Morningstar Rating

Stock Research and Analysis

by Andrew Bischof, CFA

Bulls Say

Calpine's natural gas fleet is one of 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, and tighter supply-demand conditions in power markets, particularly in 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 its peers' diversification. Most of its peers have coal and nuclear plants that can benefit when natural gas prices rise.
Higher natural gas prices have depressed fleetwide capacity factors, which were at peak levels in 2012 for most of its fleet given the current low gas prices.
Market conditions, including commodity prices, high leverage, and excessive capacity, forced Calpine into bankruptcy in 2005. Read more 

Management

Calpine's current management team has demonstrated good shareholder stewardship since the company returned from bankruptcy.
Jack Fusco, CEO, joined Calpine in 2008 after the company emerged from bankruptcy. Fusco led Calpine through the depths of the   Read more 

Profile

Calpine is an independent power producer with 28 gigawatts of generation capacity throughout the U.S. and Canada. The company operates in four regions: West (7.5 GW), Texas   Read more 

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