Calpine note sale boosts liquidity to $2.4 billion even with buybacks

By Lisa Kerner

Charlotte, N.C., May 1 – Calpine Corp. ended its first quarter on March 31 with total cash and cash equivalents of $796 million and liquidity of $2.4 billion.

The company held its earnings conference call on Friday.

Total cash and cash equivalents totaled $717 million at year’s end, according to the earnings news release.

Calpine attributed the increase in cash and cash equivalents to proceeds from the issuance in February of $650 million of 5.5% senior notes due 2024, partially offset by the repurchase of common stock and $147 million of its outstanding 7 7/8% first-lien notes due 2023.

First-quarter results were in line with expectations, according to president and chief executive officer Thad Hill.

Financial highlights

Calpine reported first-quarter EBITDA of $338 million, compared with $446 million in the prior-year period.

Adjusted free cash flow fell year over year to $25 million from $130 million.

The Houston-based power company had a net loss for the quarter of $10 million, or $0.03 per diluted share. This compares with a net loss of $17 million, or $0.04 per diluted share, for the year-ago period, according to the earnings news release.

Looking ahead, Hill expects the remainder of the year to outperform, particularly the second half, as a result of portfolio additions, higher regulatory capacity payments and hedges.

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