Morningstar Rating

Stock Research and Analysis

by Andrew Bischof, CFA

Bulls Say

Calpine's natural gas power plants are among the most efficient in the U.S., averaging an adjusted steam-heat rate of 7,300 Btu/KWh.
Calpine should benefit from an uptick in economic activity, increasing electricity use, power market recovery, particularly in the Mid-Atlantic and Texas.
Environmental regulation should lead to the closure of many older coal units, tightening the supply/demand balance. Read more 

Bears Say

Calpine's natural gas fleet lacks diversification. Most of its peers have coal and nuclear plants that can benefit when natural gas prices rise.
Higher natural gas prices will depress fleetwide capacity factors.
Market conditions including commodity prices, high leverage, and excessive capacity previously forced Calpine into bankruptcy. Read more 


Calpine's management team has demonstrated good shareholder stewardship. Unlike many of its peers, low gas prices have helped Calpine manage through the downturn supporting margins. In our view, management has smartly allocated capital, selling noncore   Read more 


Calpine is an independent power producer with 25.4 gigawatts of generation capacity throughout the United States and Canada, assuming it closes its sale of six power plants   Read more 

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