Talen Energy Corporation (NYSE:TLN) Q3 2015 Earnings Conference Call - Final Transcript
Nov 05, 2015 • 08:00 am ET
Good morning and welcome to the Talen Energy third quarter results conference call. All participants will be in a listen-only mode. (Operator Instructions) After today's presentation, there will be an opportunity to ask questions.
(Operator Instructions) Please note this event is being recorded. I would now like to turn the conference over to Andy Ludwig, Director of Investor Relations. Please go ahead.
Thanks, Emily, and good morning, everyone. Thank you for joining the Talen Energy Corporation conference call to discuss third quarter results and business outlook. Today's presentation is being webcast, we are providing slides of the presentation on our website at talenenergy.com.
(Forward-looking Cautionary Statements)
This presentation also will contain references to non-GAAP financial information that we use to measure our business. You can find the reconciliation between the non-GAAP financial measures we use and the most directly comparable GAAP measures in the schedules to our earnings release and in the appendix to today's presentation.
I'll now turn the call over to Paul Farr, Talen Energy President and CEO. Paul?
Paul A. Farr
Thanks, Andy, and good morning, everyone. Joining me on the call today with prepared remarks is Jeremy McGuire, our CFO; as well as Joe Hopf, our Chief Commercial Officer and Tim Rausch, our Chief Nuclear Officer. Our call today will follow our normal format as outlined on the agenda on slide three.
But prior to jumping into the slides, I wanted to make a few opening remarks concerning the commodity markets and our strategy. Some of the items I'll touch on will be covered in more detail in later remarks, but I want to emphasize what this team is doing to doing to drive shareowner value in this difficult commodity cycle. We don't control commodity or capacity prices, but we do control our asset mix, our cost structure and to a great degree, our balance sheet.
We believe scale, diversity, maintaining low operating costs and maintaining an appropriate balance sheet will be the primary determinants of successful, sustainable value creation and cash flow. The spin for PPL and the Riverstone acquisition allowed us to achieve some more scale, a modest expansion into Texas from our core PJM footprint and a great opportunity to address our cost structure.
What we're building is a scalable platform to drive down asset management costs, a commercial platform capable of optimizing the value of a fuel-diverse fleet across multiple RTOs and an improved risk profile for certain of our assets, should gas prices remain depressed for an extended period of time; all while maintaining appropriate leverage for the asset base we own and operate at any given point in time.
In our first five months of existence, we've executed strongly and accomplished a great deal towards these goals. We knew that to acquire the Riverstone assets, we'd have to commit to sales of approximately 1,400 megawatts of the newly combined portfolio to achieve FERC approval for that transaction.
FERC concurred with our unique dual-option approach to divestiture and allowed a one-year timeframe to enter into