Talen Energy names Terry Nutt CEO as company doubles buyback to $3.0 billion

Mac McFarland will step down as CEO and director on the same date, serving as senior advisor until his retirement on March 1, 2027

Talen Energy said Terry L. Nutt, its current president and former chief financial officer, will become chief executive and president on January 1, 2027, and will join the board that day. Mac McFarland will leave the CEO role and the board on the same date. The company said his departure does not stem from any disagreement over operations, policies or practices. He will stay on as a senior advisor until he retires on March 1, 2027.

Talen also disclosed that its subsidiary, Talen Energy Marketing, has sold roughly $1.5 billion of future capacity revenue from the PJM market, covering the 2027/2028 and 2028/2029 delivery years. The proceeds are being advanced at a rate of SOFR plus 200 basis points.

The company is using that money, together with cash on hand, to fund $1.5 billion of accelerated share repurchases agreed on September 29, 2026. That is part of a share buyback program that Talen has now doubled, to $3.0 billion from $1.5 billion.

The leadership change was flagged well in advance and comes with no disagreement cited, so it is unlikely to move the stock much on its own. The capacity sale is the more notable piece: Talen is pulling forward $1.5 billion in future PJM payments, in a market where reliability and pricing have drawn scrutiny, and channeling that money into an accelerated buyback while doubling its total repurchase authorization. Financing the deal at a modest spread while retiring shares aggressively signals confidence in future cash flow, though it also adds leverage tied to capacity revenue that Talen did not carry before.