Dive Brief:
- Calpine Corporation has sold 3,498 megawatts of natural gas plant capacity in the U.S. Southeast and Midwest to LS power for $1.57 billion.
- Calpine increased its revenues in Q1 2014 to $1.97 billion from $1.24 billion in Q1 2013, a 58.3% increase.
- Calpine’s projected adjusted earnings for 2014, as of its Q1 report, were $1.9 billion to $2.0 billion, but the company reported it expects this deal to add $750 million to its Q3 2014 net earnings.
Dive Insight:
Calpine CEO Thad Hill said the deal frees capital “for redeployment into higher return opportunities.”
The sale covers two gas plants in Alabama and single plants in Oklahoma, Louisiana, Florida and South Carolina, adding to LS Power’s 9,000 megawatt generation portfolio and offering a lower-emission alternative to the coal that predominates in those states.
Calpine’s major markets are Texas, the Mid-Atlantic, and California, where it operates The Geysers, the biggest geothermal plant in the world.
