Q2 2025 Results Talen Energy Corporation | August 7, 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 otherwis ...

Core Viewpoint - First Quantum Minerals Ltd. reported a net earnings of $18 million for Q2 2025, with significant operational milestones achieved, including the approval of the Preservation and Safe Management plan at Cobre Panamá and progress on the Kansanshi S3 Expansion project, while also initiating gold hedges to enhance financial flexibility [1][2][3]. Financial Highlights - The company reported gross profit of $351 million and EBITDA of $400 million for Q2 2025, with net earnings attributable to shareholders at $0.02 per share, reflecting stronger results compared to Q1 2025 due to higher gold sales volumes and realized metal prices [3][19]. - Cash flows from operating activities reached $780 million, significantly higher than Q1 2025, driven by a $500 million copper prepayment and copper concentrate sales [19]. - Net debt decreased by $334 million to $5,453 million, attributed to the prepayment agreement and EBITDA contributions [19]. Operational Highlights - Total copper production for Q2 2025 was 91,069 tonnes, a 9% decrease from Q1 2025, primarily due to lower production at Kansanshi [5][32]. - Copper C1 cash cost increased to $2.00 per lb, reflecting lower production volumes [5][32]. - Gold production was strong at 37,419 ounces, with significant contributions from upgrades to gravity concentrators [32]. Cobre Panamá Update - The government of Panama approved the Preservation and Safe Management plan, allowing for the export of copper concentrate and the restart of the power plant [6][8]. - P&SM costs averaged approximately $15 million per month, expected to rise to $17 million to $18 million with the power plant's restart in Q4 2025 [9]. Kansanshi S3 Expansion Update - The S3 Expansion project is in the final stages of commissioning, on budget and on schedule for first production in the second half of 2025 [11][12]. - The project achieved 91% construction completion, with operational readiness at 93% [13]. Near-Surface Gold Zone Exploration - The company is evaluating new near-surface gold zone occurrences at Kansanshi, with promising preliminary results leading to accelerated test work and the initiation of a pilot plant [14][15][16]. Hedging Program - The company entered into derivative contracts for copper and gold to protect against price fluctuations, with significant portions of planned production hedged [20][21][22].

Core Insights - Prairie Operating Co. (PROP) is focusing on disciplined cash flow deployment to drive growth, with no near-term debt maturities and a strong emphasis on liquidity [1][8] - The company aims for over 10% production growth while maintaining capital efficiency and employing a hedging strategy to protect cash flow from market volatility [2][8] - PROP's operations in the DJ Basin are positioned to deliver competitive returns, allowing for calculated capital deployment and steady progress without excessive financial strain [3] Financial Strategy - PROP plans to fund drilling and expansion primarily through internally generated cash flow, avoiding reliance on near-term debt [1][8] - The company is targeting over 10% production growth through drilling while maintaining strong capital efficiency [2][8] - A hedging program is in place to protect approximately 50% of its reserve base from market fluctuations [2][8] Market Position - The DJ Basin has seen increased activity due to major players like Chevron and Civitas Resources, but competition has cooled as these companies shift focus elsewhere, providing an opportunity for PROP [4][5] - With 157 permits and over 586 gross locations, PROP is establishing a significant presence in the DJ Basin, where consolidation has historically commanded a premium [6] Stock Performance - Shares of Prairie Operating Co. have declined nearly 40% this year, contrasting with the relative stability of the Oil/Energy sector [7] - The company is currently trading at a discount in terms of forward price-to-sales ratio compared to the industry average [9]

Core Insights - Targa Resources Corp. (TRGP) has experienced a significant share price increase of 43.9% over the past year, outperforming the broader Oils-Energy sector's 7.2% rise and the Oil Refining & Marketing sub-industry's 28% growth [1][8] - The company is strategically positioned in the energy infrastructure sector, focusing on natural gas operations, including gathering, processing, and transportation [3][4] Financial Performance - TRGP reported a record adjusted EBITDA of $1.18 billion in Q1 2025, reflecting a 22% year-over-year increase, driven by higher volumes from the Permian Basin and improved marketing margins [5][8] - The company has reaffirmed its full-year 2025 adjusted EBITDA guidance of $4.65-$4.85 billion, indicating confidence in sustained growth [5] Strategic Advantages - Targa's operations are supported by fee-based contracts, providing stability in volatile commodity price environments, with a competitive edge due to its scale [6] - The company has a dominant presence in the Permian Basin, with natural gas inlet volumes increasing by 11% year over year, and is expanding its infrastructure to enhance capacity [9][10] Growth Initiatives - Targa's LPG export volumes averaged 13.4 million barrels per month in Q1 2025, with plans to expand capacity at the Galena Park terminal to 19 million barrels per month by Q3 2027 [11] - The company is executing $2.6-$2.8 billion in growth capital expenditures for 2025, focusing on high-return projects to support volume growth and system integration [15] Shareholder Returns - Targa has repurchased $214 million in shares through April 2025 and increased its quarterly dividend by 33% to $1 per share, reflecting a commitment to rewarding shareholders [13] Risk Mitigation - The company has hedged over 90% of its exposed volumes through 2026, reducing earnings volatility from fluctuating natural gas and NGL prices, ensuring stable cash flows [14]

Corporate Overview and Strategy - Riley Permian's 1Q25 production was 24.4 Mboe/d[11] - The company's equity market capitalization is approximately $560 million[11] - The enterprise value is around $800 million[11] - Last Twelve Months (LTM) total free cash flow was about $130 million[11] - The company's debt leverage is approximately 0.9x[11] - The dividend yield is 6.0%[11] - Insider ownership stands at 25%[11] Silverback Acquisition - The purchase price of the Silverback acquisition was $142 million at closing[29] - Recent production from the acquired assets is 5.0 Mboe/d, with 52% oil and 75% liquids[29] - The acquisition includes approximately 47,000 net working interest acres, with around 19,000 net acres prospective for the Yeso Trend (79% undeveloped)[29] New Mexico Gas Midstream Project - The estimated capital expenditure for the New Mexico Gas Midstream Project is approximately $120 million, to be invested during 2025-2026[34] - The project involves constructing a 20-inch diameter high-pressure pipeline with 150 MMcfd capacity[34] 1Q25 Results Summary - The company generated $56 million of Cash Flow From Operations (CFFO) and $71 million of Adjusted EBITDAX (69% margin) in 1Q25[51] - The company reinvested 35% of CFFO into Upstream Capex on an accrual basis and 29% on a cash basis[51] - The company converted 71% of CFFO into Upstream Free Cash Flow (FCF) and 66% into Total FCF[51]

Financial Performance - First Quantum Minerals reported a net loss attributable to shareholders of $23 million ($0.03 loss per share) for Q1 2025, with adjusted earnings of $2 million ($0.00 adjusted earnings per share) [1][3][19] - Gross profit for Q1 2025 was $331 million, down $74 million from Q4 2024, while EBITDA was $377 million, a decrease of $78 million from the previous quarter [3][19] - Cash flows from operating activities were $143 million ($0.17 per share), which is $440 million lower than Q4 2024, primarily due to lower EBITDA and increased working capital [19] Production and Costs - Total copper production for Q1 2025 was 99,703 tonnes, an 11% decrease from Q4 2024, attributed mainly to lower production at the Sentinel mine [3][6][24] - Copper C1 cash cost increased to $1.95 per lb, a 16% rise from the previous quarter, reflecting lower production volumes and higher costs [3][19] - Gold production was strong at 29,868 ounces in Q1 2025, contributing positively to the company's financial performance [6][24] Operational Updates - The Kansanshi S3 Expansion project is on track for mid-2025 completion, with 83% of construction completed and 20% of systems handed over to commissioning [7][31][33] - Cobre Panamá remains halted since November 2023, with ongoing costs of approximately $13 million per month for maintenance and preservation [14][27] - The company has maintained supplementary power arrangements in Zambia and anticipates sourcing up to 60% of its electricity from imports as the Kansanshi S3 Expansion ramps up [36][37] Hedging and Financial Flexibility - The company has entered into derivative contracts to hedge against copper price fluctuations, protecting approximately half of planned production and sales in 2025 [12][13] - A recent notes offering enhanced the company's liquidity position by $750 million, and an additional $500 million prepayment agreement was made with Jiangxi Copper Company [2][15][16] Guidance and Future Outlook - The production guidance for 2025 remains unchanged, with expectations of 160,000 to 190,000 tonnes of copper and 100,000 to 110,000 ounces of gold [8][43][45] - The company plans a six-week maintenance shutdown of the Kansanshi smelter in Q2 2025, which may impact short-term production [8][19]