Talen Energy Corporation (TLN) is a leading independent power producer and energy infrastructure company headquartered in Houston, Texas. The company generates and sells electricity, capacity, and ancillary services into wholesale power markets across the United States. With a focus on clean energy and digital infrastructure, Talen operates a diverse portfolio of power generation assets, including nuclear, gas-fired, and coal facilities, while actively transitioning to lower-carbon energy solutions.
- PJM - Operates and markets power generation activities within the PJM market, including nuclear, natural gas, oil, and coal generation facilities, which form the core of Talen's operations.
- ERCOT and Other - Includes power generation activities in the ERCOT market through natural gas-fired facilities, Talen Montana's share of the Colstrip Units, and operations in the New York ISO market.
- Digital Infrastructure - Develops hyperscale data center campuses adjacent to its nuclear facilities, providing carbon-free, low-cost energy to support the growing demand for artificial intelligence and digital infrastructure.
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| Name | Position | External Roles | Short Bio | |
|---|---|---|---|---|
Mark A. McFarland ExecutiveBoard | Chief Executive Officer (CEO) and Director |
| Mark A. McFarland has been CEO and Director of TLN since May 2023. He oversees TLN's long-term strategy, wholesale power generation, and growth businesses. Previously, he was CEO of CRC and GenOn Energy. | View Report → |
Terry L. Nutt Executive | Chief Financial Officer (CFO) | None | Terry L. Nutt has been CFO of TLN since July 2023. He leads finance, M&A, risk management, and treasury activities. Previously, he was CFO of Just Energy and EDF Trading North America. |
- Given the significant cash on your balance sheet and low net leverage of 1.2x, why is your adjusted free cash flow CAGR guidance over the next five years only above 10%, which seems conservative considering the growth drivers you've outlined?
- With the upsized $1 billion share repurchase program and substantial liquidity, how are you balancing returning capital to shareholders with potential strategic investments or acquisitions to expand your portfolio?
- Regarding the additional capital expenditures required to keep plants like Brandon and Wagner online under RMR agreements, how might these unexpected costs impact your financial projections and capital allocation plans?
- Considering the accelerating load growth and tightening power markets, what is your assessment of the risk that regulatory actions could increase supply and potentially suppress power prices, and how are you positioning the company to mitigate this risk?
- Your hedging strategy significantly contributed to strong Q1 results, but with a lower hedge percentage in 2026 due to higher forward prices, how do you plan to manage potential market volatility in the outer years while balancing upside opportunities and downside protection?
Research analysts who have asked questions during Talen Energy earnings calls.
Ian Zaffino
Oppenheimer & Co. Inc.
4 questions for TLN
Agnieszka Storozynski
BofA Securities
2 questions for TLN
David Arcaro
Morgan Stanley
2 questions for TLN
Gregg Orrill
UBS Group AG
2 questions for TLN
Hamed Khorsand
BWS Financial
2 questions for TLN
Jeremy Tonet
JPMorgan Chase & Co.
2 questions for TLN
Nicholas Campanella
Barclays
2 questions for TLN
Paul Zimbardo
Jefferies Financial Group Inc.
2 questions for TLN
Rinny Singh
Bank of America
2 questions for TLN
Angie Storozynski
Seaport Research Partners
1 question for TLN
Notable M&A activity and strategic investments in the past 3 years.
| Company | Year | Details |
|---|---|---|
Cumulus Digital Holdings | 2024 | TES acquired 100% of Cumulus Digital Holdings for $39 million in cash by purchasing all equity units held by affiliates of Orion and two former Talen senior management members in March 2024, making TES the sole owner of the company. |
Recent press releases and 8-K filings for TLN.
- Talen Energy Corporation announced the acquisition of Caithness Energy's Moxie Freedom and Guernsey gas-fired assets for an effective enterprise value of approximately $3.5 billion.
- This acquisition is expected to increase Talen's portfolio by ~3 GW to ~14 GW and is anticipated to be immediately accretive to FCF/share by >40% in 2026 and >50% through 2029.
- Talen plans to issue $3.8 billion in new debt to fund the transaction and refinance existing debt, while targeting net leverage of <3.5x by year-end 2026 and supporting $500 million of annual share repurchases through the deleveraging period.
- The transaction is expected to close in Q4 2025, subject to Hart-Scott-Rodino (HSR) and Federal Energy Regulatory Commission (FERC) regulatory approvals.
- Talen Energy finalized a long-term, front-of-the-meter, grid-connected PPA with Amazon to supply nearly 2 GW (1,920 MW) of carbon‐free nuclear power from its Susquehanna plant through 2042, ramping to full capacity by 2032
- The expanded PPA unlocks approximately $18 B in notional revenue over 17 years and eliminates FERC approval and amendment risks
- At full ramp, the deal is expected to boost after-tax free cash flow per share by over 50% – from $0.25 in 2024A to $1.55 in 2026E (adding >$8 per share) and generate about $1.4 B annually
- The agreement validates Talen’s differentiated IPP strategy at the nexus of data centers and power, enhancing contracted cash flows, reducing risk, and potentially lowering cost of capital
- Forecast margin mix shifts from 60% merchant, 30% stable, 10% long-term contracted in 2026 to 70% contracted by 2032, bolstering earnings resiliency
- Talen will explore regulatory/legal solutions for behind-the-meter opportunities, pursue nuclear SMR development and uprates in Pennsylvania, and host a virtual investor update in September
- Maintenance update: The planned refueling outage for Susquehanna Unit 2 has been extended from mid-May to the first week of June due to additional rework in realignment and assembly tasks.
- Increased costs: The extension is expected to add approximately $35 million in expenses, with anticipated efficiency gains offsetting the costs over roughly two years.
- Financial guidance unchanged: Despite the outage extension and cost increase, the company reiterates that its 2025 financial guidance remains unchanged.
- Q1 2025 performance: Reported Adjusted EBITDA of $200mm and Adjusted Free Cash Flow of $87mm amid higher power prices and increased generation
- GAAP net loss: Recorded a net loss of $(135)M in Q1 2025
- Guidance reaffirmed: Provided 2025 outlook with Adjusted EBITDA of $975–$1,125mm and Adjusted Free Cash Flow of $450–$540mm, with 2026 guidance unchanged
- Operational update: Extended the Susquehanna Unit 2 refueling outage into mid-May for additional maintenance
- Regulatory approval: FERC approved the RMR settlement, enabling the operation of Brandon Shores and H.A. Wagner units until May 31, 2029 to ensure grid reliability
- Capital allocation: Continued share repurchase program with approximately $83mm repurchased (452,130 shares bought)