Talen Energy Corp Stock Price, News & Analysis

Talen Energy (NASDAQ: TLN) has announced the acquisition of two combined-cycle gas-fired plants in the PJM power market for a net price of $3.5 billion ($3.8 billion gross). The company is acquiring Caithness Energy's Moxie Freedom Energy Center in Pennsylvania and Caithness Energy and BlackRock's Guernsey Power Station in Ohio.

The transaction represents a 6.7x 2026 EV/EBITDA multiple and is expected to be immediately accretive to free cash flow per share by over 40% in 2026 and over 50% through 2029. The acquisition will increase Talen's annual generation by 50% from 40 TWh to 60 TWh. Both plants feature highly efficient H-class CCGTs with an average heat rate of 6,550 Btu/kWh.

The deals are expected to close in Q4 2025, subject to regulatory approvals. Talen plans to issue $3.8 billion in new debt to fund the acquisitions and refinance target debt, while maintaining a leverage target of 3.5x or lower by year-end 2026.

Talen Energy has significantly expanded its nuclear energy partnership with Amazon through a major power purchase agreement (PPA) to supply 1,920 megawatts of carbon-free electricity from its Susquehanna nuclear power plant to Amazon Web Services data centers through 2042. The agreement, which will reach full volume by 2032, will support Amazon's $20B investment in Pennsylvania - the largest private sector investment in state history - creating 1,250 high-skilled jobs. The partnership includes plans to explore building new Small Modular Reactors and pursuing nuclear plant uprates. Starting Spring 2026, the arrangement will transition to a front-of-the-meter setup, with Talen supplying power to the PJM grid and acting as Amazon's retail electric supplier, while PPL handles transmission. The deal provides Talen with steady long-term revenue and reduces market risk while supporting over 900 existing jobs at Susquehanna.

Five Point Infrastructure has announced the formation of PowerBridge LLC with a $1 billion equity commitment to develop gigawatt-scale data center campuses across North America. PowerBridge will partner with LandBridge (NYSE: LB) and WaterBridge to leverage over 275,000 surface acres for infrastructure development and access low-cost natural gas from the Waha Gas market hub.

Led by CEO Alex Hernandez, former CEO of Cumulus Data and Talen Energy Corp, PowerBridge brings significant expertise in data center development. Hernandez's previous success includes developing a 1 GW data center campus connected to Talen Energy's nuclear power plant, which attracted a $12 billion investment from Amazon Web Services for 17 data center buildings (~960 MW capacity).

The venture combines Five Point's infrastructure expertise with PowerBridge's data center development capabilities to create an integrated solution for hyperscale customers.

Talen Energy (TLN) reported Q1 2025 results with a GAAP Net Loss of $135 million, Adjusted EBITDA of $200 million, and Adjusted Free Cash Flow of $87 million. The company affirmed and narrowed its 2025 guidance, projecting Adjusted EBITDA of $975-$1,125 million and Adjusted Free Cash Flow of $450-$540 million. Key developments include FERC's approval of a reliability-must-run agreement for Brandon Shores and H.A. Wagner facilities through May 2029, with expected annual revenues of $145 million and $35 million respectively. The company extended Susquehanna Unit 2's refueling outage for additional maintenance, investing $20 million for long-term efficiency improvements. Talen continued its share repurchase program, buying back 452,130 shares for $83 million in Q1 2025, with $995 million remaining in the program through 2026. The company maintains strong liquidity of $970 million and a projected net leverage ratio of 2.6x.

The Federal Energy Regulatory Commission (FERC) has approved a reliability-must-run (RMR) agreement for Talen Energy Corporation (NASDAQ: TLN) to continue operating units at its Brandon Shores and H.A. Wagner power plants through May 31, 2029, extending beyond their planned May 31, 2025 retirement dates. The agreement involves Brandon Shores Units 1 and 2 and H.A. Wagner Units 3 and 4, which will maintain grid and transmission reliability in the Baltimore area until transmission upgrades are completed. The settlement was reached in January between Talen, PJM Interconnection, Maryland Public Service Commission, Maryland customers, and electric utilities, aiming to ensure reliable electricity supply while protecting consumer rates.

Talen Energy (NASDAQ: TLN) has scheduled the release of its first quarter 2025 financial results on Thursday, May 8, 2025, before market open. The company will host an earnings conference call at 9:00 a.m. EDT (8:00 a.m. CDT) on the same day.

President and CEO Mac McFarland and CFO Terry Nutt will lead the discussion of the company's financial and operating results. Interested participants can pre-register for the webcast or obtain dial-in information for phone participation. A digital replay of the earnings call will be available for approximately one year on Talen's Investor Relations website.

Talen Energy (NASDAQ: TLN) reported strong financial results for full year 2024, with GAAP Net Income of $998 million, Adjusted EBITDA of $770 million, and Adjusted Free Cash Flow of $283 million, exceeding 2024 guidance midpoints.

The company demonstrated robust operational performance with a Fleet EFOF of 2.2% and total generation of 36.3 TWh, with 50% from carbon-free nuclear generation. Key developments include: reaching an RMR settlement agreement for Brandon Shores and H.A. Wagner facilities through May 2029, with expected annual revenues of $145 million and $35 million respectively starting June 2025; selling ERCOT assets; and completing significant share repurchases totaling 13 million shares (22% of outstanding shares).

As of February 21, 2025, Talen maintained strong liquidity of $1.2 billion and a net leverage ratio of 3.3x. The company has hedged 89% of expected generation volumes for 2025 and 33% for 2026.

Talen Energy (NASDAQ: TLN) has announced it will release its full year and fourth quarter 2024 financial results on Thursday, February 27, 2025, after market close. The company will host an earnings call at 4:30 p.m. EST (3:30 p.m. CST) on the same day.

President and CEO Mac McFarland and CFO Terry Nutt will lead the discussion of financial and operating results. Interested participants can register for the webcast in advance, and phone participants must pre-register to receive dial-in information. A digital replay of the earnings call will be available for approximately one year on Talen's Investor Relations website.

Talen Energy (NASDAQ: TLN) has reached a 'reliability-must-run' (RMR) settlement agreement with PJM Interconnection and other parties to extend operations of its Brandon Shores and H.A. Wagner power plants until May 31, 2029, beyond their scheduled May 2025 retirement dates. The agreement aims to maintain grid reliability in Baltimore until transmission upgrades are completed.

The settlement, pending FERC approval, will provide fixed payments of $312/MW-day ($145 million annually) for Brandon Shores and $137/MW-day ($35 million annually) for H.A. Wagner, including performance incentives of $5 million and $2.5 million respectively. Fuel costs and variable operations expenses will be separately reimbursed.

Under the agreement, both plants will not be considered capacity resources but will be part of the capacity market supply stack, with offer prices dependent on PJM's pending Section 205 proceeding.