ORA: EGS is coming one way ORA-nother; Initiate at PP

Research evidence excerpt

ORA: EGS is coming one way ORA-nother; Initiate at PP

8, 2026

Ormat Technologies Snapshot

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

Source: Wolfe Clean Energy Research Source: Wolfe Clean Energy Research

Company Description Exhibit 3: Valuation Metrics

Ormat Technologies (ORA) is a vertically integrated geothermal

power business. The company operates across three segments:

The electricity segment owns and operates geothermal and solar

power facilities with 1,340 MW of capacity (1,141 MWs being

geothermal). The Energy Storage segment develops, owns and

operates grid connected battery storage assets with 495

MW/1,358 MWh of capacity. The Products segment designs,

manufactures and sells equipment for geothermal generation

and provides engineering, procurement and construction Source: Wolfe Clean Energy Research

services for geothermal development. Ormat is currently piloting

two enhanced geothermal resources (EGS) projects with drilling

and completion partner, SLB, and a start-up EGS company.

Investment Thesis

We rate ORA shares as Peer Perform. We have a positive

opinion of Ormat’s track record of thoughtful growth and long-

term value creation, but investors likely need to temper their

expectations for the company’s medium-term EGS development

- speculation of which has driven the stock to all-time highs.

Valuation

We see fair value for ORA stock of $147-155/sh. We value ORA

via a sum of the parts approach. We apply a 14x EBITDA

multiple to our Electricity segment 2030 EBITDA estimate, 12x

for Energy Storage, and 8x for Products, which we then discount

back at 8%. We then assume a longer-term (2035) EGS

development program of 500-750 MW and apply a 10x multiple

to the resulting EBITDA (discounted back at 12%). Our EGS