Calpine Q3 Profit Drops; Reports $1 Bln Multi-Year Share Buyback Authorization

(RTTNews) - Calpine Corp.'s (CPN) third-quarter 2013 net income attributable to the company slid to $306 million, or $0.70 per share, from $437 million, or $0.94 per share, in the prior-year period. Net profit, as adjusted, totaled $268 million in the recent period.

On average, 9 analysts polled by Thomson Reuters expected earnings per share of $0.68 for the quarter. Analysts' estimates typically exclude one-time items.

Compared with last year, quarterly operating revenues climbed 2.7% to $2.05 billion, from $2.0 billion. Analysts estimated revenues of $1.86 billion for the quarter.

For 2013, the company is narrowing its guidance, by now projecting adjusted EBITDA of $1,800 million to $1,825 million and adjusted free cash flow of $645 million to $670 million. Meanwhile, it is confirming its adjusted free cash flow Per share view of $1.50, which would result in a 22% compound annual growth rate since 2011.

Calpine's Chief Executive commented, "Finally, I would like to re-emphasize an important point we made at this time last year when we introduced our Adjusted Free Cash Flow Per Share growth target. Calpine's Adjusted Free Cash Flow is levered, both operationally and financially, such that modest increases in Adjusted EBITDA can lead to strong growth in Adjusted Free Cash Flow Per Share, hence our 15 - 20% targeted multi-year compound annual growth rate."

Further, Calpine expects to invest $200 million in its ongoing growth-related projects during the year, including the expected completion of our Deer Park and Channel Energy Center expansions and ongoing construction of our Garrison Energy Center.

Having previously authorized $600 million in repurchases of its common stock, in February 2013, the company's board approved the buyback of an additional $400 million in shares, bringing the cumulative authorization total to $1.0 billion.