Financial Performance - Full year GAAP Net Income attributable to stockholders was $998 million, with Adjusted EBITDA of $770 million and Adjusted Free Cash Flow of $283 million, exceeding 2024 guidance midpoints of $765 million and $275 million respectively [5][8]. - Net income for the year ended December 31, 2024, was $1,013 million, compared to a net income of $143 million for the year ended December 31, 2023 [26]. - Adjusted EBITDA for the year ended December 31, 2024, was $770 million, compared to $426 million for the period from May 18 through December 31, 2023 [36]. - Adjusted Free Cash Flow for the year ended December 31, 2024, was $283 million, up from $169 million in the previous period [36]. - The company expects 2025 Adjusted EBITDA to range between $925 million and $1,175 million, indicating a strong outlook for growth [40]. - The company anticipates 2025 Adjusted Free Cash Flow to be between $395 million and $595 million, reflecting positive cash generation expectations [40]. Shareholder Returns - The company repurchased approximately 13 million shares in 2024, representing 22% of total outstanding shares, for a total of $1.95 billion, with $1.1 billion remaining in the share repurchase program through year-end 2026 [7][13]. - Share repurchases amounted to $1,958 million in 2024, indicating a strong commitment to returning capital to shareholders [29]. - The company simplified its capital structure and prioritized shareholder returns, focusing on maximizing value and cash flow per share [4]. Operational Highlights - Total generation for the year was 36.3 TWh, with 50% from carbon-free nuclear generation, while the Fleet Equivalent Forced Outage Factor (EFOF) was 2.2% and OSHA Total Recordable Incident Rate (TRIR) was 0.34 [10][5]. - Talen Energy reached a reliability-must-run (RMR) settlement agreement with PJM to operate Brandon Shores and H.A. Wagner generation facilities through May 31, 2029, expecting to receive $145 million annually for Brandon Shores and $35 million for H.A. Wagner starting June 1, 2025 [12]. - The company has hedged approximately 89% of expected generation volumes for 2025 and 33% for 2026, supporting cash flow stability while maintaining upside optionality [16]. Liquidity and Capital Structure - As of February 21, 2025, Talen Energy had total available liquidity of approximately $1.2 billion, with a net leverage ratio of approximately 3.3x [14]. - Total assets decreased from $7,121 million as of December 31, 2023, to $6,106 million as of December 31, 2024, representing a decline of approximately 14.2% [24]. - Cash and cash equivalents decreased from $400 million in 2023 to $328 million in 2024, a reduction of 18% [24]. - Total liabilities increased from $4,587 million in 2023 to $4,719 million in 2024, marking an increase of 2.9% [24]. - The end of period cash and cash equivalents and restricted cash totaled $365 million as of December 31, 2024, down from $901 million in 2023 [29]. Capital Expenditures and Future Projections - The company plans to continue focusing on capital expenditures, with nuclear fuel expenditures reported at $104 million for the year [29]. - Capital expenditures for the year ended December 31, 2024, were $177 million, with projections for 2025 ranging from $195 million to $205 million [40]. - Interest expense and other finance charges for the year ended December 31, 2024, totaled $238 million, with a forecast of $235 million to $245 million for 2025 [40]. - The nuclear fuel amortization expense for the year ended December 31, 2024, was $123 million, with a consistent expectation of $105 million for 2025 [40]. Other Financial Adjustments - The company reported a significant loss of $886 million related to the AWS Data Campus Sale and ERCOT Sale [26]. - The company recorded a significant adjustment of $(884) million related to asset sales for the year ended December 31, 2024 [36]. - The company experienced a net periodic defined benefit cost of $14 million for the year ended December 31, 2024, indicating ongoing pension obligations [36].
Talen Energy Corporation(TLN) - 2024 Q4 - Annual Results