America’s Premier Competitive Power Company
... Creating Power for a Sustainable Future


Message from the CEO

Texas City Name

Calpine’s Wholesale Power Generation & Growing Retail Business Will Continue to Generate Strong Cash Flow Returns

Calpine’s wholesale power generation fleet continued to demonstrate its operational excellence during the third quarter, producing a record 34 million MWh with 98% fleetwide starting reliability and zero OSHA recordable events. In addition, we are accretively recycling capital from non-core wholesale assets into Noble Americas Energy Solutions, the nation's best-in-class independent supplier of power to large commercial and industrial retail customers. 

Noble's geographic footprint and direct-sales approach complement our existing Champion Energy retail platform. Strategically, this acquisition increases our retail scale, further diversifies our company and moves us closer to customers in our core deregulated markets of California, Texas and the Northeast.

Also today, we are narrowing our 2016 Adjusted EBITDA guidance range to $1.8 billion to $1.85 billion. While we anticipated lower 2016 summer hedge pricing relative to 2015, actual summer liquidations disappointed relative to expectations. As we look toward next year, we introduce our 2017 Adjusted EBITDA guidance of $1.8 billion to $1.95 billion and Adjusted Free Cash Flow of $710 million to $860 million, growing Adjusted Free Cash Flow by approximately 7% over 2016, based on the midpoint. In 2017, the accretive retail acquisition of Noble will triple the Adjusted EBITDA and Free Cash Flow derived from the facilities for which we have previously announced divestitures - Mankato, Osprey and South Point. And now our focus will be to integrate Noble, close on remaining non-core portfolio sales and complete the York 2 expansion project, while controlling costs and operating safely and effectively.

Ultimately, we believe our unique wholesale power generation portfolio, complemented by a growing retail business, will generate strong cash flow returns for years to come. Moreover, we expect that more than 65% of our current market capitalization will be available over the next three years for deployment towards growth, debt reduction or return to shareholders. 

Thad Hill, 

President and CEO