Talen Energy announced that it has received final regulatory clearance from the Federal Energy Regulatory Commission and the Department of Justice for its purchase of the Moxie Freedom Energy Center in Pennsylvania and the Guernsey Power Station in Ohio. The FERC approval was issued on November 7, 2025, and the DOJ’s Hart‑Scott‑Rodino review expired on November 17, 2025, allowing the company to move forward with closing the transaction.
The acquisition adds roughly 2.9 GW of dispatchable capacity to Talen’s fleet—1,050 MW from the Moxie Freedom plant and 1,875 MW from the Guernsey plant—making it one of the largest natural‑gas additions in the PJM market. The net purchase price is $3.5 billion, with a gross price of about $3.8 billion after tax benefits. The deal is financed through a combination of a $1.2 billion senior secured term loan B and $2.7 billion in senior unsecured notes, giving Talen a robust balance‑sheet foundation for the expansion.
Strategically, the new assets reinforce Talen’s “flywheel” model, which leverages high‑efficiency, low‑carbon generation to supply the growing demand from hyperscale data centers and large commercial off‑takers. Both plants are H‑Class combined‑cycle gas turbines with an average heat rate of 6,550 Btu/kWh, positioning Talen to deliver reliable, scalable power in the competitive PJM environment while supporting its data‑center portfolio.
Financially, management projects the acquisitions to be immediately accretive to free‑cash‑flow per share, with a 40 % lift in 2026 and over 50 % through 2029. The transaction is valued at a 6.7× 2026 EV/EBITDA multiple, and Talen remains committed to a net leverage target of 3.5× or lower by the end of 2026, underscoring disciplined capital allocation.
Talen’s Q3 2025 results—adjusted EBITDA of $363 million and adjusted free cash flow of $223 million—provide a strong financial backdrop for the deal. Analysts view the expansion as a positive catalyst for long‑term growth, though the company’s focus on maintaining leverage and investing in high‑return data‑center contracts remains a key theme.
The transaction is expected to close before the end of November 2025, with the company already completing the necessary regulatory filings and financing arrangements. The clear regulatory path demonstrates Talen’s ability to navigate complex approvals and execute large‑scale acquisitions that align with its growth strategy.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.