Talen Energy Corp
For the period ended Sep 30, 2024. Filed Nov 14, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2024 · Filed Nov 14, 2024
Extracted filing text, with the paragraph anchors used by the comparison.
See the whole filing, with its images and exhibitsContents
18. Segments
- Segments
Talen’s operating segments are based on the market areas in which our generation facilities operate and reflect the manner in which our chief operating decision maker review results and allocate resources. Adjusted EBITDA is the key profit metric used to measure financial performance of each segment. Total assets or other asset metrics are not considered a key metric or reviewed by the chief operating decision makers.
“PJM” is engaged in electricity generation, marketing activities, commodity risk and fuel management within the PJM RTO or ISO markets and is comprised of Susquehanna and Talen’s natural gas and coal generation facilities.
“Other” represents a non-reportable segment that includes the operating and marketing activities of Talen Montana’s proportionate share of Colstrip in the WECC market, the operating activities of Nautilus, and other non-material operating and development activities. The “Other” segment also included the operating activities of our Texas power generation facilities in the ERCOT market prior to their disposal in May 2024. We have determined it appropriate to aggregate results of Talen’s remaining non-reportable segments and other operating activities.
“Corporate and Eliminations” represents a non-reportable segment that includes: (i) general and administrative expenses incurred by our corporate function; (ii) interest expense and other corporate activities not allocated to our operating segments; and (iii) intercompany eliminations. This grouping is presented to reconcile the reportable segments to our consolidated results.
Financial data for the segments and reconciliation to consolidated results are:
| PJM · Other · Corporate and Eliminations · Total | |||||
|---|---|---|---|---|---|
| Three Months Ended September 30, 2024 (Successor) | |||||
| Operating revenues | $575 | $96 | $(21) | $650 | |
| Interest expense | — | — | 66 | 66 | |
| Capital expenditures | 54 | 3 | 1 | 58 | |
| Adjusted EBITDA | 217 | 28 | 245 | ||
| Three Months Ended September 30, 2023 (Successor) | |||||
| Operating revenues | $343 | $243 | $(70) | $516 | |
| Interest expense | — | — | 68 | 68 | |
| Capital expenditures | 50 | 16 | 3 | 69 | |
| Adjusted EBITDA | 168 | 83 | 251 | ||
| PJM · Other · Corporate and Eliminations · Total | |||||
|---|---|---|---|---|---|
| Nine Months Ended September 30, 2024 (Successor) | |||||
| Operating revenues | $1,446 | $304 | $(102) | $1,648 | |
| Interest expense | — | — | 187 | 187 | |
| Capital expenditures | 123 | 23 | 1 | 147 | |
| Adjusted EBITDA | 592 | 71 | 663 | ||
| May 18 through September 30, 2023 (Successor) | |||||
| Operating revenues | $698 | $213 | $(94) | $817 | |
| Interest expense | — | — | 101 | 101 | |
| Capital expenditures | 73 | 26 | 4 | 103 | |
| Adjusted EBITDA | 240 | 104 | 344 | ||
| January 1 through May 17, 2023 (Predecessor) | |||||
| Operating revenues | $1,054 | $193 | $(37) | $1,210 | |
| Interest expense | — | — | 163 | 163 | |
| Capital expenditures | 132 | 53 | 2 | 187 | |
| Adjusted EBITDA | 688 | 37 | 725 | ||
| Successor · Predecessor | |||||
|---|---|---|---|---|---|
| Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | Nine Months Ended September 30, 2024 | May 18 through September 30, 2023 | January 1 through May 17, 2023 | |
| Adjusted EBITDA: | |||||
| PJM | $217 | $168 | $592 | $240 | $688 |
| Other | 28 | 83 | 71 | 104 | 37 |
| Total Segment Adjusted EBITDA | $245 | $251 | $663 | $344 | $725 |
| Reconciling Items: | |||||
| Interest expense and other finance charges | (66) | (68) | (187) | (101) | (163) |
| Income tax benefit (expense) | (11) | 16 | (192) | (3) | (212) |
| Depreciation, amortization and accretion | (75) | (66) | (225) | (94) | (200) |
| Nuclear fuel amortization | (30) | (47) | (93) | (72) | (33) |
| Reorganization gain (loss), net | — | — | — | — | 799 |
| Unrealized (gain) loss on commodity derivative contracts | 102 | (84) | 58 | (43) | (63) |
| Nuclear decommissioning trust funds gain (loss), net | 67 | (24) | 169 | 15 | 57 |
| Stock-based compensation expense | (8) | (9) | (24) | (11) | — |
| Long-term incentive compensation expense | (3) | — | (19) | — | — |
| Gain (loss) on asset sales, net | — | — | 885 | — | 50 |
| Non-cash impairments | — | (2) | — | (2) | (381) |
| Operational and other restructuring activities | (40) | (4) | (61) | (30) | (17) |
| Development expenses | (1) | (5) | (1) | (7) | (10) |
| Non-cash inventory net realizable value, obsolescence, and other charges | (2) | 2 | (5) | (1) | (56) |
| Noncontrolling interest | 3 | 14 | 21 | 22 | 14 |
| Other items | 2 | (23) | 13 | (21) | (15) |
| Corporate and Eliminations | (15) | (27) | (57) | (41) | (30) |
| Net Income (Loss) | $168 | $(76) | $945 | $(45) | $465 |
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.