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


Message from the CEO

Second Quarter 2016: Calpine Delivers Solid Results, Strong Operational Performance 

I am proud to report solid second quarter results as our business continues to perform well on all fronts. Supported by strong operational performance, our second quarter Adjusted EBITDA of $452 million was in line with last year, and we delivered 10% growth in Adjusted Free Cash Flow. These results demonstrate the benefits of our strategic portfolio changes, as well as the strength of our assets and our team. With this performance, we’ve had a very strong first half of the year, which combined with a good hedging program, has enabled us to remain within our original guidance range, despite weak summer liquidations. Today, we are narrowing our guidance range for this year to $1.8 billion to $1.9 billion of Adjusted EBITDA and $710 million to $810 million of Adjusted Free Cash Flow.

Longer term, our portfolio of reliable, flexible assets and, as importantly, our people are responding to the secular trends of our industry. Baseload resources continue to be threatened by a combination of lower gas prices, increasingly stringent environmental regulations and further penetration of renewables. Our flexible assets are rising to the challenge of meeting our customers’ needs for reliable, clean energy in an evolving landscape. In Texas, our fleet achieved a record second quarter capacity factor, and in California, our peaker fleet set a second quarter record for number of starts. Our assets clearly continue to be critical for reliability of the grid. We are also taking steps to enhance value over the long term by evolving our portfolio, leveraging our customer relationships, actively advocating to be fairly compensated and maintaining best-in-class operations.

Thad Hill, 

President and CEO