Calpine Generating Power Strategically positioned within U.S. power industry value chain Fuel Supply Retail Transportation Transmission & Distribution Calpine (NYSE: CPN) 2,200 employees 27,000 MW generation…
National Portfolio of More Than 27,000 MW Geographic Diversity Dispatch Technology As of 06/30/2016 Geographically diversified portfolio: Scale in Americas most competitive power markets Featuring one of smallest…
Nations Largest Baseload Renewable, Natural Gas and Cogeneration Power Provider Modern Clean 50 5 Capacity Wtd Avg Age (Years) 40 4 30 SO2 lbs/MWh 3 20 2 10 1 0 CPN DYN TLN NRG 0 CPN DYN TLN NRG Efficient…
Calpine Investment Thesis Strong leadership bench Premier Best-in-class operations power generation Geographic diversity across competitive wholesale power markets company Unparalleled asset quality with decades of useful life…
Transformation of the Nations Electric Markets Secular Trends Driving Significant Change in Power Sector Low natural gas prices Flexible resources CCGT, CT Scale and scope of environmental regulations Renewables penetration…
Strategically Positioning Calpine for Long-Term Success Re-allocating capital to Sale of Mankato dynamic competitive markets Power Plant 2008: Today*: Accretive Monetization of North Non-Core Position 2,822 MW 12% West East…
Positioned for Tomorrow, At a Discount Today Deliberate Strategic Positioning Industry-leading operations Ongoing cost discipline Customer focus Premier 50% of Margin secured annually Value Opportunity Operator (2016-18)…
INDUSTRY & REGIONAL OBSERVATIONS 10
Market Overview California Texas East Retirements of nuke and inefficient gas Load continues to grow Recent PJM auction highlights impact reinforce the importance of 1,000 MW/Yr of 100% CP requirement next year existing…
Calpines Renewable + Modern + Locationally Advantaged Fleet Addresses Californias Needs, Today and Tomorrow Today: Geysers + Contracted Gas Assets Tomorrow: Natural Gas (like ours) Needed Generate 95% of California FCF1 to Support…
Texas Energy-Only Market at Unsustainable Cyclical Lows Market Tighter than CDR Appears Difficult fundamentals continue to challenge uneconomic coal Add back load served by high-priced resources Reserves, Emergency Response, Load…
Smiling at Higher Gas Prices Calpine Sensitivity to Natural Gas Prices1 Regional Gas Positions (Illustrative Unhedged Forward View) 245 250 West, New England (Long) Change in Energy Margin ( Millions) Gas sets price the…
FINANCIAL OVERVIEW & CAPITAL ALLOCATION 15
Second Quarter Highlights ( millions) Second Quarter Performance Adjusted EBITDA3 Continued operational and commercial success 457 452 Record Texas 2Q capacity factor, including three merchant plants with 2Q16 capacity factor…
Disciplined Capital Allocation with Tailwinds as Upside Shifting capital allocation at a value with opportunity opportunity for value Remaining 2016 capital focused on debt High FCF Yield with High Quality EBITDA4,5 ( millions)…
APPENDIX 19
Focused on Best-in-Class Operations Employee Total Reportable Incident Rate Generation in Key Markets (000 MWh)1 Key YoY Normal hydro Wildfire Higher spark spreads Garrison/Granite Ridge Drivers: Sutter/South Point Low gas price…
Selected Operating Statistics 2Q16 2Q15 2Q16 2Q15 1,2 Total MWh Generated (in thousands) 26,767 27,540 Average Capacity Factor, excl. Peakers 50.2% 53.4% West 5,035 8,430 West 33.1% 54.7% Texas 12,607 11,618 Texas 61.7% 55.8%…
Energy Margin1: Positioned to Respond to Favorable Secular Trends Energy Hedge Profile2 Sensitivities Natural Gas Price Sensitivity2 Energy Margin1,2 as % of (assuming no change in heat rate) Change to Commodity Margin (M)…
Although Calpines fleet can be difficult to model, simplifying techniques may help 1. Estimate annual generation (MWh) based on market outlook relative to disclosed 5. Adjust margin to capture items such as ancillary services and storage…
Capital Structure Chart ( in millions) Corporate Debt Senior Secured Notes 2,407 First Lien Term Loans 2,642 Unsecured Notes 3,409 Corporate Revolver Total Corporate Debt 8,458 CCFC Capital Lease Project Debt Obligations &…
Calpine1 Continues to Benefit from Federal NOL Positions Federal NOLs at Dec. 31, 2015: 6.9 billion All are unrestricted State NOL Overview West 49% NOL Summary 8,000 East 39% 6,000 No Current Operations 12% 4,000…
Calpine Operating Power Plants As of June 30, 2016 With Load CPN With Peaking Technology Location COD Peaking Type Interest Capacity, Net Capacity West Region Agnews Power Plant Natural Gas Intermediate CA 1990 28 100% 28 Creed…
Calpine Operating Power Plants (contd) As of June 30, 2016 With Load CPN With Peaking Technology Location COD Peaking Type Interest Capacity, Net Capacity East Region Auburndale Peaking Energy Center Natural Gas Peaking FL 2002 117…
Reg G Reconciliation: Commodity Margin ( in millions) Commodity Margin includes our power and steam revenues, sales of purchased power and physical natural gas, capacity revenue, revenue from renewable energy credits, sales of surplus…
Reg G Reconciliation: Commodity Margin (continued) ( in millions) Commodity Margin includes our power and steam revenues, sales of purchased power and physical natural gas, capacity revenue, revenue from renewable energy credits, sales…
Reg G Reconciliation: Adjusted EBITDA and Adjusted Free Cash Flow ( in millions, except share and per share amounts) Adjusted EBITDA represents net income (loss) attributable to Calpine before net income (loss) attributable to the…
Reg G Reconciliation: 2016 Adjusted EBITDA and Adjusted Free Cash Flow Guidance 33
Major Maintenance and Capital Expenditure Guidance ( in millions) 2016E Major maintenance expense 270 A Maintenance capital expenditures 140 B Growth-related capital expenditures1 285 C Capital expenditures, gross2 425…
Loading...
