FRVO: Hot rock, hot stock; Initiate at PP

Research evidence excerpt

FRVO: Hot rock, hot stock; Initiate at PP

8, 2026

Fervo Energy Snapshot

Exhibit 1: Financial Summary Exhibit 2: Operating assumptions 6June

Source: Wolfe Clean Energy Research

Company Description Exhibit 3: Valuation Metrics

Fervo Energy (FRVO) is headquartered in Houston, TX and is a

pioneer in the development of enhanced geothermal systems

(EGS). EGS is a new category of firm power that is scalable,

rapidly deployable, readily available, and geographically

flexible. Fervo first demonstrated the viability of its EGS

technology with the company’s Project Red pilot in 2023 and is

poised to develop its first gigawatt of EGS capacity in UT and NV Source: Wolfe Clean Energy Research

by 2030. The company has already signed up 658 MWs of PPAs

for these projects with customers such as Google, NV Energy,

Shell, Southern California Edison, and others.

Investment Thesis

We rate FRVO shares at Peer Perform with a $40-45 price

target. Fervo has potentially unlocked many gigawatts of clean

firm power which we believe will be in high demand from

hyperscalers and utilities. A lot of progress has been made to

date as Fervo fine-tuned its drilling technology and engineering

processes to maximize power production while pushing costs

lower. This has allowed EGS economics to become competitive

with other forms of generation today, including nuclear, and will

become more competitive with natural gas as the cost curve

continues to fall. Importantly, Fervo is developing projects today

that are already partially contracted and will be online and

available as new power demand ramps over the coming 5 years.

Execution is the key risk as Fervo’s technology hasn’t yet been

proven at scale.

Valuation

We see fair value of $40-45 for Fervo by assigning a 14x