Fervo Energy Company Class A common stock

Fervo Energy said Thursday that it began selling electricity from its Cape Station power plant to the grid on September 30, one day ahead of schedule, making it the first enhanced geothermal company to reach a key commercial milestone. The plant synchronized with the grid about a week ago, bringing online the first third of what will soon become a 100-megawatt power plant, while the entire site could eventually generate as much as 4 gigawatts. The first block at Cape Station took 23 months from groundbreaking to commercial operations, and Fervo aims to complete future blocks in as little as 18 months. Google, Southern California Edison, and others have committed to buying power from the project. Fervo went public in May in an upsized IPO that raised $1.9 billion, and as a startup it raised more than $1.3 billion from investors including Breakthrough Energy Ventures, Congruent Ventures, and Capricorn Investment Group.

Fervo Energy has reached First Power at its Cape Station project in Utah, with the site now delivering electricity into the grid. The milestone comes alongside fresh U.S. Department of Energy funding and the stock's addition to multiple Russell indices, though shares have fallen 48.6% over 90 days and 54.3% year to date even as they gained 2.2% in one day and 8.2% over 30 days. Fervo trades at $16.71 against an average analyst target of US$40.31, and the most followed narrative pegs fair value at $40.75, or 59% undervalued. That view rests on power purchase agreements totaling 658 megawatts and US$7.2b in contracted revenue, plus a 3 gigawatt framework agreement with Google, set against planned capex of about US$1.2b and ongoing operating losses. A separate check on its P/B ratio of 1.8x, slightly above the 1.6x peer average, suggests a narrower margin of safety.

Fervo Energy announced that its Cape Station geothermal development in Beaver County, Utah, has achieved First Power, the first time a utility-scale enhanced geothermal development has reached that milestone anywhere in the world. The first of three 33-megawatt GeoBlocks in Cape Station Phase I, an approximately 100 MW installation, is now synchronized to the grid and exporting electricity, and is expected to reach its contractual commercial operations date by October 1, 2026, with the remaining two GeoBlocks expected to reach contractual COD by January 1, 2027. The next phase, an additional 400 MW, is already under construction with an expected COD in 2028, and fully contracted offtake at Cape Station sits at approximately 900 MW, enough to power the equivalent of nearly 1 million U.S. homes annually. The milestone comes just over four months after Fervo's May 2026 initial public offering and follows the deployment of its EGS technology at Project Red, which has supplied electricity to the grid since 2023. CEO and Co-Founder Tim Latimer called the achievement a gamechanger for the geothermal industry, while Chief Technology Officer and Co-Founder Jack Norbeck said First Power is proof the science works.

Fervo Energy signed a 396-megawatt power purchase agreement with Google on Sept. 1, the largest enhanced geothermal PPA to date, with power to be supplied from Fervo's Cape Station development in Utah and delivered by 2028. Google also holds an agreement to expand its offtake by 600 MW, bringing the deal's total potential capacity to roughly 1 GW by June 2030. The contract builds on the two companies' earlier collaboration, which began with the Project Red pilot in 2021 and continued with a 115 MW power purchase agreement with Google and NV Energy in June 2024, after which Fervo committed to developing 3 gigawatts of geothermal projects. The agreement brings Fervo's total contracted power sales to about 1.1 GW and validates its Enhanced Geothermal Systems technology for the 24/7 baseload demands of AI data centers. Fervo, which went public on May 12 and raised about $2.2 billion, projects $850 million to $900 million in capital expenditures over the next 12 months and net losses for several years, with Phase I targeting around 100 MW of commercial operations later this year or early 2027 and Phase II adding another 400 MW in 2028.

Fervo Energy has signed its largest-ever geothermal power agreement with Google, under which it will supply nearly 400 megawatts of electricity from its Cape Station project in southwestern Utah starting in 2028. The project is expected to become the world's largest enhanced geothermal facility, with Fervo investing more than $2 billion in its development. Google also has an option to purchase an additional 600 megawatts, potentially bringing the total arrangement close to 1 gigawatt by 2030. The agreement gives Fervo a major technology customer at a time when AI data centers are creating strong demand for reliable, around-the-clock electricity. Fervo already has roughly 1 gigawatt of power under contract, including agreements with Google, Shell, and Southern California Edison.

Fervo Energy (NASDAQ:FRVO) soared 28.41 percent on Tuesday to close at $19.75 after signing a new power purchase agreement with Google to support its data center in Utah. Under the deal, Fervo will deliver 396 megawatts from its Cape Station project, with an option for Google to expand by another 600 megawatts, bringing total contracted capacity to around 1 gigawatt by 2030. The first phase of the project is nearing commercial operations, and eight GeoBlocks are expected online in 2028. This follows their earlier 115-megawatt geothermal agreement in Nevada. Fervo reported $113 million in second-quarter revenue, up from zero a year earlier, though net losses widened 390 percent to $55.9 million. Hedge fund interest is rising, with 53 funds holding $691 million in the stock as of the second quarter.

Alphabet, Google's parent company, saw its shares drop to $333.535 on Tuesday, but the selloff did not stop Google from securing more power for its AI operations. Fervo Energy will supply 396 megawatts of round-the-clock geothermal electricity from its Cape Station project in Utah, with an option to expand by an additional 600 megawatts, potentially bringing the total to 996 megawatts, just four megawatts short of one gigawatt. Cape Station is expected to come online in 2028, and Google has until June 2030 to exercise the expansion option. Financial terms were not disclosed. Alphabet invested $44.9 billion in capital projects during the second quarter, with about 40% of technical-infrastructure spending directed at data centers and networking. The stock's current price is 32.52% above its GF Value of $251.68, indicating a demanding valuation.

GoPro Inc stock surged 72.3% to $1.51 after Markiplier disclosed an 8.5% stake worth $9 million, driving 87,000 options contracts, 11.9 times the usual volume, with calls at 74%. Novartis AG rose 6.5% to $162.01 on positive late-stage trial results for its multiple sclerosis pill, with 13,000 options traded, 2.9 times the norm, and puts at 83%. Comstock Resources Inc gained 6% to $15.30 after announcing a $1.65 billion strategic partnership with SOCAR and a $450 million drilling joint venture with the Jones family, with options volume at 2.8 times the usual and calls at 96%. Howmet Aerospace Inc climbed 3.9% to $254.50, rebounding from a selloff triggered by Elon Musk's SpaceX turbine announcement, with 12,000 options traded, 2.5 times the norm, and puts at 93%. Fervo Energy Co jumped 23.7% to $19.03 after securing its largest-ever power agreement with Google for nearly 400 megawatts from its Utah project, with 8,779 options, 2.7 times the usual volume, and calls at 95%.

Fervo Energy has signed its largest-ever geothermal power deal, agreeing to sell nearly 400 megawatts of electricity to Google from its Cape Station project in Utah, with an option to expand to about 600 megawatts by June 2030. The power purchase agreement, reported by the Wall Street Journal, will begin supplying Google in 2028 and supports the development of what Fervo plans to make the world's largest enhanced geothermal facility. Google intends to use the power for a data center in Utah, though the location is not yet determined and requires regulatory approvals. Fervo, which went public in May and raised over $2 billion, now has about 1,000 megawatts contracted, and its shares rose 15.4% in pre-market trading following the announcement.

Fervo Energy advanced 400 megawatts of capacity into advanced development during the second quarter and raised its 2030 installed-capacity target to 1.1 gigawatts from 1 gigawatt. The enhanced geothermal systems developer now has 658 megawatts covered by binding power purchase agreements representing $7.2 billion in contracted revenue backlog. Cape Station remains on schedule for initial generation in the fourth quarter of 2026, with GeoBlocks 1 and 2 at mechanical completion and GeoBlock 3 expected to follow in the coming months. Fervo reported a $55.9 million second-quarter net loss and $226.5 million in capital expenditures, with second-half spending expected at $850 million to $900 million. The company ended the quarter with $2.1 billion in cash and expects 2027 revenue of $60 million to $80 million, though it emphasized that this was not formal guidance.

Stock futures were mixed Monday as investors weighed Middle East tensions against a week of major tech earnings. Alibaba shares rose 5% after the company previewed its Qwen 3.8 Max AI model, which it described as second only to Anthropic’s Fable 5, intensifying competition in AI coding models. Fervo Energy gained 5% after Jefferies upgraded the geothermal developer to Buy from Hold, citing an attractive entry point following a 40% pullback from its IPO highs and maintaining a $34 price target. Yeti Holdings added 2% after Goldman Sachs upgraded the stock to Buy from Neutral, pointing to improving revenue visibility and setting a $63 price target.

Fervo Energy shares rose 14.1% on Thursday after the company reported a 143% improvement in drilling rates at its Cape Station geothermal development. The Sawtooth 7 well reached a measured depth of 19,448 feet with a 7,500-foot lateral in just 21 days, a 70% reduction in drilling time compared to its first commercial horizontal well. The well uses Fervo's more complex Generation 3.0 design, reaching hotter 460°F rock with longer laterals and larger casing while matching the 21-day timeline of the simpler Phase I design. Shorter drilling times can lower capital intensity and help Fervo move closer to its target of reducing installed costs from an expected $5,500 per kilowatt at Cape Phase II toward $3,000 per kilowatt over time. CEO Tim Latimer said the momentum from initial Phase II drilling supports expectations that the 3.0 well design will produce substantially more megawatts per well and significantly improve the unit economics of future GeoBlocks.

Fervo Energy announced a partnership with Nvidia and the Pacific Northwest National Laboratory to build a geothermal digital twin platform called EGS-Twin. The platform will use Fervo's field data and Nvidia's AI infrastructure to simulate underground reservoir behavior, aiming to improve geothermal power production, with operations expected by 2029. The announcement came alongside Fervo's first-quarter results, which showed an operating loss of $20.1 million and a net loss of $31.8 million, while capital expenditures rose to $172.8 million from $105.4 million a year earlier as construction accelerated at the Cape Station project in Utah. Fervo, which went public on May 13, 2026, in the largest clean energy IPO to date, raising about $2.2 billion, also secured $421.4 million in non-recourse project financing for Cape Phase I and a deal with Liberty Mutual Insurance to monetize tax credits. Analysts have a Moderate Buy consensus on the stock with an average price target of $45.73, representing 38.74% upside from the current price.

Bernstein initiated coverage on a dozen power, clean energy and liquefied natural gas stocks this week, calling the current environment a once-in-a-generation restructuring of how energy is produced, moved and consumed. The broker forecasts U.S. power demand will grow at roughly a 3% annual rate through 2030, compared with just 0.35% from 2000 to 2024, driven by energy security concerns, decarbonization goals and growing demand from data centers and artificial intelligence. Among its top picks, Bernstein rates GE Vernova Outperform with a $1,206 price target, NextEra Energy Outperform, Constellation Energy Outperform, and Vistra Outperform, while also bullish on geothermal developer Fervo Energy. In LNG, Cheniere Energy was rated Outperform with a $283 target, while Venture Global received a Market-Perform rating. Bernstein rated First Solar at Underperform on concerns its margins are heavily dependent on tax credits, and assigned Market-Perform ratings to Bloom Energy, Enphase Energy and T1 Energy.