Fervo Energy: 1Q Result as Expected, NVIDIA Agreement to De-risk Subsurface

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Fervo Energy: 1Q Result as Expected, NVIDIA Agreement to De-risk Subsurface

Equity Research

U.S. Energy Services & Technology

22 June 2026

Fervo Energy

1Q Result as Expected, NVIDIA

Agreement to De-risk Subsurface First Look

Following the IPO last month, Fervo reported 1Q26 results in- FRVO OVERWEIGHT

POSITIVEline with our model, while providing several operational U.S.TechnologyEnergy Services &

updates. Cape I remains on target to produce power by 4Q26 Price Target USD 47.00

with Cape II on-line in 2028. Price (18-Jun-26) USD 35.09 Potential Upside/Downside +33.9%

Source: Bloomberg, Barclays Research

FRVO reported its 1Q26 earnings results following the company’s IPO on May 14 with 80.5 mm

shares issued, which included the over-allotment option. As of 1Q26, Fervo is not generating U.S. Energy Services & Technology

revenue (as expected) and posted EBITDA of ($20mm), slightly lower than our model. The J. David Anderson, CFA

company provided several operational updates and announced an agreement with NVIDIA to +1 212 526 4016

create EGS digital twins to de-risk the subsurface: jdavid.anderson@barclays.com

BCI, US

Cape I on track for first power 4Q26. On its initial power facility, Fervo announced it had

Andre Schlatter

completed the largest frack zipper completion to date, completing 6 wells simultaneously on a +1 212 526 6368

single pad. Over time, we expect Fervo to show a continued pattern of efficiency improvements andre.schlatter@barclays.com

as we have seen in shale over the past 20 years. Zipper fracks have been used extensively to BCI, US

reduce costs and we would expect future designs to incorporate simul-frac designs as a next

Eddie Kim

stage of efficiency. Cape I remains on track for first power in 4Q26 with the 2nd and 3rd +1 212 526 9920