Champion Energy Investment "Absolutely Delivering," Calpine Says; Company Prepared For More M&A

Calpine's investment in Champion Energy is, "absolutely delivering," said Calpine Chief Commercial Officer Trey Griggs in discussing fourth quarter earnings.

Champion Energy served 22,036 GWh in 2015, up 24% from 17,752 GWh.

Champion Energy was serving 2.1 million annualized residential customer equivalents at December 31, 2015, concentrated in Texas, the Northeast and Mid-Atlantic where Calpine has a substantial power generation presence.

Champion also extended its weighted average deal tenor from 22 months in 2014, to 28 months in 2015, a 27% improvement.

"Put simply, the Champion investment is absolutely delivering. In the four months since we acquired Champion, I've been impressed by the caliber of the people and the growth the team has delivered. It really is a remarkable and profitable liquidity platform," Griggs said

Calpine formally announced that it entered a three-year PPA with the San Francisco Public Utilities Commission to provide, on average, approximately 43 MW of energy and renewable energy annually, commencing in May 2016, for San Francisco's municipal aggregation

Calpine said that serving California community choice aggregations has been a focus and that the company has been, "incredibly successful to-date," with the company in 2015 commencing a 65 MW PPA with Marin Clean Energy

In discussing continued M&A opportunities, Calpine CEO Thad Hill said, "some valuations will come down," and Calpine remains well-positioned when such opportunities present themselves.

"I don't think we can really get more specific, but we're going to pay attention to see if there's opportunity in this type of environment," Hill said