EX-99.02 3 ex9902-financialhighlights.htm EX-99.02 Document

Exhibit 99.02
Page 1
Southern Company
Financial Highlights
(In Millions of Dollars Except Earnings Per Share)
 Three Months Ended DecemberYear-To-Date December
Net Income (Loss)–As Reported (See Notes)2022202120222021
  Traditional Electric Operating Companies$62 $(371)$3,318 $1,981 
  Southern Power89 55 354 266 
Southern Company Gas56 150 572 539 
  Total207 (166)4,244 2,786 
  Parent Company and Other(294)(49)(720)(393)
  Net Income (Loss)–As Reported$(87)$(215)$3,524 $2,393 
  Basic Earnings (Loss) Per Share1
$(0.08)$(0.20)$3.28 $2.26 
  Average Shares Outstanding (in millions)
1,090 1,062 1,075 1,061 
  End of Period Shares Outstanding (in millions)
1,089 1,060 
Non-GAAP Financial MeasuresThree Months Ended DecemberYear-To-Date December
Net Income–Excluding Items (See Notes)2022202120222021
  Net Income (Loss)–As Reported$(87)$(215)$3,524 $2,393 
Less:
Estimated Loss on Plants Under Construction2
(205)(924)(199)(1,703)
Tax Impact52 235 51 433 
Acquisition and Disposition Impacts3
(134)89 (115)209 
Tax Impact34 22 32 (90)
Wholesale Gas Services4
— — — 18 
Tax Impact— — — (3)
Impairments5
(119)— (119)(91)
Tax Impact— — — 19 
Loss on Extinguishment of Debt6
— (23)— (23)
Tax Impact— 6 — 6 
  Net Income–Excluding Items$285 $380 $3,874 $3,618 
  Basic Earnings Per Share–Excluding Items$0.26 $0.36 $3.60 $3.41 
- 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 (loss) per share was $(0.08) and $3.26 for the three and twelve months ended December 31, 2022, respectively, and was $(0.20) and $2.24 for the three and twelve months ended December 31, 2021, respectively.
(2)Earnings for the three and twelve months ended December 31, 2022 include a charge of $201 million pre tax ($150 million after tax) and net charges of $183 million pre tax ($137 million after tax), respectively, and earnings for the three and twelve months ended December 31, 2021 include charges of $920 million pre tax ($686 million after tax) and $1.692 billion pre tax ($1.261 billion after tax), respectively, 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 twelve months ended December 31, 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 approximately $15 million annually through 2025.
(3)Earnings for the three and twelve months ended December 31, 2022 include impairment charges totaling $131 million pre-tax ($99 million after-tax) and other disposition impacts associated with the sales of Southern Company Gas' natural gas storage facilities. Earnings for the twelve months ended December 31, 2022 also 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 twelve months ended December 31, 2021 include a $93 million pre-tax ($99 million after-tax) gain associated with the termination of a leasehold interest in assets associated with two leveraged lease projects and $16 million of income tax benefits recognized as a result of another leveraged lease investment disposition. Earnings for the twelve months ended December 31, 2021 also include a $121 million pre-tax ($92 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 twelve months ended December 31, 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 twelve months ended December 31, 2022 include an impairment charge of $119 million (pre tax and after tax) associated with goodwill at PowerSecure, Inc. Earnings for the twelve months ended December 31, 2021 include pre-tax impairment charges totaling $84 million ($67 million after tax), respectively, related to Southern Company Gas' investment in the PennEast Pipeline project and a pre-tax impairment charge of $7 million ($6 million after tax) related to a leveraged lease investment. Impairment charges may occur in the future; however, the amount and timing of any such charges are uncertain.
(6)Earnings for the three and twelve months ended December 31, 2021 include costs associated with the extinguishment of debt at Southern Company. Further costs may occur; however, the amount and timing of any such costs are uncertain.