Fervo Energy — Second Quarter 2026 Earnings Summary

Financial Performance

• Reported Q2 2026 revenues of $113,000, compared to $0 in Q2 2025.
• Reported Q2 2026 operating loss of $28.7 million, an increase from $10.3 million in Q2 2025.
• Reported Q2 2026 net loss of $55.9 million, compared to $11.4 million in Q2 2025.
• Net loss per share for Q2 2026 was $0.38 (basic and diluted), compared to $1.31 in Q2 2025.
• Q2 2026 capital expenditures were $226.5 million, compared to $108.0 million in Q2 2025.
• Cash and cash equivalents as of June 30, 2026, were $2.1 billion, compared to $461.8 million as of December 31, 2025.
• Total assets as of June 30, 2026, were $3.5 billion, compared to $1.4 billion as of December 31, 2025.
• Total liabilities as of June 30, 2026, were $554.3 million, compared to $408.8 million as of December 31, 2025.
• Long-term debt, net of issuance costs and current portion, was $217.4 million as of June 30, 2026, compared to $172.8 million as of December 31, 2025.
• Redeemable convertible preferred stock was $0 as of June 30, 2026, compared to $1.0 billion as of December 31, 2025.
• Total stockholders' equity (deficit) was $2.8 billion as of June 30, 2026, compared to a deficit of $246.5 million as of December 31, 2025.

Guidance and Future Outlook

• Raised long-term development target to 1.1 gigawatts by 2030, an increase of 100 megawatts.
• Expects total capital expenditures of approximately $850.0 to $900.0 million in the second half of 2026.
• Targets GeoBlock 1 first power in Q4 2026, with full production anticipated by year-end 2026.
• Expects GeoBlocks 2 and 3 to reach initial power in early 2027.
• Anticipates eight GeoBlocks (400 megawatts) for Cape Station Phase II coming online in 2028.
• Expects Phase II to achieve an all-in cost of $5,500 per kilowatt, with a long-term target of $3,000 per kilowatt.
• Plans to begin an appraisal drilling program in Q4 2026.
• Aims to place over a gigawatt of capacity online by the end of the decade.

Business Segments and Product Lines

• Cape Station Phase I is an approximately 100-megawatt installation comprising three 33-megawatt GeoBlocks.
• Achieved mechanical completion on GeoBlocks 1 and 2; GeoBlock 3 mechanical completion expected in the coming months.
• Cape Station Phase II development includes eight 50-megawatt GeoBlocks, incorporating the Fervo 3.0 well design with longer laterals and larger-diameter casing.
• Drilled Sawtooth 7, the ninth Fervo 3.0 well, reaching a measured depth of nearly 19,500 feet in a 460°F resource with a spud-to-total-depth of 21 days.
• Added a third Helmerich & Payne rig to support Phase II development.
• Moved 400 megawatts of capacity into Advanced Development and advanced 10.5 gigawatts of capacity potential into Early Development.
• Portfolio totals more than 50 gigawatts of capacity potential as of quarter-end.
• Land portfolio spans over 650,000 acres.

Market and Competitive Landscape

• Commercial demand for firm, carbon-free power is driven by AI and data center build-out, re-shoring of domestic manufacturing, and grid electrification.
• Buyers include utilities, industrial offtakers, and hyperscale data center developers.
• Pursuing behind-the-meter delivery pathways to provide baseload power directly to customer on-site loads, serving as a bridge for customers needing power sooner than grid interconnection allows.
• Believes geothermal is becoming the world's cheapest and most reliable form of power.

Risks and Challenges

• Forward-looking statements involve risks including operational disruptions, environmental regulation compliance, and permitting requirements.
• Risks include uncertainties in forecasting operational results, economic conditions, and market demand.
• Potential impacts from climate change initiatives, energy price fluctuations, and material costs.
• Dependence on complex supply chains and successful maintenance of geothermal infrastructure.
• Risks associated with fluctuations in interest rates, capital availability, and market conditions.
• Potential legal proceedings, claims, and negative public perception or political opposition impacting regulatory approvals.
• Risk that capacity estimates or heat initially in place estimates are inaccurate.

Management Commentary and Tone

• CEO Tim Latimer stated the company continues to demonstrate the power of enhanced geothermal at scale.
• Management expressed confidence that demand for firm, carbon-free power has never been stronger.
• Management noted that the commercial pipeline reflects momentum in converting the resource portfolio into shovel-ready capacity.
• Management believes commissioning at Cape Station Phase I, record-setting drilling at Phase II, and continued derisking bring the company closer to its cost and reliability goals.

Other Key Points

• Completed initial public offering (IPO) in May 2026, listing on Nasdaq under ticker FRVO.
• IPO was upsized and priced above the initial range, raising approximately $2.2 billion in gross proceeds, including the full exercise of the underwriters' over-allotment option.
• Repaid all outstanding borrowings under the XRL ALC, LLC loan agreements using proceeds from the $421 million Project Granite Facility, a non-recourse project debt financing for Cape Station Phase I.
• Executed a 0.7194-for-1 reverse stock split on May 14, 2026, in connection with the IPO.
• Completed geological surveys, secured appraisal permits, initiated origination activities, and submitted an interconnection queue application for a leading prospect.
• Commissioned independent engineering firm DeGolyer and MacNaughton to complete heat-initially-in-place studies for two new GeoClusters.