Capital Markets Update: Record Low Gas Prices Are Punishing U.S. Merchant Power Producers In The Bond Market Jul 12
- Language: English
- Published: July 2012
- Region: United States
Diverse and efficient fleet of gas-fired generation; Well-positioned in gas-dominated markets such as California, Texas, and the Northeast; Baseload assets that should support heat rate recovery when the economy improves, due to high costs of and difficulty associated with permitting new power plants; Young, standardized fleet that provides operational cost advantages; 50% cash flow sweep that supports deleveraging; Growth of renewables that may be a positive if backup generation is needed; and Gas and geothermal fleet that positions Calpine well for potential climate change legislation as well as other pollutant issues. Weak merchant market conditions, albeit with a substantially hedged position for 2010 and 2011 that largely eliminates covenant concerns; Substantial exposure to gas prices and market heat rates in...
Companies mentioned in this report are: Calpine Corp.,Gilroy Energy Center LLC,CCFC Finance Corp.,Calpine CCFC Holdings LLC
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Research Type: Full Analysis
Calpine Corp.,Gilroy Energy Center LLC,CCFC Finance Corp.,Calpine CCFC Holdings LLC