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CALGARY, AB / ACCESS Newswire / August 25, 2026 / Southern Energy Corp. ("Southern" or the "Company") (TSXV:SOU)(AIM:SOUC), an established producer with natural gas and light oil assets in Mississippi, announces its second quarter financial and operating results for the three and six months ended June 30, 2026. Selected financial and operational information is outlined below and should be read in conjunction with the Company's unaudited condensed consolidated financial statements and related management's discussion and analysis (the "MD&A") for the three and six months ended June 30, 2026, which are available on the Company's website at www.southernenergycorp.com and have been filed under the Company's profile on SEDAR+ at www.sedarplus.ca. All figures referred to in this news release are denominated in U.S. dollars, unless otherwise noted. SECOND QUARTER 2026 HIGHLIGHTS Petroleum and natural gas sales of $4.2 million during Q2 2026, an increase of 4% from the same period in 2025, primarily due to higher oil production and stronger realized oil prices Average production of 10,4601 Mcfe/d (1,743 boe/d) (91% natural gas) during Q2 2026, a decrease of 7% from the same period in 2025, primarily due to the temporary shut-in of the Mechanicsburg and Greens Creek Fields because of the ongoing transportation dispute ("Transportation Dispute") Average realized natural gas and oil prices of $3.15/Mcf and $99.32/bbl, respectively, during Q2 2026, compared to $3.63/Mcf and $62.60/bbl in Q2 2025. Southern achieved an average natural gas price premium of $0.25/Mcf (approximately 9%) above the NYMEX Henry Hub benchmark during Q2 2026 Generated $0.7 million of Adjusted Funds Flow from Operations2 in Q2 2026 ($0.00 per share basic and diluted), an increase of 15% from the same period in 2025 Reported a net loss of $0.4 million ($0.00 per share basic and diluted) in Q2 2026, compared to a net loss of $0.4 million ($0.00 per share, basic and diluted) in Q2 2025 SUBSEQUENT EVENTS On August 11, 2026, Southern spudded the Terrible Creek 21-2 #2 Cotton Valley test well in the Williamsburg Field Ian Atkinson, President and Chief Executive Officer of Southern, commented: "Southern continued to deliver solid execution through Q2 2026, supported by premium Gulf Coast pricing realizations, additional oil production unlocked from new perforations in an oil well in the Magee area, and the ongoing financial flexibility of our simplified capital structure. Having fully retired our senior secured credit facility ("Credit Facility") earlier this year, the Company has successfully lowered its overall cost of capital while preserving total liquidity for high-return organic opportunities. We enter the second half of 2026 fully funded to advance our key development targets, punctuated by the spudding of the Cotton Valley test well in August and the ongoing progression of our final Gwinville drilled but uncompleted ("DUC") well. Complemented by steady hedge protection through December 2026 and favorable macro dynamics around Gulf Coast LNG and power demand, Southern remains positioned to systematically build funds flow per share and drive sustainable growth." Financial Highlights Financial Highlights Note: See "Reader Advisories - Specified Financial Measures". Operations Update Southern spudded the Terrible Creek 21-2 #2 Cotton Valley test well in the Williamsburg Field on August 11, 2026. This is the first of two farm-out commitment wells planned for drilling this year whereby Southern will retain approximately 50% working interest by paying roughly 50% of the gross drill and completion costs of $3.9 million per well. The well is currently drilling ahead and the Company expects to reach a planned total depth of approximately 19,000 feet by early September. Completion and testing operations will follow immediately after the drilling rig has been moved off site. Southern continues to work with Federal Energy Regulatory Commission ("FERC") staff to resolve the ongoing Transportation Dispute that resulted in the shut-in of approximately 400 boe/d of production from the Mechanicsburg and Greens Creek Fields. The Company continues to participate in regular settlement conferences facilitated by a FERC settlement judge and FERC trial and technical staff. If those discussions ultimately prove to be unsuccessful, the matter may proceed to an evidentiary hearing. Based on the timelines outlined in the latest FERC Order, a hearing outcome could occur in the first half of 2027; however, the timing and outcome remain uncertain. Outlook Southern remains steadfast in its commitment to disciplined capital allocation and maximizing funds flow per share by prioritizing high-return oil and liquids-weighted opportunities across its asset base. Supported by enhanced financial flexibility and liquidity following the successful refinancing and retirement of its Credit Facility earlier this year, the Company is expanding its operational program into the second half of 2026, including plans to complete the final City Bank DUC at Gwinville. With a fixed-price natural gas hedge of 5,000 MMBtu/d at $3.40/MMBtu secured through December 2026, Southern continues to benefit from reliable downside protection and consistent cash flows. This strategic position underpins the Company's commitment to executing a disciplined, value-accretive capital program focused on long-term shareholder returns. Southern will continue to actively monitor NYMEX pricing and basis differentials and remains prepared to opportunistically hedge additional production volumes as market conditions evolve. The Company appreciates the continued support of its stakeholders and looks forward to providing further updates on the first Cotton Valley test well. Qualified Person's Statement Gary McMurren, Chief Operating Officer, who has over 25 years of relevant experience in the oil industry, has approved the technical information contained in this announcement. Mr. McMurren is registered as a Professional Engineer with the Association of Professional Engineers and Geoscientists of Alberta and received a Bachelor of Science degree in Chemical Engineering (with distinction) from the University of Alberta. Annual Meeting of Shareholders Southern's Annual Meeting of Shareholders is to be held at the Company's offices located at Suite 2400, 333 - 7th Avenue S.W., Calgary, Alberta, T2P 2Z1, on Wednesday, September 30, 2026 at 10:00 a.m. (Calgary time) and by webcast via Zoom, formal notice of which is available on the Company's website and on SEDAR+ at www.sedarplus.ca. For further information about Southern, please visit our website at www.southernenergycorp.com or contact: About Southern Energy Corp. Southern Energy Corp. is a natural gas exploration and production company characterized by a stable, low-decline production base, a significant low-risk drilling inventory and strategic access to premium commodity pricing in North America. Southern has a primary focus on acquiring and developing conventional natural gas and light oil resources in the southeast Gulf States of Mississippi, Louisiana, and East Texas. Our management team has a long and successful history working together and have created shareholder value through accretive acquisitions, optimization of existing oil and natural gas fields and re-development strategies including horizontal drilling and multi-staged fracture completion techniques. READER ADVISORIES Mcfe Disclosure. Natural gas liquids volumes are recorded in barrels of oil (bbl) and are converted to a thousand cubic feet equivalent (Mcfe) using a ratio of six (6) thousand cubic feet to one (1) barrel of oil (bbl). Natural gas volumes recorded in thousand cubic feet (Mcf) are converted to barrels of oil equivalent (boe) using a ratio of six (6) thousand cubic feet to one (1) barrel of oil (bbl). Mcfe and boe may be misleading, particularly if used in isolation. A boe conversion ratio of 6 Mcf:1 bbl or a Mcfe conversion ratio of 1 bbl:6 Mcf is based in an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. In addition, given that the value ratio based on the current price of oil as compared with natural gas is significantly different from the energy equivalent of six to one, utilizing a boe conversion ratio of 6 Mcf:1 bbl or a Mcfe conversion ratio of 1 bbl:6 Mcf may be misleading as an indication of value. Short Term Results. References in this press release to current production rates and other short-term production rates are useful in confirming the presence of hydrocarbons, however such rates are not determinative of the rates at which such wells will commence production and decline thereafter and are not indicative of long-term performance or of ultimate recovery. While encouraging, readers are cautioned not to place reliance on such rates in calculating the aggregate production of Southern. The Company cautions that such results should be considered preliminary. Unit Cost Calculation. For the purpose of calculating unit costs, natural gas volumes have been converted to a boe using six thousand cubic feet equal to one barrel unless otherwise stated. A boe conversion ratio of 6:1 is based upon an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. This conversion conforms with NI 51-101. Boe may be misleading, particularly if used in isolation. Product Types. Throughout this press release, "crude oil" or "oil" refers to light and medium crude oil product types as defined by NI 51-101. References to "NGLs" or "natural gas liquids" throughout this press release comprise pentane, butane, propane, and ethane, being all NGLs as defined by NI 51-101. References to "natural gas" throughout this press release refers to conventional natural gas as defined by NI 51-101. NI 51-101 includes condensate within the product type of "natural gas liquids". The Company has disclosed condensate as combined with and/or separately from other natural gas liquids in this press release since the price of condensate as compared to other natural gas liquids is currently significantly higher and the Company believes that this crude oil and condensate presentation provides a more accurate description of its operations and results. Oil and gas metrics. This press release contains metrics commonly used in the oil and natural gas industry which have been prepared by management. These terms do not have a standardized meaning and the Company's calculation of such metrics may not be comparable to the calculation method used or presented by other companies for the same or similar metrics, and therefore should not be used to make such comparisons. Management uses these oil and gas metrics for its own performance measurements and to provide shareholders with metrics to compare the Company's operations over time. Readers are cautioned that the information provided by these metrics, or that can be derived from the metrics presented in this press release, should not be relied upon for investment or other purposes. Abbreviations. Please see below for a list of abbreviations used in this press release. bbl barrelsbbl/d barrels per dayboe barrels of oilboe/d barrels of oil per dayMcf thousand cubic feet Mcf/d thousand cubic feet per dayMcfe thousand cubic feet equivalent Mcfe/d thousand cubic feet equivalent per dayNI 51-101 National Instrument 51-101 Standards of Disclosure for Oil and Gas ActivitiesNYMEX New York Mercantile Exchange Forward-Looking Statements. Certain information included in this press release constitutes forward-looking information under applicable securities legislation. Forward-looking information typically contains statements with words such as "anticipate", "believe", "expect", "plan", "intend", "estimate", "propose", "project", "continue", "evaluate", "forecast", "may", "will", "can", "target", "potential", "result", "could", "should" or similar words suggesting future outcomes or statements regarding an outlook (including negatives and variations thereof). Forward-looking information in this press release may include, but is not limited to statements concerning the Company's asset base including the development of the Company's assets, positioning, oil and natural gas production levels, the Company's anticipated operational results, Southern's growth strategy and the expectation that it will continue to enhance shareholder value, Southern's expectation that improved regional pricing and a strengthened financial foundation will support execution of its capital program, sustainable growth of the Company and long-term value creation, forecasted natural gas pricing, Southern's ability to re-initiate growth in deploying the net proceeds from the equity financing on capital expenditures, drilling and completion plans, expectations regarding commodity prices and service costs, expectations regarding the performance characteristics of the Company's oil and natural gas properties, the Company's hedging strategy and execution thereof (including its intention to continue monitoring commodity prices and basis differentials and to hedge additional volumes as deemed appropriate), the ability of the Company to achieve drilling success consistent with management's expectations, the Company's expectations regarding completion of the remaining DUC and the drilling operations and production volumes in the Mechanicsburg and Greens Creek Fields (including the timing thereof and anticipated costs and funding as well as the evaluation of well performance and regional natural gas pricing to inform such decisions), the Company's expectations regarding the resolution of regulatory disputes (including the anticipated timing thereof) and impact of FERC rate determinations on shut-in production volumes, the resolution and timing of the Transportation Dispute and any related FERC proceedings; the Company's ability to realize sustained pricing premiums due to its strategic location in the Southeast U.S., the effect of market conditions on the Company's performance and expectations regarding the use of proceeds from all sources including the senior term loan. Statements relating to "reserves" and "recovery" are also deemed to be forward-looking statements, as they involve the implied assessment, based on certain estimates and assumptions, that the reserves described exist in the quantities predicted or estimated and that the reserves can be profitably produced in the future. The forward-looking statements contained in this press release are based on certain key expectations and assumptions made by Southern, including, but not limited to, the timing of and success of future drilling, development, completion and testing activities, the performance of existing wells, the performance of new wells including lower decline rate from multi-lateral wells, the availability and performance of drilling rigs, facilities and pipelines, the geological characteristics of Southern's properties, the characteristics of the Company's assets, , the Company's ability to continue as a going concern, availability of alternative debt and equity financing opportunities, the successful application of drilling, completion and seismic technology, the benefits of current commodity pricing hedging arrangements, Southern's ability to enter into future derivative contracts on acceptable terms, Southern's ability to secure financing on acceptable terms, prevailing weather conditions, prevailing legislation, as well as regulatory and licensing requirements, affecting the oil and gas industry, the Company's ability to obtain all requisite permits and licences, prevailing commodity prices, price volatility, price differentials and the actual prices received for the Company's products, royalty regimes and exchange rates, the impact of inflation on costs, the application of regulatory and licensing requirements, the availability of capital, labour and services, the creditworthiness of industry partners, the Company's ability to source and complete asset acquisitions, and the Company's ability to execute its plans and strategies. Although Southern believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because Southern can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, risks associated with the oil and gas industry in general (e.g., operational risks in development, exploration and production, the uncertainty of reserve estimates, the uncertainty of estimates and projections relating to production, costs and expenses, regulatory risks and health, safety and environmental risks), constraint in the availability of labour, supplies, or services, the impact of pandemics, commodity price and exchange rate fluctuations, credit risk, risk of default, geo-political risks, political and economic instability, the imposition or expansion of tariffs imposed by domestic and foreign governments or the imposition of other restrictive trade measures, retaliatory or countermeasures implemented by such governments, including the introduction of regulatory barriers to trade and the potential effect on the demand and/or market price for the Company's products and/or otherwise adversely affects the Company, wars (including the Russo-Ukrainian war, the U.S.-Iran conflict and the Israel-Hamas conflict), hostilities, civil insurrections, inflationary risks including potential increases to operating and capital costs, changes in legislation impacting the oil and gas industry, including but not limited to tax laws, royalties and environmental regulations (including greenhouse gas emission reduction requirements and other decarbonization or social policies and including uncertainty with respect to the interpretation of omnibus Bill C-59 and the related amendments to the Competition Act (Canada)), risks related to the Company's ability to meet its financial obligations and covenants, adverse weather or break-up conditions, and uncertainties resulting from potential delays or changes in plans with respect to exploration or development projects or capital expenditures. These and other risks are set out in more detail in Southern's latest Management Discussion and Analysis for the period ended June 30, 2026 and the Company's annual information form for the year ended December 31, 2025, which are available on the Company's website at www.southernenergycorp.com and filed under the Company's profile on SEDAR+ at www.sedarplus.ca. The forward-looking information contained in this press release is made as of the date hereof and Southern undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, unless required by applicable securities laws. The forward-looking information contained in this press release is expressly qualified by this cautionary statement. Future Oriented Financial Information. This press release contains future-oriented financial information and financial outlook information (collectively, "FOFI") about Southern's capital expenditures, general and administrative expenses, hedging, natural gas pricing and prospective results of operations and production, all of which are subject to the same assumptions, risk factors, limitations, and qualifications as set forth in the above paragraphs. FOFI contained in this document was approved by management as of the date of this document and was provided for the purpose of providing further information about Southern's future business operations. Southern and its management believe that FOFI has been prepared on a reasonable basis, reflecting management's best estimates and judgments, and represent, to the best of management's knowledge and opinion, the Company's expected course of action. However, because this information is highly subjective, it should not be relied on as necessarily indicative of future results. Southern disclaims any intention or obligation to update or revise any FOFI contained in this document, whether as a result of new information, future events or otherwise, unless required pursuant to applicable law. Readers are cautioned that the FOFI contained in this document should not be used for purposes other than for which it is disclosed herein. Changes in forecast commodity prices, differences in the timing of capital expenditures, and variances in average production estimates can have a significant impact on the key performance measures included in Southern's outlook. The Company's actual results may differ materially from these estimates. Specified Financial Measures. This press release provides various financial measures that do not have a standardized meaning prescribed by International Financial Reporting Standards ("IFRS"), including non-IFRS financial measures, non-IFRS financial ratios and capital management measures. These specified financial measures may not be comparable to similar measures presented by other issuers. Southern's method of calculating these measures may differ from other companies and accordingly, they may not be comparable to measures used by other companies. Adjusted Funds Flow from Operations, and net debt and Adjusted Funds Flow from Operations per Share are not recognized measures under IFRS. Readers are cautioned that these specified financial measures should not be construed as alternatives to other measures of financial performance calculated in accordance with IFRS. These specified financial measures provide additional information that management believes is meaningful in describing the Company's operational performance, liquidity and capacity to fund capital expenditures and other activities. Please see below for a brief overview of all specified financial measures used in this release and refer to the Company's MD&A for additional information relating to specified financial measures, which is available on the Company's website at www.southernenergycorp.com and filed under the Company's profile on SEDAR+ at www.sedarplus.ca. "Adjusted Funds Flow from Operations" (non-IFRS financial measure) is calculated based on cash flow from operative activities before changes in non-cash working capital and cash decommissioning expenditures. Management uses adjusted funds flow from operations as a key measure to assess the ability of the Company to finance operating activities, capital expenditures and debt repayments. "Adjusted Funds Flow from Operations per Share" (non-IFRS financial measure) is calculated by dividing Adjusted Funds Flow from Operations by the number of Southern shares issued and outstanding and are rounded to the nearest cent. "Net Debt" (capital management measure) is monitored by management, along with adjusted working capital, as part of its capital structure in order to fund current operations and future growth of the Company. Net debt is defined as long-term debt plus adjusted working capital surplus or deficit. Adjusted working capital is calculated as current assets less current liabilities, removing current derivative assets/liabilities, the current portion of bank debt, the warrant liability, and the current portion of lease liabilities. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. 1 Comprised of 129 bbl/d light and medium crude oil, 30 bbl/d of condensate, nil bbl/d NGLs and 9,506 Mcf/d conventional natural gas2 See "Reader Advisories - Specified Financial Measures" SOURCE: Southern Energy Corp. View the original press release on ACCESS Newswire

Get insights on thousands of stocks from the global community of over 7 million individual investors at Simply Wall St. Southern stock has delivered a 68.4% return over the past five years, yet its low value score suggests the current price of US$92.69 does not screen as an obvious bargain on broader checks. Over the last five years, Southern has returned 68.4%, which puts recent short term share price softness in the context of a strong longer run for investors. New large load contracts, such as the 17 GW contracted across Southern's territory, and data center projects that include flexible demand response can support long term earnings expectations, while sizeable convertible note offerings may add balance sheet and dilution risk that matters for how the stock is priced. Southern only passes 1 of 6 valuation checks, which points to a stock that leans expensive rather than offering a clear value cushion. The issue now is whether Southern's recent fundamentals and capital decisions justify that richer valuation profile or leave limited room if sentiment cools. Find out why Southern's 1.1% return over the last year is lagging behind its peers. P/E is a natural yardstick for a mature utility like Southern, where earnings are a key anchor for how investors think about value. On this measure, Southern trades on a P/E of 22.9x, compared with an Electric Utilities industry average of 20.8x and a peer average of 21.8x. That points to a modest premium versus sector benchmarks rather than a stretched outlier. The fair P/E ratio implied by the broader model is 25.9x, which is higher than where Southern trades today. That gap suggests the current price does not fully reflect the company profile captured in the model. Despite recent attention on large load contracts such as the 17 GW now signed across Southern's territory, the market multiple still prices the stock below this tailored fair value marker. On the P/E multiple, Southern stock appears undervalued relative to what the model suggests investors might typically pay for these earnings. See what the numbers say about this price — find out in our valuation breakdown. Simply Wall St Narratives for Southern pick up where the P/E puzzle leaves off by spelling out what would need to happen to Southern's growth, margins and earnings for the stock to justify a meaningfully higher or lower price than today. Each narrative ties its number to a clear view of how Southern's future growth, profitability and risks might evolve, which you can revisit on the Community page as new information comes through. If you have a clear view on whether Southern's new large load contracts and recent convertible note offerings leave the stock with more upside or more risk, consider adding your own Narrative to the Simply Wall St community so your number driven case is on the record. You can then track how Southern's story and your thesis hold up as future results and project updates come through. Do you think there's more to the story for Southern? Head over to our Community to see what others are saying! Southern screens as modestly undervalued on the P/E multiple, yet broader valuation checks look weak, which tempers how much weight to put on that signal. The stock now hinges on whether earnings from large load contracts can support that premium multiple while the balance sheet absorbs recent convertible funding without eroding per share value. The key debate from here is whether current pricing reflects a solid utility with added growth optionality or whether it underestimates dilution and execution risk around these projects. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include SO. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Power supplier The Southern Company SO reported second-quarter 2026 adjusted earnings of $1.13 per share, up 22.8% from 92 cents a year earlier. The figure beat the Zacks Consensus Estimate of $1.01 per share by 11.88%, supported by customer usage and growth, utility investment, equity-method earnings and lower income taxes. Operating revenues edged up 0.1% year over year to $6.98 billion but missed the consensus mark of $7.36 billion by 5.18%. Data center usage jumped 55% as large-load customers continued to ramp demand. Southern Company (The) price-consensus-eps-surprise-chart | Southern Company (The) Quote Weather-normal retail electricity sales increased 2.3% year over year in the first half of 2026, marking the strongest growth through June in nearly two decades. Commercial sales rose 7.4% in the quarter, while industrial volumes were flat after weather adjustment. Residential sales declined 0.7% on a weather-normal basis in the quarter, though Southern added about 11,000 electric residential customers. Net electric customer additions exceeded 40,000 over the past year, helping offset softer household usage. Retail electric fuel revenues fell $76 million year over year to $1.06 billion, while non-fuel retail electric revenues increased $63 million to $3.68 billion. Wholesale electric revenues advanced $18 million to $699 million and other electric revenues rose $22 million to $242 million. Natural gas revenues declined $13 million to $966 million, while other revenues decreased $10 million to $325 million. The mixed revenue performance left total operating revenues nearly unchanged from the prior-year quarter. Total operating expenses declined $8 million to $5.20 billion. Fuel and purchased-power costs fell $34 million and the cost of natural gas dropped $78 million. These benefits were partly offset by a $111 million increase in depreciation and amortization and a $20 million rise in non-fuel operations and maintenance expenses. Operating income increased $12 million to $1.78 billion. Allowance for equity funds used during construction rose $48 million, while earnings from equity-method investments increased $76 million. Income tax expense declined $102 million, helping lift net income attributable to Southern Company to $1.17 billion from $880 million. Southern added about 6 gigawatts of large-load contracts since its first-quarter call, bringing total contracted demand to 17 gigawatts across 31 projects. Another 8 gigawatts were in late-stage or finalizing phases, including 3 gigawatts expected to be completed in the near term. Data center system load exceeded 1.2 gigawatts, up more than 500 megawatts from a year earlier. The company’s prospective large-load pipeline remained above 75 gigawatts, while more than 12 gigawatts of contracted projects had begun construction. The company has 10 gigawatts of state-regulated, company-owned generation resources under construction, including thermal, battery storage and solar capacity. Active requests for proposals in Alabama and Georgia are intended to address additional needs in the early 2030s, though potential investments from those processes are not included in the current capital plan. Southern sourced $700 million of additional equity through at-the-market forward contracts during the quarter. This reduced its remaining projected equity need through 2030 to $1.1 billion, while management continued to target funds from operations to debt of about 17% by 2029. This Zacks Rank #3 (Hold) company now expects full-year 2026 adjusted earnings to be near or at the top of its $4.50-$4.60 per share guided range. Adjusted earnings for the first half reached $2.46 per share, compared with $2.15 in the prior-year period. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. For the third quarter, Southern projects adjusted earnings of $1.65 per share. Management expects customer growth, rising electricity sales and continued execution across regulated utilities and Southern Power to support performance in the second half. While we have discussed Southern’s second-quarter results in detail, let’s see how some other utilities have fared this earnings season. Exelon Corporation EXC posted second-quarter 2026 adjusted operating earnings of 43 cents per share, in line with the Zacks Consensus Estimate. Earnings increased 10.3% from 39 cents in the year-ago quarter. Higher distribution and transmission rates across several utilities supported the improvement. Revenues totaled $5.97 billion, beating the Zacks Consensus Estimate of $5.66 billion by 5.46%. Exelon generated $3.67 billion in operating cash flow during the first six months of 2026, up from $2.71 billion in the year-ago period. As of June 30, 2026, long-term debt was $50.31 billion compared with $47.41 billion as of Dec. 31, 2025. American Water Works Company Inc. AWK posted second-quarter 2026 adjusted earnings of $1.61 per share, which beat the Zacks Consensus Estimate of $1.59 by 1.3%. The bottom line increased 8.1% from $1.49 in the year-ago quarter. Earnings benefited from contributions coming from authorized rate increases, infrastructure investments and acquired operations. Revenues of $1.36 billion surpassed the Zacks Consensus Estimate of $1.28 billion by 6.2% and rose 6.2% year over year. Cash and cash equivalents totaled $191 million as of June 30, 2026, up from $98 million at the end of 2025. American Water reaffirmed adjusted earnings guidance of $6.02-$6.12 per share for 2026.  Management also maintained its long-term earnings and dividend growth targets of 7-9%. IDACORP, Inc. IDA reported second-quarter 2026 earnings of $1.79 per share, which topped the Zacks Consensus Estimate of $1.75 by 2.3%. The company’s earnings also improved 1.7% from $1.76 in the year-ago quarter. The year-over-year improvement was due to customer growth, rate changes and revenues from large contract customers. Total revenues in the second quarter of 2026 were $469.8 million, lagging the Zacks Consensus Estimate of $478 million by 1.8%. The long-term debt was $3.68 billion as of June 30, 2026, compared with $3.33 billion as of Dec. 31, 2025. IDACORP raised the lower end of its 2026 earnings guidance to $6.30-$6.45 per share from the previous range of $6.25-$6.45. IDA projects a capital expenditure of $1.3-$1.5 billion for 2026. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Southern Company (The) (SO) : Free Stock Analysis Report Exelon Corporation (EXC) : Free Stock Analysis Report IDACORP, Inc. (IDA) : Free Stock Analysis Report American Water Works Company, Inc. (AWK) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in Southern Company (The)? Here are five stocks we like better. Southern reported strong Q2 results, with adjusted EPS of $1.13, up $0.21 year over year and $0.13 above its estimate. The company now expects full-year adjusted EPS near or at the top of its $4.50–$4.60 guidance range. Large-load demand is expanding rapidly, driven by data centers and industrial projects. Southern secured 6 gigawatts of new contracted load during the quarter, including a 3.2-gigawatt, 25-year agreement with OpenAI, while its broader contracted and prospective pipeline exceeds 17 and 75 gigawatts, respectively. Growth could create significant investment opportunities in generation, transmission and pipeline infrastructure as electricity demand rises. Southern also emphasized customer protections in large-load contracts and reduced its projected remaining equity need through 2030 to $1.1 billion. Sony Is Going All-Digital—But Investors Should Watch This Instead Southern (NYSE:SO) reported second-quarter 2026 adjusted earnings of $1.13 per share, up $0.21 from the prior-year period and $0.13 above the company’s estimate, as higher electricity usage, customer growth and construction-related earnings supported results. Chief Financial Officer David Poroch said first-half adjusted earnings totaled $2.46 per share, above the company’s year-to-date expectations. Southern now expects full-year adjusted earnings to be near or at the top of its $4.50 to $4.60 per-share guidance range and provided a third-quarter adjusted EPS estimate of $1.65. → Why SK hynix Could Be the Best AI Chip Stock to Buy Now Microsoft’s Xbox Problem Is Bigger Than a Console War Chairman, President and CEO Chris Womack said economic-development activity and power demand across the Southeast remained strong, particularly from data centers and other large-load customers. During the quarter, Alabama Power added roughly 3 gigawatts through three projects, while Georgia Power signed a 25-year, 3.2-gigawatt electric-service agreement with OpenAI for a site near Savannah, Georgia. The OpenAI project is expected to begin taking service in phases beginning in 2028 and includes 1 gigawatt of flexible demand response. → Microsoft Just Flipped the AI Spending Narrative Overnight How the Memory Shortage Is Crushing the Gaming Industry Womack said the four projects together represent 6 gigawatts of newly contracted load. Including prior agreements, Southern’s electric subsidiaries now have more than 17 gigawatts of contracts and large-load agreements expected by the mid-2030s. The company’s prospective pipeline of large industrial and data-center projects remains above 75 gigawatts. Beyond the 17 gigawatts already contracted, Southern identified another 8 gigawatts of projects in late stages, including 3 gigawatts it expects could be finalized in the near term. Poroch said several of those prospective projects are likely to start ramping in 2028 and continue into the next decade. → Carrier Earnings Could Send the Stock to a New All-Time High Southern’s systemwide data-center load exceeded 1.2 gigawatts during the quarter, an increase of more than 500 megawatts from a year earlier. Data-center usage rose 55% from the second quarter of 2025 and was up 49% year to date, according to Poroch. Weather-normalized retail electricity sales increased 2.3% in the first half from the same period last year, which Poroch said was the company’s strongest sales growth through June in nearly two decades. Sales increased across residential, commercial and industrial customer classes. Southern added approximately 11,000 residential electric customers during the second quarter, bringing net electric customer additions to more than 40,000 over the past year. Weather-normalized commercial sales rose 7.4% in the second quarter and were 6% higher year to date. The company cited manufacturing and reshoring activity in Alabama, including primary metals, stone, clay, glass and pipeline-related segments, as contributors to industrial demand. Announcements in Southern’s electric territories during the quarter represented nearly $14 billion in investment and more than 3,000 jobs, led by data-center facilities in Alabama and an Amazon warehouse in Georgia, Poroch said. Southern said it has received approvals in recent years for 10 gigawatts of company-owned generation resources, including thermal, battery and solar assets, as well as hundreds of miles of transmission lines. Two battery sites are in service, while work continues on three combustion turbines at Plant Gaston. Requests for proposals are underway at Alabama Power and Georgia Power for additional generation resources needed in the early 2030s. Poroch said any company-owned projects selected through the processes and approved by state public service commissions would represent incremental investment beyond Southern’s current capital plan. Poroch said a rough rule of thumb for new generation capacity could be “about $2 billion or so” per gigawatt, covering a range of generation resources. He said spending related to potential projects could begin to enter the company’s projections around 2028, with assets potentially coming online in 2031 or 2032. Southern also sees potential to expand investments in FERC-regulated pipeline infrastructure as electricity demand and potential gas-generation needs rise across the Southeast. Womack said Southern’s large-load agreements include minimum bills designed to recover at least 100% of the incremental cost to serve customers, along with termination-payment provisions and collateral requirements. He said the structure is intended to protect existing customers and investors while supporting rate stability. Retail base rates at Southern’s two largest subsidiaries, Georgia Power and Alabama Power, are set to remain stable until 2029, according to the company. Womack said the OpenAI project’s demand-response capability can help reduce peak demand and benefit the broader system. On financing, Poroch said Southern sourced an additional $700 million of equity through its at-the-market program during the second quarter, using forward contracts that can settle through 2028. The company said its projected remaining equity need through 2030 has declined to $1.1 billion and reiterated its goal of reaching roughly 17% funds from operations to debt by 2029. Southern Power is also discussing opportunities to recontract assets as existing tolling arrangements expire. Womack said potential new agreements would involve energy and capacity under long-term power-purchase agreements rather than typical tolling structures. Southern Company (NYSE: SO) is an Atlanta-based energy holding company that provides electric and gas utility services and owns power generation assets across the United States. Founded in 1945, the company operates a portfolio of regulated electric utilities and affiliated businesses that generate, transmit and distribute electricity to residential, commercial and industrial customers. Southern's principal regulated electric subsidiaries include Georgia Power, Alabama Power and Mississippi Power, which serve large portions of the southeastern United States. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Southern Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

Image source: The Motley Fool. Thursday, July 30, 2026 at 1:00 p.m. ET Chairman, President and Chief Executive Officer - Christopher C. Womack Chief Financial Officer - David P. Poroch Director of Investor Relations - Gregg MacLeod Need a quote from a Motley Fool analyst? Email [email protected] Operator: Good afternoon. My name is Christine, and I will be your conference operator today. At this time, I would like to welcome everyone to The Southern Company's Second Quarter 2026 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. As a reminder, this conference is being recorded. I would now like to turn the call over to Mr. Gregg MacLeod, Director of Investor Relations. Please go ahead, sir. Gregg MacLeod: Thank you, Christine. Good afternoon, and welcome to Southern Company's second quarter 2026 Earnings Call. Joining me today are Christopher C. Womack, Chairman, President and Chief Executive Officer of Southern Company and David P. Poroch, chief financial officer. Let me remind you that we will make 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, Form 10-Q, and subsequent securities filings. In addition, we will 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, I will turn the call over to Christopher C. Womack. Christopher C. Womack: Thank you, Greg. Good afternoon, everyone. And thank you for joining us for today's update. As you can see from the materials that were released this morning, Southern Company continues to perform exceptionally well which supports a very bright future. We reported strong adjusted earnings results for the second quarter with each of our businesses contributing to performance meaningfully above the estimate we provided last quarter. The extraordinary economic development momentum and demand for power across our Southeast region we have seen for the past several years continues particularly from data centers and other large load customers and our utilities are capturing this growth in a way that meaningfully benefits the customers and communities we are privileged to serve and support our long-term outlook. In just the last quarter, there were three projects across the state of Alabama, Alabama Power added approximately 3 GW, while Georgia Power signed a 3.2 GW 25-year contract for electric service with OpenAI at its recently announced site near Savannah, Georgia. This site, which is expected to take electric service in phases beginning in 2028 features 1 GW of flexible demand response helping to support reliable energy for all customers when demand is highest. Combined, these four projects representing 6 GW of newly contracted customer load along with agreements previously signed brings our total contract to large load agreements across our electric subsidiaries to over 17 GW by the mid-2030s. These projects are not just bringing in substantial construction work. They are creating thousands of permanent jobs and generating billions of dollars of investment for the local economies and our service territories. And we are proud to responsibly support this growth in a way that benefits the communities we serve. In Alabama, the three new contracts were a clear confirmation of the continued economic development momentum building across all our electric service territories. And our differentiated large load capabilities. Increasingly, our vertically integrated state-regulated model supports our ability to provide reliable power with speed and is an important differentiator for our new and existing customers. Our success attracting significant growth is a testament to the benefits that this model affords all of our customers. As a comprehensive one-stop shop, for power solutions and economic development our electric operating companies utilize long-range integrated system planning processes to coordinate timely development of generation, transmission, and distribution assets through well-structured and transparent regulatory processes that are designed to serve growth reliably. The Southeast with this robust network of transportation and logistics infrastructure diverse workforce, and a constructive business climate, continues to be highly attractive for all forms of economic development, including hyperscalers, data center developers, and other large industrial manufacturers. Looking ahead, the opportunities for additional new large load and data center customer growth remains robust. New projects continue to be added to our prospective pipeline, large industrial and data center projects, which remains well above 75 GW. We are encouraged by the continued progression of potential large load projects in varying stages of advanced development. Beyond the 17 GW already contracted there are an additional 8 GW of projects in late stages including 3 GW projected to be finalized in the near-term. Clearly, the benefits of our approach are resonating with both new customers and several repeat large load customers during a time of increasing power demand. We are privileged to support this transformative growth. David, I will now turn the call over to you for an update on our financial performance. David P. Poroch: Thanks, Christopher C. Womack, and good afternoon, everyone. For the second quarter of 2026, our adjusted EPS was $1.13 per share, $0.21 higher than the second quarter of 2025 and $0.13 above our estimate. The primary drivers of our performance for the current quarter compared to last year included increased usage and customer growth, along with higher AFUDC from ongoing construction projects, higher earnings from equity method investments, and tax related impacts at our state-regulated electric utilities. The improved results in the second quarter compared to the second quarter of 2025 were also supported by contributions from Southern Company Gas, and some of our smaller complementary businesses, including PowerSecure. Where the distributed generation, backup generation, and bridge power solutions markets continue to expand. This was partially offset by interest expense from higher debt balances, and dilution from additional shares outstanding. A complete reconciliation of year-over-year earnings is included in the materials we released this morning. Combined with our first quarter results, our adjusted EPS for the first half of the year is $2.46, well above our year-to-date expectations. With customer rates held stable at our 2 largest subsidiaries, this strong performance continues to be driven by increased sales and customer growth, and strong execution across each of our regulated businesses and Southern Power. These results exemplify Southern Company's commitment to delivering for customers and investors. Looking towards the second half of the year, we anticipate this momentum continuing and now project our full-year 2026 adjusted earnings to be near or at the top of our 2026 adjusted EPS guidance range of $4.50 to $4.60. Our adjusted EPS estimate for the third quarter is $1.50 per share. Turning now to retail electricity sales. Year to date, weather-normal retail electricity sales were 2.3% higher than the first half of 2025, consistent with the trends observed earlier this year. This represents the highest retail sales growth through June we have seen in nearly two decades. Year to date, weather-normal retail electricity sales are higher across all customer classes, bolstered by continued residential customer additions diverse industrial and manufacturing expansions, and significantly increasing usage from data centers. Approximately 11,000 new electric residential customers were added in the quarter. Bringing our net electric customer adds to over 40,000 in the last year. Manufacturing and reshoring trends, particularly in Alabama, in the primary metals, stone, clay, glass, and pipeline segments, supported continued industrial strength. Weather normal commercial sales grew 7.4% in the second quarter bringing year-to-date weather-normal commercial sales to 6% higher than the first half of 2025. Notably, data center usage was 55% higher compared to the second quarter of 2025 and is now up 49% year-to-date. Primarily due to accelerating load ramps from our large load customers. System wide, our data center load now exceeds 1.2 GW, an increase of more than 500 megawatts over the prior year and we expect this trend to continue accelerating as our 17 GW of contracted demand comes online. As Chris mentioned earlier, economic development activity in the Southeast continues to be strong. In the last quarter alone, announcements were made for nearly $14 billion of investment and more than 3,000 new jobs. Led by several new data center facilities in Alabama, and a new Amazon warehouse in Georgia. The projects announced in the second quarter marked the second-highest investment level ever recorded in our electric territories, underscoring the strength of regional trends in economic development and, ultimately, helping shape future growth opportunities. Turning to our infrastructure buildout. The continued success of our operating territories in attracting significant new load is driving the need for additional new power generation, and infrastructure across our Southeast region. Over the past several years, we work constructively with regulators to meet the demand for a growing system securing approvals, for 10 GW of new company-owned generation resources. Including thermal, battery, and solar resources as well as hundreds of miles of new transmission lines. With the first 2 of several battery sites in service and benefiting customers, and work on the 3 combustion turbines and Plant Yates advancing towards completion in the coming quarters, we continue to execute on the construction of our portfolio, of new build generation projects. As our projected incremental load needs grow beyond our system's current, and expected supply of generation capacity into the next decade, we remain well positioned to respond. Ongoing request for proposals or RFPs at both Alabama Power and Georgia Power are underway for potential additional generation resources to help ensure that we can continue to provide a reliable and affordable service to all customers. These transparent and orderly processes are designed to facilitate a timely and cost-effective procurement of new generation needs in the early 2030s. To the extent that company-owned resources are selected through these active RFP processes and ultimately authorized by the respective PSCs these new generation investments would represent substantial incremental investment upon our current base capital plan. As future capital investment opportunities materialize, we remain committed to funding incremental capital investments in a credit-supportive manner. We continue to proactively address our identified equity needs to support our path towards 17% FFO to debt by 2029. In the second quarter, we sourced an additional $700 million of equity through our at-the-market or ATM program with forward contracts to settle at our discretion through 2028. Together with the significant amount of equity previously sourced, we have reduced our projected remaining equity need by 2030 to $1.1 billion. Our proactive shareholder-friendly equity strategy combined with our disciplined approach in the debt capital markets and access to low-cost DOE loans. Continues to position us well towards our goal of efficiently meeting our future financing needs and achieving our long-term credit objectives. I will now turn the call back over to Christopher C. Womack. Christopher C. Womack: Thank you, David. We are truly in transformative times for the energy industry and our nation. And Southern Company has continually demonstrated that we are executing on this extraordinary growth in a way that protects and benefits customers and communities. Last week, Southern Company electric system was proud to formally reinforce this commitment by joining the National Ratepayer Protection Pledge. Alongside several other utilities. This pledge aligns with the Southern Company system's well-established approach to serving growth in a responsible manner while maintaining rate stability and reliability for millions of households and small businesses across the Southeast. We are confident the approach we are taking will deliver lasting benefits as we deliver rate stability for our customers. Recall, the framework under which we approach contracting with large load customers includes pricing with minimum bills, to cover at least 100% of the incremental cost to serve. Large load customers are paying their full share. We also include provisions with strong protections in the form of termination payments backed by significant high credit quality collateral requirements that provide an additional layer of security. This large load contracting structure helps ensure investors and customers are protected while providing meaningful savings for existing customers. With retail base rates held stable in both Georgia and Alabama, until 2029, and significant customer benefits identified and committed to based on previously signed large load contracts We are demonstrating that when growth is done right, everyone benefits. Across our businesses, we continue to demonstrate exceptional execution and meaningful progress delivering on this growth. Southern Company has a bright future, especially when considering the strength of the Southeast economy, the likelihood of additional large load contracts, incremental capital investment opportunities across our state-regulated utilities, and our ability to capture value across the energy value chain through Southern Power. investments in southeastern natural gas infrastructure, and distributed and bridge power opportunities through complementary businesses like PowerSecure. This extraordinary growth continues to strengthen our business fundamentals and expand capital investment opportunities well into the next decade and we continue to see momentum building in support of an improving growth outlook into the future. The success we have had in the first half of the year positions us exceptionally well to deliver on our near-term objectives while reinforcing and strengthening our confidence in our long-term outlook. And our goal to be towards the top half of our long-term earnings trajectory. Ultimately, this is a long-term business. In which capital is deployed to serve customers for many decades As we deliver for the communities we serve, each and every day as we work towards our goal to provide sustainable long-term growth and outstanding financial integrity year after year. We are well positioned to continue executing with a discipline that is rooted in our long standing commitment to our customers, and investors alike. As we conclude our prepared remarks today, I want to emphasize Southern Company's commitment to making the communities that we have the privilege to serve better off because we are there. As a partner to the communities and cities where we operate, we were proud to help support. Atlanta's efforts over the last two months in hosting eight FIFA World Cup matches on the world stage. The success was a culmination of years of hard work by local, regional, and state leadership. and included significant investment in local infrastructure to welcome hundreds of thousands of visitors to Atlanta. This event was an excellent showcase for the Southeastern United States and an opportunity to continue building upon the momentum that defines this region which will have an impact that will resonate for decades to come. Operator? We are now ready to take questions. Operator: Thank you. We will now be conducting a question-and-answer session. If you would like to ask a question, please press one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press two if you would like to remove your question from the queue. Participants using speaker equipment, it may be necessary to pick up your handset. one moment, please, while we poll for questions. Our first question comes from the line of Nick Campanella with Barclays. Please proceed with your question. Nick Campanella: Hey, good morning or good afternoon rather. Hope you are hearing me. Christopher C. Womack: Hey, Nick. David P. Poroch: We can hear you, Nick. Nick Campanella: Hey. How's it going? Alright. Just now that you have higher visibility on track megawatts and megawatts, load ramps, specifically, 2028 increase. 30 increased by a few gigawatts here. So how does that incremental sales revenue and visibility, how does that impact your ability to maybe extend or stay out further and kind of committed to on the regulatory front? And just, maybe you can kind of talk to that a little bit. Thanks. Christopher C. Womack: Thanks. Let me start, then I will turn it to David. But as we said in our prepared remarks, we do expect to be at the top half of our of our long-term earnings trajectory. And so as we think about that, we think about the opportunity that provides for us in terms of meeting our long-term outlook. But, clearly, as we think about the rate proceedings or regulatory proceedings, those are things that conversations we will have with regulatory bodies. But as we have extended our rate stability focuses in both Georgia and Alabama, We think it creates optionality for us to continue to provide rate stability for our customers. David, anything you want to add? David P. Poroch: Yeah. Thanks, Christopher C. Womack and hey. Good afternoon, Nick. Great question. As we work through these processes with the success that we have had in signing these contracts, you know, it does give us a great deal of flexibility and enhancing the benefits for customers. Clearly, we have got the ability to, look for more generation capacity through the structured processes that we have in Alabama and Georgia. And, like we have talked about in the past, we are probably about 1 GW or 2 away from if you will, selling out the capacity. That we had approved in Georgia last year. So now we are gonna work through that process And, you know, the success that we have had in signing these contracts really gives us some durability toward the future. And additional confidence in being able to deliver on our goals well into the into the next decade. Nick Campanella: Thanks for those thoughts. And then maybe on the 3 GW you are finalizing stages for, is that within the 2030 window, or is it after? And what are kind of the key milestones you still need to get through on those 3 GW of finalizing? Thank you. David P. Poroch: Sure. No for sure. Working through those contracts, those are likely to go into 2028 and beyond. So, they will, like every other, big data center project, large load customer, have a ramp-up period. Couple of them that we are working on would initiate that ramp-up in 2028 and bring us into the next decade. Christopher C. Womack: Thank you. Thanks, Nick. Thanks, Nick. Operator: Our next question comes from the line of Shahriar Pourreza with Wells Fargo. Please proceed with your question. Christopher C. Womack: what is up, Shahriar? How are you doing, man? Shahriar Pourreza: Yeah. Good. How are you doing? How are you doing? Doing great. Wonderful. Excellent. Christopher C. Womack: So, just, Christopher, on Southern Power, the existing tolling agreements are going to start to roll off. I know there is obviously an opportunity to repurpose the capacity towards serving the hyperscalers. Can you maybe discuss how you are thinking about that opportunity set Have conversations with the hyperscalers begun with these assets? And would any opportunities be captured within your existing 75 gigawatt pipeline? I guess, what does this mean to the plan, I guess? Christopher C. Womack: Yeah. Yeah. And, Shahriar, we have talked about this, I think, on a number of calls in terms of the opportunity as these contracts begin to roll off and expire. The opportunity for recontracting. And so the team is now in the midst of having those conversations with a host of different counterparties that you understand our risk profile there in terms of making sure that they are creditworthy counterparties. But you look at in terms of where they were contracted from a pricing standpoint, in terms of where the market is today, we do see upside opportunities in those pricing opportunities. That will contribute to the durability and the length of our long-term plan So we talked about this a good bit with you guys. And so that is where we are, and we are gonna continue to pursue this opportunity as we move down that path and as these contracts expire. And the opportunities for recontracting presents itself. Shahriar Pourreza: Got it. And these would not just be typical tolling agreements. They would be the energy and capacity side. I am assuming under a long-term PPA. Correct? Got it. Shahriar Pourreza: Perfect. Okay. You got it. Got it. And then I know, Christopher, your favorite topic is, new nuclear. Shahriar Pourreza: Right? So, I guess, with sort of lessons learned between unit 3 and 4 and sort of this big attention now to large-scale reactors Should there be, like, any financial backing from the government in helping taking on some of the cost overrun risk Is that something Southern would be interested in building, i.e., through the back end? Just any color on potentially participating in this consortium or you just looking to license the blueprints? Thanks. Christopher C. Womack: Shahriar, thank you very much. And you have heard me talk a lot about the importance of new nuclear helping this country meet this incredible moment that is in front of us. I mean, I do think as we look into the 2030s this country needs to have, particularly in the mid-2030s, have to have some more nuclear units in operation. I have to give a great big shout out and compliment to the administration. I mean, there are number of actions they have taken on the regulatory front with bringing groups together around long-lead-time items just a lot of things that they are doing, and we are having a lot of conversations with them about how to make this a reality. I mean, Southern Company is not going to be next. Let me be clear about that. But we are going to continue to work constructively and very I would say, pretty aggressively with this administration. And with a lot of other parties to see how we can get this done. Because I do think it is important from an energy policy standpoint, from the economy, to meet this moment and meet this demand that we see in the marketplace today. Shahriar Pourreza: Just, I guess, the follow-up is are you finding traction with the hyperscalers taking on cost overrun risk above budgeted amounts for these AP1000s? Christopher C. Womack: I do not want to get ahead of kind of that firm conclusion. But, yes, we are having conversations with them in terms of what role they can play in this conversation, in this equation. Shahriar Pourreza: Fantastic. Thank you guys so much. I appreciate it. See you soon. Thanks, Shahriar. Appreciate you, man. Operator: Our next question comes from the line of Carly Davenport with Goldman Sachs. Please proceed with your question. David P. Poroch: Hey, Carly. Carly Davenport: Hey, good afternoon. Thanks for taking the questions. Maybe to start, you have talked in the past about the potential for upside on the capital plan related to FERC pipeline investments. Anything new on that front in terms of timing, especially as you think about the incremental RFPs that maybe could point to some incremental gas plant builds? David P. Poroch: Sure, Carly. Thanks. Great question. You know, like we have talked about with the contracts that we are signing, the growth in the Southeast region, the strong economy, we definitely see opportunities in our FERC-related pipeline FERC-regulated, I should pipeline investments We have talked about some of those. But, you know, as the opportunities continue to grow, we do see the possibility of expanded opportunities in, in those, investments that currently hold. So really excited about those prospects. You know, the RFPs that we have got in place and the and the press processes that we have in our regulated jurisdictions will help inform that. But we see great potential. In Southeast to continue to grow those investments. Christopher C. Womack: Yeah. Carly, the only thing I would add is that infrastructure you know, I mean, across the Southeast, and we you have you have heard us say it before, is needed to support this growth. That is here and for the growth that is to come. So there is more to be done here. We think there is real opportunity for us in terms of all the pipeline expansion opportunities to align with the needs that we have that are that are that are portrayed in our RFPs. Carly Davenport: Got it. Okay. that is really helpful. And then just to follow-up on the RFPs that you have ongoing for the generation needs through 2032. Did those filings already contemplate some of the progression in the load pipeline that you have seen over the last quarter or so? And is there potential room for upside on even incremental to the incremental RFPs if you think about the conversion of the pipeline? David P. Poroch: Incremental to the incremental. I love that term. To think about how to how to use that. Appreciate that. But, yeah, the opportunities that we see there, are well baked into the RFPs Now we talked about our load forecast and the processes that we use to you know, in a in a rather conservative way, project what that need could be. As we continue to sign these contracts, that is really gonna be the foundation for the RFPs that we have both in Alabama and Georgia And so there is certainly potential out there. To go and procure more generation than we have identified right now. We just cannot get ahead of the process. there is a you know, a thorough screening. Structure good vetting, and, everybody's gonna have an opportunity to, participate in those processes. And so and, also, I think it is it is worth reminding that as we have regularly say, you know, there is not placeholders in our capital plan. We do not get ahead of our regulators. And so, obviously, you can see how the upside that we have talked about is not in our capital plan right now. So RFPs that are open in Alabama, the RFPs that are open in Georgia, none of that is contemplated in our capital forecast. at the moment. Christopher C. Womack: Thing I would add. The OpenAI contract in Georgia pushes us beyond our recently approved capacity by right around 1 GW. So just making sure that was real clear terms of where we are. And what the upside opportunities are. Carly Davenport: Got it. Very clear. Thank you guys for the time. K. Operator: Our next question comes from the line of Stephen D’Ambrisi with RBC Capital Markets. Please proceed with your question. Christopher C. Womack: Hi, Stephen. Stephen D’Ambrisi: Hey, good afternoon. Thanks very much for taking my question. Just had a quick one, kind of a follow-up on Carly's question actually. Just to put a little bit of a finer point on it, it is my understanding that any basically, any new incremental load, especially large load in Alabama would drive basically incremental generation requirements. So, obviously, we have the RFP outstanding, but if the load forecast is up 3 GW, in the quarter and then you are talking about OpenAI, at least 1 GW. But I think the RFP is 2 to 6. But is the range beyond that as well. Like, can you just frame is this 4 to 5 plus gigawatts of gen that we could put some type of, you know, capacity multiple on and try and, you know, estimate what the size is? Or obviously, I do not wanna put the cart in front of the horse, but wanna make sure we are we are level setting on what is in the plan. And what the opportunity is. David P. Poroch: Yeah. Great question. And really a good way to think about it. Appreciate your thought on not getting in front of the process. And we are we are definitely focused on that. But I think the way you are thinking about it is directionally correct. You know, we have got the newly signed contracts in Alabama. that is gonna inform that. that is about 3 GW right there, contracts signed. We are about 1 GW or so oversubscribed, if you will. In Georgia based on what we have signed. And keep in mind, I think we have shared this in the past. Maybe a decent rule of thumb to think about capital opportunities going forward is about $2 billion or so, a little bit above maybe related to 1 GW of new generating capacity. You know, that kind of covers a broad range of different generating sources for us. Okay. Stephen D’Ambrisi: that is very helpful. And then just in terms of, like, the finalizing in late stage pipelines that you continue to fill up, obviously, you have seen great momentum and progression in kind of converting this, but again, like, how do these finalizing gigawatts kind of filter into this RFP? And just, like, what is the timeline for, like, when those loads would energize and when do we have to think about resources to serve those? Just trying to, like, sequence it out here. Christopher C. Womack: Sure. No. I mean, those projects will vary project by project. And so as we finalize those agreements and they are certified and blessed by the commissions, they will factor those into the RFP process going forward to match up with the year in which those resources are in fact needed. And so as we kind of in a position to inform as we finalize those contracts, that is information then that will be forthcoming. Once those contracts are finalized and the projects are approved. And as also then as we provide you with an upload updated load forecast. So there are a couple of proceedings that will that will unveil how that how that all lines up and matches up with the needs. And what the new opportunities are going forward. David P. Poroch: And I might add, you know, as we work through those processes, you know, to the extent that the company has selected to provide that generation resource, know, we are going to probably start feathering in some spend. it is also not currently contemplated in our in our projections in the sort of the 2028 time frame. That will start to feather in as we buildout that generation to come online in the 2030, 2031 timeline. Stephen D’Ambrisi: that is very helpful. Thanks, Christopher C. Womack. Thanks, David P. Poroch. Appreciate the time. Christopher C. Womack: Very good. Thanks, man. Have a good day. Operator: Our next question comes from the line of Jeremy Tonet JPMorgan. Please proceed with your question. Christopher C. Womack: Hey, Jeremy. Jeremy Tonet: Hi. Good afternoon. Just wanted to pivot to Mississippi, if I could, for a minute here. And we have had recent stakeholder conversations in the state where it seems like the state is particularly receptive to incremental data center activity, more than what we usually hear. And so I was just curious, I guess, your outlook there. If you could maybe talk a little bit more on the, you know, the opportunity set and what you see maybe down the pipeline there. Christopher C. Womack: Yeah. As we have said before, we have talked, I guess, number of quarters now about seeing this momentum migrate to the West. And you are clearly seeing that now in Alabama. You have seen success with 100 MW projects in Mississippi. And as we talk about our pipeline, that also reflects that ongoing activity, increasing activity that we also see in the Mississippi territory. Jeremy Tonet: Got it. Thank you for that. And then just wanted to go to OpenAI again. With demand response there. Just wondering how is demand response fitting into your conversations projects overall in the pipeline? Do you factor that into, you know, kind of your assumptions going forward? David P. Poroch: Yeah. So great question. And it does enter into all those conversations. And we would like to see that continue along and, stay flexible. You know, it is one of the actually, one of the great aspects that our 3 electric jurisdictions have where we are not limited to just a tariff. We can negotiate bilateral contracts that leverage the flexibility and the demands that these hyperscalers want and be able to price that right. So I think this is a great trend. And I would like to see it continue. And it is a part of every conversation that we have. Christopher C. Womack: You know, one of the things I would add there is that very early on in our conversations with hyperscalers, we begin to raise matters like technical requirements in terms of how their operations would impact the system, how it would impact the grid And not just being a taker, but also having creating flexibility to provide benefits to the entire grid. So I think as we look at this broader conversation about data centers, and I think these things have got to be communicated more broadly in terms of value and benefits and flexibility and how they are being supportive of the grid This is how they are being supportive of communities. I mean, there is an incredibly positive narrative and story to be told here. We all have got to be, I think, a little more voice these benefits a little more strongly in terms of making sure that gets into the conversations. about data centers. You know, as we hear all the conversation and noise right now about what is going on. So just a great win, I think, for us as well as the customer. Jeremy Tonet: Got it. Makes sense. Yeah. that is a story to be, kind of, told a bit more. Makes a lot of sense to us. Thank you. Christopher C. Womack: Thank you very much. Operator: Our next question comes from the line of Steven Fleishman with Wolfe Research. Please proceed with your question. Steven Fleishman: I am doing well. Thanks. So just could you just remind, in Georgia, for OpenAI and other customers who maybe are not investment-grade credits? Or strong investment-grade. How do the tariffs work for from a credit standpoint? Both the large load tariffs? David P. Poroch: Yeah. So remember the, if you will, the kind of 4 pillars under which we are we are negotiating and structuring these contracts. territories. You have got long-term contracts, and you hit it exactly the OpenAI contract is 25 years. Our minimum bills cover 100% of the incremental cost to serve. there are default provisions in there, and those default payments are tied to collateral. And so, you know, we have got a lot of flexibility in terms of the forms of collateral that we can take from these counterparties. And, you know, if a parent guarantee works, for us, depending on the credit quality of the counterparty, we will work with that. But in some instances where they are not quite at the investment-grade that we want to see. We will look to lines of credit We will look to surety bonds. We will look to other combinations. But at the end of the day, the collateral portfolio that we are going to take to back up these contracts is going to put us at about an A- or better position And, you know, keep in mind, you asked specifically about OpenAI, and that is about $20.8 billion of collateral that will be in the aggregate on full ramp. So I think we are in a really good spot for that. And keep in mind, that is we have the flexibility to, determine what collateral is accepted to us acceptable to us and puts us in a position of about A- or better. or better. So combination of, lines of credit surety bonds in this particular case. Steven Fleishman: Okay. that is very clear. Thank you. The RFPs could you I apologize if I missed this earlier, but just can you remind us just the timelines for Sure. Steven Fleishman: You know, finalizing answers and then approvals? Christopher C. Womack: Sure. So the process is going to play out through most of the rest of the summer into the fall. I think by year end, we should have a good idea of what projects were selected in through the RFP process. And then once those projects are selected, that will move into a certification process that will take place throughout much of 2027. So latter part of 2027, we will have good clarity as to what actually gets certified. And Alabama's in a fairly similar timeline. So you can kinda count on both the proceedings in Georgia and Alabama not exactly to run in parallel, but pretty close. Steven Fleishman: Okay. Then last question just on Georgia. Maybe you guys have clearly highlighted some of the benefits, both economic and customer rate benefits of the of the data centers. But then I think there is still been political noise there. Particularly maybe more from the Democrats' mix on data centers. Can you just give us maybe a little lay of the land there and is there any kind of appreciation growing for some of the benefits to kind of offset some of this kind of pushback? Or reported alleged pushback. Christopher C. Womack: Steven, I would I would say I would suggest you look at the OpenAI announcement. In terms of how that played out with that community. As they highlighted the project, but they also highlighted along with us in terms of the rate stability that comes along and benefits that come along with the project. but also how they communicated, kind of, the economic community benefits that align with that project. Yeah. I mean, there is noise all across the country about data centers. But I think there are no moratoriums across the state And, yeah, there may be some moratoriums in various counties, but I think you can see continue to see progress, activities, projects move forward. In our territory. Once again, I will say we have got to do a better job. Hyperscalers need to do a better job. Of explaining benefits and value and dispelling some of the misinformation that is out there on social media. But so you continue to see the pipeline continue to remain very full and continue to grow, and you continue to see projects advance and projects get approved all across our territory. David P. Poroch: Hey, Steven. it is David P. Poroch. Let me add a-- Oh, yeah. Please. I am I am sorry. Let me clarify one thing. I said you were asking specifically about OpenAI and collateral, and I was talking about the entire portfolio, so I apologize for that. You know, the whole portfolio of the 17 GW, we got about $21 billion of collateral. So, and I recognize you were speaking specifically to the OpenAI contract. So I just wanna clarify that for you. Steven Fleishman: Yeah. No. that is very helpful. Thank thanks so much. Anything else, Steven? Operator: Our next question comes from the line of Andrew Marc Weisel with Scotiabank. Please proceed with your question. Christopher C. Womack: Hi, Andrew. Andrew Weisel: Hey, everyone. Good afternoon. Congrats on the OpenAI deal. Certainly a massive project. I want to follow-up on the gigawatt of demand response. I agree that is a great resource. I know we something we have seen something similar in Michigan, but am I right that this is the first time you are doing something like that? And I know that the press release talks about long-term savings for customers, Have you quantified that? And is it more about accelerating speed to market for the center, or does the rest of the customer base see any benefits? Christopher C. Womack: I mean, the rest of the customer base will see benefits across the entire project. I mean, what we are doing is doing peak load periods, during high-demand periods, we are able to shave the peak. And so as we operate this economic system on a minute-by-minute, second-by-second basis, we are always looking to put online the most economical resource to meet and serve that load. And so that is tremendous value and benefits to the entire system. Having that resource be flexible. So it is an incredible value, incredible benefit to the entire grid. As we operate our system. Andrew Weisel: Okay. Great. And was this the first time you have done that for a data center? Christopher C. Womack: Yes. Yes. Yes. It is. Yep. Okay. Andrew Weisel: Greg. Hope to see more of it. Then secondly on equity, I know you have been pretty active. You settled $2 billion of the ATM that was priced in 2025, and you are you have priced $700 million that will settle through 2028. Are you able to give any guidance on how to think about the pace of equity and when it will actually hit over the next few years? I know a lot of moving parts there, and I do not expect you to get too specific. But how should we think about the year-by-year dilution and whether it will be ratable or be maybe accelerated? Any color there would be very helpful. David P. Poroch: Yeah. I think you said it really well. there are a lot of moving parts. In terms of making the decisions on how to draw those equity commitments. And keep in mind, they are available to us really at a few days notice. And so we have a great deal of flexibility to manage our liquidity, over that period. But, you know, we generally wanna shape that in terms of kind of mirroring, if you will, our capital outlays. For the construction effort that we are gonna have. But it also you know, dovetails into the plan to get near 17% FFO to debt by 2029. And I think we have settled about $2 billion in a in recently, and that, again, like I said, kinda helps us down the path of 17% FFO to debt. Now and bottom line, we are just going to continue to do this in the most shareholder-friendly manner that we can. Protect the credit quality and continue to draw on this as needs and opportunities become available. Andrew Weisel: Okay. Fair enough. We will model it out best we can. Thank you. Operator: Our next question comes from the line of Julien Patrick Dumoulin-Smith with Jefferies. Please proceed with your question. Christopher C. Womack: Julien Dumoulin-Smith, Hey there, sir. Julien Dumoulin-Smith: Hey. what is going on, guys? Thanks for the time. I appreciate it very much. Thank you very much. Absolutely. Nice of course. Nice to be done here. Look. Julien Dumoulin-Smith: I wanted to take this in the direction of rates. Rate cases, etcetera. I mean, obviously, transposing this real ongoing success How do you think about the opportunity here Georgia and Alabama, but especially in Georgia? Julien Dumoulin-Smith: Right? The you know, obviously, there is a regular cadence to these cases, and, obviously, there is a desire maybe at times to update tariffs and rate structure. But is there an opportunity to come back with bigger rate credit here? I mean, obviously, the number, I think, from last year at this point was north of half a billion. Is there a way to, again, do what you did before and effectively sidestep the revenue process here? Christopher C. Womack: Julien, let me say, as you know, we do not get ahead of our regulators. We work very constructively with them. Kinda hand in hand. I mean, our goal at all times is to keep rates as low as possible for our customers. And so we are thrilled with how we are delivering rate stability to our customers through 2028 And so mean, as we as we continue to sign these contracts, I mean, you know, there are conversations that we will have and have other considerations. About what is possible, but I am not gonna get ahead of any process or any conversation with the commission. At this point in time. But, yeah, growth provides us incredible opportunities to benefit customers, but also to continue to deliver rate stability. I mean, I was listening to a lot of commentary yesterday after the Fed decision. Lot of commentary about inflation and electric rates going up across the country. Electric rates are not going up. In our in our territory. We are delivering rate stability to our customers, and that is something that we are thrilled and privileged to make available and provide to our customers. That benefit. Ability is savings. one of things I will try to remind ourselves is that being flat or being frozen, there is real kind of nominal benefits in terms of savings. For customers as we hold rates flat going forward. Julien Dumoulin-Smith: Yeah. No. I mean, I clearly, clearly, you have demonstrated track record on that front. And then, Alabama, how do you think about this growth transposing itself a, in terms of the process? Like, how do you take this load growth and put it into rates? Again, I know you have got this rate CMP. I mean, in theory, that is how you bring on some of the new capacity, I take it, for the for the incremental 3 GW. And then separately, is there some sort of equivalent thought process on that state in particular? I get that your comments were a little generic too. Christopher C. Womack: Yeah. You got it. I mean, they will go through those traditional proceedings in terms of getting these projects and getting a load needed to be certified, through the CMP process. And so as you know, they have made some changes in the structure and size of the commission. They are gonna have a new secretary of energy in Alabama. They just gone through processes of kind of I would say, codifying the procedures of how we are serving signing up these contracts. So Alabama, I think, has a very orderly process about how to approve these contracts, but also then get these projects approved by the commission and get them in the rates. As well as through their RFP process. So what do we say? What 3 GW adds to long-term, but the long-term benefits for customers. So great opportunities in Alabama. Awesome. Julien Dumoulin-Smith: Thank you, guys. Really appreciate it. Christopher C. Womack: Thank you, Julien. Operator: Our next question comes from the line of Richard Sunderland with Truist Securities. Please proceed with your question. Christopher C. Womack: Hey, Richard Sunderland. Richard Sunderland: Hey, good afternoon. Thanks for the time today. Just circling back to Southern Power, I know you had some updates last quarter on this front. Curious about kind of the tone and interest on the remaining upgrades and then the brownfield efforts. I think you have targeted for an update later this year as well. Given the load trends, how is all of that trending? And are you still thinking about having some sort of a Southern Power update this year? David P. Poroch: Yeah. Great question. We continue to evaluate those opportunities. I mean, the conversations that we are having with our current counterparties as well as exploring opportunities with new counterparties Southern Power are proving to be very fruitful. I am looking forward to, working through those. But, you know, keep in mind the business model under which we operate Southern Power. Right? We are we do not go and build something and see who shows up. it is a very disciplined and structured process. That we continue to engage in these conversations. So there is a lot of great potential out there to not just reprice, the contracts that will come rolling off, into the next decade, but also take advantage of the announcements that we made last quarter. In terms of those upgrades And as we continue to have those conversations and explore those opportunities, with the current, customers at Southern Power, and potential new customers, then we will we will have better clarity as to when and how we can execute on the additional upgrades that alluded to. Christopher C. Womack: Yeah. But we look forward to giving you updates on the activities that are occurring, that is under consideration at Southern Power. I think there are some real opportunities there. Richard Sunderland: Sure. Yeah. that is that is great to hear. And then I guess turning back to the script, recognizing you called out the sales growth on the quarter, and thinking about some of the data center load added to the system recently. Any learnings you would highlight from some of that ramp-up and the sales trends? And I guess, in particular, how that might apply to your outlook for all this load growth and running that through to the EPS growth guidance as well. Thank you. Christopher C. Womack: No. I would start by saying, I mean, one of the things we see is that, you know, we have to work very closely with these projects in terms of what their ramp rates are. They may not be what was predicted when the when the projects were initially approved. But we work very closely with them in terms of kinda what those rates will be. But once again, we have been remember, the minimum bills that we have, I mean, we have kind of somewhat what we call decoupled. Revenue because we do have those minimum bills where from an operational standpoint, we have to work very closely with them in terms of understanding their ramp rates are, in terms of what the system implications are. But the bottom line is the load is very real. And so we know it may not be there initially, but we know that it is coming. David P. Poroch: Yeah. And I might add that the customers that we have been serving for a number of years, we are we have learned so much from their experience that has helped us inform these new contracts that we are signing. And so, you know, like Christopher mentioned, the protections that we put in place for customers and the company in terms of the minimum bills are really, we think, gonna be a distinct advantage going forward that will protect our customers and the company. In terms of, that type of stability that we are trying to deliver. And the you know, we have crossed over the 1,000 MW line this particular quarter, and the growth has just been fantastic in that portfolio data centers and large load customers that we are currently serving. Really exciting. it is-- it is great. Richard Sunderland: Appreciate the time today. Thank you. Operator: Our next question comes from the line of Travis Miller with Morningstar. Please proceed with your question. Christopher C. Womack: Hey, Travis. Travis Miller: Thanks for the time. Christopher C. Womack: You are welcome. Travis Miller: Going back to the OpenAI project. Wondering if you could talk a little more about what made that location unique and why both you and OpenAI decided that location could handle a project of this size. And then secondly, build on that are there other areas in your service territory, or what are the other areas where a project of that size can be constructed and operational in such a short time. Christopher C. Womack: Yeah. I mean, I it is these projects and the processes of economic development, it is a lot of-- it is a lot of courting, a lot of evaluations of sites and locations and geography, topography, location to electric infrastructure facilities, and other energy resources being available. I mean, so it is not a set criteria, but there is a lot of kind of investigation of sites to see what works for the projects that these companies want to construct. And so and we are glad when they work out We are also thrilled that we have a number of meaningful sites that are available for additional consideration. Across our entire service territory. Not gonna give you kind of exactly where those sites are, I mean, that is a lot of that is kind of proprietary. But know that we have additional opportunities for similar projects. I mean, the Savannah area, the economy there is very strong with the Hyundai plant that is that is there and continues to grow and expand the Port of Savannah that continues to kind of lead this country in activity from a shipping standpoint. So Savannah, Effingham County, those areas have proven to be just wonderful sites for economic activity. Travis Miller: Understood. Yes. Thank you. And now one real quick one. In terms of meeting any future equity needs as you add to the CapEx, any interest in taking minority interest investment from another partner? To meet some of those. David P. Poroch: You know, we look at a lot of different structures, but at the moment, we just do not see that as a need. Love the cards that we have. Love the opportunities that we have had in terms of issuing the securities and the receptiveness in the marketplace. I just do not see that as a need for us at least for the foreseeable future. Travis Miller: Got it. Okay. Thanks a lot. Thank you. Thank you. Operator: And that will conclude today's question-and-answer session. Sir, are there any closing remarks? Christopher C. Womack: Just let me thank everybody for joining us today. Let me conclude by saying it is an incredibly exciting first half of the year for Southern Company. And it sets us up for the rest of the year. But I also think it speaks to what a bright future we have. And so thank you for joining us today. Have a good rest of the day. Operator: Thank you, sir. Ladies and gentlemen, this concludes The Southern Company's second quarter 2026 earnings call. You may now disconnect. 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This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Southern Company (SO) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Southern Co. (SO) came out with quarterly earnings of $1.13 per share, beating the Zacks Consensus Estimate of $1.01 per share. This compares to earnings of $0.91 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +11.88%. A quarter ago, it was expected that this power company would post earnings of $1.21 per share when it actually produced earnings of $1.32, delivering a surprise of +9.09%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Southern Co., which belongs to the Zacks Utility - Electric Power industry, posted revenues of $6.98 billion for the quarter ended June 2026, missing the Zacks Consensus Estimate by 5.18%. This compares to year-ago revenues of $6.97 billion. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Southern Co. shares have added about 10.2% since the beginning of the year versus the S&P 500's gain of 6.9%. While Southern Co. has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Southern Co. was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.66 on $8.34 billion in revenues for the coming quarter and $4.58 on $31.29 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Utility - Electric Power is currently in the bottom 34% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Otter Tail (OTTR), another stock in the same industry, has yet to report results for the quarter ended June 2026. The results are expected to be released on August 3. This power company and manufacturer is expected to post quarterly earnings of $1.48 per share in its upcoming report, which represents a year-over-year change of -20%. The consensus EPS estimate for the quarter has been revised 8.9% lower over the last 30 days to the current level. Otter Tail's revenues are expected to be $334.5 million, up 0.4% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Southern Company (The) (SO) : Free Stock Analysis Report Otter Tail Corporation (OTTR) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Southern Co. (SO) reported $6.98 billion in revenue for the quarter ended June 2026, representing a year-over-year increase of 0.1%. EPS of $1.13 for the same period compares to $0.91 a year ago. The reported revenue compares to the Zacks Consensus Estimate of $7.36 billion, representing a surprise of -5.18%. The company delivered an EPS surprise of +11.88%, with the consensus EPS estimate being $1.01. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance. Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance. Here is how Southern Co. performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Operating Revenues- Southern Company Natural Gas: $966 million versus $1.05 billion estimated by two analysts on average. Compared to the year-ago quarter, this number represents a -1.3% change. Operating Revenues- Southern Power: $535 million versus $651.2 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a -2% change. Operating Revenues- Natural Gas revenues: $966 million compared to the $1.05 billion average estimate based on two analysts. The reported number represents a change of -1.3% year over year. Total retail sales: $37.97 billion versus the two-analyst average estimate of $38.19 billion. The reported number represents a year-over-year change of +2.1%. Net Income Available to Common- Southern Power: $-25 million versus $79.78 million estimated by two analysts on average. Net Income Available to Common- Southern Company Gas: $126 million versus the two-analyst average estimate of $142.46 million. View all Key Company Metrics for Southern Co. here>>> Shares of Southern Co. have returned +1% over the past month versus the Zacks S&P 500 composite's -1.5% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Southern Company (The) (SO) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

ATLANTA, July 30, 2026 /PRNewswire/ -- Southern Company today reported second-quarter earnings of $1.2 billion, or $1.03 per share, in 2026 compared with earnings of $0.9 billion, or $0.80 per share, in the second quarter of 2025. For the six months ended June 30, 2026, Southern Company reported earnings of $2.5 billion, or $2.24 per share, compared with $2.2 billion, or $2.01 per share, for the same period in 2025. Excluding the items described under "Net Income – Excluding Items" in the table below, Southern Company earned $1.3 billion, or $1.13 per share, during the second quarter of 2026, compared with $1.0 billion, or $0.92 per share, during the second quarter of 2025. For the six months ended June 30, 2026, excluding these items, Southern Company earned $2.8 billion, or $2.46 per share, compared with $2.4 billion, or $2.15 per share, for the same period in 2025. Adjusted earnings drivers for the second quarter of 2026, as compared with the same period in 2025, were investment in state-regulated utilities, customer usage and growth, higher earnings from equity method investments and lower income taxes, partially offset by higher interest expense. Second-quarter 2026 operating revenues were $6.98 billion, compared with $6.97 billion for the second quarter of 2025, an increase of 0.1%. For the six months ended June 30, 2026, operating revenues were $15.4 billion, compared with $14.7 billion for the corresponding period in 2025, an increase of 4.2%. "Southern Company's strong performance reflects the strength of our customer-focused approach to serving growth," said Chris Womack, chairman, president and CEO of Southern Company. "Across the Southeast, extraordinary economic development momentum and demand for power continue to create meaningful opportunities for the customers and communities we are privileged to serve. We are investing responsibly and planning for the long term to serve new and existing customers while keeping reliability and rate stability at the center of our work. Our approach is designed to protect customers today, create lasting value for the people and places we serve and ensure that when growth is done right, everyone benefits." Southern Company's second-quarter earnings slides with supplemental financial information are available at investor.southerncompany.com. Southern Company's financial analyst call will begin at 1 p.m. Eastern Time today, during which Womack and Chief Financial Officer David P. Poroch will discuss earnings and provide a general business update. Investors, media and the public may listen to a live webcast of the call and view associated slides at investor.southerncompany.com. A replay of the webcast will be available on the site for 12 months. About Southern Company Southern Company (NYSE: SO) is a leading energy provider serving 9 million customers across the Southeast and beyond through its family of companies. The company has electric operating companies in three states, natural gas distribution companies in four states, a competitive generation company, a leading distributed energy solutions provider with national capabilities a fiber optics network and telecommunications services. Our uncompromising values ensure we put the needs of those we serve at the center of everything we do and are the key to our sustained success, driven by our nearly 30,000 employees dedicated to delivering exceptional service. To learn more, visit www.southerncompany.com. Cautionary Note Regarding Forward-Looking Statements Certain information contained in this release is forward-looking information based on current expectations and plans that involve risks and uncertainties. Forward-looking information includes, among other things, statements concerning plans to serve projected future growth and the potential benefits thereof. Southern Company cautions that there are certain factors that can cause actual results to differ materially from the forward-looking information that has been provided. The reader is cautioned not to put undue reliance on this forward-looking information, which is not a guarantee of future performance and is subject to a number of uncertainties and other factors, many of which are outside the control of Southern Company; accordingly, there can be no assurance that such suggested results will be realized. The following factors, in addition to those discussed in Southern Company's Annual Report on Form 10-K for the year ended December 31, 2025, Quarterly Reports on Form 10-Q for the quarters ended March 31, 2026 and June 30, 2026 and subsequent securities filings, could cause actual results to differ materially from management expectations as suggested by such forward-looking information: the impact of recent and future federal and state legal and regulatory changes, including tax, environmental and other laws and regulations to which Southern Company and its subsidiaries are subject, as well as changes in application of existing laws, regulations and guidance; the extent and timing of costs and legal requirements related to coal combustion residuals; current and future litigation or regulatory investigations, proceedings, or inquiries; the effects, extent, and timing of the entry of additional competition in the markets in which Southern Company's subsidiaries operate, including from the development and deployment of alternative energy sources; variations in demand for electricity and natural gas, including uncertainties related to projected significant growth in electricity demand driven primarily by data centers and other large load customers, and the related requirement for substantial new generation and transmission investments, creating capital access and revenue recovery risks for the traditional electric operating companies; customer affordability matters; available sources and costs of natural gas and other fuels and commodities; the ability to complete necessary or desirable pipeline expansion or infrastructure projects, limits on pipeline capacity, public and policymaker support for such projects, and operational interruptions to natural gas distribution and transmission activities; transmission constraints; the ability to control costs and avoid cost and schedule overruns during the development, construction, and operation of facilities or other projects due to challenges which include, but are not limited to, changes in labor costs, availability, and productivity, challenges with the management of contractors or vendors, subcontractor performance, adverse weather conditions, shortages, delays, increased costs, or inconsistent quality of equipment, materials, and labor, contractor or supplier delay, the impacts of inflation and trade policies (including tariffs and other trade measures) of the United States and other countries, delays due to judicial or regulatory action, nonperformance under construction, operating, or other agreements, operational readiness, including specialized operator training and required site safety programs, engineering or design problems or any remediation related thereto, design and other licensing-based compliance matters, challenges with start-up activities, including major equipment failure or system integration, and/or operational performance, challenges related to future epidemic or pandemic health events, continued public and policymaker support for projects, environmental and geological conditions, delays or increased costs to interconnect facilities to transmission grids, and increased financing costs as a result of changes in interest rates or as a result of project delays; legal proceedings and regulatory approvals and actions related to past, ongoing, and proposed construction projects, including state public service commission or other applicable state regulatory agency approvals and Federal Energy Regulatory Commission and U.S. Nuclear Regulatory Commission actions; the ability to construct facilities in accordance with the requirements of permits and licenses, to satisfy any environmental performance standards and the requirements of tax credits and other incentives, and to integrate facilities into the Southern Company system upon completion of construction; investment performance of the employee and retiree benefit plans and nuclear decommissioning trust funds and, with respect to retiree benefit plans, changes in actuarial assumptions and differences between the assumptions and actual values, any of the foregoing of which could cause additional funding requirements; advances in technology, including the pace and extent of development of low- to no-carbon energy and battery energy storage technologies and the impact of advancing technology on data center and other large load customer demand; performance of counterparties under ongoing renewable energy partnerships and development agreements; state and federal rate regulations and the impact of pending and future rate cases and negotiations, including rate actions relating to return on equity, equity ratios, additional generating capacity and transmission facilities, extension of retirement dates for fossil fuel plants, and fuel and other cost recovery mechanisms; the ability to successfully operate Southern Company's electric utilities' generation, transmission, distribution, and battery energy storage facilities, as applicable, and Southern Company Gas' natural gas distribution and storage facilities and the successful performance of necessary corporate functions; the inherent risks involved in operating nuclear generating facilities; the inherent risks involved in generation, transmission, and distribution of electricity and transportation and storage of natural gas, including accidents, explosions, fires, mechanical problems, discharges or releases of toxic or hazardous substances or gases, and other environmental risks; the performance of projects undertaken by the non-utility businesses and the success of efforts to invest in and develop new opportunities; internal restructuring or other restructuring options that may be pursued; potential business strategies, including acquisitions or dispositions of assets or businesses, or interests therein, which cannot be assured to be completed or beneficial to Southern Company or its subsidiaries; the ability of counterparties of Southern Company and its subsidiaries to make payments as and when due and to perform as required; the ability to obtain new short- and long-term contracts with wholesale customers; the direct or indirect effect on the Southern Company system's business resulting from cyber intrusion or physical attack and the threat of cyber and physical attacks; global and U.S. economic conditions, including impacts from geopolitical conflicts, recession, inflation, changes in trade policies (including tariffs and other trade measures) of the United States and other countries, interest rate fluctuations, and financial market conditions, and the results of financing efforts; prolonged or recurring U.S. federal government shutdowns; access to capital markets and other financing sources; changes in Southern Company's and any of its subsidiaries' credit ratings; the ability of Southern Company's electric utilities to obtain additional generating capacity (or sell excess generating capacity) at competitive prices; catastrophic events such as fires, including wildfires, land movement, earthquakes, explosions, floods, high winds, tornadoes, hurricanes and other storms, solar flares, droughts, future epidemic or pandemic health events, wars, political unrest, or other similar occurrences; the direct or indirect effects on the Southern Company system's business resulting from incidents affecting the U.S. electric grid, natural gas pipeline infrastructure, or operation of generating or storage resources; impairments of goodwill or long-lived assets; and the effect of accounting pronouncements issued periodically by standard-setting bodies. Southern Company expressly disclaims any obligation to update any forward-looking information. View original content to download multimedia:https://www.prnewswire.com/news-releases/southern-company-reports-second-quarter-2026-earnings-302838468.html

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Performance exceeded estimates due to robust economic development in the Southeast, particularly from data centers and large industrial load customers. The vertically integrated, state-regulated model is cited as a key differentiator, allowing the company to provide reliable power with speed to new and existing customers. Management highlighted the signing of a landmark 3.2 GW contract with OpenAI in Georgia, which includes 1 GW of flexible demand response to support grid reliability. Total contracted large load agreements have reached over 17 GW through the mid-2030s, with an additional 75 GW prospective pipeline. Retail electricity sales growth reached its highest level in nearly two decades, driven by a 55% year-over-year increase in data center usage. The company joined the National Ratepayer Protection Pledge, reinforcing a strategy that uses large load growth to maintain rate stability for residential customers. Operational success was supported by contributions from Southern Company Gas and PowerSecure, which is benefiting from expanding distributed generation markets. Full-year 2026 adjusted earnings are now projected to be at or near the top of the $4.50 to $4.60 EPS guidance range. Management expects to remain in the top half of its long-term earnings trajectory, supported by the conversion of 8 GW of late-stage prospective projects. Ongoing RFPs in Alabama and Georgia for generation resources in the early 2030s represent substantial potential upside to the current base capital plan. The company is targeting a 17% FFO-to-debt ratio by 2029, supported by a proactive equity strategy that has reduced remaining needs to $1.1 billion through 2030. Future generation needs are expected to be met through a mix of thermal, battery, and solar resources, with significant spend beginning to 'feather in' around 2028. Large load contracts are structured with minimum bills covering 100% of incremental costs and backed by approximately $21 billion in aggregate collateral to protect existing ratepayers. Interest expense from higher debt balances and dilution from additional shares outstanding acted as partial offsets to strong quarterly earnings. Management acknowledged the need for better communication regarding the community and grid benefits of data centers to counter public and political 'noise' or misinformation. The company explicitly stated it will not be the 'next' to build new nuclear, though it remains active in policy conversations regarding future nuclear deployment. Management noted that the success in signing large load contracts provides significant flexibility to enhance customer benefits and extend rate stability. The company is currently about 1 GW to 2 GW away from 'selling out' the capacity previously approved in Georgia, necessitating new structured RFP processes. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. As existing tolling agreements roll off, management sees upside pricing opportunities in the current market, particularly with creditworthy hyperscalers. Conversations are ongoing regarding long-term PPAs for both energy and capacity, which will contribute to the durability of the long-term financial plan. Management confirmed they are having conversations with hyperscalers about what role they can play in the nuclear equation, including potential cost-sharing. While not leading the next build, the company is aggressively working with the administration to address long-lead-time items and regulatory hurdles for the industry. Contracts are designed to maintain an 'A- or better' credit position through a mix of parent guarantees, letters of credit, and surety bonds. The OpenAI contract specifically contributes to a total portfolio collateral requirement of approximately $21 billion at full ramp. The OpenAI deal is the first time the company has integrated significant demand response (1 GW) for a data center project. This flexibility allows the utility to shave peak load during high-demand periods, providing economic benefits to the entire grid and all customer classes.