Dahlman Rose Report Calpine's 4Q10 Affected By Weak Spark

Dahlman Rose & Co. has published a report on Calpine Corporation CPN. According to the report, Calpine's 4Q 2010 continued to be affected by weak spark spreads and hedge prices in Texas and California. “Adjusted EBITDA for 4Q10 was reported at $386MM, between our estimate and consensus of $375MM and $390MM, respectively. Results were lower than the $408MM reported in the year-ago period due to lower spark spreads and lower hedge prices primarily in Texas and California, partly offset by the addition of the Conectiv assets in PJM. Cold weather in the Southeast and North segments also helped offset some of the commodity price declines. Calpine reiterated its full-year 2011 adjusted EBITDA guidance of $1.7-1.8Bn and adjusted free cash flow guidance of $440-540MM. Hedge levels were essentially unchanged in 2012 and 2013, though they increased materially in 2011 as management continues to attempt to take advantage of slightly improved forward spark spreads.” Calpine Coporation closed yesterday at $14.81.