Fervo Energy Company ("Fervo" or the "Company") (NASDAQ: FRVO), global pioneer of next-generation geothermal energy, today (Nov 9) reported financial and operational results for the third quarter ended September 30, 2026.
"In the third quarter, Cape Station achieved a major milestone, reaching first power and contractual commercial operation," said Tim Latimer, CEO and Co-founder of Fervo. "We also signed what we believe is the largest enhanced geothermal power purchase agreement to date with Google, creating a pathway to scaling our partnership to nearly a gigawatt. With commercial operations underway and significant demand for our technology, we are focused on delivering the remaining Phase I GeoBlocks on schedule and building toward geothermal as a reliable, always-on, low-cost source of power."
BUSINESS AND OPERATIONAL HIGHLIGHTS
- Declared commercial operation at Cape Station Phase I GeoBlock 1 on September 30, ahead of its contractual commercial operation date. The 33-megawatt GeoBlock 1 is operating in line with expectations for production and power delivered under its power purchase agreement ("PPA").
- GeoBlock 2 has achieved grid sync and is in its early operations phase, delivering test energy to the grid. GeoBlock 3 is mechanically complete and is in cold commissioning. GeoBlocks 2 and 3 remain on schedule and are expected to achieve commercial operation by January 1, 2027, which will complete Cape Station Phase I.
- In partnership with Google, Fervo signed what it believes is the largest enhanced geothermal power purchase agreement to date. The 15-year, grid-connected, take-or-pay agreement supplies 396 megawatts, with first power expected mid-2028. Fervo is also committed to offering Google an option to expand its offtake by approximately 600 megawatts, for a total of nearly 1 gigawatt.
- In connection with this agreement, Fervo progressed construction across Cape Station GeoBlocks 4 through 11, now referred to as Cape Google 400. These GeoBlocks are expected to provide approximately 400 megawatts of power under Fervo's PPA with Google beginning in 2028.
- Received an updated heat-initially-in-place study supporting approximately 8.4 gigawatts of capacity potential at Cape Station, nearly double the prior estimate of 4.3 gigawatts. The study was completed by DeGolyer and MacNaughton, an independent consulting firm.
- Selected for two potential awards from the U.S. Department of Energy totaling approximately $20.0 million, including funding for appraisal wells in Idaho and Nevada.
FINANCIAL HIGHLIGHTS
- Reported Q3 2026 net income of $11.7 million and net loss attributable to common stockholders of $20.8 million, or $(0.07) per share. Net income reflected $15.4 million of interest income and two non-recurring items: an $11.8 million non-cash gain on interest rate swaps and a $29.9 million tax benefit from tax credits earned as Cape Phase I assets were placed in service.
- Reported Q3 2026 operating loss of $43.7 million, including general and administrative expense of $39.4 million compared to $27.4 million in Q2 2026, reflecting higher stock-based compensation, public company costs, and headcount growth.
- Reported Q3 2026 capital expenditures of $256.7 million, compared to $226.5 million in Q2 2026, primarily related to activities at Cape Station.
- Expect fourth quarter 2026 capital expenditures of approximately $450.0 million to $500.0 million, bringing expectations for the second half of 2026 to $700.0 million to $750.0 million, compared to prior expectations of $850.0 million to $900.0 million. Efficiencies in GeoBlock construction and commissioning have allowed certain spending on Cape Google 400 to occur later in the construction cycle, with no change to expected commercial operation dates or total expected investment.
- Placed GeoBlock 1 in service on September 30, transferring approximately $514.3 million from construction-in-process to property, plant and equipment. This amount is not the standalone cost of GeoBlock 1. It includes a larger share of Phase I wellfield costs and shared infrastructure serving all three GeoBlocks, as well as capitalized interest and financing costs. Expected total cost for GeoBlocks 1 through 3 remains approximately $7,000 per kilowatt.
- Continue to anticipate fourth quarter 2026 revenue in line with prior expectations, which will be the first full quarter of revenue from Cape Station. Revenue in 2027 remains unchanged from the Company's prior outlook.
- Ended Q3 2026 with unrestricted cash and cash equivalents of $1.9 billion and current and long-term debt of $301.6 million.
