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Electric utilities

Calpine Corporation Completes Sale of Morris Power Plant to Diamond Generating Corporation

Strategic Insights

— 1 min read

Calpine Corporation has finalized the sale of its interest in the 156-megawatt Morris Power Plant to Diamond Generating Corporation, a subsidiary of Mitsubishi Corporation, for approximately $84.5 million. This sale aligns with Calpine's strategic plan to reduce debt, increase cash flow, and optimize its North American power plant portfolio. The company will use the net proceeds from this asset sale in accordance with its existing bond indentures. The sale of Morris will also result in a loss of approximately $106.2 million in the quarter ended June 30, 2005.

Key Takeaways:

  • Calpine Corporation has completed the sale of its interest in the 156-megawatt Morris Power Plant to Diamond Generating Corporation for approximately $84.5 million.
  • The sale is part of Calpine's strategic initiative to reduce debt, increase cash flow, and optimize its North American power plant portfolio.
  • The company will use the net proceeds from this asset sale in accordance with its existing bond indentures.
  • Calpine will record a loss of approximately $106.2 million in the quarter ended June 30, 2005.
  • The Morris Power Plant is a natural gas-fired power plant located in Morris, IL, and it delivers electricity and steam to Equistar Chemicals under a long-term energy services agreement.
  • Calpine Corporation owns, leases, and operates integrated systems of plants in 21 U.S. states and three Canadian provinces.
  • The company was founded in 1984 and is included in the S&P 500 Index, trading on the New York Stock Exchange under the symbol CPN.
  • Calpine's forward-looking statements are subject to risks and uncertainties identified in its reports and registration statements filed with the SEC.

Statistics:

  • Sale price: approximately $84.5 million
  • Capacity of Morris Power Plant: 156 megawatts
  • Expected loss in Q2 2005: approximately $106.2 million
  • Number of U.S. states where Calpine operates plants: 21
  • Number of Canadian provinces where Calpine operates plants: 3
  • Number of years since Calpine was founded: 22 (as of 2006)
  • Market capitalization: included in the S&P 500 Index

Sources:

  • PRNewswire-FirstCall
  • Calpine Corporation's Press Release dated August 2, 2005
  • Calpine Corporation's website
  • Calpine Corporation's Annual Report on Form 10-K for the year ended December 31, 2004
  • Calpine Corporation's Quarterly Report on Form 10-Q for the three months ended March 31, 2005

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