Calpine to Receive $97 million from Rosetta Resources to Settle Claims
October 22 2008 - 5:31PM
Business Wire
Calpine Corporation (NYSE:CPN) today announced a settlement with
Rosetta Resources, Inc. of all claims related to Calpine�s July 7,
2005 sale of substantially all of its oil and gas business to
Rosetta. The settlement provides for a $97 million payment to
Calpine from Rosetta and the conveyance of certain residual oil and
gas properties by Calpine to Rosetta. This settlement resolves
disputes that were the subject of litigation in the U.S. Bankruptcy
Court for the Southern District of New York, including Calpine's
fraudulent conveyance claim against Rosetta and Rosetta�s claims
against Calpine. The companies also are executing a 10-year
extension of an existing dedicated reserves gas purchase agreement
for Rosetta's California production located near Calpine's CPN
Pipeline Company. �This is a win-win settlement,� said Calpine
Chief Executive Officer Jack Fusco. �Our disputes over past events
have been amicably resolved, and we have entered into a mutually
beneficial 10-year gas supply agreement that assures Calpine of a
continued relationship with Rosetta and a reliable supply of
natural gas for our California plants through 2019.� The settlement
also means that the 2,717,654 shares of Calpine common stock, which
had been specifically reserved for the claims asserted by Rosetta
Resources in Calpine's bankruptcy case, will become part of the
general reserve of Calpine common stock established under Calpine's
confirmed plan of reorganization, which, if not required to satisfy
unresolved claims remaining in Calpine's bankruptcy case, would be
available for further distributions to Calpine's general unsecured
creditors. About Calpine Calpine Corporation is helping meet the
needs of an economy that demands more and cleaner sources of
electricity. Founded in 1984, Calpine is a major U.S. power
company, currently capable of delivering nearly 24,000 megawatts of
clean, cost-effective, reliable and fuel-efficient electricity to
customers and communities in 16 states in the United States.
Calpine owns, leases, and operates low-carbon, natural gas-fueled,
and renewable geothermal power plants. Using advanced technologies,
Calpine generates electricity in a reliable and environmentally
responsible manner for the customers and communities it serves.
Please visit www.calpine.com for more information. Forward Looking
Information In addition to historical information, this release
contains forward-looking statements within the meaning of Section
27A of the Securities Act and Section 21E of the Exchange Act.
Words such as �believe,� �intend,� �expect,� �anticipate,� �plan,�
�may,� �will� and similar expressions identify forward-looking
statements. Such statements include, among others, those concerning
expected financial performance and strategic and operational plans,
as well as all assumptions, expectations, predictions, intentions
or beliefs about future events. You are cautioned that any such
forward-looking statements are not guarantees of future performance
and that a number of risks and uncertainties could cause actual
results to differ materially from those anticipated in the
forward-looking statements. Such risks and uncertainties include,
but are not limited to: (i) Calpine�s ability to implement its
business plan; (ii) financial results that may be volatile and may
not reflect historical trends; (iii) seasonal fluctuations of
results and exposure to variations in weather patterns; (iv)
potential volatility in earnings associated with fluctuations in
prices for commodities such as natural gas and power; (v) ability
to manage liquidity needs and comply with covenants related to the
Exit Credit Facility and other existing financing obligations; (vi)
Calpine�s ability to complete the implementation of its Plan of
Reorganization and the discharge of its chapter 11 cases including
successfully resolving any remaining claims; (vii) disruptions in
or limitations on the transportation of natural gas and
transmission of electricity; (viii) the expiration or termination
of power purchase agreements and the related results on revenues;
(ix) risks associated with the operation of power plants including
unscheduled outages; (x) factors that impact the output of
Calpine�s geothermal resources and generation facilities, including
unusual or unexpected steam field well and pipeline maintenance and
variables associated with the waste water injection projects that
supply added water to the steam reservoir; (xi) risks associated
with power project development and construction activities; (xii)
ability to attract, retain and motivate key employees including
filling certain significant positions within Calpine�s management
team; (xiii) ability to attract and retain customers and
counterparties and to manage exposure to customer or counterparty
risks; (xiv) competition; (xv) risks associated with marketing and
selling power from plants in the evolving energy markets; (xvi)
present and possible future claims, litigation and enforcement
actions; (xvii) effects of the application of laws or regulations,
including changes in laws or regulations or the interpretation
thereof; and (xviii) general economic conditions including cost and
availability of credit; and (xix) other risks identified from
time-to-time in Calpine�s reports and registration statements filed
with the SEC, including, without limitation, the risk factors
identified in its Annual Report on Form 10-K for the year ended
December 31, 2007. Actual results or developments may differ
materially from the expectations expressed or implied in the
forward-looking statements and Calpine undertakes no obligation to
update any such statements. Unless specified otherwise, all
information set forth in this release is as of today's date and
Calpine undertakes no duty to update this information. For
additional information about Calpine's chapter 11 reorganization or
general business operations, please refer to Calpine's Annual
Report on Form 10-K for the fiscal year ended December 31, 2007,
and any other recent Calpine report to the Securities and Exchange
Commission. These filings are available by visiting the Securities
and Exchange Commission's website at www.sec.gov or Calpine's
website at www.calpine.com.
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