CALPINE CORP

CIK:0000916457|SEC Filings

Consolidated Condensed Statements of Operations (Unaudited) - USD ($)
$ in Millions

3 Months Ended

6 Months Ended

Jun. 30, 2020

Jun. 30, 2019

Jun. 30, 2020

Jun. 30, 2019

Operating revenues:

Commodity revenue

$ 1,852

$ 2,128

$ 3,795

$ 4,666

Mark-to-market gain (loss)

(113)

467

232

523

Other revenue

Operating revenues

1,744

^[1]

2,599

^[1]

4,036

^[2]

5,198

^[2]

Operating expenses:

Commodity expense

1,110

1,367

2,457

3,125

Mark-to-market (gain) loss

(148)

280

(4)

290

Fuel and purchased energy expense

962

1,647

2,453

3,415

Operating and maintenance expense

266

245

506

484

Depreciation and amortization expense

163

175

327

349

General and other administrative expense

Other operating expenses

Total operating expenses

1,436

2,120

3,379

4,352

Impairment losses

(Income) from unconsolidated subsidiaries

(4)

(5)

(4)

(11)

Income from operations

312

444

661

802

Interest expense

167

157

336

306

(Gain) loss on extinguishment of debt

(1)

Other (income) expense, net

Income before income taxes

132

279

308

469

Income tax expense (benefit)

(31)

Net income (loss)

163

270

293

450

Net income attributable to the noncontrolling interest

(4)

(2)

(9)

Net income attributable to Calpine

$ 163

$ 266

$ 291

$ 441

[1]	Includes intersegment revenues of $70 million and $100 million in the West, $214 million and $348 million in Texas, $24 million and $228 million in the East and $2 million and $1 million in Retail for the three months ended June 30, 2020 and 2019, respectively.
[2]	Includes intersegment revenues of $189 million and $262 million in the West, $432 million and $559 million in Texas, $199 million and $365 million in the East and $3 million and $4 million in Retail for the six months ended June 30, 2020 and 2019, respectively.

Consolidated Condensed Statements of Cash Flows (Unaudited)
$ in Millions

6 Months Ended

Jun. 30, 2020

USD ($)

Jun. 30, 2019

USD ($)

Payments to Acquire Additional Interest in Subsidiaries

$ 49

^[1]

$ 0

^[1]

Restricted Cash and Cash Equivalents

241

Cash flows from operating activities:

Net income

293

450

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

361

^[2]

398

^[2]

Non Cash Gains Losses On Extinguishment Of Debt

Deferred income taxes

Impairment losses

Mark-to-market activity, net

(198)

^[3]

(231)

^[3]

(Income) from unconsolidated subsidiaries

(4)

(11)

Return on investments from unconsolidated subsidiaries

Other

(3)

Change in operating assets and liabilities:

Accounts receivable

215

Accounts payable

(122)

(269)

Margin deposits and other prepaid expense

Other assets and liabilities, net

(146)

(61)

Derivative instruments, net

129

(91)

Net cash provided by operating activities

434

519

Cash flows from investing activities:

Purchases of property, plant and equipment

(320)

(304)

Other

(11)

Net cash used in investing activities

(304)

(315)

Cash flows from financing activities:

Proceeds from Issuance of Secured Debt

941

Repayment of CCFC Term Loan and First Lien Term Loans

(22)

(942)

Repayments of First Lien Notes

(429)

Repayments of Senior Unsecured Notes

(623)

(44)

Borrowings under revolving facilities

450

220

Repayments of revolving facilities

(450)

(175)

Proceeds from Issuance of Other Long-term Debt

900

Repayments of project financing, notes payable and other

(412)

(77)

Financing costs

(46)

(8)

Other

(7)

Net cash used in financing activities

(688)

(51)

Net increase (decrease) in cash, cash equivalents and restricted cash

(558)

153

Cash, cash equivalents and restricted cash, beginning of period

1,476

406

Cash, cash equivalents and restricted cash, end of period

918

^[4]

559

^[4]

Cash paid during the period for:

Interest, net of amounts capitalized

221

283

Income taxes

Supplemental disclosure of non-cash investing and financing activities:

Change in capital expenditures included in accounts payable and other current liabilities

(27)

Plant tax settlement offset in prepaid assets

(4)

Asset retirement obligation adjustment offset in operating activities

(10)

Other Current Assets

Supplemental disclosure of non-cash investing and financing activities:

Transfer of Portfolio Loans and Leases to Held-for-sale

(335)

Other Current Liabilities

Supplemental disclosure of non-cash investing and financing activities:

Transfer of Portfolio Loans and Leases to Held-for-sale

$ (22)

Security project insurance

Restricted Cash and Cash Equivalents

$ 130

[1]	On January 28, 2020, we completed the acquisition of the 25% noncontrolling interest of Russell City Energy Company, LLC for $35 million plus working capital adjustments of approximately $14 million for a total purchase price of approximately $49 million.
[2]	Includes amortization recorded in Commodity revenue and Commodity expense associated with intangible assets and amortization recorded in interest expense associated with debt issuance costs and discounts.
[3]	In addition to changes in market value on derivatives not designated as hedges, changes in mark-to-market gain (loss) also includes adjustments to reflect changes in credit default risk exposure.
[4]	)Our cash and cash equivalents, restricted cash, current and restricted cash, net of current portion are stated as separate line items on our Consolidated Condensed Balance Sheets.

Consolidated Condensed Balance Sheets (Unaudited) - USD ($)
$ in Millions

Jun. 30, 2020

Dec. 31, 2019

Current assets:

Cash and cash equivalents

$ 677

$ 1,131

Accounts receivable, net of allowance of $9 and $9

683

757

Inventories

517

543

Margin deposits and other prepaid expense

346

367

Restricted cash, current

225

299

Derivative assets, current

^[1]

199

^[2]

156

^[3]

Other current assets

Total current assets

2,689

3,302

Property, plant and equipment, net

11,937

11,963

Restricted cash, net of current portion

Investments in unconsolidated subsidiaries

Derivative Asset, Noncurrent

^[1]

250

^[2]

246

^[3]

Goodwill

242

Intangible assets, net

316

340

Other assets

438

440

Total assets

15,955

16,649

Current liabilities:

Accounts payable

569

714

Accrued interest payable

108

Debt, current portion

231

1,268

Derivative Liability, Current

^[1]

168

^[2]

225

^[3]

Other current liabilities

531

657

Total current liabilities

1,607

2,925

Debt, net of current portion

10,874

10,438

Long-term derivative liabilities

^[1]

196

^[2]

^[3]

Other long-term liabilities

479

565

Total liabilities

13,156

13,991

Commitments and contingencies (see Note 9)

Stockholder’s equity:

Common stock, $0.001 par value per share; authorized 5,000 shares, 105.2 shares issued and outstanding

Additional paid-in capital

9,651

9,584

Accumulated deficit

(6,632)

(6,923)

Accumulated other comprehensive loss

(220)

(114)

Total Calpine stockholder’s equity

2,799

2,547

Noncontrolling interest

111

Total stockholder’s equity

2,799

2,658

Total liabilities and stockholder’s equity

$ 15,955

$ 16,649

[1]	At June 30, 2020 and December 31, 2019, we had $260 million and $191 million, respectively, of collateral under master netting arrangements that were not offset against our derivative instruments on the Consolidated Condensed Balance Sheets primarily related to initial margin requirements.
[2]	At June 30, 2020, current and long-term derivative assets are shown net of collateral of $(28) million and $(9) million, respectively, and current and long-term derivative liabilities are shown net of collateral of $1 million and $43 million, respectively.
[3]	At December 31, 2019, current and long-term derivative assets are shown net of collateral of $(4) million and $(4) million, respectively, and current and long-term derivative liabilities are shown net of collateral of $108 million and $14 million, respectively.