HOUSTON - Calpine Corp reported second quarter 2014 Adjusted EBITDA of $413 million, compared to $343 million in the prior year period, and Adjusted Free Cash Flow of $99 million, or $0.23 per diluted share, compared to $38 million, or $0.08 per diluted share, in the prior year period. Net Income1 for the second quarter of 2014 was $139 million, or $0.33 per diluted share, compared to a Net Loss1 of $70 million, or $0.16 per diluted share, in the prior year period. Net Loss, As Adjusted2, for the second quarter of 2014 was $3 million compared to $33 million in the prior year period. The improvements in Adjusted EBITDA, Adjusted Free Cash Flow and Net Loss, As Adjusted2, were driven primarily by higher Commodity Margin resulting from portfolio changes, stronger market conditions in the West and Texas, higher contribution from hedges and higher regulatory capacity revenue.

Year-to-date 2014 Adjusted EBITDA was $859 million, compared to $629 million in the prior year period, and Adjusted Free Cash Flow was $229 million, or $0.54 per diluted share, compared to $(5) million, or $(0.01) per diluted share, in the prior year period. Net Income1 for the first half of 2014 was $122 million, or $0.29 per diluted share, compared to a Net Loss1 of $195 million, or $0.43 per diluted share, in the prior year period. Net Income, As Adjusted2, for the first half of 2014 was $53 million compared to a Net Loss, As Adjusted2,of $103 million in the prior year period. The increases in Adjusted EBITDA, Adjusted Free Cash Flow and Net Income, As Adjusted2, compared to the prior year period were primarily due to higher commodity margin resulting from stronger market conditions, including colder than normal weather during the first quarter, our ability to capture the value of our dual-fuel capable plants in the North during extreme commodity pricing conditions, portfolio changes and higher regulatory capacity revenue.

"Our strong second quarter results reflect ongoing portfolio management, effective hedging and operational excellence," said Thad Hill, Calpine's President and Chief Executive Officer. "We increased generation volumes, achieved a record-low forced outage factor and maintained our focus on safety, with no lost time incidents reported this year. On the commercial front, since the first quarter, we have entered into four new contracts, most notably a ten-year PPA with Southern California Edison for 225 MW of capacity and renewable energy from our Geysers geothermal fleet beginning in 2017, subject to regulatory approval. In addition, we have advanced our growth pipeline and are today announcing plans for our York 2 Energy Center, a new 760 MW combined-cycle power plant, scheduled to achieve commercial operations in PJM in 2017. York 2 will be co-located with our existing York Energy Center, allowing us to leverage the infrastructure to build at a significant discount with attractive returns. Finally, on July 3, we closed on the previously announced Southeast asset sale, which generated approximately $1.53 billion in net proceeds.

Source: Calpine
Associated URL: http://www.calpine.com/