Talend Energy Business Update Conference Call Summary Company Overview - **Company**: Talend Energy - **Industry**: Independent Power Producer (IPP) Key Points and Arguments New Contract with Amazon - Talend announced a revamped and expanded contract with Amazon, which simplifies their relationship and doubles the contract size, leading to significant free cash flow growth per share beyond previous projections [4][5][6] - The new agreement transitions to a front of the meter contract, allowing Talend to become the retail provider for Amazon using nuclear power for its data centers in Pennsylvania, eliminating the need for FERC approval [6][9] - The contract has a notional value of $18 billion over 17 years, providing a roadmap for generating incremental value and enhancing capital allocation flexibility [10][20] Financial Implications - At full ramp, the Amazon transaction is expected to increase after-tax cash flow per share by over 50% above 2026 guidance, adding more than $8 per share by 2032 [18][19] - The contract is projected to generate approximately $1.4 billion annually at full ramp, contributing to long-term contracted cash flows [19][20] - Talend anticipates a 20% annual growth in cash flow per share off the 2024 baseline, with 50% of margins under contract with Amazon [19][20] Economic and Community Impact - The collaboration with Amazon is expected to create high-paying jobs and stimulate economic development in Pennsylvania, benefiting local communities and infrastructure [8][16] - The agreement is supported by various stakeholders, including local government and labor leadership, indicating broad community support [8] Strategic Vision - Talend aims to be a leading energy supplier for data centers in the PJM region, leveraging its core IPP skills and risk management capabilities [9][22] - The company is focused on executing its strategy of powering the future, with plans to explore additional development opportunities, including small modular reactors (SMRs) [14][56] Market Position and Future Outlook - The new contract is seen as a differentiator in the IPP space, reducing risk and increasing returns, which may lead to a lower cost of capital and higher valuation multiples [24][70] - Talend is committed to maintaining a disciplined approach to M&A and capital allocation, ensuring that any future acquisitions align with their strategic goals [82][103] Regulatory and Operational Considerations - The shift from behind the meter to front of the meter solutions is intended to provide clarity and reduce operational risks, while still allowing for flexibility in energy supply [44][45] - Talend is working on regulatory and commercial solutions to support its growth strategy and meet the increasing demand for energy from data centers [6][9] Additional Important Content - The call included discussions on the implications of the new contract for Talend's ability to acquire additional assets in the PPL zone and the potential for reduced basis differentials in the market [71][72] - The management emphasized the importance of contracted cash flows in improving the credit profile and recovery for collateral under the business [80][81] - Talend's approach to shareholder returns remains focused on targeting 70% of free cash flow for distribution, with an expected improvement in EBITDA to free cash flow conversion [106][107] This summary encapsulates the key points discussed during the Talend Energy Business Update Conference Call, highlighting the strategic direction, financial implications, and community impact of the new contract with Amazon.

Industry Transformation - The utility energy industry is experiencing a significant transformation due to global decarbonization efforts, technological advancements, and changing regulatory environments [1] - There is a notable increase in investments in renewable energy, driven by rising demand influenced by AI-driven data [1]

Financial Data and Key Metrics Changes - The company reported adjusted EBITDA of $200 million and adjusted free cash flow of $87 million for Q1 2025, exceeding internal estimates and underpinning 2025 guidance [10][21][24] - The adjusted EBITDA range for 2025 has been narrowed to $975 million to $1,125 million, while the adjusted free cash flow range is now $450 million to $540 million [22][23] Business Line Data and Key Metrics Changes - The fossil fleet generated approximately 20% more power than the same period last year, despite the absence of ERCOT assets [21] - The Susquehanna nuclear facility contributed slightly less than half of the total power generation of 9.7 terawatt hours during the quarter [20] Market Data and Key Metrics Changes - In Q1, there was an increase of 7 terawatt hours or approximately 3.5% in incremental deliveries in PJM compared to the prior year, leading to a dispatch increase of 1.6 terawatt hours [15] - The company noted that the weather in PJM was colder than average, contributing to increased demand and higher settled on-peak power prices compared to the previous year [21] Company Strategy and Development Direction - The company remains focused on executing its business plan, emphasizing operations, commercialization of megawatts, and returning capital to shareholders [6][10] - The strategic partnership with AWS is a key component of the growth strategy, with plans to expand beyond the current 300 megawatt ISA [12][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term prospects for the IPP business, citing tightening power markets and increasing data center loads [7][8] - The company is optimistic about the future, despite market uncertainties related to tariffs and trade restrictions, and believes that the intersection of power and data centers will be validated in 2025 [10][18] Other Important Information - The company repurchased $83 million worth of shares during Q1 2025, continuing its share repurchase program [11][24] - The company has approximately $1 billion in buyback capacity remaining through the end of 2026 and maintains a net leverage ratio of approximately 2.6 times [24][25] Q&A Session Summary Question: Shift in customer interest toward front of the meter deals - Management acknowledged ongoing discussions about various ways to power data centers and expand growth strategy, emphasizing the importance of speed to market [32][34] Question: Current status of the FERC process and co-location - Management indicated that the FERC process is evolving, with a focus on resolving issues quickly to support economic development in Pennsylvania [39][40] Question: Updates on PPL zone capacity and potential expansion - Management reiterated their growth strategy focused on leveraging existing assets and emphasized the importance of reliability in their contracts [46][47] Question: Details on the Susquehanna outage - Management confirmed a target for the outage to be completed by mid-May, with confidence in the incremental maintenance work being performed [66][68] Question: Capital allocation and buyback pace - Management stated that they will continue to execute their share repurchase program when market opportunities arise, with a focus on returning capital to shareholders [82][86] Question: Insights on PJM auction and new builds - Management expressed optimism about the upcoming capacity auction and discussed the challenges of new builds due to current market conditions [91][93]

Financial Data and Key Metrics Changes - The company reported adjusted EBITDA of $200 million and adjusted free cash flow of $87 million for Q1 2025, exceeding internal estimates [8][20] - The adjusted EBITDA guidance for 2025 has been narrowed to a range of $975 million to $1,125 million, while the adjusted free cash flow guidance is now between $450 million and $540 million [21][22] - The company experienced a 20% increase in power generation from its fossil fleet compared to the same period last year [21] Business Line Data and Key Metrics Changes - The fossil fleet generated approximately 9.7 terawatt hours of power, with a forced outage factor of 1.2% [18][19] - The Susquehanna nuclear facility contributed slightly less than half of the total generation, while the Montour and Bruner Island facilities saw significant increases in generation [19] Market Data and Key Metrics Changes - The company observed a 3.5% increase in incremental deliveries in the PJM market compared to the previous year, leading to a dispatch increase of approximately 1.6 terawatt hours [14] - The market is experiencing tightening conditions driven by increased demand, particularly from data centers [15][16] Company Strategy and Development Direction - The company remains focused on executing its business plan, emphasizing operations, commercialization of megawatts, and returning capital to shareholders [5][6] - The company is committed to expanding its strategy to contract megawatts at other sites, aiming to deliver the most free cash flow per megawatt [5] - The company is actively exploring various commercial solutions to power data centers, including both front-of-the-meter and behind-the-meter arrangements [32][35] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term prospects for the Independent Power Producer (IPP) business, citing strong data center load growth and a favorable market environment [6][15] - The company is optimistic about the future, with expectations of increased energy sales and operational efficiency following maintenance work at the Susquehanna facility [13][66] - Management acknowledged uncertainties related to tariffs and trade restrictions but indicated that these do not have a material effect on near-term costs [21][22] Other Important Information - The company repurchased $83 million worth of shares during Q1 2025, continuing its share repurchase program [9][23] - The company has approximately $1 billion in buyback capacity remaining through the end of 2026 [23] Q&A Session Summary Question: Shift in customer interest toward front-of-the-meter deals - Management confirmed ongoing discussions regarding various ways to power data centers, including front-of-the-meter solutions, while executing the current contract with AWS [32][35] Question: Current status of the FERC process and potential settlement - Management indicated that the FERC process is evolving, with a focus on resolving issues quickly to support economic development related to data centers [39][40] Question: Updates on the litigation process at the Fifth Circuit around the ISA - The company is monitoring the Fifth Circuit proceedings, with a briefing schedule expected soon, focusing on technical issues related to the FERC decision [118][120]

Revenue Performance - In Q1 2025, capacity revenues increased to $49 million, up from $45 million in Q1 2024, reflecting a $4 million favorable variance[169] - Energy and other revenues rose to $582 million in Q1 2025, compared to $572 million in Q1 2024, resulting in a $10 million favorable variance[169] - Operating revenues decreased to $390 million in Q1 2025, down from $509 million in Q1 2024, showing a $119 million unfavorable variance[169] Net Income and Loss - Net income attributable to stockholders fell to a loss of $135 million in Q1 2025, a decrease of $429 million compared to a profit of $294 million in Q1 2024[170] - Unrealized losses on derivative instruments amounted to $(241) million in Q1 2025, compared to $(108) million in Q1 2024, indicating a $133 million unfavorable variance[169] - The company’s net income (loss) attributable to noncontrolling interest was a favorable decrease of $25 million due to acquisitions in March and October 2024[177] Share Repurchase and Financing - The company repurchased 452,130 shares of common stock for $85 million at an average price of $186.24 per share, with $995 million remaining under the share repurchase program[149] - The company’s financing activities showed a favorable change of $163 million, primarily due to the repayment of the Cumulus Digital TLF and the purchase of noncontrolling interest[186] Cash Flow and Liquidity - The company reported a net cash provided by operating activities of $119 million for the three months ended March 31, 2025, a decrease of $54 million compared to $173 million in the same period of 2024[183] - The company experienced a net unfavorable decrease of $333 million in cash provided by investing activities, primarily due to $339 million in proceeds from the AWS Data Campus Sale in the first quarter of 2024[185] - The company’s total available liquidity as of March 31, 2025, was $995 million, down from $1,028 million as of December 31, 2024[178] - The company believes that available liquidity will be adequate to meet future requirements for the next twelve months and beyond[180] Operational Investments and Expectations - The company anticipates an additional $20 million investment for maintenance during the refueling outage of Unit 2, expected to enhance operational efficiency[165] - The company expects to receive $145 million annually from the Brandon Shores power plant and $35 million from the H.A. Wagner plant under the RMR agreement starting June 1, 2025[153] Adjusted EBITDA and Trust Funds - The company reported an Adjusted EBITDA of $200 million for the three months ended March 31, 2025, compared to $289 million in the same period of 2024[193] - The Nuclear Decommissioning Trust Funds reported an unfavorable decrease of $87 million, primarily due to a $24 million decrease in unrealized value of equity securities[177] Surety Bonds - The company’s outstanding surety bonds increased slightly to $238 million as of March 31, 2025, from $234 million as of December 31, 2024[182] Capacity Prices - Cleared capacity prices for the 2025/2026 Capacity Year were $269.92 per MW-day, significantly higher than the previous year's price of $49.49[160][161]

Q1 2025 Results Talen Energy Corporation | May 8, 2025 Disclaimers The information contained herein, as well as any information that has been supplied orally in connection herewith, speaks only as of the date of this presentation. Talen Energy Corporation ("Talen," "TEC," the "Company," "we," "our," or "us") and our affiliates and representatives expressly disclaim any obligation to update any information contained herein, whether as a result of new information or circumstances, future events or otherwise. ...

Exhibit 99.1 Talen Energy Reports First Quarter 2025 Results, Affirms and Narrows 2025 Guidance Earnings Release Highlights HOUSTON, May 8, 2025 – Talen Energy Corporation ("Talen," the "Company," "we," or "our") (NASDAQ: TLN), an independent power producer dedicated to powering the future, today reported its first quarter 2025 financial and operating results. "We are pleased today to report Talen's solid start to the year. Our fleet ran well during periods of high demand demonstrating the value of our disp ...

Core Viewpoint - Talen Energy Corporation reported a solid start to 2025, with significant earnings and operational performance despite a net loss attributable to stockholders. The company is committed to shareholder value through stock repurchases and has affirmed its guidance for the year [2][3][4]. Financial and Operating Results - For Q1 2025, Talen reported a GAAP net loss attributable to stockholders of $(135) million, a decrease of $(429) million compared to Q1 2024, primarily due to the absence of a gain from the AWS Data Campus sale and lower hedge gains [4][5]. - Adjusted EBITDA for the quarter was $200 million, down $(89) million from the previous year, while Adjusted Free Cash Flow was $87 million, a decrease of $(107) million compared to Q1 2024 [4][5]. - Total generation increased to 9.7 TWh, with 46% from carbon-free nuclear generation, down from 58% in the previous year [4][5]. Guidance and Outlook - The company is affirming and narrowing its 2025 guidance for Adjusted EBITDA to a range of $975 million to $1,125 million and Adjusted Free Cash Flow to $450 million to $540 million [7]. - The outlook for 2026 remains unchanged [7]. Operational Highlights - The Federal Energy Regulatory Commission (FERC) approved the reliability-must-run (RMR) settlement agreement, allowing Talen to operate its Brandon Shores and H.A. Wagner facilities until May 31, 2029, ensuring grid reliability [4][9]. - The Susquehanna Unit 2 refueling outage was extended to perform additional maintenance, expected to improve capacity and efficiency, with an investment of approximately $20 million [8]. Share Repurchase Program - Since the beginning of 2024, Talen has repurchased approximately 14 million shares, representing 23% of outstanding shares, totaling around $2 billion, with $995 million remaining under the repurchase program [10]. Balance Sheet and Liquidity - As of May 2, 2025, Talen had total available liquidity of approximately $970 million, consisting of $270 million in unrestricted cash and $700 million under its revolving credit facility [11]. - The projected net leverage ratio is approximately 2.6x, below the target of 3.5x net debt-to-Adjusted EBITDA [11]. Hedging Activities - As of March 31, 2025, Talen had hedged approximately 95% of expected generation volumes for 2025, 60% for 2026, and 30% for 2027, supporting cash flow stability [12].

Agreement maintains reliable electricity supply in Baltimore through May 2029HOUSTON, May 01, 2025 (GLOBE NEWSWIRE) -- Talen Energy Corporation (“Talen”) (NASDAQ: TLN) announced today that the Federal Energy Regulatory Commission (the “FERC”) has approved the terms under which Talen will operate units at its Brandon Shores and H.A. Wagner power plants until May 31, 2029, beyond their scheduled May 31, 2025 retirement dates. Talen, PJM Interconnection, L.L.C. (“PJM”), and a broad coalition of the Maryland Pu ...

Company Overview - Talen Energy Corp is an independent power producer and energy infrastructure company valued at nearly $10 billion [2] - The company is focused on aggressively growing peak power demand alongside its impressive dispatchable fleet of assets [2] Investment Strategy - The Value Portfolio specializes in constructing retirement portfolios using a fact-based research strategy to identify investments [2] - This strategy includes thorough analysis of 10Ks, analyst commentary, market reports, and investor presentations [2] - The portfolio manager invests real money in the stocks recommended [2]