15 Best Large Cap Energy Stocks to Buy According to Hedge Funds

Page 5 of 13

9. Talen Energy Corporation (NASDAQ:TLN)

No. of Hedge Funds Holders: 80

Talen Energy Corporation (NASDAQ:TLN) is a leading independent power producer and energy infrastructure company with a portfolio that consists of 12 generation locations that are collectively capable of producing approximately 10.7 GW of power.

Talen Energy Corporation (NASDAQ:TLN) made headlines last year after it announced the sale of a 960 MW data center campus to cloud service provider AWS, a subsidiary of Amazon, for $650 million. The facility was meant to be powered by Talen’s Susquehanna Nuclear power plant in a so-called co-located arrangement, in which data centers are located close to the power stations that feed them, potentially eliminating the overly long wait times associated with connecting to the broader electrical grid.

However, the Federal Energy Regulatory Commission voiced concerns about how the campus might affect power reliability and costs for the general public and ruled to cap the amount of power to Amazon’s data center at 300 MW. Talen Energy Corporation (NASDAQ:TLN) is currently appealing the regulator’s decision and expects a court hearing on the case in the coming weeks. In the meantime, the company is considering alternative data center deals, including ones that connect the centers to the grid as part of traditional commercial power contracts.

Talen Energy Corporation (NASDAQ:TLN) announced mixed results for its Q1 2025 earlier this month, beating forecasts in adjusted earnings but falling short in revenue. That said, the company reported an adjusted free cash flow of $87 million and repurchased shares worth $83 million during the quarter. Since the start of 2024, Talen has repurchased approximately 23% of its outstanding shares for a total of approximately $2 billion, with $995 million still remaining under its share repurchase program through year-end 2026.

Page 5 of 13