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Investor Meetings – Calpine Corp.

Calpine Corp. · Mar 1, 2015 · 34 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. Investor Meetings – Calpine Corp. – slide 1
    March 2015 Investor Meetings
  2. Investor Meetings – Calpine Corp. – slide 2
    Calpine: National Portfolio of Nearly 27,000 MW Geographic Diversity Dispatch Flexibility As of 2/13/2015 Geographically diversified portfolio: Scale in three most competitive power markets in America Largest operator…
  3. Investor Meetings – Calpine Corp. – slide 3
    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 0 CPN DYN NRG CPN DYN NRG Efficient 12,000 2,500…
  4. Investor Meetings – Calpine Corp. – slide 4
    Calpine Value Drivers ( millions) Environmental Trends Shale Gas Economics Reliability Initiatives Stable financial performance EPA Rule Final Rule Effective Market Product Eff. Date despite gas price volatility CSAPR 2012 2015 PJM…
  5. Investor Meetings – Calpine Corp. – slide 5
    Calpines Strategic Advantages in the Current Environment Well Positioned to Respond to Resilient in Increasing Market Volatility Low-Gas Price Setting Market Rules California High ramps Changes to capacity rules Possible return to…
  6. Investor Meetings – Calpine Corp. – slide 6
    REGIONAL OBSERVATIONS 7
  7. Investor Meetings – Calpine Corp. – slide 7
    Consistent Focus on Core Competitive Markets West Strategic Priority: Asset management and regulatory engagement given CA renewable integration challenges Near-Term Opportunities: Recontracting existing plants (gas and geothermal)…
  8. Investor Meetings – Calpine Corp. – slide 8
    Texas Shifting from Demand Story to Supply Story Market Fundamentals Growing Tighter Texas Coal Supply Increasingly Under Pressure: 3 Core Reasons ERCOT Weather-Normalized Economic Reserve Margin 16% 1. Steadily CSAPR/ First wave of…
  9. Investor Meetings – Calpine Corp. – slide 9
    Market Overview: East Capacity Markets: Focused on Reliability Energy Markets: Sustained Low Natural Gas Prices Continue to Benefit CCGTs PJM Capcity Performance requirements: Favorable Heading in Technical auction parameters:…
  10. Investor Meetings – Calpine Corp. – slide 10
    Stable California Platform Despite Solar Penetration Value of Solar Declines As Net Peak Load Shifts Todays Largest complex of geothermal 140 penetration level power plants in the world Geysers: 120 Premium, reliable…
  11. Investor Meetings – Calpine Corp. – slide 11
    FINANCIAL OVERVIEW & CAPITAL ALLOCATION 12
  12. Investor Meetings – Calpine Corp. – slide 12
    Delivering Strong Financial Performance ( millions, excluding per share amounts) Adjusted EBITDA1 1,900 - 2,100 1,949 1,830 Calpine 1,726 1,749 Growth Paradigm Magnitude of Growth Drivers / Levers 2011 2012 2013 2014…
  13. Investor Meetings – Calpine Corp. – slide 13
    Financial Overview ( millions, except per share amounts) Adjusted Free Cash Flow1 Per Share Recent Accomplishments: 2.10 - 2.60 Delivered on 2014 guidance, achieving record financial 2.03 performance 1.52 Reaffirming 2015 guidance…
  14. Investor Meetings – Calpine Corp. – slide 14
    Capital Allocation and Portfolio Repositioning ( millions, unless otherwise indicated) 2014: Aggressively Deploying Capital Portfolio Transformation 2Q08: North 2,822 MW 12% 3.3B 3.3B West 7,246 MW Southeast 30% 77 plants Cash…
  15. Investor Meetings – Calpine Corp. – slide 15
    Continuing to Reposition the Portfolio Monetizing Non-Core Assets Investing at Attractive Returns Osprey Energy Center Mankato Power Plant Auburndale, FL (FRCC) Mankato, MN (MISO) 599 MW CCGT 375 MW CCGT 345 MW Proposed…
  16. Investor Meetings – Calpine Corp. – slide 16
    Accretive M&A History: Strategically Redeploying Capital into Core Regions Capital1 Transaction Description Economics (MM) 3.2B of Fore River 4Q14: 809 MW combined-cycle power plant in 530 Acquisitions: Generating constrained New…
  17. Investor Meetings – Calpine Corp. – slide 17
    A Powerful Cash Flow Generator ( millions) Opportunistically Accessing Capital Markets Continuing to Deploy Excess Cash Issued 650 million of 5.5% Senior Unsecured Notes to Drive Shareholder Value due 2024 to fund: 650 150 million…
  18. Investor Meetings – Calpine Corp. – slide 18
    APPENDIX 19
  19. Investor Meetings – Calpine Corp. – slide 19
    Selected Operating Statistics 4Q14 4Q13 4Q14 4Q13 1 Total MWh Generated (in thousands) 26,703 26,134 Average Capacity Factor, excl. Peakers 52.3% 48.0% West 8,960 10,359 West 57.6% 66.7% Texas 10,876 8,503 Texas 51.2% 47.2% East…
  20. Investor Meetings – Calpine Corp. – slide 20
    Focused on Best-in-Class Operations Employee Total Reportable Incident Rate Generation in Key Markets (000 MWh)1 Guadalupe, Deer Park, Channel 40,415 SE Divestiture (partial year) 34,597 33,206 EEI Top Quartile2 30,108 28,358…
  21. Investor Meetings – Calpine Corp. – slide 21
    Regional Adjusted EBITDA1: 2014 vs. 2013 ( millions, 000 MWh) East Region Adjusted EBITDA1 Drivers Adjusted EBITDA1 Generation2 159 1,949 757 713 33,206 1,830 110 28,697 (90) (45) (15) 2013 2014 2013 2014 Higher Commodity…
  22. Investor Meetings – Calpine Corp. – slide 22
    Regional Adjusted EBITDA1: 4Q 2014 vs. 2013 ( millions, 000 MWh) East Region Adjusted EBITDA1 Generation2 Adjusted EBITDA1 Drivers 399 7 345 7,272 162 6,867 (20) 10 (35) 124 (16) 4Q13 4Q14 4Q13 4Q14 Lower Commodity…
  23. Investor Meetings – Calpine Corp. – slide 23
    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)…
  24. Investor Meetings – Calpine Corp. – slide 24
    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…
  25. Investor Meetings – Calpine Corp. – slide 25
    Capital Structure Chart (pro forma) ( in millions) Corporate Debt Senior Secured Notes1 1,925 First Lien Term Loans 2,799 Unsecured Notes1 3,450 Corporate Revolver Total Corporate Debt 8,174 CCFC Capital Lease Project Debt…
  26. Investor Meetings – Calpine Corp. – slide 26
    Calpine1 Continues to Benefit from Federal NOL Positions Federal NOLs at Dec. 31, 2014: 6.9 billion All are unrestricted State NOL Overview West 51% NOL Summary 8,000 East 39% 6,000 No Current Operations 10% 4,000…
  27. Investor Meetings – Calpine Corp. – slide 27
    Calpine Operating Power Plants As of February 13, 2015 With With Load CPN Peaking Technology Location COD Peaking Type Interest Capacity, Capacity Net West Region Agnews Power Plant Natural Gas Intermediate CA 1990 28 100% 28…
  28. Investor Meetings – Calpine Corp. – slide 28
    Calpine Operating Power Plants (contd) As of February 13, 2015 With With Load CPN Peaking Technology Location COD Peaking Type Interest Capacity, Capacity Net East Region Auburndale Peaking Energy Center Natural Gas Peaking FL…
  29. Investor Meetings – Calpine Corp. – slide 29
    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…
  30. Investor Meetings – Calpine Corp. – slide 30
    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…
  31. Investor Meetings – Calpine Corp. – slide 31
    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…
  32. Investor Meetings – Calpine Corp. – slide 32
    Reg G Reconciliation: 2015 Adjusted EBITDA and Adjusted Free Cash Flow Guidance (as of 2/13/15) 33
  33. Investor Meetings – Calpine Corp. – slide 33
    Major Maintenance and Capital Expenditure Guidance ( in millions) 2014 2015E Major maintenance expense 242 235 A Maintenance capital expenditures 168 160 B Growth-related capital expenditures1 290 355 C Capital expenditures,…
  34. Investor Meetings – Calpine Corp. – slide 34

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