Calpine to sell oil and gas business

Power producer Calpine is retrenching into its core business:

Calpine Corp., a leading independent power producer and marketer, on Wednesday said it plans to sell all of its domestic oil and gas exploration and production assets for $1.05 billion.

Under terms of the sale, Calpine has formed a new subsidiary, Rosetta Resources Inc., that is selling 45.3 million shares for $725 million in private placement. Rosetta will use proceeds from the sale, plus $325 million in proceeds from a new credit facility, to buy all of Calpine's domestic oil and gas exploration and production assets.