Calpine is up 14% on news it is exploring a potential sale, likely to private equity. Tudor Pickering has long argued that Calpine is a takeout target but believes it is unlikely to happen. The firm's analyst said The company is too big for one company to acquire and would need a large consortium, the board is not willing to sell at these low levels, and the company already has too much leverage for an LBO. Tudor believes Calpine's board would need an offer above $15 per share, and probably closer to $20. Regardless of outcome, the firm believes either outcome is a positive for shares and reiterates its Buy rating and $20 price target.