At this very moment, the U.S. power industry is undergoing an historic shift, departing from its traditional dependence upon baseload generation resources such as coal and nuclear capacity in favor of a structure that favors intermittent renewables supported by highly flexible dispatchable generation.This transformation has been propelled not only by a growing public interest in renewable generation, but also by sustained low natural gas prices and increasingly stringent environmental regulations – all of which serve to challenge the long-term outlook for baseload resources while concurrently supporting the increasing need for modern, efficient natural gas-fired generation like ours. Calpine’s unparalleled fleet of power plants has decades of useful life remaining and is well-positioned for the future.
With these secular trends as our tailwinds, Calpine’s clearly demonstrated commitment to disciplined capital allocation and active portfolio management further supports our favorable outlook for the business. Our track record speaks to a balanced approach toward stewardship of shareholder resources, including pursuing accretive growth projects, directing our investments into strategically aligned markets through acquisitions and divestitures and returning money to shareholders, all while maintaining a prudent balance sheet.
In all that we do, we manage Calpine as a cash business, prioritizing Adjusted Free Cash Flow Per Share accretion. In doing so, we recognize not only the top line contributions of our investments but also capture the benefits of our unique fleet, including modest maintenance capital expenditures, no environmental capital expenditures, low interest rate debt and virtually no cash taxes as a result of our substantial NOL position. We believe this philosophy will serve our shareholders well over the long-term, helping us to deliver superior returns.
Please reach out to our Investor Relations department for more information about how we are continuing to position our company for the future and create value for our shareholders.