Talen Energy Corporation · NASDAQ:TLN

Talen Energy — Investor Presentation (September 2025)

35 slides from Talen Energy's investor presentation, Sep 9, 2025

  1. Slide 1: Investor Update

    Investor Update Talen Energy Corporation | September 9, 2025

  2. Slide 2: Disclaimers

    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 expres

  3. Slide 3: Agenda

    Agenda 1 Executive Summary 2 Power Markets & Hedging 3 Growth Platform 4 Appendix 2

  4. Slide 4: Executive Summary

    Executive Summary TALENY ENERGY

  5. Slide 5: Why Talen?

    Why Talen? Pure play IPP in largest deregulated RTO - PJM  Concentrated in Pennsylvania and Ohio1 with data center opportunities  Exposure to increasing demand fundamentals and rising power prices Value creation focused on Adjusted Free Cash Flow per share (“Adj FCF/share”) and Adj FCF/share growt

  6. Slide 6: Track Record of Unlocking Value

    Track Record of Unlocking Value Talen has taken multiple actions to unlock value with minimal capital spend Emergence through End of Year 2024 Positioned for further Unlocking Value: growth  Entered first data center transaction and sold Announced Added to S&P data center campus to Amazon Enhanced

  7. Slide 7: Key Updates to Financial Projections

    Key Updates to Financial Projections Capacity Price West Hub TETCO M3 Key Drivers / Assumptions ($/MWd) ($/Mwh)1 ($/MMBtu)1  Expecting to be in lower end of Adjusted EBITDA and Adjusted Free Cash Flow ranges 2025  Strong performance in 1H offset by Susquehanna extended outage ’25/’26: ~$270 $46.84

  8. Slide 8: Substantial Projected Adj FCF / Share Growth

    Substantial Projected Adj FCF / Share Growth Adjusted Free Cash Flow per Share1,2 FCF/share Potential Upside to 2028 Growth vs ‘28 $31.10 $27.40+ $2B Share Repurchases5 ~10% $27.10 $25.80 AWS PPA Accelerated by 480 MWs ~10% $23.60 Accretive M&A (1 – 2 GW) ~10 – 20% $23.10 New 1 GW Data Center PPA ~1

  9. Slide 9: Introducing 2026 Guidance and 2027 - 2028 Outlook

    Introducing 2026 Guidance and 2027 - 2028 Outlook1 Adjusted EBITDA Adjusted Free Cash Flow ($mm) ($mm)4 Key Sensitivities Adjusted Free Cash Flow Conversion3  $50/MWd change in ‘27/’28 capacity ~45% ~55% ~60% ~60% price changes 2027E capacity revenue by ~$90mm 2,290 1,425 2,060+ 2,040 1,240 1,250+

  10. Slide 10: Power Markets & Hedging

    Power Markets & Hedging TALENY ENERGY

  11. Slide 11: U.S. Power Demand is Growing, Especially in PJM

    U.S. Power Demand is Growing, Especially in PJM NERC Summer Peak Demand (MW)1 PJM Demand Forecast2 920,000 230 2025 Forecast 2024 Forecast Lower 48 Aggregated Summer Peak Demand 900,000 220 2023 Forecast 210 Realized 880,000 200 Summer Peak (GW) 860,000 +30 GW 190 increase from 2025 to 2030 (MW) 840

  12. Slide 12: PJM Energy and Sparks Flat Year over Year in Face of Tightening Fundamentals

    $80 $50 $35 $65 Aug-25 Oct-25 Dec-25 Feb-26 Apr-26 Jun-26 Aug-26 Oct-26 Dec-26 Feb-27 Apr-27 Jun-27 Aug-27 Oct-27 Dec-27 Feb-28 Apr-28 PJM West Hub ATC Power Prices ($/MWh) Tightening Fundamentals Jun-28 Aug-28 Oct-28 Dec-28 $20 $40 $30 $10 Aug-25 Oct-25 Dec-25 Feb-26 Apr-26 Jun-26 Aug-26 Oct-26 Dec

  13. Slide 13: PJM Market Fundamentals Driving Higher Capacity Prices

    PJM Market Fundamentals Driving Higher Capacity Prices Historical Capacity Auction Results by Planning Year (RTO)  PJM installed reserve margins are steadily shrinking as power demand grows, while 22% 23% supply stagnates 22% 20% 20% 20% 20% 19% 19%  ‘26/’27 BRA was the second auction in a row $32

  14. Slide 14: Hedging Strategy Well-Positioned in Current Market

    Hedging Strategy Well-Positioned in Current Market Talen’s commercial strategy creates asymmetric returns Margin & Cash  Protects against downside, providing cash flow stability Flow Protection (Table Stakes)  Retains exposure to upside through both generation and opportunistic hedging Point Power

  15. Slide 15: Growth Platform: Powering the Future

    Growth Platform: Powering the Future

  16. Slide 16: Accretive Acquisitions of Freedom and Guernsey

    Accretive Acquisitions of Freedom and Guernsey Enhancing Talen’s Fleet Regulatory Approvals andFreedom Timing  Increases Talen’s generating capacity ~3 GW in core Federal  FERC approval required prior to the close PJM markets Energy of the transaction Regulatory  Complements Talen’s existing comm

  17. Slide 17: AWS PPA Drives Continued Adj FCF / Share Growth

    AWS PPA Drives Continued Adj FCF / Share Growth Illustrative Incremental Impact on Adj FCF/share – 2029 and Beyond1 AWS PPA Expected Impact1,3  PPA drives organic Adj FCF Base Generation5 growth beyond 2028 outlook $7.00–$8.25 ~+20% $27.10 $27.40 $4.00–$5.75 ~$2.00 ~$2.50 $23.60 $1.55  ~$18B in no

  18. Slide 18: Talen Has Built a Valuable Platform to Power the Data Center Economy

    Talen Has Built a Valuable Platform to Power the Data Center Economy Talen Understands What is Important to … And Has Built Hyperscalers… Industry-Leading Expertise & Team Speed to market through access to reliable power and critical infrastructure Technical Stakeholder 1 GW+ scale sites in growing

  19. Slide 19: Talen is Powering the Future

    Talen is Powering Acquiring Assets Contracting Assets the Future $ High quality cash flows with disciplined capital allocation 18

  20. Slide 20: Appendix A: Modeling Assumptions

    Appendix A: Modeling Assumptions

  21. Slide 21: Revenue and Margin Projections

    Revenue and Margin Projections 2026E 2027E Generation Prices Energy Revenue Generation Prices Energy Revenue (TWhs) ($/MWh)3 ($mm) (TWhs) ($/MWh) 3 ($mm) PJM 55.0 $51 $2,785 56.9 $50 $2,825 Other Markets 1.6 $63 $100 1.5 $66 $100 Revenue 56.6 $51 $2,885 58.4 $50 $2,925 Expected Hedge Settlements $(2

  22. Slide 22: PJM Capacity Revenue Projections

    PJM Capacity Revenue Projections1 Planning Year 2025E/2026E2 2026E/2027E 2027E/2028E Volumes Prices Revenues Volumes Prices Revenues Volumes3 Prices4 Revenues (MW) ($/MWd) ($mm) (MW) ($/MWd) ($mm) (MW) ($/MWd) ($mm) PJM Capacity Revenue MAAC 8,733 $262.10 $835 8,627 $329.17 $1,036 8,775 $329.17 $1,0

  23. Slide 23: O&M and Capital Expenditure Projections

    O&M and Capital Expenditure Projections1 O&M Expenses ($mm) Capital Expenditures ($mm) $290 $655 $645 $260 $170 $120 $140 $120 2026E 2027E 2026E 2027E Nuclear Fuel Maintenance & Other Increases due to investments in continuing operations and addition of Freedom and Guernsey Note: Represents the midp

  24. Slide 24: Susquehanna Outage

    Susquehanna Outage Unit 2 Unit 1 Typical Outage 2025 2026E Outage Duration 30 - 35 days 72 days ~55 days Incremental O&M / Capital Expenditure Cost $60mm - $65mm $30mm ~$30mm Margin Impact vs Typical Outage1 NA ~$34mm ~$20mm 1. Margin is comprised of: (i) margin associated with electric generation,

  25. Slide 25: Other Modeling Inputs

    Other Modeling Inputs1 2026E 2027E Cash Income Taxes as % of Adjusted EBITDA 2% 3% Pension Contributions ($mm) $30 $25 Asset Retirement Obligations and Environmental Liabilities ($mm) $65 $50 Note: Represents the midpoint of each guidance and outlook range provided. 24 1. Includes projected pro form

  26. Slide 26: Debt Overview

    Debt Overview Principal Agency IDR / Secured Debt Rating Outlook Tranche Maturity Interest Rate2 ($mm) S&P BB- / BB Stable RCF Dec 2029 - 6.23% Moody’s Ba3 / Ba2 Stable9 2030 TLB3 May 2030 853 6.73% Fitch BB- / BB+ Negative 2031 TLB3 Dec 2031 846 6.73% Secured Notes June 2030 1,200 8.625% Secured De

  27. Slide 27: Appendix B: Supplemental Asset Detail

    Appendix B: Supplemental Asset Detail

  28. Slide 28: Pro Forma Generation Portfolio Summary

    Pro Forma Generation Portfolio Summary Owned Commercial Asset State Primary Fuel Type(s) Plant Type Ownership Region Capacity (MW)1 Operations Date Pending Acquisitions Guernsey OH Natural Gas Baseload 100% 1,836 2023 PJM-AEP/RTO Freedom PA Natural Gas Baseload 100% 1,045 2018 PJM-PPL/MAAC Talen Ass

  29. Slide 29: Susquehanna: Generation and Capacity Factors

    Susquehanna: Generation and Capacity Factors Projected Annual Generation (TWh) Projected Capacity Factors1 % of Total Fleet Annual Generation 32% 32% 18.8 96% 93% 18.2 2026E 2027E 2026E 2027E 1. Capacity factor based on maximum summer capacity rating. Includes anticipated impact of extended 2026 out

  30. Slide 30: PJM Baseload Gas Assets: Generation and Capacity Factors

    PJM Baseload Gas Assets1: Generation and Capacity Factors Projected Annual Generation (TWh) Projected Capacity Factors2 % of Total Fleet Annual Generation 44% 44% 85% 82% 25.9 25.1 2026E 2027E 2026E 2027E Note: PJM Baseload Gas Assets include Freedom, Guernsey, and Lower Mount Bethel. 1. Includes Lo

  31. Slide 31: PJM Other Assets: Generation and Capacity Factors

    PJM Other Assets: Generation and Capacity Factors Projected Annual Generation (TWh) Projected Capacity Factors1 % of Total Fleet Annual Generation 21% 21% 12.2 27% 11.7 25% 2026E 2027E 2026E 2027E Note: PJM Other Assets include Brunner Island, Martins Creek, Montour, Keystone and Conemaugh. 30 1. We

  32. Slide 32: Appendix C: Reconciliation of Non-GAAP Financial Measures

    Appendix C: Reconciliation of Non-GAAP Financial Measures

  33. Slide 33: Definitions of Non-GAAP Financial Measures

    Definitions of Non-GAAP Financial Measures Non-GAAP Financial Measures Adjusted EBITDA and Adjusted Free Cash flow, which we use as measures of our performance and liquidity, are not financial measures prepared under GAAP. Non-GAAP financial measures do not have definitions under GAAP and may be def

  34. Slide 34: Adjusted EBITDA / Adjusted Free Cash Flow Reconciliation: 2025E and 2026E Guidance

    Adjusted EBITDA / Adjusted Free Cash Flow Reconciliation: 2025E and 2026E Guidance The reconciliation from forecasted “Net Income (Loss)” to Adjusted EBITDA and Adjusted Free Cash Flow for the year ended December 31: ($mm) 2025E1 2026E1,2 Low High Low High Net Income (Loss) $ 205 $ 325 $ 875 $ 1,125

  35. Slide 35: Adjusted EBITDA / Adjusted Free Cash Flow Reconciliation: 2027E Outlook

    Adjusted EBITDA / Adjusted Free Cash Flow Reconciliation: 2027E Outlook The reconciliation from forecasted “Net Income (Loss)” to Adjusted EBITDA and Adjusted Free Cash Flow for the year ended December 31: ($mm) 2027E1, 2 Low High Net Income (Loss) $ 905 $ 1,325 Adjustments Interest expense and othe

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