HOUSTON - Talen Energy Corporation (OTCQX: TLNE), a major player in the U.S. power market, has entered into an agreement to repurchase approximately 2.4 million shares of its common stock. The shares, currently held by affiliates of Rubric Capital Management LP, will be bought at $116.00 per share, totaling around $280 million. This transaction is slated to finalize within the coming days.
The buyback is a continuation of Talen Energy's share repurchase program, which was previously announced to have a $1 billion capacity. Prior to this agreement, the program had $388 million remaining after a $612 million equity tender offer.
President and CEO Mac McFarland expressed satisfaction with the progression of shareholder returns and noted that Rubric will maintain a substantial stake in the company. Talen Energy aims to keep providing value to Rubric and all other shareholders.
Talen Energy operates approximately 10.7 gigawatts of power infrastructure across the United States, dealing in the production and sale of electricity, capacity, and ancillary services to wholesale U.S. power markets, including PJM and WECC. The company's generation fleet is mainly located in the Mid-Atlantic and Montana.
Trading on the OTCQX Best Market under the ticker "TLNE," Talen meets high financial standards and practices good corporate governance. Real-Time Level 2 quotes and financial disclosures for the company are available on the OTC Markets website.
The information for this article is based on a press release statement from Talen Energy Corporation.
In other recent news, Talen Energy Corporation has reported robust first-quarter earnings and has raised its 2024 financial outlook. The company's Adjusted EBITDA was $289 million, and its Adjusted Free Cash Flow stood at $194 million. It recently sold its 1.7-gigawatt ERCOT generation portfolio for $785 million, leading to an updated 2024 financial outlook. The revised figures now project an Adjusted EBITDA between $600 million and $800 million and an Adjusted Free Cash Flow of $160 million to $310 million.
Talen has also expanded its share repurchase program, with the board of directors increasing the remaining capacity to $1 billion through 2025. The company's President and CEO, Mac McFarland, highlighted the company's strategic position and the significance of the Nuclear Production Tax Credit for the company.
These recent developments show a positive start to 2024 for Talen, which also reported a solid operational performance with a total generation of 8.1 terawatt hours in the first quarter, 58% of which was carbon-free nuclear generation. The company's hedging program has secured approximately 88% of its expected generation volumes for the remainder of 2024. Talen confirmed that its nuclear fuel supply is fully contracted through the 2025 fuel load and has no exposure to Russian fuel.
InvestingPro Insights
As Talen Energy Corporation (OTCQX: TLNE) moves forward with its significant share buyback plan, InvestingPro data and tips offer a deeper understanding of the company's financial health and market performance. With a market capitalization of $6.79 billion, Talen Energy is trading at a price-to-earnings (P/E) ratio of 17.39, reflecting investor expectations for future earnings. Notably, the company's revenue has experienced a substantial decline over the last twelve months as of Q1 2024, with a drop of 26.32%. This trend is consistent with the quarterly revenue growth, which has decreased by 33.51% in Q1 2024.
Despite these challenges, Talen Energy has demonstrated strong market performance with a one-year price total return of 131.31%. Additionally, the company's shares are currently trading at 89.18% of their 52-week high, with a previous close at $116.00. Investors have also witnessed a significant price uptick over the last six months, as the six-month price total return stands at 77.91%.
InvestingPro Tips highlight that while analysts anticipate a sales decline and expect net income to drop this year, Talen Energy has had a high return over the last year and boasts liquid assets that exceed short-term obligations. Moreover, the company is predicted to remain profitable this year and has been profitable over the last twelve months, despite not paying dividends to shareholders.
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