Sentiment Analysis of the earnings transcript to help figure out if there are any bullish or bearish sentiments that could be gathered from it. We're doing ML and AI based analysis on the earnings call to get some more insights.
Please consider a small donation if you think this website provides you with relevant information
| Statement |
|---|
| I am extraordinarily proud of the hard work, the collaboration, the perseverance and the leadership that our teams show throughout the year to enable us to achieve these outstanding results |
| Sir, are there any closing remarks? Chris Womack Again, let me say, Southern Company had an exceptional year in 2023 |
| We've got a terrific plan with an improving FFO to debt metric that's several hundred basis points above any of our threshold over time, and frankly improves every year in the forecast that I look at without those nuclear PTCs |
| So let me tell you where we are, Steve, here today, and I think it's still differentiated and a terrific story and we're doing everything we can to make sure we're being conservative in the way we think about this |
| 2024, with Vogtle in service on the timeline, we believe those metrics will improve by more than 100 basis points in 2024 |
| Throughout 2023, our electric and gas franchises continue to excel at the fundamentals and started this year strong as evidenced through our preparations and execution during January's winter storm, Heather, when electricity demands reach all the time winter peaks and Southern Company gas system continue to reliably serving customers throughout severe weather conditions across its four-state territory |
| Our ability to navigate through such severe weather events further demonstrates how our customers benefit from the combination of outstanding operational performance by each of our utilities and the value of our vertically integrated state-regulated business model |
| Our state's long-term integrated planning processes, which include adoption of important planning assumptions like a 26% winter reserve margin for our electric utilities benefit our customers by providing a reliable and resilient mix of energy resources |
| 2023 was an exceptional year for Southern Company, a year in which we proved once again that we can do extraordinary things, including delivering strong financial results in the face of unprecedented headwinds and the successful completion of Plant Vogtle Unit 3, the first newly constructed nuclear unit in the United States in over three decades |
| And with the new pump, we made sure there were not any similar issues, but we think we're in pretty good shape with the pumps as we go forward |
| As you can see from the materials we released this morning, we reported strong adjusted earnings per share of $3.65 for 2023, which was the very top of our 2023 guidance range |
| I am excited about the future of this company, and I'm excited about our team and its ability to deliver the results, all our stakeholders, customers and investors alike expect from Southern Company |
| Our ability to deliver 2023 adjusted results at the very top of guidance is a great testament to our team and to the resilience and strength of our portfolio of companies |
| The changes brought renewed energy and excitement, and more importantly, and intentionally, the movement served to further strengthen what we believe to be the deepest and best bench in the industry |
| We continue to see robust residential customer growth with the addition of over 46,000 residential electric customers and nearly 27,000 residential gas customers |
| Since its July 30th in-service date, Unit 3's performance has exceeded our expectations, delivering over 5 million megawatt hours of safe, reliable, carbon-free energy across Georgia |
| Consistent with the drivers detailed in Georgia Power's recently filed 2023 Integrated Resource Plan update, economic development in our Southeast service territory remains incredibly strong |
| Several years of extraordinary success in attracting new and expanding businesses to our states, underpins our long-term electricity sales forecast |
| Again, let me say, Southern Company had an exceptional year in 2023 |
| And I am really excited about the future of this company |
| Our customer and community-focused business model the growing investments in our premier state-regulated utility franchises and the priority that we place on strong credit quality and our remarkable dividend history all contributes toward making Southern Company a premier investment |
| Southern Company strives to deliver a superior risk-adjusted total shareholder return, and we believe the plan that we've laid out supports that objective |
| We also are very optimistic that, that will happen |
| Our ability to hit our numbers is as solid as it's ever been |
| But again, every year in the five years is an improving story, and still hundreds of basis points above our thresholds |
| As we near completion of Vogtle Unit 4, the reduction in major project construction risk and the improvement in our FFO should strengthen and meaningfully improve our credit profile to help ensure we preserve what we believe will be a positively differentiated profile |
| Any upside to the capital forecast will simply serve to add durability to an already strong outlook |
| On its own, our capital investment forecast of $48 billion supports annualized state-regulated rate base growth of approximately 6%, providing a solid foundation for our long-term outlook |
| Other noteworthy items for 2023 included, constructive resolution of the Vogtle 3 and 4 prudence process, resolving all issues of reasonableness, prudence and cost recovery; successfully completed construction and commissioning for a brand new 720-megawatt combined cycle plant on schedule and on time at Alabama Power's plant Barry; acquired two new solar projects at Southern Power, which once construction is complete, will add an additional 350-megawatts of carbon-free generation to its portfolio of fully contracted renewable generation; continued progress toward our greenhouse gas emission reduction goals, including our interim goal of a 50% reduction versus 2007 levels by 2030; achieving a 49% reduction in 2023; earned a National Accounts Award for outstanding customer engagement by the Edison Electric Institute and top honors from J.D |
| We see this as a tremendous opportunity to derisk our outlook |
| Statement |
|---|
| Industrial sales finished down for the year nearly 2%, largely due to continued slowing in housing and construction-related sectors as well as lower sales to chemical companies due to outages and long planned plant closures |
| Mild weather was also a significant headwind with 2023 marking the mildest year in our history for our electric service territories |
| Weather-adjusted retail electric sales were down 0.4% for 2023 compared to 2022 |
| Dan Tucker If you think about where probably every utility company was a year ago, one of the greatest risks facing all of this was affordability |
| Certainly, relative to where we were a year ago, and I think we've said this before, in a higher for longer environment, certainly, interest is a bigger headwind going forward |
| Just to clarify what you said, you would expect the dividend growth to stay below earnings growth for at least a couple of more years |
| But what that will do is take us during this high period of CapEx, which hopefully goes on for a very long period of time, brings us comfortably down into the 60s from a payout ratio perspective |
| I want to make sure that is, in fact, putting downward pressure on rates |
| Dan Tucker Certainly, not improving returns from an overall, say, regulated utility perspective |
| We didn't just meet challenges head on |
| There's a lot still lingering out there that -- in our conservative nature, we're not counting on yet, but it's not unlikely |
| But also, I think what's not factored in is a couple of other important nuances |
| From a -- we really view that as the opportunity to kind of put downward pressure on existing customers' rates |
| Chris Womack No, we do expect to see rate decreases for our customers with these additional sales and the customer growth that we'll experience |
| I just -- my question is, if you go deeper into that on -- is it going to be bigger bill impact and bigger fights and rate design or you don't think that's an issue? Chris Womack I mean there's always -- there will always be issues |
| Dan Tucker So I'm not sure where you're headed with improved ROE |
| But once again, I just go back to the fundamentals of increased sales opportunity and this customer growth, how that supports the opportunity for us to put downward pressure all across our customer base to see downward pressure on rates |
| Right now, I think the reasonable expectation is that continued modest growth, which is just below 3% |
| The only thing that's changed is a slightly slower ramp-up in those metrics because of the incremental capital that we're deploying |
| And so there certainly could be upward using your words, pressure on that rate base |
Please consider a small donation if you think this website provides you with relevant information