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TLN · Talen Energy

14 filings

10-Q

TLN 10-Q Quarterly Reports

Talen Energy - 14 quarterly reports

Filing record · 2016–202610-K310-Q118-K70

2026-Q3
Talen Energy Quarterly Report for Q3 Ended Sep 30, 2026
Talen Energy Corporation's third-quarter 2026 Form 10-Q shows a company that grew substantially through acquisitions and financing in 2026. Operating revenues were $1,327 million for the three months ended September 30, 2026, up from $812 million a year earlier, though this was driven by a $(183) million unrealized loss on derivatives versus a $42 million gain in the prior-year quarter. Net income attributable to stockholders was $138 million ($2.88 diluted EPS) versus $207 million ($4.25 diluted EPS) in the third quarter of 2025. For the nine months, net income was $109 million versus $144 million, and operating revenues were $3,203 million. Interest expense rose to $148 million for the quarter and $481 million for the nine months, reflecting new debt issued to fund the Cornerstone Acquisition, which closed June 15, 2026 for a total consideration of $3.5 billion. Total assets increased to $15,087 million from $10,905 million at December 31, 2025, and long-term debt rose to $9,540 million from $6,782 million. Capital allocation was a major focus. The company completed a $1.5 billion capacity monetization on October 1, 2026, receiving $1.5 billion of advanced proceeds (net $1.3 billion after a $157 million discount), which funded an accelerated share repurchase (ASR) of 3,811,460 shares. The share repurchase program was upsized to $3.0 billion of remaining capacity in September 2026. Cash and cash equivalents fell to $335 million from $689 million at year-end 2025, and the company reported $1,685 million of total available liquidity including unutilized revolver capacity. The filing also highlights ongoing regulatory and legal matters, including PJM capacity market reform, the Brandon Shores and H.A. Wagner RMR extensions through May 31, 2031, EPA environmental rules affecting the Colstrip plant, and the Winter Storm Uri litigation, where the MDL court dismissed the five principal bellwether cases against generator defendants in October 2026. The company states that the Brunner Island CCR litigation continues after the court denied its motion to dismiss in September 2026.
Nov 3, 2026
2026-Q2
Talen Energy Quarterly Report for Q2 Ended Jun 30, 2026
Talen Energy Corporation's second-quarter 2026 Form 10-Q shows a quarter with a net loss attributable to stockholders of $(92) million, compared with net income of $72 million in the second quarter of 2025. Operating revenues were $747 million versus $630 million, but the swing was driven by a $(212) million unrealized loss on derivative instruments, compared with a $176 million unrealized gain a year earlier. Interest expense and other finance charges rose to $214 million from $62 million, including a $54 million non-recurring make-whole payment tied to redeeming the Secured Notes. Adjusted EBITDA for the quarter was $374 million, up from $90 million, and for the six months it was $847 million versus $290 million. The company closed the Cornerstone Acquisition on June 15, 2026, for an aggregate purchase price of $3.5 billion, consisting of $2,615 million in cash and 2,399,998 shares of TEC common stock valued at $927 million. The filing states the acquisition adds approximately 2.6 GW of generation. To fund it, TES issued $1.5 billion of 6.125% Senior Unsecured Notes due 2031 and $2.5 billion of 6.375% Senior Unsecured Notes due 2033, and used proceeds to redeem $1.2 billion of 8.625% Secured Notes. Total long-term debt carrying value rose to $9,572 million from $6,811 million at December 31, 2025. Cash and cash equivalents fell to $231 million, and total available liquidity was $1,581 million, including $1,350 million of unutilized RCF capacity. The key capacity-market development is the 2028/2029 PJM Base Residual Auction, held in July 2026, where Talen cleared 10,180 MWs at $325.00/MWd for the MAAC, PPL, and RTO locational deliverability areas. The filing estimates total expected capacity revenues of $3,993 million across periods through 2035, including $1,186 million for the 2028/2029 PJM Capacity Year. Share repurchases totaled $298 million in the first half of 2026, and $1.7 billion of authorization remained under the share repurchase program as of June 30, 2026.
Aug 5, 2026
2026-Q1
Talen Energy Quarterly Report for Q1 Ended Mar 31, 2026
Talen Energy Corporation reported net income of $63 million for the three months ended March 31, 2026, compared with a net loss of $135 million in the same period of 2025. Operating revenues rose to $1,129 million from $390 million, and operating income was $210 million versus a loss of $106 million a year earlier. The filing attributes the improvement mainly to higher realized prices at Susquehanna and the PJM fossil fleet, a $158 million increase in capacity revenues from higher cleared capacity prices, and contributions from the Freedom and Guernsey generation volumes. Total Adjusted EBITDA was $473 million versus $200 million. Interest expense rose to $119 million from $74 million, reflecting higher cash interest on term loans and notes issued in October 2025 for the Freedom and Guernsey Acquisitions. Balance sheet and liquidity strengthened over the quarter. Cash and cash equivalents were $1,025 million at March 31, 2026, up from $689 million at December 31, 2025, and total available liquidity was $1,925 million. Operating cash flow was $461 million, versus $119 million a year earlier. Talen repurchased and retired 300,000 shares for $101 million during the quarter, leaving $1.9 billion of capacity under its share repurchase program. Total long-term debt carrying value was $6,807 million. Subsequent to quarter end, in April 2026 TES issued $1.5 billion of 6.125% senior unsecured notes due 2031 and $2.5 billion of 6.375% senior unsecured notes due 2033, and redeemed its $1.2 billion of secured notes. The proceeds are intended to fund the cash portion ($2.55 billion) of the pending Cornerstone Acquisition, which adds about 2.5 GW of natural gas generation and is expected to close early in the second half of 2026. The filing also discloses a $60 million expected expense from the secured notes redemption and that the 2031 and 2033 notes must be redeemed at par if the acquisition is not completed by January 15, 2027 (or July 15, 2027 if extended).
May 5, 2026
2025-Q3
Talen Energy Quarterly Report for Q3 Ended Sep 30, 2025
Talen Energy Corporation (TLN) reported third-quarter 2025 operating revenues of $812 million, up from $650 million a year earlier, and net income attributable to stockholders of $207 million, compared with $168 million. Diluted EPS was $4.25 versus $3.16. For the nine months ended September 30, 2025, net income attributable to stockholders was $144 million, down from $916 million in the prior-year period, which included large one-time gains from the AWS Data Campus Sale and the ERCOT Sale. Nine-month operating revenues were $1.83 billion versus $1.65 billion, and Adjusted EBITDA was $653 million versus $606 million. Q3 Adjusted EBITDA was $363 million versus $230 million. Cash and cash equivalents rose to $497 million at September 30, 2025, and total stockholders' equity was $1.47 billion. The company's most significant pending event is the acquisition of the Freedom (1,045 MW, Pennsylvania) and Guernsey (1,836 MW, Ohio) natural gas combined-cycle plants from affiliates of Caithness Energy, for an aggregate gross purchase price of approximately $3.8 billion. In October 2025, Talen issued $1.4 billion of 6.25% senior unsecured notes due 2034 and $1.29 billion of 6.50% senior unsecured notes due 2036, and priced a $1.2 billion TLB-3 term loan, to fund these acquisitions. Both acquisitions are expected to close in the first quarter of 2026, and the company also planned a larger share repurchase authorization of $2 billion, contingent on completing the acquisitions. The filing also highlights ongoing regulatory and environmental exposures, including EPA MATS, GHG, ELG, and CCR rules, the future of the Colstrip plant, the Brandon Shores and H.A. Wagner RMR agreements, and PJM capacity market reform. Capacity revenues rose sharply on higher PJM clearing prices, with the 2026/2027 BRA clearing at $329.17/MWd.
Nov 5, 2025
2025-Q2
Talen Energy Quarterly Report for Q2 Ended Jun 30, 2025
Talen Energy Corporation (TLN) reported a net loss attributable to stockholders of $(63) million for the six months ended June 30, 2025, compared with net income of $748 million in the prior-year period, which included $885 million of gains on asset sales tied to the AWS Data Campus and ERCOT sales. For the three months ended June 30, 2025, net income attributable to stockholders was $72 million, or $1.50 per diluted share, versus $454 million in the second quarter of 2024. Operating revenues were $630 million for the quarter and $1.02 billion for the six months. Adjusted EBITDA was $90 million for the quarter and $290 million for the six months, compared with $87 million and $376 million a year earlier. Cash and cash equivalents fell to $122 million at June 30, 2025, and the company drew $70 million on its revolving credit facility. The filing's most significant forward-looking items are two pending acquisitions from Caithness Energy: the Freedom Energy Center (1,045 MW, Pennsylvania) for about $1.5 billion and the Guernsey Power Station (1,836 MW, Ohio) for about $2.3 billion, both expected to close in the fourth quarter of 2025 and to be funded with roughly $3.8 billion of new debt. Talen also cleared 6,702 MW in the 2026/2027 PJM Base Residual Auction at $329.17/MWd, and entered a revised AWS power purchase agreement covering up to 1,920 MW through 2042. The company also operates Brandon Shores and H.A. Wagner under reliability-must-run agreements through May 31, 2029, with annual fixed-cost payments of $145 million and $35 million, respectively. Risks noted in the filing include the pending acquisitions' regulatory approvals and financing, a labor-market antitrust class action filed July 11, 2025, the Brunner Island coal ash citizen suit, Winter Storm Uri litigation, and ongoing EPA rule reconsiderations affecting Colstrip. Management states it believes available liquidity will be adequate for the next twelve months and beyond.
Aug 7, 2025
2025-Q1
Talen Energy Quarterly Report for Q1 Ended Mar 31, 2025
Talen Energy Corporation reported a net loss attributable to stockholders of $(135) million, or $(2.94) per basic and diluted share, for the three months ended March 31, 2025, compared with net income attributable to stockholders of $294 million, or $5.00 basic per share, in the same period of 2024. Operating revenues fell to $390 million from $509 million. The filing attributes the decline mainly to unrealized losses on derivative instruments of $(241) million, up from $(108) million, and to the absence of the $324 million gain on the AWS Data Campus Sale recorded in the first quarter of 2024. Adjusted EBITDA was $200 million, compared with $289 million a year earlier. On the balance sheet, cash and cash equivalents declined to $295 million from $328 million, and total available liquidity was $995 million, including $700 million of unutilized revolving credit facility capacity. Total principal of long-term debt was $3,034 million, and total stockholders' equity decreased to $1,180 million from $1,387 million. Operating cash flow was $119 million, compared with $173 million. The company repurchased 452,130 shares for $85 million, leaving $995 million of remaining capacity under its share repurchase program. Regulatory and legal developments are prominent in the filing. FERC approved a reliability-must-run arrangement on May 1, 2025 that keeps Brandon Shores and H.A. Wagner operating through May 31, 2029, with annual fixed-cost payments of $145 million and $35 million, respectively, beginning June 1, 2025. FERC also rejected the Susquehanna ISA Amendment tied to the AWS power supply arrangement, and Talen is appealing that decision. The next PJM Base Residual Auction for the 2026/2027 Capacity Year has been postponed to July 2025.
May 8, 2025
2024-Q3
Talen Energy Quarterly Report for Q3 Ended Sep 30, 2024
Talen Energy Corporation's third-quarter 2024 Form 10-Q, filed November 14, 2024, shows net income attributable to stockholders of $168 million for the three months ended September 30, 2024, compared with a loss of $77 million a year earlier, and $916 million for the nine months. Operating revenues were $650 million for the quarter versus $516 million, and nine-month operating revenues were $1.648 billion. Nine-month results were lifted by $885 million of gains on asset sales, primarily the $564 million gain on the ERCOT Sale and the $324 million gain on the Cumulus Data Campus Sale. Adjusted EBITDA was $230 million for the quarter and $606 million for the nine months. Cash flow and balance sheet activity were dominated by capital returns and asset sales. Nine-month operating cash flow was $246 million, and investing cash flow of $1.225 billion reflected sale proceeds. Financing outflows of $1.24 billion included $956 million of share repurchases. Shares outstanding fell to 50,855,417 at September 30, 2024, after the repurchase of about 14% of outstanding shares, and the board raised the remaining repurchase capacity to $1.25 billion through December 31, 2026. Total debt carrying value was $2.625 billion, and available liquidity was $1.348 billion. Regulatory and legal matters remain significant. On November 1, 2024, FERC rejected the amended Susquehanna interconnection service agreement, which the company says may affect full development of the AWS data center campus. The Brandon Shores and H.A. Wagner units are under PJM reliability-must-run arrangements pending FERC approval of cost-of-service rate schedules. The filing also describes multiple EPA rules (MATS, GHG, ELG, CCR) that could require material operating, capital or ARO changes at coal-fired facilities such as Colstrip.
Nov 14, 2024
2024-Q2
Talen Energy Quarterly Report for Q2 Ended Jun 30, 2024
Talen Energy Corporation reported net income attributable to stockholders of $454 million for the three months ended June 30, 2024, and $748 million for the six months, compared with $29 million for the May 18 through June 30, 2023 Successor period. Diluted EPS was $7.60 for the quarter and $12.41 for the six months. Results were heavily influenced by non-operating gains: a $561 million gain on sale of assets in the quarter, mainly from the ERCOT Sale, and $885 million for the six months, including a $563 million gain on the ERCOT Sale and a $324 million gain on the Cumulus Data Campus Sale. Operating revenues were $489 million for the quarter and $998 million for the six months, and operating income was $27 million for the quarter and $52 million for the six months. The company's balance sheet and liquidity improved during the period. Cash and cash equivalents rose to $632 million at June 30, 2024, from $400 million at December 31, 2023. Total long-term debt principal was $2,662 million, down from $2,849 million, following repayment of the Cumulus Digital TLF. Available liquidity was $1,272 million, including $640 million of unused RCF capacity. Net cash provided by operating activities was $150 million for the six months. The company repurchased 5,773,889 shares for $661 million in the six months ended June 30, 2024, and a further 2,413,793 shares for $280 million in July 2024 from affiliates of Rubric Capital Management LP. The Board approved an increase in remaining repurchase capacity to $1 billion in May 2024. Operationally, Talen cleared 6,820 MW in the PJM 2025/2026 Base Residual Auction at a clearing price of $269.92 per MW-day for the MAAC, PPL, and PSEG locational deliverability areas. Generation capacity was 10,665 MW (summer rating) as of June 30, 2024. The filing also describes pending regulatory matters, including the planned June 1, 2025 deactivation of Brandon Shores and H.A. Wagner, for which FERC accepted reliability-must-run rate schedules subject to refund, and the Susquehanna Amended ISA, which remained under FERC review.
Aug 13, 2024
2016-Q3
Talen Energy Quarterly Report for Q3 Ended Sep 30, 2016
Talen Energy Corporation and Talen Energy Supply, LLC filed this Form 10-Q for the quarter ended September 30, 2016. Nine-month operating revenues were $3,108 million versus $3,359 million a year earlier, and net income was $236 million versus a net loss of $279 million. The swing reflects a $563 million net gain on plant sales (Ironwood, C.P. Crane, Holtwood and Lake Wallenpaupack) and the absence of the $466 million goodwill impairment and $588 million quarterly impairments recorded in 2015. Adjusted EBITDA fell to $614 million from $765 million, driven by lower margins from lower realized energy prices, lower capacity prices and assets sold in 2016. The central investor issue is the pending Merger with affiliates of Riverstone Holdings at $14.00 per share in cash. Talen Energy Corporation stockholders approved the Merger on October 6, 2016, and completion is expected by the end of 2016, subject to NRC approval. The filing discloses a $50 million termination fee payable by Talen and an $85 million fee payable by Parent in certain circumstances. Two Delaware class actions seek to rescind the Merger, and the filing notes that an adverse monetary judgment could affect results and liquidity. Balance sheet and financing items include cash of $1,358 million at September 30, 2016, short-term debt of $350 million and long-term debt of $3,894 million. The Talen Energy Supply RCF will shrink from $1.85 billion to $1.4 billion at closing, and a $600 million senior secured Term Loan B priced in October 2016 will fund at 98.5% of face value. The filing states that Talen's credit rating is below investment grade and that Moody's placed ratings under review for downgrade.
Nov 10, 2016
2016-Q2
Talen Energy Quarterly Report for Q2 Ended Jun 30, 2016
Talen Energy Corporation and Talen Energy Supply, LLC report results for the quarter ended June 30, 2016. For the three months ended June 30, 2016, Talen Energy Corporation reported total operating revenues of $697 million and a net loss of $3 million, or $(0.02) per diluted share, compared with net income of $26 million in the prior-year quarter. For the six months, net income was $148 million ($1.14 diluted EPS) versus $122 million in 2015. Results were shaped by non-cash items: pre-tax gains of $423 million for the quarter and $563 million for six months from the sale of certain generation facilities (Ironwood, C.P. Crane, Holtwood and Lake Wallenpaupack), offset by a $213 million impairment charge that included the full write-off of $204 million of Bell Bend COLA costs. Adjusted EBITDA for Talen Energy was $132 million for the quarter and $367 million for the six months, both down from the prior year. The company entered a June 2, 2016 Merger Agreement with affiliates of Riverstone Holdings under which holders other than Riverstone would receive $14.00 per share in cash. The transaction is expected to close by the end of 2016, subject to stockholder and regulatory approvals and other conditions. It will be funded with cash on hand and a new $250 million secured term loan, and the Talen Energy Supply RCF will be reduced from $1.85 billion to $1.4 billion at closing. A $50 million termination fee is payable by Talen Energy Corporation in specified cases, and an $85 million fee is payable by Parent in specified cases. Other developments include a PJM base residual auction in which Talen cleared 6,994 MW for the 2019/2020 year, with expected capacity revenues of approximately $257 million; a July 2016 settlement in the Sierra Club litigation committing to cease operations of Colstrip Units 1 and 2 by July 1, 2022; and notice of an intent to eliminate approximately 130 bargaining unit positions. Talen Energy Corporation had cash and cash equivalents of $1,091 million and short-term debt of $350 million at June 30, 2016, with total assets of $12,403 million.
Aug 5, 2016
2016-Q1
Talen Energy Quarterly Report for Q1 Ended Mar 31, 2016
Talen Energy Corporation and Talen Energy Supply, LLC reported first-quarter 2016 net income of $151 million, up from $96 million in the first quarter of 2015, with diluted EPS of $1.17 versus $1.15. Operating income rose to $311 million from $178 million, helped by a $140 million net gain on sales of certain generation facilities. Operating revenues were $1.17 billion versus $1.09 billion, and Adjusted EBITDA was essentially flat at $235 million versus $237 million, as higher Margins of $491 million were offset by higher operation and maintenance expense of $282 million. The filing attributes much of the year-over-year change to the 2015 acquisitions of RJS Power and MACH Gen. The company used proceeds from the February 2016 sales of the Ironwood and C.P. Crane plants to repay $600 million of short-term debt, leaving short-term debt at zero at March 31, 2016 versus $608 million at December 31, 2015. Cash and cash equivalents rose to $393 million. Long-term debt increased to $3.914 billion from $3.787 billion. The filing states that Talen's credit rating is currently below investment grade, and it notes that the Holtwood and Lake Wallenpaupack hydroelectric sale closed in April 2016 for $860 million, with an expected pre-tax gain of approximately $420 million in the second quarter. The filing also describes several legal and regulatory matters, including the Sierra Club Colstrip Clean Air Act litigation, the Montana hydroelectric streambed claims, and the Topaz gas supply suit. In April 2016 the U.S. Supreme Court unanimously held Maryland's capacity program preempted by the Federal Power Act and denied certiorari in the New Jersey capacity case. The company states it cannot estimate reasonably possible losses for several of these matters.
May 10, 2016
2015-Q3
Talen Energy Quarterly Report for Q3 Ended Sep 30, 2015
Talen Energy Corporation and its principal subsidiary Talen Energy Supply, LLC reported a third quarter 2015 net loss of $401 million, compared with net income of $101 million in the third quarter of 2014, driven mainly by a $479 million impairments line item and a $466 million goodwill impairment for the East segment. For the nine months ended September 30, 2015, net loss was $279 million versus net income of $48 million a year earlier. Total operating revenues were $1,419 million for the quarter (versus $1,601 million) and $3,430 million for the nine months (versus $1,653 million), with the increase reflecting the June 1, 2015 spinoff from PPL and the acquisition of RJS Power, which was consolidated for three and four months respectively. Adjusted EBITDA rose to $357 million for the quarter from $247 million and to $765 million for the nine months from $605 million. The filing describes a company in transition. Following the June 1, 2015 spinoff, Talen Energy Corporation became a publicly traded holding company, and the filing states that PPL no longer has an ownership interest in it. Sapphire assets are classified as discontinued operations and are subject to a FERC-required divestiture, and the company agreed in October 2015 to sell the Holtwood and Lake Wallenpaupack hydro projects ($860 million), the Ironwood plant ($654 million) and C.P. Crane. The company also completed the acquisition of MACH Gen, LLC on November 2, 2015 for $603 million in cash, and it repurchased $300 million of REPS for $434 million in October 2015. Credit ratings were lowered during 2015, with S&P cutting the issuer rating to B+ in October 2015. Key risks include the coal-fired generation fleet, where the filing says the carrying value was more than $3 billion, new EPA rules on greenhouse gases, coal ash and effluent limitations, and PJM capacity market developments. The filing also discloses a material weakness-related change: the RJS Power acquisition created a material change in internal control over financial reporting, and the 2015 Form 10-K will exclude RJS Power from management's assessment.
Nov 9, 2015
2015-Q2
Talen Energy Quarterly Report for Q2 Ended Jun 30, 2015
Talen Energy Corporation and its principal subsidiary Talen Energy Supply, LLC reported second-quarter 2015 results in this combined Form 10-Q, covering the period after the June 1, 2015 spinoff from PPL and the acquisition of RJS Power. Three-month net income was $26 million ($0.26 per diluted share) versus $13 million in the prior-year quarter, and six-month net income was $122 million ($1.34 per diluted share) versus a $53 million loss. Operating revenues were $1,065 million for the quarter, and operating income was $34 million. The 2015 periods include one month of RJS Power results, with RJS contributing $102 million of operating revenues and $14 million of net income since the June 1 acquisition. Adjusted EBITDA was $171 million for the quarter and $408 million for the six months, both higher than the prior-year periods. The balance sheet expanded materially. Total assets rose to $12.86 billion from $10.76 billion at December 31, 2014, with goodwill increasing to $470 million from $72 million on a provisional purchase price allocation. Long-term debt increased to $3.18 billion, and the company issued $600 million of 6.50% senior unsecured notes due 2025 and assumed $1.25 billion of RJS Power notes. The company entered a $1.85 billion syndicated secured credit facility with $1,541 million unused at June 30, 2015. Moody's and S&P lowered their ratings in May 2015, and the company's credit rating is below investment grade. The filing also discloses a pending acquisition of MACH Gen, LLC for $1.175 billion including assumed debt, and a required divestiture of 1,300 to 1,400 MW tied to FERC approval of the RJS Power combination. Management flagged risks including coal-fired asset recoverability in PJM, with the carrying value of coal-fired generation assets above $3 billion, a goodwill test in which the East reporting unit failed step one (with management's current estimate of no impairment), and EPA rules on greenhouse gases, coal combustion residuals, and ozone standards. Pending legal matters include the Sierra Club Clean Air Act suit over Colstrip and the City of Seattle refund claim of about $50 million.
Aug 12, 2015
2015-Q1
Talen Energy Quarterly Report for Q1 Ended Mar 31, 2015
This Form 10-Q for the quarter ended March 31, 2015 was filed jointly by Talen Energy Holdings, Inc. and Talen Energy Corporation and presents only the legacy PPL Energy Supply, LLC and subsidiaries, because the spinoff from PPL and the acquisition of RJS Power had not yet closed. Net income for the three months ended March 31, 2015 was $96 million, compared with a net loss of $(66) million in the prior-year period. Operating revenues were $946 million and operating income was $178 million, against an operating loss of $(79) million a year earlier. The filing attributes the weaker underlying earnings to lower capacity prices and lower load-following and wholesale electric margins, and Gross Energy Margins fell to $426 million from $484 million. Excluding special items, earnings were lower than in the prior year. The balance sheet shows total assets of $10,366 million and member's equity of $3,816 million at March 31, 2015. Cash and cash equivalents were $221 million, and short-term debt was $600 million. Operating cash flow was $221 million. The company's syndicated credit facility had $2,133 million of unused capacity at quarter-end. The filing states that PPL Energy Supply's credit rating is below investment grade, and that Fitch withdrew its rating in January 2015. The spinoff is set for June 1, 2015, with PPL shareowners expected to own 65% of Talen Energy and Riverstone affiliates 35%. Regulatory approvals were reported as received by mid-April 2015. Talen Energy must divest approximately 1,300 MW within 12 months after closing. Expected one-time employee-related costs of $30 million to $40 million will be recognized at closing, and the filing provides no 2015 earnings forecast.
May 8, 2015