Southern Company reported second quarter 2016 earnings of $638 million, or 68 cents per share, compared with earnings of $629 million, or 69 cents per share, in the second quarter of 2015. For the six months ended June 30, 2016, earnings were $1.12 billion, or $1.21 per share, compared with $1.14 billion, or $1.25 per share, for the same period in 2015.

Excluding the items described in the "Consolidated Earnings – Excluding Items" table below, Southern Company earned $692 million, or 74 cents per share, during the second quarter of 2016, compared with $647 million, or 71 cents per share, during the second quarter of 2015. For the six months ended June 30, 2016, excluding these items, Southern Company earned $1.22 billion, or $1.32 per share, compared with earnings of $1.16 billion, or $1.28 per share, for the same period in 2015.

Earnings for the three and six months ended June 30, 2016, were also impacted by debt-financing costs related to the acquisition of Southern Company Gas (formerly known as AGL Resources Inc). These costs were not included in the 2016 earnings guidance provided previously. Excluding both these costs and the items described above, Southern Company earned $716 million, or 77 cents per share, during the second quarter of 2016, compared with $647 million, or 71 cents per share, during the second quarter of 2015. For the six months ended June 30, 2016, excluding all of these items, Southern Company earned $1.25 billion, or $1.35 per share, compared with earnings of $1.16 billion, or $1.28 per share, for the same period in 2015.

Earnings drivers for the second quarter of 2016 were positively influenced by retail revenue effects at Southern Company's traditional operating companies, stronger-than-expected performance of its Southern Power subsidiary and lower non-fuel operations and maintenance expenses across the regulated operating companies. Earnings were negatively influenced by increased interest expenses and higher depreciation and amortization expenses.

"We are very pleased with how our electric businesses are performing this year, including the strong performance of our wholesale subsidiary, Southern Power," said Southern Company Chairman, President and CEO Thomas A. Fanning. "We look forward to the years ahead, when both Southern Company Gas and – subject to federal approval – our announced investment in Southern Natural Gas begin to contribute to our results. We are truly building the future of energy for the benefit of the customers and communities we are privileged to serve. That longstanding customer focus has always been the foundation for delivering on our long-term financial objectives."

Second quarter 2016 operating revenues were $4.45 billion, compared with $4.34 billion for the second quarter of 2015, an increase of 2.7 percent. For the six months ended June 30, 2016, operating revenues were $8.43 billion, compared with $8.52 billion for the same period in 2015, a decrease of 1.0 percent.  This decrease was primarily due to lower fuel costs.

Kilowatt-hour sales to retail customers in Southern Company's four-state service area decreased 1.6 percent in the second quarter of 2016, compared with the second quarter of 2015. Residential energy sales decreased 0.8 percent, commercial energy sales decreased 2.0 percent and industrial energy sales decreased 1.9 percent. For the first six months of 2016, retail sales decreased 2.3 percent, compared with the same period in 2015. Residential energy sales decreased 4.1 percent, commercial energy sales decreased 1.4 percent and industrial energy sales decreased 1.4 percent.

Weather-adjusted kilowatt-hour sales to retail customers in Southern Company's four-state service area decreased 1.4 percent in the second quarter of 2016, compared with the second quarter of 2015. Weather-adjusted residential energy sales decreased 0.2 percent and weather-adjusted commercial energy sales decreased 1.9 percent. For the first six months of 2016, weather-adjusted retail sales decreased 0.5 percent, compared with the same period in 2015. Weather-adjusted residential energy sales increased 0.6 percent and weather-adjusted commercial energy sales decreased 0.6 percent.

Total energy sales to Southern Company's customers, including wholesale sales, decreased 0.6 percent in the second quarter of 2016, compared with the second quarter of 2015. For the first six months of 2016, total energy sales decreased 1.1 percent, compared with the same period in 2015.