PR Newswire | Feb 18, 2021 06:00AM EST

02/18 05:00 CST

Southern Company reports fourth-quarter and full-year 2020 earnings ATLANTA, Feb. 18, 2021

ATLANTA, Feb. 18, 2021 /PRNewswire/ -- Southern Company today reported fourth-quarter 2020 earnings of $387 million, or 37 cents per share, compared with $440 million, or 42 cents per share, in the fourth quarter of 2019. Southern Company also reported full-year 2020 earnings of $3.12 billion, or $2.95 per share, compared with earnings of $4.74 billion, or $4.53 per share, in 2019.

Excluding the items described under "Net Income - Excluding Items" in the table below, Southern Company earned $497 million, or 47 cents per share, during the fourth quarter of 2020, compared with $283 million, or 27 cents per share, during the fourth quarter of 2019. For the full-year 2020, excluding these items, Southern Company earned $3.44 billion, or $3.25 per share, compared with $3.25 billion, or $3.11 per share, in 2019.

Non-GAAP Financial Measures Three Months Ended December Year-to-Date December

Net Income - Excluding Items 2020 2019 2020 2019(in millions)

Net Income - As Reported $387 $440 $3,119 $4,739

Less:

Acquisition and 22 39 60 2,516Disposition Impacts

Tax Impact (6) 48 (22) (1,081)

Estimated Loss on Plants (177) (11) (328) (27)Under Construction

Tax Impact 45 (4) 84 -

Wholesale Gas Services 78 136 17 215

Tax Impact (19) (34) (3) (52)

Asset Impairments (52) (16) (206) (108)

Tax Impact 21 (1) 101 26

Loss on Extinguishment of (29) - (29) -Debt

Tax Impact 7 - 7 -

Net Income - Excluding Items $497 $283 $3,438 $3,250

Average SharesOutstanding - (in millions) 1,058 1,052 1,058 1,046

Basic Earnings Per Share - $0.47 $0.27 $3.25 $3.11Excluding Items

NOTE: For more information regarding these non-GAAP adjustments, see the footnotes accompanying the Financial Highlights page of the earnings package.

Earnings drivers for the full year 2020 were positively influenced by diligent cost control and constructive state regulatory actions completed in 2019 at the company's utilities, more than offsetting the impact of a decline in sales related to the COVID-19 pandemic and milder weather.

"In a year that saw many challenges, Southern Company demonstrated significant resilience and operational excellence on multiple fronts," said Chairman, President and CEO, Thomas A. Fanning. "These efforts included prioritizing the health and safety of our workforce and communities, restoring electric service amid a record storm season and maintaining outstanding generation fleet reliability while delivering best-in-class customer service."

Fourth-quarter 2020 operating revenues were $5.1 billion, compared with $4.9 billion for the fourth quarter of 2019, an increase of 4.1 percent. Operating revenues for the full year were $20.4 billion, compared with $21.4 billion in 2019, a decrease of 4.9 percent. The full year decrease was primarily due to lower fuel costs and a sales decline resulting from milder weather and COVID-19.

Southern Company's fourth-quarter earnings slides with supplemental financial information, including earnings guidance for 2021, are available at http://investor.southerncompany.com.

Southern Company's financial analyst call will begin at 1 p.m. Eastern Time today, during which Fanning and Chief Financial Officer Andrew W. Evans will discuss earnings and provide a general business update, including an update on the Vogtle units 3 and 4 construction project. Investors, media and the public may listen to a live webcast of the call and view associated slides at http://investor.southerncompany.com/webcasts. A replay of the webcast will be available on the site for 12 months.

About Southern CompanySouthern Company (NYSE: SO) is a leading energy company serving 9 million customers through its subsidiaries. The company provides clean, safe, reliable and affordable energy through electric operating companies in three states, natural gas distribution companies in four states, a competitive generation company serving wholesale customers across America, a leading distributed energy infrastructure company, a fiber optics network and telecommunications services. Southern Company brands are known for excellent customer service, high reliability and affordable prices below the national average. For more than a century, we have been building the future of energy and developing the full portfolio of energy resources, including carbon-free nuclear, advanced carbon capture technologies, natural gas, renewables, energy efficiency and storage technology. Through an industry-leading commitment to innovation and a low-carbon future, Southern Company and its subsidiaries develop the customized energy solutions our customers and communities require to drive growth and prosperity. Our uncompromising values ensure we put the needs of those we serve at the center of everything we do and govern our business to the benefit of our world. Our corporate culture and hiring practices have been recognized nationally by the U.S. Department of Defense, G.I. Jobs magazine, DiversityInc, Black Enterprise, Forbes and the Women's Choice Award. To learn more, visit www.southerncompany.com.



Southern Company

Financial Highlights

(In Millions of Dollars Except Earnings Per Share)



Three Months EndedYear-to-Date December December

Net Income-As Reported (See Notes) 2020 2019 2020 2019

Traditional Electric Operating $306 $210 $2,877$2,929Companies

Southern Power 26 23 238 339

Southern Company Gas 230 238 590 585

Total 562 471 3,705 3,853

Parent Company and Other (175) (31) (586) 886

Net Income-As Reported $387 $440 $3,119$4,739



Basic Earnings Per Share^1 $0.37 $0.42 $2.95 $4.53

Average Shares Outstanding (in 1,058 1,052 1,058 1,046 millions)

End of Period Shares Outstanding (in 1,056 1,053 millions)



Non-GAAP Financial Measures Three Months EndedYear-to-Date December December

Net Income-Excluding Items (See Notes)2020 2019 2020 2019

Net Income-As Reported $387 $440 $3,119$4,739

Less:

Acquisition and Disposition Impacts^2 22 39 60 2,516

Tax Impact (6) 48 (22) (1,081)

Estimated Loss on Plants Under (177) (11) (328) (27) Construction^3

Tax Impact 45 (4) 84 -

Wholesale Gas Services^4 78 136 17 215

Tax Impact (19) (34) (3) (52)

Asset Impairments^5 (52) (16) (206) (108)

Tax Impact 21 (1) 101 26

Loss on Extinguishment of Debt^6 (29) - (29) -

Tax Impact 7 - 7 -

Net Income-Excluding Items $497 $283 $3,438$3,250



Basic Earnings Per Share-Excluding $0.47 $0.27 $3.25 $3.11 Items

-See Notes on the following page.

Southern CompanyFinancial Highlights

Notes

Dilution is not material in any period presented. Diluted earnings per(1) share was $0.36 and $2.93 for the three and twelve months ended December 31, 2020, respectively, and $0.42 and $4.50 for the three and twelve months ended December 31, 2019, respectively.

Earnings for the three and twelve months ended December 31, 2020 primarily include a $22 million pre-tax ($16 million after-tax) gain on the sale of Southern Company Gas' natural gas storage facility in Louisiana. Earnings for the twelve months ended December 31, 2020 also include a $39 million pre-tax ($23 million after-tax) gain on the sale of Southern Power Company's Plant Mankato. Earnings for the three months ended December 31, 2019 include: (i) a $70 million pre-tax ($102 million after-tax) increase in the gain on the sale of Gulf Power Company; (ii) a $24 million pre-tax ($17 million after-tax) impairment charge in contemplation of the sale of Pivotal LNG and Atlantic Coast Pipeline; and (iii) a net $7 million pre-tax(2) reduction to earnings (net $2 million after-tax increase to earnings) of other acquisition and disposition impacts. Earnings for the twelve months ended December 31, 2019 include: (i) a $2.6 billion pre-tax ($1.4 billion after-tax) gain on the sale of Gulf Power Company; (ii) a $23 million pre-tax ($88 million after-tax) gain on the sale of Southern Power Company's Plant Nacogdoches; and (iii) $18 million pre tax ($11 million after tax) of other acquisition and disposition impacts, partially offset by: (i) a $58 million pre-tax ($52 million after-tax) net loss, including impairment charges, associated with the sales of PowerSecure, Inc.'s utility infrastructure services and lighting businesses and (ii) a $24 million pre-tax ($17 million after-tax) impairment charge in contemplation of the sale of Pivotal LNG and Atlantic Coast Pipeline.

Earnings for the three and twelve months ended December 31, 2020 include charges of $176 million pre tax ($131 million after tax) and $325 million pre tax ($242 million after tax), respectively, for estimated probable losses on Georgia Power Company's construction of Plant Vogtle Units 3 and 4. Further charges may occur; however, the amount and timing of any such charges are uncertain. Earnings for the three and twelve months ended December 31, 2020 and 2019 include charges (net of salvage proceeds),(3) associated legal expenses (net of insurance recoveries), and tax impacts related to Mississippi Power Company's integrated coal gasification combined cycle facility project in Kemper County, Mississippi. Mississippi Power Company expects to incur additional pre-tax period costs to complete dismantlement of the abandoned gasifier-related assets and site restoration activities, including related costs for compliance and safety, asset retirement obligation accretion, and property taxes, totaling $10 million to $20 million annually through 2025.

Earnings for the three and twelve months ended December 31, 2020 and 2019 include Wholesale Gas Services business results. Presenting earnings and(4) earnings per share excluding Wholesale Gas Services provides an additional measure of operating performance that excludes the volatility resulting from mark-to-market and lower of weighted average cost or current market price accounting adjustments.

Earnings for the three and twelve months ended December 31, 2020 include impairment charges related to two leveraged leases. Earnings for the twelve months ended December 31, 2019 include a pre-tax impairment charge of $91 million ($69 million after tax) associated with a natural gas storage facility in Louisiana and earnings for the three months ended December 31,(5) 2019 include an adjustment of $(1) million ($4 million after tax) of this impairment charge. Additionally, earnings for the three and twelve months ended December 31, 2019 include a pre-tax impairment charge of $17 million ($13 million after tax) related to a leveraged lease. Further charges associated with this natural gas storage facility and these leveraged leases are not expected.

Earnings for the three and twelve months ended December 31, 2020 include(6) costs associated with the extinguishment of debt at Southern Company. Further costs may occur; however, the amount and timing of any such costs are uncertain.





Southern Company

Significant Factors Impacting EPS



Three Months Ended Year-to-Date December December

2020 2019 Change 2020 2019 Change

Earnings Per Share-

As Reported^1 (See $0.37$0.42$(0.05)$2.95$4.53$(1.58)Notes)



Significant Factors:

Traditional Electric Operating $0.09 $(0.05)Companies

Southern Power - (0.10)

Southern Company Gas (0.01) 0.01

Parent Company and (0.13) (1.41) Other

Increase in Shares - (0.03)

Total-As Reported $(0.05) $(1.58)



Three Months Ended Year-to-Date December December

Non-GAAP Financial 2020 2019 Change 2020 2019 Change Measures

Earnings Per Share-

Excluding Items (See$0.47$0.27$0.20 $3.25$3.11$0.14 Notes)



Total-As Reported $(0.05) $(1.58)

Less:

Acquisition and Disposition Impacts^ (0.07) (1.33) 2

Estimated Loss on Plants Under (0.11) (0.20) Construction^3

Wholesale Gas (0.04) (0.15) Services^4

Asset Impairments^5 (0.01) (0.02)

Loss on Extinguishment of $(0.02) $(0.02)Debt^6

Total-Excluding $0.20 $0.14 Items



- See Notes on the following page.

Southern CompanySignificant Factors Impacting EPS

Notes

Dilution is not material in any period presented. Diluted earnings per(1) share was $0.36 and $2.93 for the three and twelve months ended December 31, 2020, respectively, and $0.42 and $4.50 for the three and twelve months ended December 31, 2019, respectively.

Earnings for the three and twelve months ended December 31, 2020 primarily include a $22 million pre-tax ($16 million after-tax) gain on the sale of Southern Company Gas' natural gas storage facility in Louisiana. Earnings for the twelve months ended December 31, 2020 also include a $39 million pre-tax ($23 million after-tax) gain on the sale of Southern Power Company's Plant Mankato. Earnings for the three months ended December 31, 2019 include: (i) a $70 million pre-tax ($102 million after-tax) increase in the gain on the sale of Gulf Power Company; (ii) a $24 million pre-tax ($17 million after-tax) impairment charge in contemplation of the sale of Pivotal LNG and Atlantic Coast Pipeline; and (iii) a net $7 million pre-tax reduction to earnings (net $2 million(2) after-tax increase to earnings) of other acquisition and disposition impacts. Earnings for the twelve months ended December 31, 2019 include: (i) a $2.6 billion pre-tax ($1.4 billion after-tax) gain on the sale of Gulf Power Company; (ii) a $23 million pre-tax ($88 million after-tax) gain on the sale of Southern Power Company's Plant Nacogdoches; and (iii) $18 million pre tax ($11 million after tax) of other acquisition and disposition impacts, partially offset by: (i) a $58 million pre-tax ($52 million after-tax) net loss, including impairment charges, associated with the sales of PowerSecure, Inc.'s utility infrastructure services and lighting businesses and (ii) a $24 million pre-tax ($17 million after-tax) impairment charge in contemplation of the sale of Pivotal LNG and Atlantic Coast Pipeline.

Earnings for the three and twelve months ended December 31, 2020 include charges of $176 million pre tax ($131 million after tax) and $325 million pre tax ($242 million after tax), respectively, for estimated probable losses on Georgia Power Company's construction of Plant Vogtle Units 3 and 4. Further charges may occur; however, the amount and timing of any such charges are uncertain. Earnings for the three and twelve months ended December 31, 2020 and 2019 include charges (net of salvage(3) proceeds), associated legal expenses (net of insurance recoveries), and tax impacts related to Mississippi Power Company's integrated coal gasification combined cycle facility project in Kemper County, Mississippi. Mississippi Power Company expects to incur additional pre-tax period costs to complete dismantlement of the abandoned gasifier-related assets and site restoration activities, including related costs for compliance and safety, asset retirement obligation accretion, and property taxes, totaling $10 million to $20 million annually through 2025.

Earnings for the three and twelve months ended December 31, 2020 and 2019 include Wholesale Gas Services business results. Presenting earnings and(4) earnings per share excluding Wholesale Gas Services provides an additional measure of operating performance that excludes the volatility resulting from mark-to-market and lower of weighted average cost or current market price accounting adjustments.

Earnings for the three and twelve months ended December 31, 2020 include impairment charges related to two leveraged leases. Earnings for the twelve months ended December 31, 2019 include a pre-tax impairment charge of $91 million ($69 million after tax) associated with a natural gas storage facility in Louisiana and earnings for the three months ended(5) December 31, 2019 include an adjustment of $(1) million ($4 million after tax) of this impairment charge. Additionally, earnings for the three and twelve months ended December 31, 2019 include a pre-tax impairment charge of $17 million ($13 million after tax) related to a leveraged lease. Further charges associated with this natural gas storage facility and these leveraged leases are not expected.

Earnings for the three and twelve months ended December 31, 2020 include(6) costs associated with the extinguishment of debt at Southern Company. Further costs may occur; however, the amount and timing of any such costs are uncertain.

Southern Company EPS Earnings Analysis



Three Months EndedYear-to-Date Description December December 2020 vs. 2019 2020 vs. 2019



Retail Sales $(0.03) $(0.14)



Retail Revenue Impacts 0.15 0.39



Weather 0.01 (0.21)



Wholesale & Other Operating Revenues 0.03 0.02



Non-Fuel O&M 0.06 0.12



Depreciation and Amortization, Interest (0.06) (0.21) Expense, Other



Income Taxes 0.04 0.19



Total Traditional Electric Operating $0.20 $0.16 Companies



Southern Power 0.01 (0.02)



Southern Company Gas - 0.05



Parent and Other (0.01) (0.01)



Increase in Shares - (0.04)



Total Change in EPS (Excluding Items) $0.20 $0.14



Acquisition and Disposition Impacts^1 (0.07) (1.33)



Estimated Loss on Plants Under (0.11) (0.20) Construction^2



Wholesale Gas Services^3 (0.04) (0.15)



Asset Impairments^5 (0.01) (0.02)



Loss on Extinguishment of Debt^6 (0.02) (0.02)



Total Change in EPS (As Reported) $(0.05) $(1.58)

- See Notes on the following page.

Southern CompanyEPS Earnings Analysis

Notes

Earnings for the three and twelve months ended December 31, 2020 primarily include a $22 million pre-tax ($16 million after-tax) gain on the sale of Southern Company Gas' natural gas storage facility in Louisiana. Earnings for the twelve months ended December 31, 2020 also include a $39 million pre-tax ($23 million after-tax) gain on the sale of Southern Power Company's Plant Mankato. Earnings for the three months ended December 31, 2019 include: (i) a $70 million pre-tax ($102 million after-tax) increase in the gain on the sale of Gulf Power Company; (ii) a $24 million pre-tax ($17 million after-tax) impairment charge in contemplation of the sale of Pivotal LNG and Atlantic Coast Pipeline; and (iii) a net $7 million pre-tax reduction to earnings (net $2 million(1) after-tax increase to earnings) of other acquisition and disposition impacts. Earnings for the twelve months ended December 31, 2019 include: (i) a $2.6 billion pre-tax ($1.4 billion after-tax) gain on the sale of Gulf Power Company; (ii) a $23 million pre-tax ($88 million after-tax) gain on the sale of Southern Power Company's Plant Nacogdoches; and (iii) $18 million pre tax ($11 million after tax) of other acquisition and disposition impacts, partially offset by: (i) a $58 million pre-tax ($52 million after-tax) net loss, including impairment charges, associated with the sales of PowerSecure, Inc.'s utility infrastructure services and lighting businesses and (ii) a $24 million pre-tax ($17 million after-tax) impairment charge in contemplation of the sale of Pivotal LNG and Atlantic Coast Pipeline.

Earnings for the three and twelve months ended December 31, 2020 include charges of $176 million pre tax ($131 million after tax) and $325 million pre tax ($242 million after tax), respectively, for estimated probable losses on Georgia Power Company's construction of Plant Vogtle Units 3 and 4. Further charges may occur; however, the amount and timing of any such charges are uncertain. Earnings for the three and twelve months ended December 31, 2020 and 2019 include charges (net of salvage(2) proceeds), associated legal expenses (net of insurance recoveries), and tax impacts related to Mississippi Power Company's integrated coal gasification combined cycle facility project in Kemper County, Mississippi. Mississippi Power Company expects to incur additional pre-tax period costs to complete dismantlement of the abandoned gasifier-related assets and site restoration activities, including related costs for compliance and safety, asset retirement obligation accretion, and property taxes, totaling $10 million to $20 million annually through 2025.

Earnings for the three and twelve months ended December 31, 2020 and 2019 include Wholesale Gas Services business results. Presenting earnings and(3) earnings per share excluding Wholesale Gas Services provides an additional measure of operating performance that excludes the volatility resulting from mark-to-market and lower of weighted average cost or current market price accounting adjustments.

Earnings for the three and twelve months ended December 31, 2020 include impairment charges related to two leveraged leases. Earnings for the twelve months ended December 31, 2019 include a pre-tax impairment charge of $91 million ($69 million after tax) associated with a natural gas storage facility in Louisiana and earnings for the three months ended(4) December 31, 2019 include an adjustment of $(1) million ($4 million after tax) of this impairment charge. Additionally, earnings for the three and twelve months ended December 31, 2019 include a pre-tax impairment charge of $17 million ($13 million after tax) related to a leveraged lease. Further charges associated with this natural gas storage facility and these leveraged leases are not expected.

Earnings for the three and twelve months ended December 31, 2020 include(5) costs associated with the extinguishment of debt at Southern Company. Further costs may occur; however, the amount and timing of any such costs are uncertain.



Southern Company

Consolidated Earnings

As Reported

(In Millions of Dollars)

Three Months Ended Year-to-Date December December

2020 2019 Change 2020 2019 Change

Income Account-

Retail Electric Revenues-

Fuel $786$784$2 $3,087$3,591$(504)

Non-Fuel 2,3542,164190 10,556 10,493 63

Wholesale Electric 472 485 (13) 1,945 2,152 (207) Revenues

Other Electric 188 144 44 672 636 36 Revenues

Natural Gas Revenues 1,0721,131(59) 3,434 3,792 (358)

Other Revenues 245 206 39 681 755 (74)

Total Revenues 5,1174,914203 20,375 21,419 (1,044)

Fuel and Purchased 965 977 (12) 3,766 4,438 (672) Power

Cost of Natural Gas 318 363 (45) 972 1,319 (347)

Cost of Other Sales 126 119 7 327 435 (108)

Non-Fuel O&M 1,6281,726(98) 5,413 5,624 (211)

Depreciation and 899 771 128 3,518 3,038 480 Amortization

Taxes Other Than 302 299 3 1,234 1,230 4 Income Taxes

Estimated Loss on Plant Vogtle Units 3 176 - 176 325 - 325 and 4

Impairment Charges - 26 (26) - 168 (168)

(Gain) Loss on (26) (57) 31 (65) (2,569)2,504 Dispositions, net

Total Operating 4,3884,224164 15,490 13,683 1,807 Expenses

Operating Income 729 690 39 4,885 7,736 (2,851)

Allowance for Equity Funds Used During 43 32 11 149 128 21 Construction

Earnings from Equity 48 42 6 153 162 (9) Method Investments

Interest Expense, Net of Amounts 478 442 36 1,821 1,736 85 Capitalized

Impairment of 52 - 52 206 - 206 Leveraged Lease

Other Income 17 13 4 336 252 84 (Expense), net

Income Taxes (50) (74) 24 393 1,798 (1,405)

Net Income 357 409 (52) 3,103 4,744 (1,641)

Less:

Dividends on Preferred Stock of 4 5 (1) 15 15 - Subsidiaries

Net Income (Loss) Attributable to (34) (36) 2 (31) (10) (21) Noncontrolling Interests

NET INCOME ATTRIBUTABLE TO $387$440$(53)$3,119$4,739$(1,620)SOUTHERN COMPANY

Notes

- Certain prior year data may have been reclassified to conform with currentyear presentation.





Southern Company

Kilowatt-Hour Sales and Customers

(In Millions of KWHs)



Three Months Ended December Year-to-Date December

Weather Weather 2020 2019 Change Adjusted 2020 2019 Change Adjusted Change Change

Kilowatt-Hour Sales-

Total Sales45,31546,185(1.9) % 186,225 196,488 (5.2) %



Total Retail 33,82334,254(1.3) %(1.7) %140,546 148,461 (5.3) %(3.0)% Sales-

Residential10,98710,7382.3 %1.2 %47,472 48,528 (2.2) %3.1%

Commercial 10,82411,324(4.4) %(5.0) %45,434 49,101 (7.5) %(5.7)%

Industrial 11,85312,022(1.4) %(1.4) %46,982 50,106 (6.2) %(6.2)%

Other 159 170 (6.2) %(6.2) %658 726 (9.5) %(9.3)%



Total Wholesale 11,49211,931(3.7) %N/A 45,679 48,027 (4.9) %N/A Sales





(In Thousands of Customers)



Period Ended December

2020 2019 Change

Regulated Utility Customers-

Total Utility 8,630 8,543 1.0% Customers-

Total Traditional Electric 4,322 4,266 1.3%

Southern Company 4,308 4,277 0.7% Gas

Southern Company

Financial Overview

As Reported

(In Millions of Dollars)

Three Months Ended December Year-to-Date December

2020 2019 % Change 2020 2019 % Change

Southern Company^1, 2 -

Operating Revenues $5,117 $4,9144.1 %$20,375 $21,419 (4.9) %

Earnings Before Income 307 335 (8.4) %3,496 6,542 (46.6) %Taxes

Net Income Available to387 440 (12.0) %3,119 4,739 (34.2) %Common



Alabama Power -

Operating Revenues $1,385 $1,3631.6 %$5,830 $6,125 (4.8) %

Earnings Before Income 162 67 141.8 %1,502 1,355 10.8 %Taxes

Net Income Available to128 88 45.5 %1,150 1,070 7.5 %Common



Georgia Power -

Operating Revenues $1,938 $1,70313.8 %$8,309 $8,408 (1.2) %

Earnings Before Income 118 128 (7.8) %1,727 2,192 (21.2) %Taxes

Net Income Available to164 122 34.4 %1,575 1,720 (8.4) %Common



Mississippi Power -

Operating Revenues $277 $294 (5.8) %$1,172 $1,264 (7.3) %

Earnings Before Income 8 3 166.7 %166 169 (1.8) %Taxes

Net Income Available to14 - N/M 152 139 9.4 %Common



Southern Power^2 -

Operating Revenues $396 $411 (3.6) %$1,733 $1,938 (10.6) %

Earnings (Loss) Before (32) (28) 14.3 %210 273 (23.1) %Income Taxes

Net Income Available to26 23 13.0 %238 339 (29.8) %Common



Southern Company Gas -

Operating Revenues $1,072 $1,131(5.2) %$3,434 $3,792 (9.4) %

Earnings Before Income 305 307 (0.7) %763 715 6.7 %Taxes

Net Income Available to230 238 (3.4) %590 585 0.9 %Common

N/M - Not meaningful

Notes

- See Financial Highlights pages for discussion of certain significant itemsoccurring during the periods presented.

(1) Earnings comparisons to the prior year were significantly impacted by the gain associated with the sale of Gulf Power Company on January 1, 2019.

Earnings and revenue comparisons to the prior year were significantly(2) impacted by Southern Power's dispositions of Plant Nacogdoches on June 13, 2019 and Plant Mankato on January 17, 2020.

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SOURCE Southern Company