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Southern Co SO

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Morningstar’s Analysis

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1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

Further Delays at Vogtle, but Southern’s Customer Growth Remains Strong Due to Southeast Migration

Charles Fishman, CFA Equity Analyst

Analyst Note

| Charles Fishman, CFA |

We are reaffirming our fair value estimate of $64 per share after Southern Company reported strong 2021 second-quarter adjusted earnings, reaffirmed earnings guidance, but announced further delays for the Vogtle nuclear plant expansion project. Southern reported adjusted EPS of $0.84 in the recently ended quarter versus $0.78 in the same period last year. The strong results were due in large part to economic recovery from the effects of COVID-19 and strong customer growth.

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Company Profile

Business Description

Southern Co. is one of the largest utilities in the U.S. The company distributes electricity and natural gas to approximately 9 million customers in nine states. It owns 50 gigawatts of generating capacity, primarily for serving regulated customers in Georgia, Alabama, and Mississippi. Wholly owned unregulated Southern Power Co. owns 12 gigawatts of mostly renewable energy capacity and sells the electricity primarily under long-term power sales agreements. The solar and wind farms are located in Southern's regulated jurisdictions but also in Texas, California, and other states.

Contact
30 Ivan Allen Jr. Boulevard, Northwest
Atlanta, GA, 30308
T +1 404 506-5000
Sector Utilities
Industry Utilities - Regulated Electric
Most Recent Earnings Jun 30, 2021
Fiscal Year End Dec 31, 2019
Stock Type High Yield
Employees 27,700

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