Integrated Retail Supplier-Generator Reports No Material Adverse Impact To Date From COVID-19

Expects "Significantly Lower" Q1 Results From Other Factors

April 6, 2020

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Reporting by Paul Ring • ring@energychoicematters.com

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Calpine Corporation issued a news release providing a COVID-19 operational and financial update

"The pandemic presents potential new risks to the Company’s business. Although to date there have been logistical and other challenges, there has been no material adverse impact to the Company's operations as a result of COVID-19," Calpine said

"Although the Company’s first quarter 2020 results will be significantly lower than first quarter 2019, driven primarily by lower regional capacity prices and a difference in our hedging profile, even in the face of COVID-19 challenges as currently understood, the Company currently believes it is positioned to achieve full year 2020 unlevered free cash flow and other liquidity metrics, as well as financial performance metrics material to our debt investors, within the range of its results in 2018 and 2019. This belief is based on the Company’s robust hedging program that has in the past substantially mitigated its exposure to economic slowdowns and on the long-term contracted nature and stability of the Company’s revenue streams," Calpine said

"Finally, the Company believes it has sufficient liquidity on hand to manage its operations through this crisis," Calpine said

"Of course, the situation surrounding COVID-19 remains fluid and the potential for a material impact on the Company increases the longer the virus impacts activity levels in the United States. For this reason, it is difficult to predict with certainty the impact of the virus on the Company's business, operations, and financial condition. The Company will evaluate further actions as circumstances warrant," Calpine said

"We expect to provide a further update on the impact of COVID-19 on our liquidity, business operations, financial condition and results of operations in our first quarter 2020 earnings release and in our Form 10-Q for the quarter ended March 31, 2020," Calpine said

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