatts, indicating strong momentum [30] Question: Are there opportunities for Southern Power to extend contracts? - There is interest in renewing contracts as they approach expiration, with potential for improved returns [36][40] Question: What is the typical cash recovery lag for storm costs? - Recovery periods have historically ranged from a couple of years to six years, depending on the storm's magnitude [45] Question: What is the company's perspective on nuclear technology? - The company is engaged in research on SMR technology but emphasizes the need for risk mitigation before moving forward [80][84] Question: How long would it take to build new gas generation? - Generally, it takes three to five years to develop gas generation from concept to operation, with the company well-positioned for future projects [88][89] Question: How will storm cost deferrals impact customer bills? - The objective is to ensure that costs are recovered in a manner that benefits existing customers [72][94]

Earnings and Financial Performance - Southern Company's Q3 2024 earnings per share (EPS) as reported was $1.40, compared to $1.30 in Q3 2023[10] - Year-to-date (YTD) 2024 EPS as reported was $3.53, compared to $2.86 in YTD 2023[10] - Excluding certain items, adjusted EPS for Q3 2024 was $1.43, slightly up from $1.42 in Q3 2023[10] - YTD 2024 adjusted EPS was $3.56, compared to $3.01 in YTD 2023[10] - The company projects a full-year 2024 adjusted EPS of $4.05[13] Hurricane Helene Impact - Hurricane Helene caused significant damage to Georgia Power's infrastructure, breaking over 11,800 power poles and downing over 1,500 miles of power lines[9] - The storm resulted in 1.5 million total outages, with 523,000+ customers restored within the first 48 hours and 95% restored within 8 days[9] - The company mobilized over 20,000 personnel for restoration efforts[9] - The hurricane had an estimated impact of -0.4% on total retail sales for the quarter[14] Sales and Customer Growth - The company experienced robust customer growth in Q3 2024, with an increase of 12,000 residential electric customers and 7,000 residential gas customers[14] - Usage by existing data centers within the commercial class increased by 10% for the quarter compared to 2023[14] - YTD 2024 retail electric sales increased by 5.4% for residential and 3.7% for commercial customers[16] Capital Expenditures and Financing - The company projects $48 billion in capital expenditures from 2024-2028, with $38.7 billion for state-regulated electric and $8.5 billion for state-regulated gas[17] - Total long-term debt issuances are projected at $11.9 billion for 2024R-2026[23] - Total equity financings are projected at $350 million for 2024 and $814 million for 2024R-2026[23] - The company has over $7.9 billion in committed credit facilities and nearly $6.7 billion in available liquidity as of September 30, 2024[27]

Core Insights - Southern Company reported third-quarter 2024 earnings per share of $1.43, exceeding the Zacks Consensus Estimate of $1.33 and slightly higher than the previous year's adjusted profit, driven by increased electricity sales and favorable rate changes [1] - The utility's revenues reached $7.3 billion, a 4.2% increase from third-quarter 2023, surpassing the Zacks Consensus Estimate of $7.1 billion [2] - Southern Company maintains a long-term EPS growth rate projection of 5-7% based on the 2024 adjusted EPS forecast of $4.05 [2] Sales Performance - Wholesale power sales increased by 8.2%, while total electricity sales rose by 1.1% year-over-year, despite a decline in retail electricity demand [3] - Total retail sales decreased by 1.1%, with residential and commercial sales down by 3% and 0.4%, respectively, while industrial sales improved by 0.4% [3] Expense Overview - Operations and maintenance costs rose by 16.7% year-over-year to $1.7 billion, contributing to a total operating expense of $4.9 billion, which was a 0.7% increase from the prior year and above the estimate of $4.8 billion [4] Investment Opportunities - Southern Company holds a Zacks Rank 3 (Hold), while other utility companies like NiSource Inc., Atmos Energy Corporation, and Duke Energy Corporation have better ratings with Zacks Rank 2 (Buy) [5] - NiSource has a projected earnings growth rate of 8.1% for 2024, with shares gaining 38.3% over the past year [6] - Atmos Energy's projected earnings growth rate for fiscal 2024 is 11.3%, with shares increasing by 28.5% in the last year [6] - Duke Energy has a projected earnings growth rate of 7.6% for 2024, with shares gaining 27.3% over the past year [7]

Core Insights - Southern Co. reported revenue of $7.27 billion for the quarter ended September 2024, reflecting a 4.2% increase year-over-year and a surprise of +2.13% over the Zacks Consensus Estimate of $7.12 billion [1] - The company's EPS was $1.43, slightly up from $1.42 in the same quarter last year, with an EPS surprise of +7.52% compared to the consensus estimate of $1.33 [1] Revenue Performance - Southern Power's operating revenues were $600 million, which is -8.1% lower than the estimated $661.14 million [3] - Southern Company Natural Gas reported operating revenues of $682 million, down -1% from the estimated $695.08 million [3] - Georgia Power's retail revenues reached $3.19 billion, exceeding the estimate of $2.85 billion, marking a +6.3% year-over-year change [3] - Georgia Power's wholesale revenues were $78 million, slightly below the estimate of $80.20 million, but showed a +13% increase year-over-year [3] - Other revenues from Georgia Power were $209 million, surpassing the estimate of $189.01 million, with a +21.5% year-over-year change [3] - Mississippi Power's other revenues were $13 million, exceeding the estimate of $10.92 million, reflecting a +30% change [3] - Southern Company Gas's gas distribution operations reported $616 million, below the estimate of $662.92 million, with a -0.2% year-over-year change [3] - Other operating revenues were $283 million, above the estimate of $254.22 million, showing a +27.5% year-over-year change [3] - Alabama Power's revenues were $2.14 billion, slightly above the estimate of $2.09 billion, with a +2.6% year-over-year change [3] - Georgia Power's total revenues were $3.47 billion, exceeding the estimate of $3.12 billion, marking a +7.3% year-over-year change [3] - Mississippi Power's revenues were $412 million, below the estimate of $448.88 million, reflecting a -5.5% year-over-year change [3] - Alabama Power's other revenues were $111 million, slightly above the estimate of $110.96 million, with a +7.8% year-over-year change [3] Stock Performance - Southern Co.'s shares have returned -2.4% over the past month, contrasting with the Zacks S&P 500 composite's +1% change [4] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [4]

Group 1 - Southern Co. reported quarterly earnings of $1.43 per share, exceeding the Zacks Consensus Estimate of $1.33 per share, and showing a slight increase from $1.42 per share a year ago, resulting in an earnings surprise of 7.52% [1] - The company achieved revenues of $7.27 billion for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 2.13% and increasing from $6.98 billion year-over-year [2] - Southern Co. has outperformed the S&P 500, with shares rising approximately 27.4% since the beginning of the year compared to the S&P 500's gain of 21.9% [3] Group 2 - The earnings outlook for Southern Co. is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The trend of estimate revisions for Southern Co. is mixed, leading to a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market in the near future [6] - The current consensus EPS estimate for the upcoming quarter is $0.57 on revenues of $6.29 billion, and for the current fiscal year, it is $4.02 on revenues of $26.48 billion [7] Group 3 - The Utility - Electric Power industry, to which Southern Co. belongs, is currently ranked in the top 39% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8] - Another company in the same industry, NRG Energy, is expected to report quarterly earnings of $1.71 per share, reflecting a year-over-year increase of 5.6%, with revenues anticipated to be $5.43 billion, down 31.7% from the previous year [9]

Core Insights - Southern Company reported third-quarter earnings of $1.5 billion, or $1.40 per share, for 2024, an increase from $1.4 billion, or $1.30 per share, in the same quarter of 2023 [1][9] - For the nine months ended September 30, 2024, earnings were $3.9 billion, or $3.53 per share, compared to $3.1 billion, or $2.86 per share, for the same period in 2023 [1][9] Financial Performance - Excluding certain items, Southern Company earned $1.6 billion, or $1.43 per share, in Q3 2024, compared to $1.5 billion, or $1.42 per share, in Q3 2023 [2][10] - Year-to-date earnings, excluding items, were $3.9 billion, or $3.56 per share, for 2024, compared to $3.3 billion, or $3.01 per share, for the same period in 2023 [2][10] - Operating revenues for Q3 2024 were $7.3 billion, a 4.2% increase from $7.0 billion in Q3 2023 [5][19] - Year-to-date operating revenues reached $20.4 billion, up 6.1% from $19.2 billion in the same period of 2023 [5][19] Earnings Drivers - Adjusted earnings in Q3 2024 were driven by higher utility revenues, offset by increased interest expenses, depreciation, non-fuel operations and maintenance expenses, and income taxes [4][10] - The company experienced a pre-tax impairment loss of $36 million related to the discontinued development of a commercial facility at Alabama Power Company [10][15] Customer and Sales Metrics - Total kilowatt-hour sales for Q3 2024 were 56,035 million, a 1.1% increase from 55,428 million in Q3 2023 [17] - Total retail sales decreased by 1.1% in Q3 2024 compared to the same period in 2023, while total wholesale sales increased by 8.2% [17][19] - The total number of regulated utility customers increased to 8.865 million, a 0.8% rise from 8.792 million in 2023 [18] Operational Highlights - Southern Company’s CEO highlighted the company's performance and commitment to community support during Hurricane Helene, emphasizing the dedication of employees and first responders [6][8] - The company aims for net zero greenhouse gas emissions by 2050, reflecting its commitment to sustainability and innovation [8]

Wall Street analysts forecast that Southern Co. (SO) will report quarterly earnings of $1.33 per share in its upcoming release, pointing to a year-over-year decline of 6.3%. It is anticipated that revenues will amount to $7.13 billion, exhibiting an increase of 2.2% compared to the year-ago quarter. The consensus EPS estimate for the quarter has been revised 2.6% lower over the last 30 days to the current level. This reflects how the analysts covering the stock have collectively reevaluated their initial es ...