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Talen Energy to Buy Three Midwest Gas Plants for $3.45 Billion in Cash and Stock

Management frames the purchase as a catalyst for immediate free cash flow.

Overview

  • Talen signed definitive agreements to acquire the Waterford and Darby plants in Ohio and the Lawrenceburg plant in Indiana from Energy Capital Partners.
  • The acquisition adds 2.6 gigawatts of natural gas capacity and expands Talen’s presence in the western PJM electricity market.
  • The deal includes $2.55 billion in cash and about $900 million in Talen stock, with Energy Capital Partners set to become a significant shareholder.
  • Talen projects free cash flow per share growth of more than 15% annually through 2030 and targets leverage of 3.5x or lower by the end of 2026.
  • Lawrenceburg and Waterford are high-efficiency combined‑cycle units with capacity factors above 80%, Darby is a peaking unit, and all source fuel from Marcellus and Utica shale; Benzinga reports the valuation at roughly 6.6x projected 2027 adjusted EBITDA and notes shares rose about 9% on the news.