In business for more than 100 years, Southern Company (SO)
is a major regulated utility involved in selling electricity and distributing
natural gas, primarily across the Southeastern U.S. The firm's eight vertically
integrated electric and gas utilities serve customers across Georgia, Alabama,
Florida, and Mississippi.
Southern Company’s mix of business and service territories
significantly changed after the company's 2016 acquisition of natural gas
utility AGL Resources for $12 billion. AGL Resources owns more than 80,000
miles of pipelines and over a dozen storage facilities it uses to transport and
distribute natural gas to businesses and households across Illinois, Georgia,
Virginia, New Jersey, Florida, Tennessee, and Maryland.
After acquiring AGL Resources, Southern Company's customer
count roughly doubled to 9 million, and its business mix shifted from 100%
electric to a 50/50 mix of electric and gas. The utility services a diversified
blend of residential, commercial, industrial, and wholesale customers.
Approximately 95% of the company's earnings are funded by
state-regulated utilities and businesses with long-term contract models,
providing predictable cash flow. Southern Company has also made great strides
in transitioning its energy production mix from 69% coal in 2007 to nearly half
from natural gas today, with a significant portion also now coming from
renewable sources.
As the industry keeps moving toward cleaner power
generation, by 2030 the firm wants to reduce its CO2 emissions by 50% from 2000
levels. Even more ambitious, by 2050 Southern Company plans to generate all of
its power from low emission (gas) or no emission (nuclear and renewable)
sources.
I am waiting for adding SO for a while. The price is currently high little bit to me. I will add if the price drops to $48.
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