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Released February 14, 2014 | SUGAR LAND
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Researched by Industrial Information Resources (Sugar Land, Texas)--Calpine Corporation (NYSE:CPN) (Houston, Texas), the largest independent power producer in the U.S., benefited from low outages and high revenues in 2013. In a conference call and separate press release, executives pointed to a list of major new-build and expansion projects for the current year. Industrial Info is tracking about $3 billion in active projects involving Calpine.
Among the major Calpine projects being tracked by Industrial Info are four that were cited by Calpine executives in the company's fourth-quarter 2013 conference call:
Calpine reported net losses of $97 million for fourth-quarter 2013, compared with net income of $100 million in fourth-quarter 2012. The company reported net income of $14 million for full-year 2013, compared with income of $199 million in 2012. Executives were quick to point out that results better reflected the company's standing when using the "adjusted EBITDA" method, which deducts the effects of interest; taxes; depreciation and amortization; net income or losses attributable to non-controlling interests; and non-recurring items, such as debt extinguishment costs and major maintenance expenses. Using this method, income stood at $399 million for the quarter, a 26.67% increase from fourth-quarter 2012, and $1.83 billion for the year, a 4.63% increase from 2012.
The improvement in annual adjusted EBITDA was attributed to a $47 million decrease in plant operating expenses and a $30 million increase in commodity margins, which were attributed to higher revenues in the company's northern segment; contracts in the western and southeastern segments that went into effect in January 2013; and the Russell City and Los Esteros power plants, which began operations in the third quarter.
Total revenues were reported to be $1.44 billion for the quarter, a 5.19% increase from the same period in 2012, and $6.3 billion for the year, a 15.02% increase from 2012. Calpine reported a record-low number of forced outages for the year and began construction on about 700 MW of growth projects in Texas and the Mid-Atlantic states. The company also announced its $625 million acquisition of the 1,050-MW Guadalupe Energy Center in Texas, which it expects to close in the first quarter.
"Much of the generation output differences, year over year, were driven by portfolio changes in all of our key gas operating regions," said Thad Hill, the president and chief operating officer of Calpine, in a conference call. "Aside from that, the most notable market conditions were in the West, where drier conditions during the year and a burst of cold weather during December proved helpful to our fleet; and in Texas, where stronger year-over-year market conditions were driven by a combination of a 3% increase in weather-normalized demand, more wind output, and colder weather."
Calpine executives expect 2014's adjusted EBITDA to be between $1.9 billion and $2 billion. In a separate press release, they expressed optimism about the company's ongoing turbine modernization program: "Through December 31, 2013, we have completed the upgrade of twelve Siemens and eight GE turbines totaling approximately 200 MW and have committed to upgrade approximately four additional turbines. Similarly, we have the opportunity at several of our power plants in Texas to implement further turbine modernizations to add as much as 500 MW of incremental capacity across the region at attractive prices." In the conference call, Hill also was optimistic about Calpine's wind assets: "With the last gasp of the Production Tax Credit, there will be an increase in the amount of wind projects that begin operating over the next two years. Most of these projects will be in West Texas, where the wind patterns lend themselves to nighttime or shorter-season production, versus daytime or summer production. Our flexible fleet can continue to operate during the day and cycle off at night--so we're there for the peak prices, without having to operate at a loss overnight."
For more information, visit Industrial Info's North American Power Industry Project Database.
View Project Report - 1010050 1009042 300061342 300126040 30001038
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and nine international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
Among the major Calpine projects being tracked by Industrial Info are four that were cited by Calpine executives in the company's fourth-quarter 2013 conference call:
- About $143 million worth of additions to the Deer Park Energy Center Cogeneration facility in Deer Park, Texas. The 260-megawatt (MW) expansion will add a natural gas-fired Siemens 501FD combustion turbine generator set, with a Vogt heat recovery steam generator (HRSG), to increase production. Commercial operations from the additions are expected to begin in the second quarter.
- The $143 million expansion of the Channel Energy Center Cogeneration facility in Houston, Texas. The project, which also is expected to add 260 MW, involves the installation of a natural gas-fired Siemens W501FD combustion turbine generator set, with a Vogt HRSG and associated equipment. As with the Deer Park expansion, commercial operations are expected to begin in the second quarter.
- The $400 million construction of the Garrison Energy Center, a natural gas-fired, combined-cycle power plant in Dover, Delaware. The 309-MW plant will utilize a General Electric MS7001FA combustion turbine generator with a supplemental-fired HRSG and a used General Electric condensing steam turbine generator set. Commercial operations are expected to begin in the second quarter of 2015, and Calpine just started developing a second phase to the project.
- The $250 million expansion of the Mankato Energy Center in Mankato , Minnesota. The project involves adding a 208-MW Siemens SGT6-5000F natural gas-fired combustion turbine generator, with a Nooter/Eriksen HRSG.
Calpine reported net losses of $97 million for fourth-quarter 2013, compared with net income of $100 million in fourth-quarter 2012. The company reported net income of $14 million for full-year 2013, compared with income of $199 million in 2012. Executives were quick to point out that results better reflected the company's standing when using the "adjusted EBITDA" method, which deducts the effects of interest; taxes; depreciation and amortization; net income or losses attributable to non-controlling interests; and non-recurring items, such as debt extinguishment costs and major maintenance expenses. Using this method, income stood at $399 million for the quarter, a 26.67% increase from fourth-quarter 2012, and $1.83 billion for the year, a 4.63% increase from 2012.
The improvement in annual adjusted EBITDA was attributed to a $47 million decrease in plant operating expenses and a $30 million increase in commodity margins, which were attributed to higher revenues in the company's northern segment; contracts in the western and southeastern segments that went into effect in January 2013; and the Russell City and Los Esteros power plants, which began operations in the third quarter.
Total revenues were reported to be $1.44 billion for the quarter, a 5.19% increase from the same period in 2012, and $6.3 billion for the year, a 15.02% increase from 2012. Calpine reported a record-low number of forced outages for the year and began construction on about 700 MW of growth projects in Texas and the Mid-Atlantic states. The company also announced its $625 million acquisition of the 1,050-MW Guadalupe Energy Center in Texas, which it expects to close in the first quarter.
"Much of the generation output differences, year over year, were driven by portfolio changes in all of our key gas operating regions," said Thad Hill, the president and chief operating officer of Calpine, in a conference call. "Aside from that, the most notable market conditions were in the West, where drier conditions during the year and a burst of cold weather during December proved helpful to our fleet; and in Texas, where stronger year-over-year market conditions were driven by a combination of a 3% increase in weather-normalized demand, more wind output, and colder weather."
Calpine executives expect 2014's adjusted EBITDA to be between $1.9 billion and $2 billion. In a separate press release, they expressed optimism about the company's ongoing turbine modernization program: "Through December 31, 2013, we have completed the upgrade of twelve Siemens and eight GE turbines totaling approximately 200 MW and have committed to upgrade approximately four additional turbines. Similarly, we have the opportunity at several of our power plants in Texas to implement further turbine modernizations to add as much as 500 MW of incremental capacity across the region at attractive prices." In the conference call, Hill also was optimistic about Calpine's wind assets: "With the last gasp of the Production Tax Credit, there will be an increase in the amount of wind projects that begin operating over the next two years. Most of these projects will be in West Texas, where the wind patterns lend themselves to nighttime or shorter-season production, versus daytime or summer production. Our flexible fleet can continue to operate during the day and cycle off at night--so we're there for the peak prices, without having to operate at a loss overnight."
For more information, visit Industrial Info's North American Power Industry Project Database.
View Project Report - 1010050 1009042 300061342 300126040 30001038
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and nine international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
