Fervo Energy — Third Quarter 2026 Earnings Summary

Financial Performance:

• Reported Q3 2026 revenues of $116,000, up from $55,000 in Q3 2025.
• Reported Q3 2026 net income of $11.7 million, compared to a net loss of $15.8 million in Q3 2025; net loss attributable to common stockholders was $20.8 million ($0.07 per share) versus $15.8 million ($1.90 per share) in the prior year period.
• Q3 2026 net income included $15.4 million in interest income, an $11.8 million non-cash gain on interest rate swaps, and a $29.9 million tax benefit from tax credits earned as Cape Phase I assets were placed in service.
• Reported Q3 2026 operating loss of $43.7 million, compared to an operating loss of $13.7 million in Q3 2025.
• General and administrative expenses were $39.4 million in Q3 2026, up from $27.4 million in Q2 2026, driven by higher stock-based compensation, public company costs, and headcount growth.
• Capital expenditures were $256.7 million in Q3 2026, compared to $226.5 million in Q2 2026.
• Ended Q3 2026 with unrestricted cash and cash equivalents of $1.9 billion and total debt of $301.6 million.
• Placed GeoBlock 1 in service on September 30, transferring approximately $514.3 million from construction-in-process to property, plant and equipment.

Guidance and Future Outlook:

• Expects fourth quarter 2026 capital expenditures to be approximately $450.0 million to $500.0 million, bringing the second half of 2026 total to $700.0 million to $750.0 million, down from prior expectations of $850.0 million to $900.0 million.
• Anticipates fourth quarter 2026 revenue in line with prior expectations, marking the first full quarter of revenue from Cape Station.
• Revenue expectations for 2027 remain unchanged from the Company's prior outlook.
• Cape Station Phase I (GeoBlocks 2 and 3) is expected to achieve commercial operation by January 1, 2027.
• First power from the Google agreement (Cape Google 400) is expected in mid-2028, with full capacity targeted by year-end 2028.
• Target installed cost for Cape Google 400 is $5,500 per kilowatt, on a path to a long-term target of $3,000 per kilowatt.

Business Segments and Product Lines:

• Cape Station Phase I GeoBlock 1 (33 megawatts) declared commercial operation on September 30, 2026, ahead of schedule, operating in line with expectations.
• GeoBlock 2 achieved grid sync and is in early operations; GeoBlock 3 is mechanically complete and in cold commissioning.
• Signed a 15-year, grid-connected, take-or-pay Power Purchase Agreement (PPA) with Google for 396 megawatts, believed to be the largest enhanced geothermal PPA to date.
• Committed to offering Google an option to expand offtake by approximately 600 megawatts, totaling nearly 1 gigawatt.
• Cape Google 400 (GeoBlocks 4 through 11) is advancing, with approximately 400 megawatts of capacity under the Google PPA.
• Updated heat-initially-in-place study by DeGolyer and MacNaughton supports approximately 8.4 gigawatts of capacity potential at Cape Station, nearly double the prior estimate of 4.3 gigawatts.
• Total capacity under binding PPAs increased to 1,054 megawatts (approximately $11.9 billion in contracted revenue) from 658 megawatts ($7.2 billion) at the end of Q2 2026.
• Portfolio capacity in operation reached 36 megawatts (up from 3 megawatts in Q2), with 466 megawatts under construction and 550 megawatts ready-to-build.
• Advanced Development capacity stands at 3.0 gigawatts, while Early Development grew to approximately 54.7 gigawatts (up from 48.6 gigawatts).
• Land portfolio spans approximately 670,000 acres.

Market and Competitive Landscape:

• Fervo is targeting rising demand from AI hyperscalers, utilities, and an electricity-intensive economy.
• Pursuing behind-the-meter, direct-to-load delivery for the 600-megawatt Google expansion option under Utah's SB132 framework to potentially power a regional data center in Beaver County, Utah.
• The 600-megawatt expansion would be the first qualifying project under the Geothermal Framework Agreement executed in March 2026, which establishes a development framework for up to 3 gigawatts of geothermal capacity through 2033.
• Selected for two potential U.S. Department of Energy awards totaling approximately $20.0 million for appraisal wells in Idaho and Nevada.

Risks and Challenges:

• Forward-looking statements involve risks including potential operational disruptions, compliance with environmental regulations, and uncertainties in forecasting operational results.
• Risks include fluctuations in energy prices, material costs, interest rates, and capital availability.
• Potential delays or failures in executing growth strategy, reliance on key personnel, and labor cost challenges.
• Risks related to the accuracy of capacity potential estimates and the ability to produce electrical energy commensurate with such estimates.
• Dependence on a complex supply chain and successful maintenance of geothermal infrastructure.
• Potential negative public perception, political opposition, and regulatory approval challenges.

Management Commentary and Tone:

• CEO Tim Latimer stated that Cape Station achieved a major milestone with first power and commercial operation, and highlighted the Google agreement as a pathway to scaling the partnership to nearly a gigawatt.
• Management expressed focus on delivering remaining Phase I GeoBlocks on schedule and building toward geothermal as a reliable, always-on, low-cost source of power.
• Management noted that efficiencies in GeoBlock construction and commissioning allowed certain spending on Cape Google 400 to occur later in the construction cycle without changing commercial operation dates or total expected investment.

Other Key Points:

• Fervo will host an investor open house at Cape Station on November 19, 2026, including tours of the drill rig and power plant.
• The Company underwent a 0.7194-for-1 reverse stock split on May 14, 2026, in connection with its IPO.
• Redeemable convertible preferred stock was eliminated as of September 30, 2026, with 0 shares outstanding compared to 279,995 at December 31, 2025.
• Total stockholders' equity turned positive to $2.79 billion as of September 30, 2026, compared to a deficit of $246.5 million at December 31, 2025.
• Deferred tax assets of $29.9 million were recorded as of September 30, 2026, compared to zero at December 31, 2025.