Talen Energy (TLN)

• Talen Energy announced the $3.45 billion acquisition of three natural gas power generation plants (two CCGTs and one quick-start peaker) with approximately 2.6 gigawatts of capacity from ECP.
• The transaction is expected to be more than 15% accretive to Talen's projected 2027 adjusted free cash flow per share and implies a 6.6 times 2027 estimated Adjusted EBITDA multiple.
• Funding for the acquisition includes $900 million in Talen equity issued to ECP (making ECP a significant shareholder at approximately 5%) and $2.55 billion in newly issued unsecured debt.
• This acquisition expands Talen's presence in Western PJM (Ohio and Indiana), increasing its total capacity by 20% to 15.7 gigawatts and diversifying its generation portfolio.
• Talen aims to maintain its balance sheet strength, achieve a net leverage of 3.5 times or less by year-end 2026, and continue its $2 billion share repurchase program.

• Talen Energy is acquiring three high-quality natural gas power generation plants (two CCGTs and one QuickStart peaker) from ECP for $3.45 billion.
• This acquisition adds approximately 2.6 gigawatts of capacity, expanding Talen's presence in Western PJM (Ohio and Indiana) and diversifying its generation portfolio.
• The transaction is projected to be immediately more than 15% accretive to Talen's 2027 adjusted free cash flow per share outlook, representing an uplift of at least $4 per share.
• ECP will take approximately $900 million (40%) of its equity consideration in Talen shares, becoming a significant equity partner.
• Talen plans to finance the remaining $2.55 billion with newly issued unsecured debt, aiming to maintain balance sheet strength and achieve a net leverage of 3.5 times or less by year-end 2026.

• Talen (TLN) announced the acquisition of three natural gas power generation plants (two CCGTs and one QuickStart peaker) with approximately 2.6 gigawatts of capacity from ECP for $3.45 billion.
• The acquisition is projected to be more than 15% accretive to Talen's 2027 adjusted free cash flow per share outlook, adding at least $4 per share, and implies a 6.6 times 2027 estimated Adjusted EBITDA multiple.
• ECP will receive approximately $900 million in Talen shares, representing about 5% ownership, with the remaining $2.55 billion financed through newly issued unsecured debt.
• Talen aims to maintain its balance sheet strength, targeting a net leverage of 3.5 times or less by the end of 2026, and expects the transaction to close early in the second half of 2026.
• The acquisition expands Talen's presence in Western PJM (Ohio and Indiana) and diversifies its generation portfolio, nearly doubling its annual generation to approximately 71 terawatt hours per year and increasing total capacity by 20% to 15.7 gigawatts.

• Talen Energy is acquiring the Lawrenceburg, Waterford, and Darby assets from Energy Capital Partners (ECP) for $3.45 billion, with consideration including ~$2.55 billion in cash and ~$900 million in Talen equity.
• This acquisition is expected to be immediately >15% accretive to Adjusted Free Cash Flow (FCF)/share and will add ~2.62 GW of efficient natural gas assets to Talen's generation portfolio.
• The transaction is projected to enhance Talen's overall scale, diversify cash flows, and help achieve a net leverage target of <3.5x by year-end 2026.
• The closing of the transaction is anticipated to occur early in the second half of 2026.

• Talen Energy Corporation announced the acquisition of approximately 2.6 gigawatts of natural gas generation capacity, including the Waterford Energy Center, Darby Generating Station, and Lawrenceburg Power Plant, from Energy Capital Partners (ECP).
• The acquisition price is $3.45 billion, consisting of approximately $2.55 billion in cash and $900 million in Talen stock, with ECP expected to own approximately 5% of pro forma combined Talen equity post-close.
• The transaction is expected to be immediately accretive to adjusted free cash flow per share by over 15% annually through 2030E and is anticipated to close early in the second half of 2026.
• This acquisition expands Talen's presence in the western PJM market, diversifies its generation portfolio with efficient baseload assets, and enhances its ability to serve data centers and large commercial off-takers.

• Talen Energy Corporation announced the results from the PJM Base Residual Auction for the 2027/2028 planning year.
• The company cleared a total of 8,745 megawatts at a clearing price of $333.44 per megawatt-day.
• These auction results are projected to generate approximately $1,067 million in capacity revenues for the planning year, which spans from June 1, 2027, through May 31, 2028.

• Talen Energy Corporation reported its results from the PJM Base Residual Auction for the 2027/2028 planning year.
• The company cleared a total of 8,745 megawatts at a clearing price of $333.44 per megawatt-day.
• This is expected to generate approximately $1,067 million in capacity revenues for the planning year, which runs from June 1, 2027, through May 31, 2028.

• Talen Energy Corporation announced a strategic realignment of its executive management team, effective December 15, 2025.
• Mac McFarland will continue as Chief Executive Officer and a Board member, with his employment agreement extended through February 2027.
• Terry L. Nutt was appointed President, and Cole Muller was appointed Chief Financial Officer, both effective immediately and with employment agreements extended through February 2027. Mr. Nutt previously served as CFO, and Mr. Muller as Executive Vice President, Strategic Ventures.
• Other new appointments include Brad Berryman as Chief Operating Officer, Dale Lebsack as Chief Asset Development Officer, and Ed Casulli as Chief Nuclear Officer.
• John Wander, General Counsel and Corporate Secretary, plans to retire at the end of June 2026.

The compensation details for these executives for FY 2026 are as follows:

• Talen Energy Corporation announced a strategic realignment of its executive management team, with Terry L. Nutt appointed President and Cole Muller appointed Chief Financial Officer, effective immediately.
• The company extended employment agreements for several key executives, including CEO Mac McFarland, President Terry L. Nutt, and CFO Cole Muller, with initial terms through February 28, 2027.
• These new employment agreements include a provision for up to 60% cash settlement of Emergence Awards vesting in May 2026, which is expected to have a significant anti-dilutive effect on the number of shares issued and outstanding.
• John Wander, the Company’s General Counsel and Corporate Secretary, has notified the Company of his intent to retire at the end of June 2026.

• Talen Energy completed the acquisitions of the Freedom Generating Station and Guernsey Power Station on November 25, 2025, adding nearly 2.9 gigawatts of natural gas-fired PJM assets to its portfolio.
• The total purchase price for these acquisitions was approximately $3.8 billion, with $1.5 billion for Freedom and $2.3 billion for Guernsey.
• The acquisitions were funded through $2.7 billion of senior unsecured notes and a $1.2 billion senior secured term loan B credit facility.
• Additionally, the company increased its revolving credit facility to $900 million and its letter of credit facility to $1.1 billion.