Financial Performance: Southern Energy Corp reported $4.0 million in petroleum and natural gas sales for Q2 2025, a 3% increase from Q2 2024, driven by a significant rise in natural gas prices, despite a 27% decrease in average production.
Operational Highlights: The company successfully completed the GH LSC 13-13 #2 wellbore, achieving early production rates that exceeded previous wells, while also reducing completion costs significantly below budget.
Net Loss and Financing: Southern recorded a net loss of $0.4 million in Q2 2025, an improvement from a $2.6 million loss in the same quarter last year, and raised $5.0 million through equity financing to support ongoing operations.
Future Outlook: With a positive outlook on natural gas pricing and additional drilling opportunities, Southern aims to enhance shareholder value and improve cash flow in the upcoming quarters.
SO
$85.71+Infinity%1D
Analyst Views on SO
Wall Street analysts forecast SO stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for SO is 101.14 USD with a low forecast of 87.00 USD and a high forecast of 112.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
19 Analyst Rating
Wall Street analysts forecast SO stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for SO is 101.14 USD with a low forecast of 87.00 USD and a high forecast of 112.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
4 Buy
14 Hold
1 Sell
Hold
Current: 86.000
Low
87.00
Averages
101.14
High
112.00
Current: 86.000
Low
87.00
Averages
101.14
High
112.00
Morgan Stanley
Equal Weight -> Underweight
downgrade
$97 -> $81
2025-12-16
New
Reason
Morgan Stanley
Price Target
$97 -> $81
2025-12-16
New
downgrade
Equal Weight -> Underweight
Reason
Morgan Stanley downgraded Southern Company to Underweight from Equal Weight with a price target of $81, down from $97, as part of its 2026 outlook for the utilities group. Utility share performance will be driven by data centers and growth upside in 2026 "with no slowing of activity or relief to grid tightness," the analyst tells investors in a research note. Morgan Stanley recommends investors avoid political and regulatory risk, especially in an active election year.
JPMorgan
Neutral
downgrade
$104 -> $93
2025-12-15
New
Reason
JPMorgan
Price Target
$104 -> $93
2025-12-15
New
downgrade
Neutral
Reason
JPMorgan lowered the firm's price target on Southern Company to $93 from $104 and keeps a Neutral rating on the shares. The firm updated the company's model.
RBC Capital
Stephen D'Ambrisi
Sector Perform
downgrade
$107 -> $99
2025-12-12
New
Reason
RBC Capital
Stephen D'Ambrisi
Price Target
$107 -> $99
2025-12-12
New
downgrade
Sector Perform
Reason
RBC Capital analyst Stephen D'Ambrisi lowered the firm's price target on Southern Company to $99 from $107 and keeps a Sector Perform rating on the shares. The company's recently announced settlement in the GA All-Source RFP likely adds $4B to capital plan & explicitly ties large load additions to $1.7B in rate credits, the analyst tells investors in a research note. RBC adds however that despite the 4% underperformance since late October, the firm remains at neutral pending more clarity on a potentially politically noisy 2026.
KeyBanc
KeyBanc
Underweight
downgrade
$87 -> $76
2025-12-12
New
Reason
KeyBanc
KeyBanc
Price Target
$87 -> $76
2025-12-12
New
downgrade
Underweight
Reason
KeyBanc lowered the firm's price target on Southern Company to $76 from $87 and keeps an Underweight rating on the shares. While the stock's slight premium remains supported by Southern's strong regulatory construct in its territories, particularly in GA, the firm believes the recent three-year stay-out and the absence of new rates in its largest jurisdiction will make it difficult for Southern to rebase/guide higher for its EPS growth rate. As a result, KeyBanc thinks Southern's growth opportunities are more limited than the market is currently pricing in, and that growth rate revisions are unlikely in the near term. Consequently, it still sees Southern as an unattractive source of funds and expects its premium to compress further relative to peers.
About SO
The Southern Company is an energy provider. The Company owns three traditional electric operating companies, Southern Power Company and Southern Company Gas. The traditional electric operating companies-Alabama Power, Georgia Power and Mississippi Power-are operating public utility companies providing electric service to retail customers in three Southeastern states in addition to wholesale customers in the Southeast. The Southern Power Company develops, constructs, acquires, owns, and manages power generation assets, including renewable energy projects, and sells electricity at market-based rates in the wholesale market. The Southern Company Gas is an energy services holding company whose primary business is the distribution of natural gas in four states - Illinois, Georgia, Virginia, and Tennessee, through the natural gas distribution utilities. Southern Company Gas is also involved in several other businesses that are complementary to the distribution of natural gas.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
