Calpine to sell plants, trim $3-bil in debt by end of 2005
Washington (Platts)--25May2005
Calpine on Wednesday said it plans an aggressive move to improve its balance sheet by selling certain power and gas assets and cutting debt by more than $3-bil by the end of the year. The move would produce annual interest savings of $275-mil and trim operating costs by $200-mil, the San Jose, California-based company said. Calpine also is considering temporarily shutting down certain plants with negative cash flow until market conditions improve. Calpine previously said it's reviewing strategic alternatives for its oil and natural gas assets, including the possible sale of all or a portion of those resources, and it is reviewing final bids on its 1,200-MW Saltend power plant in the UK. "The company is also evaluating the sale of up to eight other power plants to capture stronger market valuations," Calpine said in a statement. More daily news and price information for power professionals is available in Megawatt Daily http://ww.platts.com/Electric%20Power/Newsletters%20&%20Reports/Megawatt%20Da ily/
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