J.P.Morgan Natural Resources Conference Takeaways

Research evidence excerpt

J.P.Morgan Natural Resources Conference Takeaways

J P M O R G A N North America Equity Research

23 June 2026

Fervo Overweight

FRVO, FRVO US

J.P. Morgan Natural Resources Conference Takeaways Price (22 Jun 26):$36.36

We hosted Fervo Energy's CFO for a fireside chat at our J.P. Morgan Natural

Resources Conference. The company reiterated that near-term execution at Cape

Station remains on track, while providing color on the cost reduction roadmap, the

evolution of BTM commercial dynamics, and pricing and customer mix. Below are Clean Energy, Power Infrastructure,

our key takeaways. and Sustainable Investing

Mark Strouse, CFA AC

• Pricing power for firm capacity. The CFO described a highly constructive (1-212) 622-8244

commercial environment, noting few alternatives exist for firm power into the mark.w.strouse@jpmorgan.com

early 2030s, giving Fervo meaningful negotiating leverage. Hyperscalers, who Michael G Fairbanks

historically lagged utilities on willingness to pay, have since converged and (1-212) 622-4908

michael.fairbanks@jpmchase.com

pricing is now normalizing across buyer types. The company evaluates

Anna Zhu

customers across a framework of scale, price, and credit quality and favors (1-212) 622-0012

diversification, though notes multi-GW hyperscaler contracts provide anna.zhu@jpmorgan.com

increased construction planning visibility relative to utilities. J.P. Morgan Securities LLC

• Subsurface and surface progress underpins the $3,000/kW cost path. The

CFO provided framing on the cost reduction roadmap, noting that even at the

long-term $3,000/kW target, surface and subsurface CapEx is expected to

remain roughly 50/50, in line with current splits. The company noted that it

expects to achieve some upside from extended laterals and higher reservoir