FRVO: 1Q26 Quick Take - Development on Track for 4Q26 COD

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FRVO: 1Q26 Quick Take - Development on Track for 4Q26 COD

EQUITY RESEARCH QUICK TAKE

RBC Capital Markets, LLC

Christopher Dendrinos, CFA (Analyst)

Laura Deng (Senior Associate)

June 22, 2026

Fervo Energy Company

1Q26 Quick Take - Development on Track for 4Q26 COD

NASDAQ: FRVO | USD 35.09 | Outperform | Price Target USD 46.00

Sentiment: Neutral

Our view. 1Q26 financial results are largely procedural as FRVO remains on track to bring an initial 33 MW online at Cape Station

Phase I in 4Q26 and the full 100 MW online in 1Q27. At Cape Phase II, two H&P rigs are currently drilling 4 initial gen 3.0

(7,500' lateral, 8 5/8 casing) and the build out of the power generation facilities is underway. The company is kicking off more

intensive development plans and anticipates spending ~$1.2bn (in line with our expectations) from 2Q26-1Q27 for construction

and development at Cape Phase I and II. On the earnings call we are looking for additional information on 1) progress on additional

offtake agreements, particularly for Cape Phase III, 2) D&C performance and cost out progress, 3) opportunities to accelerate cost

out and leverage the 'Digital Twin' initiative with PNNL and NVIDIA. Conference call at 10 AM ET.

1Q26 recap

• Revenue of $0.06mm vs RBCe/consensus of $0mm/$0.3mm

• Total operating loss of $(20.1)mm vs RBCe/consensus of ($20.1)mm/($19.2)mm

• Net loss of $(31.8)mm vs RBCe/consensus of ($23.6)mm/($21.3)mm

• Fervo remains on track for first power of Cape Phase I in 4Q26, with GeoBlocks 2 and 3 expected to follow in 1Q27. Fervo

continues to expect commercial operation of Cape Phase II in 2028.

All values in USD unless otherwise noted. Priced as of prior trading day's market close, EST (unless otherwise noted).

Disseminated: Jun 22, 2026 07:33EDT; Produced: Jun 22, 2026 07:33EDT