Calpine: Not As Distressed As Everyone Thinks
Dichotomy Capital • 16 Comments
Dichotomy Capital • 16 Comments
Mon, Oct. 10, 7:37 AM
- Calpine (NYSE:CPN) agrees to acquire Noble Americas Energy Solutions, the largest U.S. independent supplier of power to commercial and industrial retail customers, from commodities trader Noble Group for $800M plus ~$100M of net working capital at closing.
- CPN says it expects to recover ~$200M through collateral synergies and the runoff of acquired legacy hedges, mostly within the first year, resulting in expected net cash deployed of ~$700M, including working capital.
- CPN says the deal will more than double the volume of retail load it is able to serve across the U.S. from its complementary wholesale power generation fleet.
Wed, Mar. 23, 3:39 PM
- TransCanada (TRP -0.5%) is working with JPMorgan Chase to find buyers for more than $7B in assets to help finance its acquisition of Columbia Pipeline Group (CPGX +0.1%), Bloomberg reports.
- Assets reportedly for sale include a portfolio of U.S. Northeast merchant power plants, including the Ironwood natural gas power plant in Pennsylvania, the Ravenswood gas- and oil-fired generation plant in New York, hydroelectric power assets in New England, the Kibby wind power operation in Maine, and Ocean State Power gas generation facilities in Rhode Island; a minority stake in TRP’s Mexican natural gas pipeline business also is up for sale.
- The power plants could attract interest from P-E investors such as Blackstone, D.E. Shaw, Macquarie and Riverstone Holdings, as well as strategic peers including Calpine (CPN -2.8%) and NRG Energy (NRG -5.7%), Morningstar's Travis Miller says.
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.
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.
Sep. 3, 2014, 10:18 AM
- Calpine (CPN -0.4%) will keep spending on acquisitions and share buybacks thanks to its ability to profit whether natural gas prices are high or low, CEO Thad Hill tells Bloomberg.
- CPN's fleet of gas power plants is concentrated in combined-cycle natural gas, putting it in a better position than peers that have a mix of coal and nuclear plants, Hill says, and allows the company to make smaller profits when gas prices are below $4/MBtu as volume increases and bigger margins when prices are above $4 as revenue increases.
- Hill says he sees potential in the the mid-Atlantic and Northeast as older plants retire and in Texas as the population and state economy gain.