Talen Energy Corporation · NASDAQ:TLN
Talen Energy — Merger or Acquisition (January 2026)
12 slides from Talen Energy's merger presentation, Jan 15, 2026
Slide 1: Acquisition of Lawrenceburg, Waterford, & Darby
Lawrenceburg Darby Waterford Acquisition of Lawrenceburg, Waterford, & Darby January 15, 2026
Slide 2: Disclaimer
Disclaimer 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 express
Slide 3: Investment Highlights
Investment Highlights $3.45 billion investment in three high-quality assets with immediate >15% Adj FCF/share accretion ✓ 6.6x 2027E Adj EBITDA multiple with strong unlevered free cash flow conversion of ~85% ✓ Maintains balance sheet strength, ability to achieve <3.5x net leverage target by YE 2026
Slide 4: Acquisition of ~2.6 GW of PJM Gas Capacity in Ohio and Indiana
Acquisition of ~2.6 GW of PJM Gas Capacity in Ohio and Indiana Acquiring Lawrenceburg, Waterford and Darby from Energy Capital Partners (“ECP”) Susquehanna Waterford Freedom ▪ Lawrenceburg and Waterford are highly efficient CCGTs that PA Lower Mount strengthen Talen’s generation profile Bethel IN ▪
Slide 5: Modern Generation Fleet of Scale
Modern Generation Fleet of Scale Talen’s pro forma annual generation is expected to approximately double after its recent acquisitions Owned Capacity1 (GW) 2024A Produced 2024A Produced Generation by Asset (TWh) Generation (TWh) Operating Metrics Pro Forma ~15.6 GW ~71 TWh Susquehanna Existing Talen
Slide 6: Key Transaction Terms
Key Transaction Terms • Purchase price of $3.45 billion ‒ 6.6x EV / 2027E Adj EBITDA multiple and blended $/kW of $1,3441 • Consideration to ECP consists of ~$2.55 billion in cash and ~$900 million of Talen equity Purchase Price / ‒ 2.4 million shares to be issued to ECP (~5% of expected pro forma e
Slide 7: Transaction Enhances Projected Adj FCF / Share
Transaction Enhances Projected Adj FCF / Share Adj FCF/Share Adj Free Cash Flow / Share Potential Upside to 2028 Growth vs ’28 Adj FCF/Share Accretion from Acquisition1 $2 Billion Share Repurchases3 ~10% Adj FCF/Share2 >15% Adj FCF / Share Accretion1, 2 $31.10+ $31.40+ AWS PPA Accelerated by 480 MWs
Slide 8: Earnings Transformation
Earnings Transformation Strategic initiatives and margin expansion driving significant Adjusted EBITDA and cash flow growth and diversification Susquehanna 2024A 2027E Existing Talen Baseload Gas1 Proposed Acquisition Assets Other Talen Assets $770mm +235% ~$2.6bn2 Cash flows are significantly more
Slide 9: Executing the Talen Flywheel Strategy
Executing the Talen Flywheel Strategy Multiple transactions delivering strong and immediate Adjusted FCF/Share accretion Reshaping fleet by adding baseload MWs that are the equivalent to two more nuclear plants Diversified portfolio across Pennsylvania, Ohio and Indiana within PJM Locked-in ~2 GW of
Slide 10: Appendix
Appendix TALENY ENERGY
Slide 11: Pro Forma Generation Portfolio Summary
Pro Forma Generation Portfolio Summary Owned Capacity Commercial Asset State Primary Fuel Type(s) Plant Type Ownership 1 Region (MW) Operations Date Proposed Acquisition Lawrenceburg IN Natural Gas Baseload 100% 1,120 2004 PJM-AEP (RTO) Waterford OH Natural Gas Baseload 100% 875 2003 PJM-AEP (RTO) D
Slide 12: Pro Forma Talen Portfolio
Pro Forma Talen Portfolio Acquisition enhances Talen’s fleet across all key metrics 1 Lawrenceburg, + Waterford & Darby Pro Forma Impact Capacity by Tech2 (GW) Nuclear Baseload Gas ~13.1 GW ~2.5 GW ~15.6 GW +19% Other3 Generation by Tech 4(TWh) Nuclear Baseload Gas Other3 ~55.0 TWh ~15.7 TWh ~70.7 T