Fervo Energy (FRVO) investor relations material

Company overview and business model

• Commercializes enhanced geothermal systems (EGS) using horizontal drilling and hydraulic fracturing to deliver scalable, firm, carbon-free baseload power.

• Operates as a developer, owner, and operator of geothermal power facilities, with a focus on modular, repeatable GeoBlocks aggregated into multi-gigawatt GeoClusters.

• Revenue model centers on long-term power purchase agreements (PPAs) with utilities, hyperscalers, and corporate buyers, providing stable cash flows.

• Holds approximately 595,900 acres of geothermal leases across the U.S., supporting a robust pipeline of projects in various stages of development.

• Leverages existing oil and gas supply chains and workforce to accelerate deployment and reduce costs.

Financial performance and metrics

• Reported net losses of $57.8 million in 2025 and $41.1 million in 2024, reflecting ongoing development and scaling activities.

• As of March 31, 2026, cash and cash equivalents were $280.8 million, down from $461.8 million at year-end 2025.

• Capital expenditures for Q1 2026 estimated at $180–200 million, primarily for Cape Station construction.

• As of March 31, 2026, long-term debt was $189.8 million, with subsequent refinancing and new project finance facilities closed in 2026.

• 658 MW of binding PPAs signed, representing $7.2 billion in potential revenue backlog, with an average remaining term of 15 years.

Use of proceeds and capital allocation

• Estimated net proceeds of $1.67 billion (up to $1.92 billion if underwriters' option exercised) based on an IPO price of $25.50 per share.

• Proceeds prioritized for project-level capital expenditures, continued GeoCluster and land portfolio development, working capital, and operating expenses.

• No specific allocations disclosed; management retains broad discretion over use of funds.