Geothermal Generation: Provided approximately 6 million MWh of renewable baseload generation with 94% capacity factor during 2011
Calpine Corporation today reported fourth quarter 2011 Adjusted EBITDA of $379 million, compared to $386 million in the prior year period, and Adjusted Recurring Free Cash Flow of $108 million, compared to $59 million in the prior year period. Net Loss for the fourth quarter narrowed to $13 million, or $0.03 per diluted share, compared to $24 million, or $0.05 per diluted share, in the prior year period. Net Loss, As Adjusted, for the fourth quarter of 2011 was $43 million compared to Net Income, As Adjusted, of $62 million in the prior year period, a decline primarily related to a reduction in income tax benefit associated with non-cash intraperiod tax allocations and an increase in various state and foreign jurisdiction income taxes.
Full year 2011 Adjusted EBITDA was $1,726 million, compared to $1,712 million in the prior year. Full year 2011 Adjusted Recurring Free Cash Flow was $489 million, compared to $558 million in the prior year, a decrease mainly due to higher scheduled major maintenance expense and capital expenditures in 2011 compared to 2010. Net Loss1 for the year was $190 million, or $0.39 per diluted share, compared to Net Income1 of $31 million, or $0.06 per diluted share, in the prior year. Net Loss, As Adjusted2, for 2011 was $13 million compared to Net Income, As Adjusted2, of $87 million in the prior year, a decline primarily due to a reduction in income tax benefit, as previously discussed.
“We successfully delivered on our 2011 financial and operational commitments to our shareholders and have effectively positioned the company for continued growth in long term shareholder value,” said Jack Fusco, Calpine's President and Chief Executive Officer. “Our focus on operational excellence, commercial optimization of our fleet of power plants and efficient capital allocation has enabled us to continue to deliver results during a period of volatility in the power and commodity markets and lethargic economic recovery.
“With the successes of 2011 behind us, we have turned our attention to 2012. It has been our thesis that unlike generators dependent on dark spreads resulting from higher natural gas prices in power markets where gas price is on the margin, Calpine's modern, efficient and cost-effective fleet of natural gas-fired plants allows it to benefit even in extended periods of low natural gas prices due to the efficiency of our fleet and the increase in generation volume as customers switch from coal to gas for economic reasons. For 2012, we expect to offset the collapse in natural gas prices with increased generation volume due to unprecedented levels of coal-to-gas switching and through opportunistic hedging, thus demonstrating Calpine's resilience despite low natural gas prices. In short, we have seen our thesis begin to play out during the recent steep decline in natural gas prices. As a result and due to solid execution by our plants and commercial operations group, we are able to tighten our 2012 full year guidance for Adjusted EBITDA to a range of $1,600 million to $1,725 million and for Adjusted Recurring Free Cash Flow to a range of $425 million to $550 million. Finally, in 2012 we will continue to make financially disciplined capital allocation decisions to enhance shareholder value through additional growth opportunities or additional share repurchases.”
