No News is Good News: In Line 1Q Results, Phase 1 On Track

Research evidence excerpt

No News is Good News: In Line 1Q Results, Phase 1 On Track

Phase I support the narrative, but we continue to view 4Q26 COD as a critical Breakdown (%) of JEFe Price Target Valuation

milestone to further compress the discount rate and drive valuation. Near-Term Backlog

(~400MW)

Contracted 7%

Backlog

(658MW)Behind-the-Meter Increasingly Actionable. Management noted that BTM could accelerate 10%

pre-2030 projects, representing upside not captured in current valuation. With interconnection and Long-Term

transmission a key risk to pipeline execution, behind-the-meter deployment could provide a practical Pipeline/DevCo51%

of Sightworkaround, particularly as Phase II has only ~290MW of rights secured out of 384MW total. While Line(~3.8GW)

we were previously cautious on BTM geothermal given the 83% capacity factor, management cited 32%

solar as a natural complement to support round-the-clock availability. However, FRVO views BTM .

Source: JEF Research, Company documents and filings

as a near-term enabler, while grid connection remains the long-term preference.

NVDA / DoE Digital Twin Collab. Following the print, shares peaked nearly 10% before eventually

settling, likely reflecting initial reactions to the announced NVDA/DoE collaboration. Together, FRVO,

Nvidia, and the Department of Energy's Pacific Northwest National Laboratory plan to develop

an EGS digital-twin, which should accelerate the EGS "learning curve" by providing advanced

forecasting data and flexible scenario-analysis. While a compelling headline, the collab will likely

support long-term growth rather than provide near-term upside, helping to improve EGS bankability

and lower capital costs over time.

Julien Dumoulin-Smith * | Equity Analyst

Valuation - PT of $41.