Talen Energy (TLN) Buys Three Gas-Fired Power Plants

Talen Energy Corporation (NASDAQ:TLN) is included among the 10 Best Performing Utility Stocks in 2025.

Talen Energy Corporation (NASDAQ:TLN) is a leading independent power producer and energy infrastructure company with 13.1 GW of generation assets.

Talen Energy Corporation (NASDAQ:TLN) shot up by almost 12% on January 15 when the company announced that it had signed definitive agreements to acquire three gas-fired power plants in the PJM Interconnection from Energy Capital Partners, adding approximately 2.6 gigawatts of generating capacity to its portfolio. The $3.45 billion acquisition, comprising about $2.55 billion in cash and approximately $900 million in Talen stock, will significantly expand the utility’s footprint in the western PJM market. According to the company, the deal is expected to result in immediate annual adjusted free cash flow per share accretion of over 15% through 2030.

Terry Nutt, President of Talen Energy Corporation (NASDAQ:TLN), commented:

“When this transaction is complete, Talen will have approximately doubled its expected annual generation output inside of two years, meaningfully diversified our fleet, and materially increased our free cash flow per share. We are also excited to welcome ECP as a significant Talen shareholder.”

Following the deal, Morgan Stanley raised its price target on Talen Energy Corporation (NASDAQ:TLN) from $443 to $470, indicating an upside of over 26% from current levels. The firm also maintained its ‘Overweight’ rating on TLN shares, while highlighting that the stock’s valuation ‘looks very attractive’.

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Disclosure: None.