SO

CenterPoint Energy, Inc. CNP is slated to report third-quarter 2026 results on Oct. 27, 2026, before market open. The company delivered an earnings surprise of 8.11% in the last reported quarter. Let's discuss the factors that are likely to be reflected in the upcoming quarterly results. Ongoing strategic capital expenditures by CenterPoint Energy are expected to have strengthened its infrastructure and improved service reliability. Continued investments in transmission and distribution projects, grid modernization and system resilience initiatives are likely to have enhanced operational efficiency and supported the company's third-quarter performance. Growing electricity demand from industrial customers, expanding data center operations and ongoing transportation electrification efforts are likely to have contributed to the company's overall revenues in the upcoming quarter. Strong returns from previous infrastructure investments, continued rate-base growth and supportive regulatory recovery mechanisms are expected to have bolstered CenterPoint Energy's earnings performance. However, higher interest expenses and financing costs related to the company's ongoing capital investment program are likely to have partially offset these positive factors in the third quarter. CenterPoint Energy, Inc. price-eps-surprise | CenterPoint Energy, Inc. Quote The Zacks Consensus Estimate for earnings is pegged at 50 cents per share, unchanged from the year-ago quarter. The consensus estimate for revenues is pinned at $2.16 billion, implying an 8.4% improvement year over year. The Zacks Consensus Estimate for the total electric throughput stands at 35,986.8 gigawatt-hours, up 1.5% from the figure registered in the year-ago quarter. The consensus estimate for total natural gas throughput is pinned at 94.4 billion cubic feet, up 1.5% year over year. Our proven model predicts an earnings beat for CenterPoint Energy this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is the case here, as you will see below. Earnings ESP: CNP has an Earnings ESP of +0.67%. You can uncover the best stocks before they're reported with our Earnings ESP Filter. Zacks Rank: Currently, CenterPoint Energy carries a Zacks Rank of 3. You can see the complete list of today's Zacks #1 Rank stocks here. Investors may consider the following players from the same industry, as these also have the right combination of elements to post an earnings beat this reporting cycle. CMS Energy CMS is slated to report its third-quarter 2026 results on Oct. 27, before market open. It has an Earnings ESP of +9.69% and a Zacks Rank of 3 at present. CMS' long-term (three to five years) earnings growth rate is 7.1%. The Zacks Consensus Estimate for earnings is pegged at $1.21 per share, which suggests a year-over-year rise of 30.1%. Edison International EIX is slated to report its third-quarter 2026 results on Oct. 29, after market close. It has an Earnings ESP of +2.38% and a Zacks Rank of 3 at present. EIX's long-term earnings growth rate is 3.9%. The Zacks Consensus Estimate for earnings stands at $1.79 per share, which suggests a year-over-year decline of 23.5%. The Southern Company SO is scheduled to report its third-quarter 2026 results on Nov. 5, before market open. It has an Earnings ESP of +1.43% and a Zacks Rank of 3 at present. SO's long-term earnings growth rate is 8.3%. The Zacks Consensus Estimate for earnings stands at $1.70 per share, which implies a year-over-year increase of 6.3%. 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 CenterPoint Energy, Inc. (CNP) : Free Stock Analysis Report Southern Company (The) (SO) : Free Stock Analysis Report Edison International (EIX) : Free Stock Analysis Report CMS Energy Corporation (CMS) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

CALGARY, AB / ACCESS Newswire / October 15, 2026 / Southern Energy Corp. ("Southern" or the "Company") (TSXV:SOU)(AIM:SOUC), an established producer with natural gas and light oil assets in Mississippi, is pleased to announce completion and initial flow-test results from the Terrible Creek 21-2 #2 Cotton Valley vertical well (the "Well") in the Williamsburg Field. The Well encountered a Cotton Valley "C" gross interval thickness of approximately 110 feet, which exceeded expectations based on the two previous offset deep wells that were drilled in the 1970s. The Company perforated 71 feet of net pay in the Cotton Valley "C" interval and conducted a 72-hour flow test on the Well without the need for a fracture stimulation. At the end of the flow test period, the Well was flowing at a stabilized rate of 2.3 MMcf/d of natural gas plus 50 barrels of condensate per day (50° API), equivalent to approximately 430 boe/d, on a 32/64" choke at a restricted flowing tubing pressure of 435 psig. The Company is constructing the necessary wellsite facilities and anticipates bringing the Well on production by mid-November 2026. Analogous Cotton Valley reservoirs at Seminary, Collins and Northeast Collins, which produce from similar depths, have exhibited oil phase behaviour, while the Well's initial flow test results suggest a gas condensate reservoir. The condensate-rich production stream will increase Southern's liquid weighting while also benefiting from the strong deliverability and recovery characteristics commonly associated with gas condensate reservoirs. Southern is now conducting the necessary fluid phase testing to confirm these details and help plan future development. Using 2D seismic data, Southern has preliminarily mapped more than 7,200 acres of interpreted four-way closure at the Cotton Valley interval at Williamsburg. Assuming 160-acre spacing, this area could support more than 45 gross potential drilling locations. Based on preliminary estimates of expected development capital costs (material drilling efficiencies identified and no fracture stimulations required) and early estimates of Cotton Valley "C" initial rates and expected recoveries, at the Company's current forecast liquids and natural gas pricing (including premiums), these future drilling locations are expected to provide high rates of capital return. Southern will monitor production performance after the Well is brought online and provide additional development and economic information when supported by sufficient performance data. The Company currently has no Cotton Valley reserves booked in Williamsburg. Ian Atkinson, President and Chief Executive Officer of Southern, commented: "We are very excited with these initial test results from our first Cotton Valley liquids-rich well at Williamsburg. These results support further capital spending on the Cotton Valley "C" interval and allow Southern to advance planning for follow-up development. The Cotton Valley "C" interval was our primary target in this well and we have now established high permeability deliverability with these results. We also encountered five highly prospective zones in the shallower Hosston and Sligo formations which we will evaluate as part of our broader field development strategy. With the cash available on our balance sheet, Southern is positioned to assess a self-funded development program at Williamsburg with liquids production that would receive Louisiana Light Sweet crude pricing at a premium to West Texas Intermediate. The high netback natural gas volumes will directly access Transco Zone 4 premium pricing with no third-party transportation or processing costs as a result of our extensive company-owned infrastructure." Southern has initiated the land and regulatory processes required to permit two potential follow-up Cotton Valley drilling locations. Subject to receipt of required approvals, final well planning and capital allocation, the Company anticipates spudding the next well in early Q1 2027. The next well is expected to satisfy the Company's remaining commitment under its Joint Venture Wellbore Participation Agreement announced on May 26, 2026, being the second of the two commitment wells under that agreement. New Corporate Presentation A new corporate presentation highlighting Southern's recent operational progress and growth opportunities is now available on the Company's website at www.southernenergycorp.com. 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. For further information about Southern, please visit our website at www.southernenergycorp.com or contact: Southern Energy Corp. | Ian Atkinson (President and CEO) | +1 587 287 5401 Calvin Yau (CFO) | +1 587 287 5402 | Strand Hanson Limited - Nominated & Financial Adviser | +44 (0) 20 7409 3494 James Bellman / Rob Patrick / Edward Foulkes | | Tennyson Securities - Broker | +44 (0) 20 7186 9033 Peter Krens / Jason Woollard | | 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 ADVISORY BOE Disclosure. Natural gas volumes recorded in thousand cubic feet ("Mcf") are converted to barrels of oil equivalent ("boe") using a ratio of six thousand cubic feet of natural gas to one barrel of oil (6 Mcf:1 bbl). Boe may be misleading, particularly if used in isolation. The boe conversion ratio is based on an energy-equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Given that the value ratio based on the current price of oil compared with natural gas is significantly different from the energy-equivalency ratio of 6:1, using a conversion ratio of 6 Mcf:1 bbl may be misleading as an indication of value. Product Types. Throughout this press release, "crude oil" or "oil" refers to light and medium crude oil product types as defined by National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities ("NI 51-101"). References to "condensate" refer to condensate as defined by NI 51-101, and references to "natural gas" refer to conventional natural gas as defined by NI 51-101. Short-Term Production Rates. References in this press release to production test 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 the Well will commence production or decline thereafter and are not indicative of long-term performance or ultimate recovery. While encouraging, readers are cautioned not to place reliance on such rates in calculating aggregate production for Southern. The 72-hour flow test was conducted over a limited period under the test conditions described herein and the results should be considered preliminary. No pressure transient analysis or well-test interpretation has been carried out on the Well in respect of the flow test and, accordingly, the test results should be considered preliminary until such analysis or interpretation has been completed. The flow test rates in this press release are reported on a gross (100%) basis. Southern holds a 50% working interest in the Well. Unbooked Drilling Locations. The potential drilling locations discussed in this press release are unbooked locations and do not have reserves or resources attributed to them. The locations have been identified by management based on the Company's interpretation of available 2D seismic data, the estimated area of four-way closure and assumed 160-acre well spacing. There is no certainty that Southern will drill all or any of these locations or, if drilled, that such locations will result in additional oil or natural gas production or economically viable wells. Analogous Information. Information concerning the Seminary, Collins and Northeast Collins fields is presented as analogous information to assist readers in assessing certain characteristics of the Cotton Valley interval at Williamsburg. The Company considers these fields relevant based on their proximity, similar producing formation and similar depth. However, the geology, reservoir characteristics, fluid properties, completion methods and production performance of those fields may differ from Williamsburg, and results from those fields are not necessarily indicative of the results that may be achieved at Williamsburg. 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; the Company's anticipated operational results; Southern's growth strategy and the expectation that it will continue to enhance shareholder value; the timing for construction and completion of wellsite facilities and bringing the Terrible Creek 21-2 #2 well on-line; the results of fluid phase testing and the characterization of the reservoir as a gas condensate reservoir; the evaluation of the Hosston and Sligo formations; future development planning for the Cotton Valley interval at Williamsburg, including the number of potential drilling locations, well spacing and the timing and permitting of follow-up wells; the anticipated timing for spudding the next Cotton Valley well and satisfaction of commitments under the Joint Venture Wellbore Participation Agreement; expected development capital costs, drilling efficiencies, completion requirements, initial production rates, recoveries, commodity pricing, well economics and rates of return; the Company's ability to self-fund its organic liquids growth; and the anticipated pricing, netbacks and access to infrastructure associated with future production. 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 and success of well results at Williamsburg, the performance of the Terrible Creek 21-2 #2 well, the availability and performance of drilling rigs, services, facilities and pipelines, the geological characteristics of Southern's properties, the successful application of drilling, completion and seismic technology, estimated drilling and completion costs, the continued participation and creditworthiness of the Company's strategic partner, prevailing legislation, as well as regulatory and licensing requirements affecting the oil and gas industry, the Company's ability to obtain and maintain all requisite permits and licences, the availability of capital, labour and services, 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), risks that drilling, completion or testing activities are delayed, unsuccessful or more costly than expected, risks that the Well's initial flow test results are not indicative of its long-term performance, that fluid phase testing does not confirm a gas condensate reservoir or the anticipated liquids yield, or that follow-up wells do not achieve anticipated results, risks relating to the availability of rigs, equipment, labour, supplies, services, facilities, pipelines, capital and industry partners, commodity price and exchange rate fluctuations, credit risk, risk of default, geo-political risks, political and economic instability, hostilities, wars, 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, environmental regulations and regulatory requirements, 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. 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. SOURCE: Southern Energy Corp. View the original press release on ACCESS Newswire

Looking for a stock that has been consistently beating earnings estimates and might be well positioned to keep the streak alive in its next quarterly report? Southern Co. (SO), which belongs to the Zacks Utility - Electric Power industry, could be a great candidate to consider. This power company has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. The average surprise for the last two quarters was 10.49%. For the last reported quarter, Southern Co. came out with earnings of $1.13 per share versus the Zacks Consensus Estimate of $1.01 per share, representing a surprise of 11.88%. For the previous quarter, the company was expected to post earnings of $1.21 per share and it actually produced earnings of $1.32 per share, delivering a surprise of 9.09%. For Southern Co., estimates have been trending higher, thanks in part to this earnings surprise history. And when you look at the stock's positive Zacks Earnings ESP (Expected Surprise Prediction), it's a great indicator of a future earnings beat, especially when combined with its solid Zacks Rank. Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven. The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Southern Co. has an Earnings ESP of +1.90% at the moment, suggesting that analysts have grown bullish on its near-term earnings potential. When you combine this positive Earnings ESP with the stock's Zacks Rank #3 (Hold), it shows that another beat is possibly around the corner. The company's next earnings report is expected to be released on November 5, 2026. With the Earnings ESP metric, it's important to note that a negative value reduces its predictive power; however, a negative Earnings ESP does not indicate an earnings miss. Many companies end up beating the consensus EPS estimate, though this is not the only reason why their shares gain. Additionally, some stocks may remain stable even if they end up missing the consensus estimate. Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. 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

Southern Copper has turned a long holding period into a powerful story, with the share price now well above where it traded five years ago. That puts fresh focus on whether the current valuation is still grounded in the earnings that support it. With recent headlines highlighting profit strength and new capital projects, the question for anyone looking at the stock today is how much of that narrative is already reflected in the price. - Over the past 5 years the stock has returned about 321%, which makes the link between the share price and the company's earnings profile a key issue for anyone considering an investment now. - Recent news pointing to sharply higher net income and large scale Mexican developments may support expectations for stronger future profitability, but those same factors can also pull forward a lot of optimism into today's earnings multiple. - There is a second opinion on Southern Copper worth weighing. See what analysts think Southern Copper's shares could be worth. The stock's next move may depend on whether Southern Copper's current earnings are enough to justify where the share price sits today. If you want to test the same earnings driven valuation question beyond Southern Copper, run the numbers across 16 top copper producer stocks. The P/E ratio matters for Southern Copper because earnings still drive most of the conversation around this miner's value. The stock trades on about 31.2x earnings, which is well above the Metals and Mining sector average of roughly 17.8x and also higher than the peer group at about 24.4x. That is a rich tag for a cyclical business, so anyone looking at the ticker needs to decide whether current profitability and the asset base justify paying materially more than for a typical producer. Recent headlines around a 71.6% jump in quarterly net income and progress on large Mexican projects help explain why the market is comfortable with a premium multiple. However, the P/E still screens above what a tailored fair-value model would imply for Southern Copper given its growth profile, margins and risk. The current level hints that investors are paying up for future execution and copper pricing to remain supportive rather than for today's earnings alone. Explore the numbers behind Southern Copper's P/E valuation. Simply Wall St Narratives pick up where Southern Copper's valuation puzzle leaves off by spelling out which expectations for growth, profitability and earnings would need to play out for the stock to be worth materially more or less than today's price on the Community page. Each scenario then links its implied number to a clear view on how Southern Copper's growth, margins and risks could evolve, giving you something concrete to revisit as new information comes through. The community is split on Southern Copper, with one side seeing more earnings firepower ahead and the other arguing expectations already look full. Bull case: 11% undervalued "Record quarterly sales of US$4.3b and adjusted EBITDA of US$2.86b with a 67% margin in Q2 2026 give Southern Copper an internal cash generation base that could support a faster or larger self funded build out of its copper project pipeline…" Discover why this Narrative puts Southern Copper at 11% undervalued. Bear case: 22% overvalued "Southern Copper is pursuing a capital investment program of more than US$20.5b across Peru and Mexico, and a bearish view is that current valuation already factors in the full revenue and earnings uplift from this spending even though the assets are still under construction and not yet generating matching cash flows…" Explore why this Narrative puts Southern Copper at 22% overvalued. Sharp valuation work on Southern Copper only goes so far if you have not checked who is steering the operation, what they are rewarded for, and how those incentives line up with shareholders. See who runs Southern Copper and how they are paid. 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 SCCO. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Southern has delivered a 5 year gain that many utility investors would be comfortable with, yet the recent share swings leave a simple question open. Is the current US$85.44 price adequately backed by the earnings the business is generating today and is expected to produce in the years ahead? - Southern has returned 64.1% over 5 years, which puts real weight on whether that performance lines up with the strength and resilience of its earnings base. - The regulated utility model can support relatively steady profitability, so any shift in costs, allowed returns or capital spending plans may feed directly into the earnings power that underpins the share price. - Your read on Southern is one view; the desks covering it have another. See what analysts think Southern's shares could be worth. The issue now is whether Southern's current valuation is well supported by its earnings profile given where the stock trades today. If you want to stress test Southern's earnings-based valuation against a wider field of utility-focused names, line it up next to 43 power grid technology and infrastructure stocks The P/E ratio is a useful anchor for Southern because earnings are a key driver for regulated utilities where cash flows are often shaped by approved returns. Southern currently trades on a P/E of 21.1x. The broader Electric Utilities group averages about 20.1x, while a peer set clusters around 21.6x. On this framework, the model suggests a fair P/E that is very close to where Southern trades today, so the stock changes hands at a level that the tailored benchmark would broadly support. For you as a shareholder or potential buyer, the question is whether Southern's earnings quality, regulatory backdrop and capital needs justify paying a slight premium to the wider sector. Explore the numbers behind Southern's P/E valuation. Southern's valuation puzzle really becomes concrete when you can see what would need to happen to its earnings, margins and growth profile for the shares to be worth materially more or less than today, which is where Simply Wall St Narratives on the Community page come in. Instead of a single number from a ratio or model, these describe the future that number relies on, so you can track over time whether Southern's reality is matching the earnings path that the valuation assumes. One of the top community narratives on Southern: 14% undervalued "Analysts expect Southern to keep benefiting from strong large-load and data center demand, with multiyear capacity additions and contracted volumes supporting continued growth across its regulated utilities..." Discover why this Narrative puts Southern at 14% undervalued. Price and earnings only tell part of the story, because the people setting priorities and how they are rewarded can tilt long term outcomes in ways the headline ratios never show. See who runs Southern and how they are paid. 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]

CALGARY, AB / ACCESS Newswire / October 1, 2026 / Southern Energy Corp. ("Southern" or the "Company") (TSXV:SOU)(AIM:SOUC) is pleased to announce that, at its annual general and special meeting (the "Annual Meeting") of shareholders of the Company (the "Shareholders") held yesterday, all resolutions were duly passed. Board changes Shareholders elected Paul Baay and Danny Labelle to the Board of Directors (the "Board") of the Company and re-elected Ian Atkinson, R. Steven Smith and John Joseph Nally. Mr. Baay and Mr. Labelle were appointed as Non-Executive Directors of the Board effective 30 September 2026. Bruce Beynon, the Company's former Chair, did not stand for re-election and has accordingly retired from the Board effective 30 September 2026. The Board and management team sincerely thank Mr. Beynon for his leadership, valuable contributions and dedicated service to Southern during his tenure. John Joseph Nally has now been appointed as Non-Executive Chairman of the Board, succeeding Mr. Beynon. Paul Baay Paul Baay has more than 35 years of experience leading oil and gas exploration and production companies and is currently President and Chief Executive Officer of Touchstone Exploration Inc. Mr. Baay established Touchstone Energy Inc. and served as Chair of the Board and Chief Executive Officer from July 2010 to May 2014. Prior thereto, he was Managing Director of Abacus Energy, part of Abacus Private Equity, from 2007 through 2010, and a senior officer of True Energy Inc. from 2000 through 2007. He also served as Chair of the Board of Directors of Vero Energy Inc. and Request Seismic Surveys Ltd., and as President, Chief Executive Officer and a director of Remington Energy Ltd. Mr. Baay has served as Chair of the Board of Governors of the Banff Centre for Arts and Creativity since May 2024, is a member of the Institute of Corporate Directors and holds a Bachelor of Arts in administrative and commercial studies from the University of Western Ontario. Danny Labelle Danny Labelle is an independent businessman and veteran energy executive with more than 28 years of technical, operational and corporate development experience in the Western Canadian Sedimentary Basin. He most recently served as Senior Vice President, Development and Acquisitions & Divestments of Hammerhead Energy Inc. (formerly Canadian International Oil Corporation) from May 2011 until its C$2.55 billion corporate sale in December 2023. Prior thereto, Mr. Labelle held senior geology and exploration positions with Talisman Energy, Mobil Oil Canada, Advantage Energy Services and Dominion Exploration. He holds Bachelor of Science and Master of Science degrees in geology. Mr. Atkinson, President and Chief Executive Officer of the Company, stated: "On behalf of the Company, I am pleased to welcome Mr. Baay and Mr. Labelle to the Board. Their extensive leadership, technical and corporate development experience will be valuable as Southern continues to advance its strategy. I would also like to thank Mr. Beynon for his significant contributions since Southern's recapitalization transaction in 2018, and we wish him every success in his future endeavours." Approval of other resolutions and creation of a new "control person" Shareholders also approved at the Annual Meeting each of the other items of business set out in the Company's management information circular dated August 19, 2026 (the "Information Circular"), including: fixing the number of directors at five; the re-appointment of Deloitte LLP as auditor of the Company; the Company's stock option plan and share award incentive plan; by ordinary resolution of disinterested Shareholders (excluding the common shares held by TCC 1 Corp.), the creation of a new "control person" (as such term is defined in the policies of the TSX Venture Exchange) that may result from the issuance of new common shares of the Company to TCC 1 Corp. on the potential conversion of its US$17 million convertible debenture; and, by special resolution, a potential consolidation of the Company's common shares on the basis of up to five pre-consolidation common shares for each one post-consolidation common share, which the Board may implement in its discretion at a time to be determined and announced by the Company. For further details, please review the Information Circular, available on the Company's website and under the Company's SEDAR+ profile at www.sedarplus.ca. For further information about Southern, please visit our website at www.southernenergycorp.com or contact: Southern Energy Corp.Ian Atkinson (President and CEO)Calvin Yau (CFO) | +1 587 287 5401+1 587 287 5402 Strand Hanson Limited - Nominated & Financial AdviserJames Bellman / Rob Patrick / Edward Foulkes | +44 (0) 20 7409 3494 Tennyson Securities - BrokerPeter Krens / Jason Woollard | +44 (0) 20 7186 9033 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. Neither 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. Further information pursuant to Rule 17 and Schedule 2(g) of the AIM Rules for Companies The following disclosures are required regarding the appointments of Paul Baay and Danny Labelle pursuant to Schedule Two paragraph (g) of the AIM Rules for Companies (the "AIM Rules"). Paul Raymond Baay (aged 63) is currently, or has during the past five years been, a director/partner of the following companies: Current Directorships/Partnerships | Previous Directorships/Partnerships Touchstone Exploration Inc. | Alberta Foundation for the Arts Octavia Petroleum (Cyprus) Ltd | Southern Energy Corp Carnegies Institution of Canada | National Gallery of Canada Banff Centre for Arts and Creativity | Energy Chamber of Trinidad and Tobago | Calvalley Petroleum (Cyprus) Ltd | Primera Oil and Gas Limited | On May 16, 2023, Mr. Paul R. Baay entered into a settlement agreement with the ASC in relation to a breach of Section 147(4) of the Securities Act (Alberta) (the "Settlement Agreement"). Pursuant to the Settlement Agreement, Mr. Baay admitted that he, on six occasions between December 2019 and April 2021, emailed draft Touchstone news releases to an employee of a regulated Canadian investment dealer firm, who was a registered dealing representative of Touchstone (the "Registrant"), and, in such capacity, was responsible for the Company's Employee Share Ownership Plan, prior to such news releases being broadly distributed to the public. Mr. Baay emailed the draft Touchstone news releases to the Registrant during the evenings or on the weekends when both the TSX and AIM markets were closed. On each of the six occasions, Touchstone distributed the final versions of the Touchstone news releases to the public before the TSX and AIM markets opened for regular trading on the next trading day. Mr. Baay paid the ASC $40,000 in settlement of the matter and completed training in public company governance best practice. The ASC did not require any market access bans on Mr. Baay as part of the Settlement Agreement. Mr. Baay does not hold any shares in the Company. There are no further disclosures required in accordance with AIM Rule 17 or Schedule 2(g) of the AIM Rules in respect of the appointment of Mr. Baay. Daniel (Danny) G P Labelle (aged 55) is currently, or has during the past five years been, a director/partner of the following companies: Current Directorships/Partnerships | Previous Directorships/Partnerships N/A | N/A Mr. Labelle currently holds 31,250 shares in the Company. There are no further disclosures required in accordance with AIM Rule 17 or Schedule 2(g) of the AIM Rules in respect of the appointment of Mr. Labelle. SOURCE: Southern Energy Corp. View the original press release on ACCESS Newswire

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