Calpine Confirms Discussions Regarding Potential Sale Of Company

In reporting earnings this morning, Calpine confirmed that its Board of Directors and management are in discussions regarding a potential sale of Calpine

"During the second quarter, we saw stronger power prices for our Texas plants in the constrained Houston zone, and the PJM capacity auction yielded positive prints for our locationally advantaged Mid-Atlantic fleet," said Thad Hill, Calpine’s President and Chief Executive Officer.

"While these trends support what we believe to be a sound investment thesis for Calpine, the public equity markets have undervalued our business and underappreciated our strong track record of executing on our financial commitments and our stable cash flows. Early this spring, our Board of Directors decided to explore strategic alternatives for the company, seeking to enhance value for our shareholders. At this time, our Board, together with management and financial and legal advisors, are in discussions regarding a potential sale of Calpine," Hill said

"The Board plans to proceed in a timely manner but has not set a definitive timetable for completion of these discussions. There can be no assurance that these discussions will result in a transaction of any kind, or if a transaction is undertaken, as to terms or timing. Calpine does not intend to disclose developments or provide updates on the status of these discussions unless or until it is determined that further disclosure is appropriate or required by law. Notwithstanding these discussions, the Calpine team remains committed to operational excellence, customer focus and financial discipline," Calpine said in a news release