Calpine: Not As Distressed As Everyone Thinks
Dichotomy Capital • 16 Comments
Dichotomy Capital • 16 Comments
Calpine Offers Some Upside To More Realistic Power Pricing
Stephen Simpson, CFA
Stephen Simpson, CFA
If You Like Exelon, Sell Calpine
Oct. 14, 2015, 5:53 PM
- The 14 companies that issued a joint statement today endorsing an international agreement to reduce carbon emissions included leaders of some of the world’s most carbon-intensive industries: coal miners BHP Billiton (NYSE:BHP) and Rio Tinto (NYSE:RIO), oil majors Shell (RDS.A, RDS.B) and BP, aluminum producer Alcoa (NYSE:AA) and cement maker LarfargeHolcim (OTCPK:HCMLF).
- A climate deal could eventually mean new taxes and regulations on products central to the companies’ business models, but the companies say they seek clear direction from world leaders to guide long-term investments and transparency to ensure all countries apply the same rules to emissions.
- While UN climate talks scheduled for December in Paris are not likely to result in a global price on carbon, individual countries are submitting their own plans that could lead to market opportunities for major players.
- The statement was also joined by Alstom (OTCPK:ALSMY, OTCPK:AOMFF), Calpine (NYSE:CPN), Hewlett-Packard (NYSE:HPQ), Intel (NASDAQ:INTC), National Grid (NYSE:NGG), PG&E (NYSE:PCG), Schneider Electric (OTCPK:SBGSF) and Siemens (OTCPK:SIEGY).
Oct. 13, 2015, 8:28 AM
- Calpine (NYSE:CPN) agrees to acquire the Granite Ridge Energy Center gas-fired power plant from Granite Ridge Holdings for $500M.
- CPN says the addition of Granite Ridge brings its New England footprint to ~2K MW of generation, making it "a meaningful supplier in one of the nation's leading wholesale power markets."
- The 745 MW power plant, is located in Londonderry, N.H., ~45 miles northwest of Boston.
Sep. 28, 2015, 2:32 PM
- Calpine (CPN -0.2%) says its geothermal power generation facilities at The Geysers in California have reopened after closing earlier this month because of wildfires, and it expects insurance to cover ~$35M in damages and lost revenues.
- The geothermal plants are now producing 540 MW of power out of its net generating capacity of ~725 MW of electricity; full repairs are expected to take another 6-12 months.
- Earlier this month, CPN reported that five cooling towers were destroyed or damaged at its 14 geothermal power plants at The Geysers, which represents 10% of the capacity of CPN’s total California fleet.
- The fire is now 97% contained and is no longer considered a threat to the geothermal complex.
Aug. 24, 2015, 2:47 PM
- Utility companies including Exelon (EXC +0.4%) and NRG Energy (NRG -0.8%), Calpine (CPN -2.8%), Dynegy (DYN -1.1%) and Public Service Enterprise Group (PEG -2.1%) show mixed results after analysts said they would be among the biggest beneficiaries of an increase in power prices awarded Friday by PJM Interconnection, the largest U.S. grid operator.
- PJM, which helps supply power to one in five Americans living from Newark and Chicago, announced it would boost capacity prices between 37% and 88%, which could add $2-$3 to the average consumers’ monthly bill across its territory.
- Moody’s had called it “arguably the most important” PJM auction in the operator's eight-year history both for PJM’s plan to improve reliability and as an earnings driver to help companies.
- Earlier: Three Exelon plants do not clear capacity auction
Jul. 30, 2015, 2:33 PM
- Calpine (CPN +4.8%) is higher after easily beating low expectations for Q2 earnings, benefiting from low Mid-Atlantic gas prices as the region switches from more coal to gas generation.
- "We’re on the right side of history [in] "the battle between gas and coal," CPN President/CEO Thad Hill says, adding that the company's Texas and eastern natural gas-fired plant fleets are displacing more of the industry’s uneconomic coal-fired generation.
- In today's earnings conference call, Hill said California also was a big part of CPN’s success because of the state’s drought conditions and diminished hydro-power generation; as a result, more gas-fired power was needed.
- CPN's Q2 adjusted net income came in $36M higher than the same time last year while generating a Q2 record of ~28M MW hours.
Jul. 30, 2015, 6:24 AM
- Calpine (NYSE:CPN): Q2 net income of $33M
- Revenue of $1.44B (-25.8% Y/Y) misses by $10M.
Jul. 29, 2015, 5:30 PM
- AAWW, AB, ACI, ACIW, ACOR, ACRE, ADP, ALKS, ALLE, ALU, ALXN, AMRC, APD, AVP, AWI, AZN, BC, BCO, BG, BLL, BUD, BWA, BWEN, CAH, CBB, CBM, CBR, CCE, CCJ, CEVA, CI, CL, CME, COP, COT, CPN, CRL, CRR, CRS, CSH, CVE, CVI, CVRR, DBD, DCIX, DFT, DLPH, EDR, EME, ENTG, EPD, ERJ, ESI, EXLS, FCAU, FCN, FIG, FMS, GG, GHM, GLOP, GLPI, GNC, GOV, GTLS, GVA, HEES, HOT, HP, HST, I, IART, IDA, IDCC, IDXX, INGR, IRDM, IRM, IT, ITC, IVZ, KMT, LBY, LINE, LKQ, LLL, MD, MDLZ, MDP, MDXG, MMYT, MOBL, MPC, MPLX, MSCI, MTRN, MWW, NAVB, NICE, NMM, NNN, NOK, NTCT, ODFL, OSK, OXY, PBI, PCRX, PES, PF, PG, PNK, PNW, POT, PRFT, PWE, RDS.A, RFP, RTIX, RYAM, RYL, SC, SCG, SEE, SHOO, SHOP, SMP, SNE, SNMX, SSYS, SUI, SWK, TASR, TDY, TE, TEX, TFX, TKR, TMUS, TWC, TWI, UAN, UFS, UPL, VA, VG, VICL, VLO, VLY, WST, WWE, XEL, XRAY, XYL, YNDX, ZBH
Jul. 20, 2015, 10:15 AM
- Calpine (CPN +0.1%) agrees to acquire residential electricity provider Champion Energy Services from Houston Astros owner Jim Crane and his Crane Capital Group for $240M.
- CPN was one of the few top power generators without a residential retail arm, but the deal for Champion, with ~2.5M residential customers in Texas and the northeast U.S., will help it move into the sector.
May 1, 2015, 6:03 AM
- Calpine (NYSE:CPN): Q1 net income of -$62M.
- Revenue of $1.64B (-16.3% Y/Y) beats by $210M.
Apr. 30, 2015, 5:30 PM
Apr. 1, 2015, 12:41 PM
- RBC's utilities analyst team turn more positive on the group after the Q1 selloff, and are now focusing on deregulated generators and the new yieldcos.
- RBC expects the yieldcos to raise distributions in the coming years, in effect offsetting the interest rate risk inherent in most of the sector.
- The firm considers four stocks as “best plays” in the sector and rates them Outperform: Abengoa Yield (NASDAQ:ABY), Pattern Energy (NASDAQ:PEGI), Calpine (NYSE:CPN) and Exelon (NYSE:EXC).
Mar. 19, 2015, 5:37 PM
Feb. 13, 2015, 6:08 AM
- Calpine (NYSE:CPN): Q4 Net Loss of $50M.
- Revenue of $1.94B (+34.7% Y/Y) beats by $270M.
Feb. 12, 2015, 5:30 PM
Nov. 11, 2014, 8:26 AM
- CB&I (NYSE:CBI) has received a contract from Calpine Mid-Merit, an affiliate of Calpine Corp. (NYSE:CPN), for the initial development phase of a 760 MW gas turbine power station in Pennsylvania.
- Separately, CB&I has been awarded a contract valued in excess of $40M by Coffeyville Resources Refining & Marketing for the engineering, procurement, and field construction of a 22M standard cu. ft. per day hydrogen plant at its refinery in Kansas.
Nov. 6, 2014, 6:05 AM
- Calpine (NYSE:CPN): Q3 EPS of $1.52 beats by $0.97.
- Revenue of $2.18B (+6.3% Y/Y) beats by $330M.
Calpine Corp. is a power producer company, which develops, constructs, owns and operates a modern and flexible fleet of low-carbon, natural gas-fired and renewable geothermal power plants. The company sells wholesale power, steam, regulatory capacity, renewable energy credits and ancillary... More
Industry: Electric Utilities
Country: United States
Other News & PR