– Calpine, a US power producer valued at $30bn, may be sold by its private equity owners
– Potential exit options include a sale, IPO, or divesting a stake in the company
– Calpine operates 76 power plants with a combined generation capacity of 26GW across the US, Canada, and Mexico, selling electricity at market rates
US power producer Calpine, valued at $30bn, is reportedly exploring exit strategies as its private equity owners consider options like a sale, an IPO, or divesting a stake in the company. The current valuation includes the company’s debt, and discussions are ongoing with banks about potential exit options, with a transaction likely to occur in late 2024 or early 2025. Calpine operates in key markets like Texas, where it runs 12 power plants, experiencing increased electricity demand driven by factors like data centers, artificial intelligence, and climate change-induced extreme weather events. If a sale occurs, it could be the largest deal in the US power sector since 2007, or Calpine could opt for an IPO, potentially becoming one of the largest public offerings in the history of US power companies. The company sells electricity at market rates, exposing it to greater market risks compared to regulated utilities with guaranteed customer bases. In recent deals, CPP Investments and Global Infrastructure Partners purchased American energy company ALLETE for $6.2bn, while KKR acquired a majority stake in US solar developer Avantus.