“I want to thank our employees for their outstanding response to the increased utilization of our fleet and their success in concurrently decreasing major maintenance cost and holding plant operating expenses essentially flat. This was due in large part to our continued focus on operational excellence and preventative maintenance, which also yielded our lowest annual forced outage factor on record.
“2012 was an active year for allocating capital as well. We sold 1,450 MW at two plants in South Carolina and Wisconsin and redeployed more than half the proceeds to purchase an 800 MW plant in Texas, while also continuing to execute our share repurchase program. We originated more than 2,100 MW of long-term contracts with our customers. In addition, we are on track to bring approximately 1,600 MW of additional natural gas-fired capacity online in California, Texas and Delaware over the next two and a half years.
“Finally, we ended the year with more than $1 billion of excess cash. Based on the strength of our balance sheet at year-end and the completion early this year of our $600 million share repurchase program, our Board has authorized a $400 million increase to our share repurchase program. We will continue to balance this authorization against growth opportunities in order to maximize shareholder value.”
“We successfully delivered on our 2012 financial commitments with Adjusted EBITDA and Adjusted Free Cash Flow of $1,749 million and $564 million, respectively, each of which was at the high end of our original guidance ranges,” said Zamir Rauf, Calpine’s Chief Financial Officer. “This resulted in a 19% increase in Adjusted Free Cash Flow Per Share to $1.20, which is also at the high end of our 15-20% compound annual growth rate target. Turning to 2013, based on the completion of our previously authorized $600 million share repurchase program, we are raising our Adjusted Free Cash Flow Per Share midpoint guidance to $1.50, which represents a 25% increase over 2012, while maintaining our full year Adjusted EBITDA and Adjusted Free Cash Flow guidance ranges.”