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Research Alert: Talen Energy Q1: Operating Revenue Jumps 189% Y/y To $1.1b, Ebitda Up 137%
CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:TLN reported exceptional Q1 results with operating revenues of $1,129M (+189% Y/Y) and adjusted EBITDA of $473M (+137% Y/Y), driven by higher PJM capacity prices, AWS PPA ramp, and improved spark spreads. Adjusted free cash flow surged 302% to $350M, benefiting from strong operating performance and favorable working capital dynamics. The Cornerstone Acquisition of 2,451 MW remains on track for H2 2026 close, with $4B financing secured at attractive rates generating over $40M in annual interest savings. TLN reaffirmed 2026 guidance of $1.75B-$2.05B adjusted EBITDA and $980M-$1,180M adjusted free cash flow, while providing preliminary 2027-2028 outlooks showing adjusted FCF per share growing to ~$34 and ~$36 respectively. We believe the company's disciplined capital allocation framework, including $1.9B remaining share repurchase authorization through 2028, positions TLN well for continued strong FCF growth with a >20% base case CAGR trajectory.
$TLN
Research
Research Alert: Oxy: A Q1 Eps Beat And A Stronger Balance Sheet
CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:OXY posted Q1 adjusted EPS of $1.06 vs. the $0.87 consensus, a $0.47 beat, while production of 1,426,000 boe/d exceeded guidance but declined 3.7% sequentially. The Permian Basin contributed 787,000 boe/d (55% of total), with Oil & Gas pre-tax income rising to $1.0B from $0.7B in Q4 as liquids pricing improved with oil realizations up 18% to $69.91/b and NGL prices rising 14% to $18.99/b, though domestic gas realizations fell 10% to $1.01/Mcf due to Permian congestion. The company made significant balance sheet progress, reducing principal debt to $13.3B following $7.1B in repayments and advancing toward its $10.0B milestone, while cash increased to $3.8B. The OxyChem divestiture provided financial flexibility despite occurring at a cyclical trough. We expect near-term free cash flow to improve further given crude prices remain materially higher since the Iran conflict began February 28, with free cash flow before working capital reaching $1.7B vs. capex of $1.6B.
$OXY
Research
Research Alert: Su Q1: Record Q1 Production, Increases Share Repurchases 30%
CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:SU reported adjusted operating earnings of CAD2.3B, up 41%, driven by improved downstream margins, higher upstream price realizations, and volume growth. Adjusted funds from operations increased 32% to CAD4.03B while free funds flow surged 53% to CAD2.91B, with upstream production reaching 875.2k bbl/d (+2.6%) and refining throughput at 497.8k bbl/d with 97% utilization. The company returned CAD1.54B to shareholders through buybacks and dividends, while management increased monthly share repurchases by 27% to CAD350M, projecting total 2026 buybacks of nearly CAD4B, a 30%+ increase over 2025 levels. The Investor Day outlined three-year targets including CAD2B increase in free funds flow by 2028, USD5/bbl reduction in corporate WTI breakeven to USD38/bbl, and 100k bbl/d upstream production growth. We remain bullish on their highly efficient integrated positioning, as crude price drops should enable return to ~100% utilization with higher throughput capacity and benefit from that pricing environment.
$SU