Fervo Energy Co 10-Q

ITEM 1. FINANCIAL STATEMENTS F-1 Table of Contents Fervo Energy Company and Subsidiaries Condensed Consolidated Balance Sheets (Unaudited) (Dollars and shares in thousands) As of June 30, As of December 31, 2026 2025 ASSETS Current assets: Cash and cash equivalents $ 2,106,371 $ 461,836 Grant receivables 17,177 10,580 Prepaid expenses and other 30,634 9,714 Total current assets 2,154,182 482,130 Deposits 12,602 15,234 Construction-in-process 1,235,160 789,571 Operating leases right-of-use assets 88,667 58,713 Restricted cash 11,000 6,000 Other long-term assets 33,478 13,520 Total assets $ 3,535,089 $ 1,365,168 LIABILITIES AND EQUITY Current liabilities: Accounts payable $ 29,667 $ 10,789 Accrued capital expenditures 173,961 119,303 Current portion of long-term debt 11,042 — Operating lease liabilities 24,744 4,822 Other current liabilities 10,614 16,997 Total current liabilities 250,028 151,911 Long-term debt, net of issuance costs and current portion 217,376 172,837 Operating lease liabilities 85,123 72,639 Other long-term liabilities 1,749 11,407 Total liabilities 554,276 408,794 Commitments and Contingencies (Note 19) Mezzanine equity Redeemable convertible preferred stock, par value $ 0.0001 per share; 0 and 283,546 authorized; 0 and 279,995 issued and outstanding as of June 30, 2026 and December 31, 2025 — 1,022,942 Redeemable noncontrolling interest Cape Phase I HoldCo - Redeemable noncontrolling interest 105,118 102,586 Cape Phase I Intermediate HoldCo - Redeemable noncontrolling interest 81,858 77,344 Stockholders’ equity (deficit): Common stock, par value $ 0.0001 per share; 0 and 358,279 authorized; 0 and 9,457 issued as of June 30, 2026 and December 31, 2025, respectively (1) — 1 Class A common stock, par value $ 0.0001 per share; 1,000,000 and 0 authorized; 286,869 and 0 issued as of June 30, 2026 and December 31, 2025, respectively 29 — Class B common stock, par value $ 0.0001 per share; 40,000 and 0 authorized; 7,785 and 0 issued as of June 30, 2026 and December 31, 2025, respectively 1 — Additional paid-in capital 3,126,084 — Treasury stock, at cost; 0 shares and 270 shares as of June 30, 2026 and December 31, 2025, respectively (1) — ( 1,960 ) Accumulated deficit ( 332,277 ) ( 244,539 ) Total stockholders’ equity (deficit) 2,793,837 ( 246,498 ) Total liabilities, mezzanine equity, and stockholders’ equity (deficit) $ 3,535,089 $ 1,365,168 (1) Shares for periods presented have been retroactively adjusted to reflect the 0.7194 -for-1 reverse stock split effected on May 14, 2026 in connection with the Company’s initial public offering (“IPO”). See Note 1 – Nature of Business and Note 2 – Significant Accounting Policies for details. The accompanying notes are an integral part of these condensed consolidated financial statements (unaudited). F-2 Table of Contents Fervo Energy Company and Subsidiaries Condensed Consolidated Balance Sheets (Unaudited) The following table presents the assets and liabilities of consolidated variable interest entities (“VIEs”), which are included in the Condensed Consolidated Balance Sheets above. The assets in the table below may only be used to settle obligations of consolidated VIEs and are in excess of those obligations. The liabilities in the table below include liabilities for which creditors do not have recourse to the general credit of the Company. Additionally, the assets and liabilities in the table below exclude intercompany balances that eliminate upon consolidation. (Dollars in thousands) As of June 30, As of December 31, 2026 2025 Assets of consolidated VIEs, included in total assets above: Cash and cash equivalents $ 11 $ 13,882 Prepaid expenses and other 8,787 545 Total current assets 8,798 14,427 Deposits 3,128 7,158 Construction-in-process 411,702 361,213 Other long-term assets 14,899 — Total assets of consolidated VIEs 438,527 382,798 Liabilities of consolidated VIEs, included in total liabilities above: Accounts payable 33 — Accrued capital expenditures 22,273 17,061 Current portion of long-term debt 11,042 — Other current liabilities 60 2,970 Total current liabilities 33,408 20,031 Long-term debt, net of issuance costs 187,376 142,837 Other long-term liabilities 1,536 1,468 Total liabilities of consolidated VIEs 222,320 164,336 Total net assets of consolidated VIEs $ 216,207 $ 218,462 The accompanying notes are an integral part of these condensed consolidated financial statements (unaudited). F-3 Table of Contents Fervo Energy Company and Subsidiaries Condensed Consolidated Statements of Operations (Unaudited) (Dollars and shares in thousands except per share amounts) Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Revenues $ 113 $ — $ 174 $ — Costs and expenses: Operation and maintenance 306 158 788 410 Research and development (income) expense, net ( 712 ) 395 ( 784 ) 359 General and administrative expense 27,427 9,484 44,417 17,163 Operating lease expense 1,490 205 4,110 2,194 Depreciation and amortization 344 56 437 103 Operating loss ( 28,742 ) ( 10,298 ) ( 48,794 ) ( 20,229 ) Other income (expense): Interest income 10,521 601 13,336 2,629 Interest expense ( 2,215 ) ( 1,739 ) ( 4,932 ) ( 2,966 ) Other non-operating expense, net ( 35,478 ) — ( 47,354 ) ( 16 ) Loss before income taxes ( 55,914 ) ( 11,436 ) ( 87,744 ) ( 20,582 ) Income tax expense ( 1 ) ( 2 ) ( 1 ) ( 2 ) Net loss $ ( 55,915 ) $ ( 11,438 ) $ ( 87,745 ) $ ( 20,584 ) Net loss per share information: Net loss $ ( 55,915 ) $ ( 11,438 ) $ ( 87,745 ) $ ( 20,584 ) Less: Remeasurement of redeemable noncontrolling interest ( 3,612 ) ( 189 ) ( 7,046 ) ( 189 ) Net loss attributable to common stock, basic and diluted ( 59,527 ) ( 11,627 ) ( 94,791 ) ( 20,773 ) Weighted average common stock, basic and diluted (1) 157,003 8,844 83,643 8,902 Net loss per share attributable to common stockholders, basic and diluted (1) $ ( 0.38 ) $ ( 1.31 ) $ ( 1.13 ) $ ( 2.33 ) (1) Shares for periods presented have been retroactively adjusted to reflect the 0.7194 -for-1 reverse stock split effected on May 14, 2026 in connection with the Company’s IPO. See Note 1 – Nature of Business and Note 2 – Significant Accounting Policies for details. The accompanying notes are an integral part of these condensed consolidated financial statements (unaudited). F-4 T a b l e o f C o n t e n t s Fervo Energy Company and Subsidiaries Condensed Consolidated Statements of Mezzanine Equity and Stockholders’ Equity (Deficit) (Dollars and shares in thousands) Redeemable convertible preferred stock Redeemable noncontrolling interests Common Stock (1) Treasury Stock (1) Class A Shares Class B Shares Additional paid-in capital Accumulated deficit Total stockholders’ equity (deficit) Shares Amount Shares Amount Shares Amount Shares Amount Shares Amount Shares Amount Amount Amount Amount Balance at January 1, 2026 279,995 $ 1,022,942 12 $ 179,930 9,457 $ 1 270 $ ( 1,960 ) — $ — — $ — $ — $ ( 244,539 ) $ ( 246,498 ) Remeasurement of noncontrolling interests — — — 3,434 — — — — — — — — ( 3,441 ) 7 ( 3,434 ) Other — ( 56 ) — — — — — — — — — — — — — Stock-based compensation — — — — — — — — — — — — 2,615 — 2,615 Exercise of stock-based awards by employees and directors — — — — 416 — — — — — — — 826 — 826 Net loss — — — — — — — — — — — — — ( 31,830 ) ( 31,830 ) Balance at March 31, 2026 279,995 1,022,886 12 183,364 9,873 1 270 ( 1,960 ) — — — — — ( 276,362 ) ( 278,321 ) Remeasurement of noncontrolling interests — — — 3,612 — — — — — — — — ( 3,612 ) — ( 3,612 ) Exercise of warrants 3,550 68,961 — — — — — — — — — — — — — Conversion of redeemable convertible preferred stock ( 283,545 ) ( 1,091,847 ) — — — — — — 203,983 20 — — 1,091,827 — 1,091,847 Retirement of treasury shares — — — — — — ( 270 ) 1,960 — — ( 1,960 ) — — Stock-based compensation — — — — — — — — — — — — 8,230 — 8,230 Exercise of stock-based awards by employees and directors — — — — 560 — — — 8 — — — 374 — 374 Issuance of Class A common stock in Initial Public Offering, net of underwriters’ discounts and commissions of $ 130,410 and offering costs of $ 11,855 — — — — ( 10,433 ) ( 1 ) — — 90,663 10 2,031,225 — 2,031,234 Conversion of Class A common stock into Class B common stock ( 7,785 ) ( 1 ) 7,785 1 — Net loss — — — — — — — — — — — — — ( 55,915 ) ( 55,915 ) Balance at June 30, 2026 — $ — 12 $ 186,976 — $ — — $ — 286,869 $ 29 7,785 $ 1 $ 3,126,084 $ ( 332,277 ) $ 2,793,837 (1) Shares for periods presented have been retroactively adjusted to reflect the 0.7194 -for-1 reverse stock split effected on May 14, 2026 in connection with the Company’s IPO. See Note 1 – Nature of Business and Note 2 – Significant Accounting Policies for details. The accompanying notes are an integral part of these condensed consolidated financial statements (unaudited). F-5 T a b l e o f C o n t e n t s Fervo Energy Company and Subsidiaries Condensed Consolidated Statements of Mezzanine Equity and Stockholders’ Equity (Deficit) (Dollars and shares in thousands) Redeemable convertible preferred stock Redeemable noncontrolling interests Common Stock (1) Treasury Stock (1) Additional paid-in capital Accumulated deficit Total stockholders’ equity (deficit) Shares Amount Shares Amount Shares Amount Shares Amount Amount Amount Amount Balance at January 1, 2025 223,458 $ 561,500 — $ — 8,971 $ 1 — $ — $ 2,582 $ ( 179,778 ) $ ( 177,195 ) Stock-based compensation — — — — — — — — 489 — 489 Repurchase of shares — — — — — — 265 ( 1,945 ) — — ( 1,945 ) Exercise of stock-based awards by employees and directors — — — — 105 — — — 89 — 89 Net loss — — — — — — — — — ( 9,146 ) ( 9,146 ) Balance at March 31, 2025 223,458 561,500 — — 9,076 1 265 ( 1,945 ) 3,160 ( 188,924 ) ( 187,708 ) Issuance of shares in subsidiaries — — 5 81,238 — — — — — — — Stock-based compensation — — — — — — — — 613 — 613 Repurchase of shares — — — — — — 5 ( 15 ) — — ( 15 ) Exercise of stock-based awards by employees and directors — — — — 79 — — — 66 — 66 Net loss — — — — — — — — ( 11,438 ) ( 11,438 ) Balance at June 30, 2025 223,458 $ 561,500 5 $ 81,238 9,155 $ 1 270 $ ( 1,960 ) $ 3,839 $ ( 200,362 ) $ ( 198,482 ) (1) Shares for periods presented have been retroactively adjusted to reflect the 0.7194 -for-1 reverse stock split effected on May 14, 2026 in connection with the Company’s IPO. See Note 1 – Nature of Business and Note 2 – Significant Accounting Policies for details. The accompanying notes are an integral part of these condensed consolidated financial statements (unaudited). F-6 Table of Contents Fervo Energy Company and Subsidiaries Condensed Consolidated Statements of Cash Flows (Unaudited) (Dollars in thousands) Six Months Ended June 30, 2026 2025 Cash flows from operating activities: Net loss $ ( 87,745 ) $ ( 20,584 ) Adjustments to reconcile net loss to net cash (used in) provided by operating activities: Depreciation and amortization expense 437 103 Amortization of debt issuance costs 1,672 807 Loss on extinguishment of long-term debt 8,988 — Stock-based compensation 10,845 1,102 Non-cash expense related to long-term operating leases 2,584 1,522 Non-cash expense related to warrant valuation 39,998 — Non-cash income related to embedded derivative valuation ( 1,620 ) — Non-cash income related to interest rate swap valuation ( 1,172 ) — Changes in operating assets and liabilities: Grant receivable — 791 Prepaid expenses and other ( 20,857 ) 3,846 Deposits 2,632 17,940 Accounts payable 5,139 ( 3,445 ) Accrued expenses — — Net changes in other assets and liabilities ( 4,674 ) 4,139 Net cash (used in) provided by operating activities ( 43,773 ) 6,221 Cash flows from investing activities: Capital expenditures ( 399,278 ) ( 213,368 ) Net cash used in investing activities ( 399,278 ) ( 213,368 ) Cash flows from financing activities: Proceeds from initial public offering, net of underwriting discounts and commissions 2,043,089 — Proceeds from issuance of common stock, net of issuance costs 1,201 155 Proceeds from long-term debt 212,344 23,031 Proceeds from warrant exercise 18,750 — Repayment of long-term debt ( 152,085 ) — Debt issuance costs related to long-term debt ( 20,855 ) — Offering costs related to initial public offering ( 9,802 ) — Proceeds from issuance of subsidiary stock, net of issuance costs — 81,239 Treasury stock purchased — ( 1,960 ) Other ( 56 ) — Net cash provided by financing activities 2,092,586 102,465 Net change in cash and cash equivalents and restricted cash 1,649,535 ( 104,682 ) Cash and cash equivalents and restricted cash at beginning of period 467,836 199,428 Cash and cash equivalents and restricted cash at end of period $ 2,117,371 $ 94,746 Supplemental disclosure of cash flow information: Conversion of redeemable convertible preferred stock $ 1,022,886 $ — Capital expenditures included in Accounts payable and Accrued capital expenditures 197,510 74,483 Settlement of warrant liability 50,211 — Adjustment of redeemable noncontrolling interest 7,046 — Cash paid for interest, net of amounts capitalized 5,194 2,243 Retirement of treasury stock 1,960 — The accompanying notes are an integral part of these condensed consolidated financial statements (unaudited). F-7 Table of Contents Fervo Energy Company and Subsidiaries Notes to Condensed Consolidated Financial Statements (Unaudited) NOTE 1 – NATURE OF BUSINESS Fervo Energy Company (the “Company” or “Fervo”) is a Delaware corporation formed on May 27, 2017, to commercialize technology to build, own, and operate geothermal assets. Fervo’s innovations include technologies such as advanced computational models, horizontal drilling, and distributed fiber optic sensing that were developed with various partners to increase the productivity and lifetime of geothermal wells. The Company’s geographical area of operation is in the western region of the United States. The U.S. federal government encourages production of electricity from thermal energy derived from the Earth’s natural heat (“geothermal resources”). The Company requested and received grants for research and development and project development from the Department of Energy (“DOE”). As of June 30, 2026, the Company has not yet commenced large-scale commercial operations. The Company’s activities to date have been primarily focused on technological development, capital raising, and the establishment of geothermal production capabilities. Initial Public Offering On May 14, 2026, the Company completed its IPO of Class A common stock of Fervo Energy Company, par value $ 0.0001 per share (“Class A common stock”), at a price of $ 27.00 per share. The Company's common stock trades on the Nasdaq under the symbol "FRVO". In the IPO, the Company sold an aggregate of 80,500,000 shares of Class A common stock, including 10,500,000 shares issued upon the underwriters' full exercise of their option to purchase additional shares. An additional 10,162,468 shares of the Company’s existing common stock were converted into Class A common stock. The IPO generated gross proceeds of approximately $ 2.2 billion, before deducting underwriting discounts and commissions and offering expenses. Prior to completion of the IPO, incremental costs directly attributable to the offering were deferred. Upon completion of the IPO, deferred offering costs, together with underwriting discounts and commissions and other directly attributable offering costs, were recorded as a reduction of the proceeds from the IPO within Additional paid-in capital. Costs that were not directly attributable to the IPO were expensed as incurred. In connection with the IPO, the Company effected a 0.7194 -for-1 reverse stock split of its common stock. See Note 2 – Significant Accounting Policies for additional information. Immediately upon completion of the IPO and after giving effect to the reverse stock split, all outstanding shares of redeemable convertible preferred stock automatically converted into shares of Class A common stock, par value $ 0.0001 per share. The Company also completed a reorganization of its capital structure, including the establishment of Class A common stock and Class B common stock, and completed a founder share exchange that resulted in the issuance of Class B common stock, par value $ 0.0001 per share, to certain existing holders. In addition, the Company's amended and restated certificate of incorporation and amended and restated bylaws became effective upon completion of the IPO. NOTE 2 – SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation These condensed consolidated financial statements include the accounts of the Company and of all majority-owned subsidiaries in which the Company exercises control over operating and financial policies and are prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP” or “GAAP”) for interim financial information. Accordingly, they do not include all information and notes required by U.S. GAAP for annual financial statements. The accompanying condensed consolidated financial statements reflect all adjustments, including normal recurring adjustments, necessary for a fair presentation of the Company’s Condensed Consolidated Balance Sheets as of June 30, 2026 and December 31, 2025, the Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2026 and 2025, Condensed Consolidated Statements of Mezzanine Equity and F-8 Table of Contents Fervo Energy Company and Subsidiaries Notes to Condensed Consolidated Financial Statements (Unaudited) Stockholders’ Equity (Deficit) and Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2026 and 2025. The financial data and other information disclosed in the notes to the condensed consolidated financial statements related to these periods are unaudited. The results of operations for the interim periods presented are not necessarily indicative of the results to be expected for the full year. These condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included elsewhere in the Company’s final prospectus filed with the Securities and Exchange Commission (the “SEC”) on May 14, 2026, pursuant to Rule 424(b)(4) (the “IPO Prospectus”) as of and for the years ended December 31, 2025 and 2024. The Condensed Consolidated Balance Sheet data as of December 31, 2025 was derived from the Company’s audited consolidated financial statements but does not include all disclosures required by U.S. GAAP for annual financial statements. Intercompany accounts and transactions have been eliminated in consolidation. Apart from the following updates resulting from transactions that occurred during the six months ended June 30, 2026 and the issuance of one recent accounting pronouncement, there have been no further material changes to the Company’s significant accounting policies or recent accounting pronouncements during the interim period from those described in Note 2 – Significant Accounting Policies to the audited consolidated financial statements included in the Company’s IPO Prospectus as of and for the years ended December 31, 2025 and 2024. Reverse Stock Split On May 14, 2026, in connection with the Company’s IPO, the Company effected a 0.7194 -for-1 reverse stock split of its common stock (the “Reverse Stock Split”). Shares and earnings per share for periods presented have been retroactively adjusted to reflect the Reverse Stock Split in the condensed consolidated financial statements for the six months ended June 30, 2026 and 2025. See Note 1 – Nature of Business for additional information on all transactions completed in connection with the IPO. Treasury Stock The Company accounts for treasury stock using the cost method in accordance with FASB Accounting Standards Codification (“ASC”) 505-30, Equity-Treasury Stock. Under this method, treasury stock is recorded at cost on the date of repurchase and presented as a reduction in Treasury stock. When the Company’s stock is retired or repurchased for constructive retirement (with or without an intention to retire the stock formally in accordance with applicable laws), any excess of par or stated value over the cost of treasury shares is credited to Additional paid-in capital on the Condensed Consolidated Balance Sheets. Stock-based Compensation Stock-based compensation expense related to stock-based awards is recognized based on the fair value of the awards granted in accordance with ASC 718, Compensation - Stock Compensation (“ASC 718”). For stock option awards without a market condition, the fair value of each stock option award is estimated on the grant date utilizing a standard Black-Scholes option-pricing model (i.e., a standard European call option model). For stock option awards with market conditions, the fair value of each stock option award is estimated on the grant date utilizing a more complex Black-Scholes option-pricing model, which captures the additional market condition threshold. For restricted stock unit awards, which have service-only vesting conditions, the fair value of each restricted stock unit award is based on the closing price of the Company’s publicly traded Class A common stock on the date of the grant. The stock option and restricted stock unit awards are classified as equity. For stock option and restricted stock unit awards that follow a graded vesting schedule with a service-only vesting condition, the related stock-based compensation expense is recognized over the requisite service period of the awards. For stock option awards which follow a graded vesting schedule that have a performance-based vesting condition, such awards are recognized on a tranche-by-tranche basis, resulting in each vesting tranche being treated as a separate award. On a tranche-by-tranche basis, stock-based compensation cost for each tranche is recognized over the respective vesting period when it is probable that the performance condition will be achieved. Each reporting period, the Company reassesses the probability of achieving the respective performance condition. If the condition is not expected to be met, no compensation cost is recognized and any previously recognized amount recorded is reversed. If the award contains F-9 Table of Contents Fervo Energy Company and Subsidiaries Notes to Condensed Consolidated Financial Statements (Unaudited) market-based vesting conditions, the stock-based compensation cost is based on the grant-date fair value and expected achievement of market conditions and is not subsequently reversed if it is later determined that the condition is not likely to be met, as long as the related service and performance conditions are achieved. Forfeitures are accounted for as they occur. Prior to the six months ended June 30, 2026, the Company only had stock-based awards with a service-only vesting condition. The Black-Scholes option-pricing model requires the input of significant assumptions. Such assumptions may be highly subjective and include the fair value of the underlying common stock, the expected term of the stock option, the expected volatility of the price of the Company’s common stock, risk-free interest rates, and the expected dividend yield of common stock. The assumptions used to determine the fair value of the option awards represent management’s best estimates. These estimates involve inherent uncertainties and the application of management’s judgment. Employee Stock Purchase Plan The Company accounts for its Employee Stock Purchase Plan ("ESPP") in accordance with ASC 718, as the ESPP is considered to be compensatory. The Company’s ESPP awards are classified as equity awards and measured at grant-date fair value using the Black-Scholes option-pricing model. Each purchase period is accounted for as a separate option tranche, with its own grant date. Stock-based compensation expense is recognized over the requisite service period associated with each purchase period. Employee payroll deductions accumulated under the ESPP are recorded as a liability until the related shares are issued or the amounts are otherwise refunded. The Company accounts for forfeitures as they occur. The fair value of ESPP awards is determined using the Black-Scholes option-pricing model, which relies on the same types of significant and subjective assumptions as those detailed in the Stock-based Compensation policy discussed above. The assumptions used to determine fair value represent management’s best estimates, involving inherent uncertainties and the application of judgment. Net Income (Loss) Per Share The Company follows the two-class method when computing net income (loss) per share. The two-class method requires income available to common shareholders for the period to be allocated between common and participating securities based upon their respective rights to receive distributions as if all income for the period had been distributed. Preferred shares are participating securities because they are entitled to undistributed earnings based on the liquidation preferences. The preferred shares outstanding prior to the IPO do not have the contractual obligation to share in the losses of the Company on a basis that is objectively determinable. Therefore, they are excluded from the allocation of undistributed losses in determining net loss per share. The rights of the holders of the Class A common stock and Class B common stock are identical, except with respect to voting, conversion and transfer rights. Accordingly, undistributed earnings and losses are allocated to Class A and Class B common stockholders on a proportionate basis. As a result, net income (loss) per share is the same for both Class A and Class B common stock on both an individual and combined basis. Basic net income (loss) per share is computed by dividing the net income (loss) attributable to the common stockholders by the weighted average number of common stock outstanding during the period. Diluted net income (loss) is computed by adjusting net income (loss) to reallocate undistributed earnings based on the potential impact of dilutive securities. Diluted net income (loss) per share is computed by dividing the diluted net income (loss) by the weighted average number of common stock outstanding during the period, including potential dilutive common stock assuming the dilutive effect of common stock equivalents. Derivative and Hedging The Company is exposed to interest rate risk associated with its variable-rate debt, which the Company has sought to manage by entering into interest rate swaps that become effective in January 2027. The Company has not designated its derivative instruments as hedging instruments for accounting purposes. As a matter of policy, the Company does not use financial instruments for speculative purposes. F-10 Table of Contents Fervo Energy Company and Subsidiaries Notes to Condensed Consolidated Financial Statements (Unaudited) ASC 815, Derivatives and Hedging, requires entities to recognize all derivative instruments as either assets or liabilities in the Condensed Consolidated Balance Sheets at fair value. As the Company has not elected to apply hedge accounting for its derivative instruments, changes in the fair value of the derivatives are recognized in current-period earnings. The Company’s derivative contracts include interest rate swap agreements, which, once effective, are expected to economically modify the Company’s exposure to interest rate risk by converting a portion of the Company’s floating-rate debt to a fixed-rate basis. These agreements involve the receipt of floating-rate amounts in exchange for fixed-rate interest payments over the life of the agreements without an exchange of the underlying principal amount. Property, Plant and Equipment, Net Construction-in-process represents the capitalized costs related to power plants. All costs associated with the acquisition, development and construction of power plants are capitalized. Major improvements are capitalized and repairs and maintenance are expensed. Property, plant and equipment for power plants are stated at cost, net of accumulated depreciation. The Company capitalizes progress and milestone payments made under certain equipment supply agreements when it is probable that the related projects will be completed and the related amounts are recoverable. If the Company determines that recovery of capitalized construction costs is no longer probable, such costs are charged to Operation and maintenance expense in the period the determination is made. Recent Accounting Pronouncement Accounting Standards to be Implemented In May 2026, the FASB issued Accounting Standards Update (“ASU”) 2026-02, “Environmental Credits and Environmental Credit Obligations (Topic 818)”, which establishes recognition, measurement, presentation, and disclosure requirements for environmental credits and related environmental credit obligations. The guidance is effective for public business entities for annual reporting periods beginning after December 15, 2027 and interim reporting periods within those annual reporting periods. The requirements will be applied retrospectively. Early adoption is permitted. The Company is evaluating the impact of this guidance on the condensed consolidated financial statements and related disclosures. NOTE 3 – DEBT AND OFF-BALANCE SHEET ARRANGEMENTS Long-term debt, net of issuance costs, consisted of the following: (Dollars in thousands) As of June 30, As of December 31, 2026 2025 Current portion of long-term debt Project Granite Facility $ 11,042 $ — Current portion of long-term debt 11,042 — Long-term debt Project Granite Facility 201,302 $ — Mercuria Credit Facility 30,000 30,000 XRC Facility — 145,600 Total principal due for long-term debt 231,302 175,600 Less: Unamortized debt issuance cost ( 13,926 ) ( 2,763 ) Total long-term debt, net of issuance costs and current portion $ 217,376 $ 172,837 F-11 Table of Contents Fervo Energy Company and Subsidiaries Notes to Condensed Consolidated Financial Statements (Unaudited) Project Granite Facility In March 2026, Cape Phase I Borrower LLC and Phase I WellCo LLC (the “Borrowers”), subsidiaries of the Company, entered into a senior secured credit agreement (the “Granite Credit Agreement”) with a syndicate of lenders led by MUFG Bank, Ltd., as administrative agent, and HSBC Bank USA, National Association, as collateral agent, to finance the construction of the Company’s Cape Station (“Cape Station”) Phase I geothermal facility. In connection with the financing, the Borrowers executed customary project finance agreements, including related closing deliverables. The Granite Credit Agreement provides for aggregate commitments of approximately $ 421.4 million, consisting of (i) a construction loan facility, (ii) a tax credit transfer bridge loan facility, (iii) multiple letter of credit facilities, and (iv) a term loan facility into which construction loans are expected to convert upon satisfaction of specified conversion conditions (collectively, the “Project Granite Facility”). Borrowings under the Project Granite Facility are available during the construction period, subject to satisfaction of customary conditions precedent. Borrowings under the construction loan facility are expected to convert into term loans upon satisfaction of specified conversion conditions, including achievement of substantial completion and delivery of certain project‑level documentation. Borrowings under the construction loan facility bear interest at either (i) the secured overnight financing rate (“SOFR”) or (ii) a base rate, at the Borrowers’ election, in each case plus an applicable margin. The construction loan borrowing outstanding as of June 30, 2026 was a SOFR‑based loan bearing interest at SOFR plus a margin of 3.0 %. All SOFR borrowings are subject to a floor of 0.0 %. Interest is payable quarterly. Commitment fees accrue on the unutilized portions of the construction loan facility, the tax credit transfer bridge loan facility, and certain letter of credit facilities at a rate equal to 30.0 % of the applicable margin and are payable quarterly. Following conversion, the term loans will amortize on a quarterly basis beginning in 2027, with the remaining outstanding principal due at maturity. The stated maturity date of the term loans is March 31, 2031. Borrowings under the term loan facility bear interest at either SOFR or the base rate, at the Borrowers’ election, plus an applicable margin, with the SOFR margin equal to 3.0 % and subject to annual 0.1 % increases beginning in March 2029. Base rate borrowings are subject to a margin that is 1.0 % lower than the SOFR margin and are subject to the same annual increases. The Granite Credit Agreement includes customary optional and mandatory prepayment provisions. Mandatory prepayments may be required, among other circumstances, upon receipt of certain extraordinary cash proceeds, including proceeds from the transfer of investment tax credits, failure to monetize production tax credits at or above specified thresholds, excess borrowings relative to term loan sizing criteria upon conversion, or upon the occurrence of an event of default, in which case the lenders may also cease making further loan advances and/or declare all outstanding obligations immediately due and payable. The Company was in compliance with all covenants under the Project Granite Facility as of June 30, 2026. Under the terms of the Granite Credit Agreement, the obligations are secured on a first‑priority basis by substantially all assets of the Borrowers, including project‑level assets associated with the Cape Station Phase I geothermal facility, subject to customary permitted liens. As of June 30, 2026, total outstanding borrowings under the Project Granite Facility were approximately $ 212.3 million, of which $ 11.0 million was classified within current portion of long-term debt and the remainder classified within long-term debt on the Condensed Consolidated Balance Sheets. Borrowings under the Project Granite Facility were used to repay the outstanding borrowings under the XRC Facility and to fund transaction costs and project-related costs, including construction expenditures and required reserves. In March 2026, the Borrowers issued a construction loan with a stated principal amount of approximately $ 14.2 million, which was used to finance third-party debt issuance costs, agency fees and upfront lender fees. Of these costs, approximately $ 6.3 million related to undrawn commitments and remained recorded within other long-term assets on the Condensed Consolidated Balance Sheets as of June 30, 2026. The remaining costs allocated to drawn borrowings are presented as a direct reduction of the related debt balance and are included in the $ 13.9 million of F-12 Table of Contents Fervo Energy Company and Subsidiaries Notes to Condensed Consolidated Financial Statements (Unaudited) unamortized debt issuance costs as of June 30, 2026. In addition, the Company incurred approximately $ 6.7 million of debt issuance costs related to the second draw under the Project Granite Facility during the three months ended June 30, 2026, which are also included in unamortized debt issuance costs. The Company also had $ 17.9 million outstanding under the Granite Letter of Credit Facility, which supports project-level contractual and operational obligations and constitutes an off-balance sheet arrangement. In connection with the Project Granite financing, the Company also entered into agreements to monetize certain production and/or investment tax credits associated with the project, which are expected to generate proceeds to support the overall project financing structure, including repayment of the tax credit transfer bridge loan facility. Mercuria Credit Facility and Letter of Credit Facility In 2024 and 2025, Fervo HoldCo LLC, a wholly owned subsidiary of the Company, entered into and amended a credit agreement with Mercuria Energy Trading SA (“Mercuria”) to provide liquidity and corporate-level access to capital (“Mercuria Credit Facility”). The Company also entered into a letter of credit facility agreement with Mercuria in 2024 to provide credit support for its contractual and operational obligations (“Mercuria Letter of Credit Facility”). As of June 30, 2026 and December 31, 2025, the Company had $ 30.0 million outstanding under the Mercuria Credit Facility. In connection with the Mercuria Credit Facility, the Company incurred debt issuance costs of $ 3.5 million, which are recorded in Other long-term assets on the Condensed Consolidated Balance Sheets and are amortized over the term of the agreement. As of June 30, 2026 and December 31, 2025, the Company also had $ 43.6 million and $ 35.5 million, respectively, outstanding under the Mercuria Letter of Credit Facility, which supports project-level contractual and operational obligations and constitutes an off-balance sheet arrangement. The Company was in compliance with all covenants under the Mercuria Credit Facility and Mercuria Letter of Credit Facility as of June 30, 2026 and December 31, 2025. XRC Facility In 2024 and 2025, Cape Generating Station 3 LLC and Cape Generating Station 5 LLC entered into loan agreements with XRL ALC, LLC (“XRC Facility”), issuing three promissory notes across three tranches. As of December 31, 2025, outstanding borrowings totaled $ 145.6 million. These amounts are offset by the unamortized debt issuance costs of $ 2.8 million. In April 2026, the Company repaid in full the outstanding borrowings of $ 145.6 million under the XRC Facility. The repayment of the XRC Facility resulted in a loss on extinguishment of debt of $ 9.0 million, including $ 6.5 million of prepayment premiums and the $ 2.5 million write-off of unamortized debt issuance costs, which was recorded to Other non-operating expense, net on the Condensed Consolidated Statements of Operations. Upon the repayment, the XRC Facility was terminated. Surety Bond Arrangements As of June 30, 2026 and December 31, 2025, the Company had outstanding surety bonds totaling $ 64.8 million and $ 57.5 million, respectively, which constitute off-balance sheet arrangements. NOTE 4 – DERIVATIVE INSTRUMENTS The Company has entered into derivative instruments intended to manage its exposure to variable-rate debt indexed to Daily Compounded SOFR, issued under its loans drawn from the Granite Credit Agreement dated March 6, 2026. These interest rate swaps become effective in January 2027 and, accordingly, did not provide any hedge of the Company’s interest rate exposure during the periods presented. F-13 Table of Contents Fervo Energy Company and Subsidiaries Notes to Condensed Consolidated Financial Statements (Unaudited) Derivative: Certain information related to our derivatives contracts is presented below: (Dollars in thousands) Effective Date Notional Amount (a) Fixed Rate Index Mandatory Early Termination Date Maturity Date Interest Rate Swaps 1/1/2027 $ 262,375 3.9445 % Daily Compounded SOFR 3/6/2031 12/31/2041 _________________ (a) This amount represents the maximum outstanding notional amount of the interest rate swaps currently entered into over the terms of those interest rate swaps. The notional amounts of the interest rate swaps amortize over the terms of the contracts and range between $ 262.4 million and $ 0.8 million each settlement period based on a pre-defined notional schedule. Derivative Impact on the Condensed Consolidated Statements of Operations: For the three and six months ended June 30, 2026, the Company recognized unrealized gains of $ 1.2 million related to its interest rate swap derivative instruments, which were recorded within Interest expense in the Condensed Consolidated Statements of Operations. Nonperformance risk, including the consideration of credit valuation adjustments related to counterparty credit risk and the Company's own credit risk, is incorporated into the fair value measurements of the Company's derivative instruments. NOTE 5 – FAIR VALUE OF FINANCIAL INSTRUMENTS Financial instruments which are measured at fair value, or for which a fair value is disclosed, are classified in the fair value hierarchy, as outlined below, on the basis of the observability of the inputs used in the fair value measurement: • Level 1 – inputs are based upon quoted prices for identical instruments in active markets. • Level 2 – inputs are based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant inputs are observable in the market or can be corroborated by observable market data. • Level 3 – inputs are generally unobservable and typically reflect management’s estimates of assumptions that market participants would use in pricing the instrument. The Company’s derivative instruments are based on quotes from the market makers that derive fair values from market data, and therefore, are classified as Level 2. The fair values and the levels within the fair value hierarchy of financial instruments recorded on the Condensed Consolidated Balance Sheets were: (Dollars in thousands) As of June 30, 2026 As of December 31, 2025 Financial Instrument Level Carrying Value Fair Value Carrying Value Fair Value Debt instruments: Debt instruments Level 2 242,344 242,426 175,600 170,755 Derivatives not designated as hedging instruments: Interest Rate Swaps (a) Level 2 $ 1,172 $ 1,172 $ — $ — _________________ F-14 Table of Contents Fervo Energy Company and Subsidiaries Notes to Condensed Consolidated Financial Statements (Unaudited) (a) As of June 30, 2026, the fair value of the interest rate swaps was recorded in Prepaid expenses and other of $ 0.1 million and Other long-term assets of $ 1.1 million. NOTE 6 – ASSET RETIREMENT OBLIGATIONS The following table summarizes the changes in the Company’s Asset Retirement Obligations (“ARO”), which are included in Other long-term liabilities on the Condensed Consolidated Balance Sheets, for the periods indicated: (Dollars in thousands) As of June 30, As of December 31, 2026 2025 Beginning balance $ 1,193 $ 299 Liabilities incurred during the period 488 843 Accretion expense 68 51 Ending balance $ 1,749 $ 1,193 NOTE 7 – OTHER CURRENT LIABILITIES The schedule below details the Company’s Other current liabilities presented on the Condensed Consolidated Balance Sheets for the periods indicated: (Dollars in thousands) As of June 30, As of December 31, 2026 2025 Accrued expenses $ 5,104 $ 9,035 Bonus accrual 5,074 4,830 Payroll liabilities 376 564 Embedded derivative (1) 60 1,680 Deferred grant income — 888 Total other current liabilities $ 10,614 $ 16,997 _________________ (1) See Note 13 – Noncontrolling Interests for further discussion on the embedded derivative. NOTE 8 – LEASES The Company has domestic leases on federal, state, and private land in California, Colorado, Idaho, Nevada, New Mexico, Utah, and Washington, along with leases for drilling rigs and related geothermal development equipment, office space, and field vehicles. Bureau of Land Management (“BLM”) geothermal leases provide the geothermal lessee the right and privilege to drill for, extract, produce, remove, utilize, sell, and dispose of geothermal resources on certain lands, together with the right to build and maintain necessary improvements thereon. The actual ownership of the geothermal resources and other minerals beneath the land is retained in the federal mineral estate. The geothermal lease does not grant the geothermal lessee the exclusive right to develop the lands, although the geothermal lessee does hold the exclusive right to develop geothermal resources within the lands. Since BLM leases do not grant to the geothermal lessee the exclusive right to use the surface of the land or extract minerals, BLM may grant rights to others for activities that do not unreasonably interfere with the geothermal lessee’s uses of the same land. During the three and six months ended June 30, 2026, the Company recognized $ 1.5 million and $ 4.1 million, respectively, in total lease expense as reflected in Operating lease expense in the Condensed Consolidated Statements of Operations. During the three and six months ended June 30, 2025, the Company recognized $ 0.2 million and $ 2.2 million, respectively, in total lease expense. Total cash payments related to leases were $ 16.4 million and $ 1.2 million, respectively, for the six months ended June 30, 2026 and 2025. Non-cash lease activity consisted of right-of-use (“ROU”) assets obtained in exchange for lease liabilities of $ 41.7 million for the six months ended June 30, 2026, compared to $ 20.8 million for the six months ended June 30, 2025. F-15 Table of Contents Fervo Energy Company and Subsidiaries Notes to Condensed Consolidated Financial Statements (Unaudited) The following tables present information regarding operating leases recorded on the Condensed Consolidated Balance Sheets where the Company is the lessee for the periods indicated. (Dollars in thousands) As of June 30, As of December 31, Carrying values by asset category 2026 2025 ROU Asset: Geothermal land leases $ 50,634 $ 45,609 Equipment 31,804 6,188 Office space 6,010 6,635 Vehicles 219 281 Total $ 88,667 $ 58,713 Lease Liability (1) : Geothermal land leases $ 67,918 $ 62,744 Equipment 31,524 6,300 Office space 10,213 8,144 Vehicles 212 273 Total $ 109,867 $ 77,461 By asset category As of June 30, As of December 31, 2026 2025 Weighted average remaining term Geothermal land leases 13 years 14 years Equipment 4 years 9 years Office space 4 years 3 years Vehicles 2 years 2 years Weighted average discount rate (2) : Geothermal land leases 11.4 % 11.4 % Equipment 8.3 % 12.0 % Office space 8.7 % 8.7 % Vehicles 10.0 % 9.6 % _________________ (1) The short-term and long-term lease liability totals $ 24.7 million and $ 85.1 million as of June 30, 2026, respectively, and $ 4.8 million and $ 72.6 million as of December 31, 2025. (2) The discount rate for each category of assets represents the Company’s incremental borrowing rate (“IBR”) for leases. The IBR is a significant estimate related to the Company’s operating lease liabilities. It was calculated by determining a credit rating based on credit metrics of comparable publicly traded companies, developing a yield curve for publicly traded debt matching the credit rating, and then developing a weighted average IBR based on those yield curves. F-16 Table of Contents Fervo Energy Company and Subsidiaries Notes to Condensed Consolidated Financial Statements (Unaudited) The following is a schedule showing the Company’s future minimum lease payments associated with the operating leases together with the present value of the net minimum lease payments for the periods indicated. (Dollars in thousands) As of June 30, 2026 2026 $ 12,424 2027 23,251 2028 7,226 2029 13,511 2030 14,010 Thereafter 143,771 Total minimum lease payments $ 214,193 Less: Amount representing interest 104,326 Total lease obligation $ 109,867 Less: Current lease obligation 24,744 Long-term lease obligation $ 85,123 NOTE 9 – COMMON STOCK The rights of the Company’s Class A common stock and Class B common stock issued after the IPO are summarized below. Voting Rights The holders of Class A common stock are entitled to one vote for each share on all voting matters other than matters that solely relate to the terms of one or more outstanding series of preferred stock. The holders of Class B common stock are entitled to 40 votes for each share of Class B common stock on all voting matters other than matters that solely relate to the terms of one or more outstanding series of preferred stock. The holders of shares of Class A and Class B common stock shall, at all times, vote together as a single class on all matters submitted to a vote of the stockholders, including election of directors to the Board of Directors (“Board”). Dividends and Liquidation Rights The holders of Class A and Class B common stock are entitled to dividends if declared by the Board and subject to any rights of the holders of preferred stock outstanding at the time. If the dividend is in the form of common stock, the holders of Class A and Class B common stock will receive a dividend in the respective class of common stock held. During the six months ended June 30, 2026 and 2025 , no dividends on the Company’s common stock had been paid or declared by the Company. In the event of any voluntary or involuntary liquidation, dissolution, winding up of the Company, the holders of Class A and Class B common stock are entitled to share in any distribution of assets on a pro rata basis, subject to any rights of the holders of preferred stock outstanding at the time. Class B Common Stock Conversion Rights Holders of Class B common stock have the right to convert one share of Class B common stock into one share of Class A common stock at any time unless an automatic or mandatory conversion event has occurred. Each share of Class B common stock generally converts automatically into one share of Class A common stock upon any transfer, whether or not for value, subject to specified exceptions for permitted transfers. All outstanding shares of Class B common stock also convert automatically into Class A common stock on a 1 :1 basis upon the earliest to occur of the following mandatory conversion events: (1) the first trading day following the seven th anniversary of the Company’s IPO of Class A common stock, (2) the date on which the Co-Founders and their permitted transferees (including shares underlying outstanding options) cease to hold at least 25 % of the aggregate number of F-17 Table of Contents Fervo Energy Company and Subsidiaries Notes to Condensed Consolidated Financial Statements (Unaudited) Class A and Class B common stock held as of the effective date of the IPO, and (3) certain Co-Founder-specific events such as death, disability or termination for cause. Other Rights Holders of Class A and Class B common stock are generally entitled to equal treatment on a per-share basis in mergers, consolidations and other similar transactions. Any differences in equity consideration distributed to Class A and Class B holders are generally limited to preserving the relative voting rights of the two classes, unless otherwise approved by the requisite vote of each class of common stock. NOTE 10 – STOCK-BASED COMPENSATION AND ESPP The number of shares authorized and to be issued, as they are disclosed below, has been restated to reflect the Reverse Stock Split effected on May 14, 2026. During the six months ended June 30, 2025, the Company granted stock options with a service condition covering 1,867,585 shares for a total grant-date fair value of $ 3.8 million to employees under the 2019 Stock Incentive Plan (the “2019 Plan”). During the six months ended June 30, 2026, the Company granted stock options and restricted stock units to employees and directors under the 2019 Plan for awards prior to the IPO and under the 2026 Stock Incentive Plan (“2026 Plan”) after the IPO. The 2019 Plan was amended on March 6, 2026 to authorize an additional 34,151,952 shares of common stock to be available under the plan and was terminated on April 13, 2026 in anticipation of the IPO, being replaced by the 2026 Plan. Any awards outstanding under the 2019 Plan remained outstanding. On January 26, 2026, the Company granted stock options with a service condition, covering 4,184,750 shares with a total grant-date fair value of $ 16.9 million. On March 6, 2026, the Company granted stock options covering 9,959,797 shares. Of the total March 6, 2026 grant, stock options covering 233,805 shares have a service condition and a total grant-date fair value of $ 1.9 million and stock options covering 2,431,498 shares include both a service condition and performance-based vesting condition tied to an operational milestone and have a total grant-date fair value of $ 19.6 million. As of June 30, 2026, the performance condition related to certain awards granted on March 6, 2026 was considered probable of being achieved, and therefore, the related stock-based compensation expense was recognized during the three and six months ended June 30, 2026. The remaining stock options covering 7,294,494 shares, comprised of three tranches split evenly, contained a performance condition dependent on the Company completing its IPO which has been met during the three months ended June 30, 2026. The remaining vesting conditions for this grant include a) a performance-based vesting condition tied to operational milestones, b) the achievement of either a market-based condition or another performance-based condition tied to operations and c) a service condition. The total grant-date fair value was $ 11.3 million, $ 16.7 million, and $ 13.6 million for each of the respective tranches. The stock options contain a performance condition which was not considered probable of being achieved as of June 30, 2026, related to the operational milestones. Accordingly, no stock-based compensation expense has been recognized related to these awards during the three and six months ended June 30, 2026. The Company will continue to reassess the probability of achieving these conditions at each reporting period and will recognize stock-based compensation expense when such conditions are deemed probable. The grant-date fair value of the stock options with a market condition was estimated using the following Black-Scholes option-pricing model assumptions: Fair value of common stock $ 8.49 Expected volatility 75.0 % Expected term (in years) 5 - 10 Risk-free interest rate 3.7 % - 4.1 % Expected dividend yield 0.0 % F-18 Table of Contents Fervo Energy Company and Subsidiaries Notes to Condensed Consolidated Financial Statements (Unaudited) On April 13, 2026, the Company granted 55,554 restricted stock units to directors with a service condition, for a total grant-date fair value of $ 1.5 million. On June 15, 2026, the Company granted 533,708 restricted stock units to employees with a service condition, for a total grant-date fair value of $ 18.9 million. Stock-based Compensation Expense The Company recorded stock-based compensation expense, excluding the ESPP, of $ 7.6 million and $ 10.2 million for the three and six months ended June 30, 2026, respectively, and $ 0.6 million and $ 1.1 million for the three and six months ended June 30, 2025, respectively, in General and administrative expense in the Condensed Consolidated Statements of Operations. Employee Stock Purchase Plan The Company’s ESPP became effective shortly after the IPO in May 2026. The ESPP allows eligible employees to purchase shares of the Company’s Class A common stock at a discounted price through payroll deductions of up to 15 % of their eligible compensation. The purchase price is equal to 85 % of the fair market value of a share of common stock on the first day of an offering period or the purchase date, whichever is lower. May 21, 2026 was the initial grant date for the ESPP awards. The initial offering period consists of two purchase periods. The total grant-date fair value of the ESPP awards was $ 2.8 million and $ 3.1 million for each of the respective tranches. The grant-date fair value of the ESPP awards was estimated using the following Black-Scholes option-pricing model assumptions: Valuation Date Stock Price $ 42.50 IPO Stock Price $ 27.00 Term Various Expected volatility 75.0 % Risk-free interest rates 3.7 % - 3.8 % Expected dividend yield 0.0 % During the three and six months ended June 30, 2026, no shares had been purchased under the ESPP. The Company recorded stock-based compensation expense related to the ESPP of $ 0.6 million for the three and six months ended June 30, 2026, in General and administrative expense in the Condensed Consolidated Statements of Operations. NOTE 11 – WARRANTS The Company issued warrants in October 2025 in connection with the issuance of Intermediate Class A Units (see Note 13 – Noncontrolling Interests for additional information). The warrants were classified as liabilities in accordance with ASC 480, Distinguishing Liabilities from Equity (“ASC 480”), and were measured at fair value, with changes in fair value recognized in earnings each reporting period. On April 28, 2026, Centaurus Capital LP (“Centaurus”) delivered a notice to exercise the warrants in full. In accordance with its terms, the warrants were exercised on May 13, 2026 into 3,550,329 shares of Series E-2 redeemable convertible preferred stock, which were immediately converted into 2,554,107 shares of Class A common stock after taking into consideration the Reverse Stock Split. Centaurus paid an aggregate exercise price of $ 18.7 million in cash and surrendered the original warrants upon full exercise. As a result of this transaction, the warrants are no longer outstanding, and no further shares are issuable thereunder. The Company recognized a loss of $ 26.9 million and $ 40.0 million during the three and six months ended June 30, 2026, respectively, related to the remeasurement of the warrants, which is reflected within Other non-operating expense, net in the Condensed Consolidated Statements of Operations. Upon exercise, the warrant liability was derecognized and the Class A common stock issued was recognized in equity. F-19 Table of Contents Fervo Energy Company and Subsidiaries Notes to Condensed Consolidated Financial Statements (Unaudited) NOTE 12 – VARIABLE INTEREST ENTITY The Company evaluated its interests in certain legal entities and determined that Cape Phase I HoldCo, LLC (“Cape PI HoldCo”) and Cape Phase I Intermediate HoldCo, LLC (“Cape PI Intermediate HoldCo”) are VIEs under ASC 810, Consolidation (“ASC 810”) as of June 30, 2026. The Company concluded that it is the primary beneficiary of these VIEs because it has (i) the power to direct the activities that most significantly impact these VIEs’ economic performance and (ii) the obligation to absorb losses or the right to receive benefits that could potentially be significant to these VIEs. The Company holds its interest in Cape PI Intermediate HoldCo through other consolidated subsidiaries. Cape PI HoldCo is consolidated into Cape PI Intermediate HoldCo as the direct owner of its equity interests. Accordingly, the Company has consolidated Cape PI HoldCo and Cape PI Intermediate HoldCo in the accompanying condensed consolidated financial statements and recognized noncontrolling interests related to these VIEs. Refer to Note 13 – Noncontrolling Interests. The assets of Cape PI HoldCo and Cape PI Intermediate HoldCo may only be used to settle the obligations of the respective VIEs, and creditors of these entities do not have recourse to the general credit of the Company. The Company’s maximum exposure to loss as a result of its involvement with these VIEs is limited to its investment in the entities and any contractual arrangements that require the Company to provide financial support. As of June 30, 2026, such ongoing financial support includes capital commitments and construction-related funding obligations consistent with those disclosed in the Company’s audited consolidated financial statements for the years ended December 31, 2025 and 2024. Management reassesses its involvement with Cape PI HoldCo and Cape PI Intermediate HoldCo on an ongoing basis to determine whether the Company continues to be the primary beneficiary, including upon the occurrence of a reconsideration event. There have been no material changes in the Company’s VIE conclusions, consolidation determinations or maximum exposure to loss during the six months ended June 30, 2026 from those disclosed as of and for the year ended December 31, 2025. NOTE 13 – NONCONTROLLING INTERESTS As discussed in Note 12 – Variable Interest Entity, the Company has consolidated Cape PI HoldCo and Cape PI Intermediate HoldCo, which were determined to be VIEs for which the Company is the primary beneficiary. Both entities issued Class A Units to third-party investors that represent equity interests in the respective consolidated subsidiaries. Because the Company does not own 100.0% of the outstanding equity in these entities, the Class A Units are accounted for as noncontrolling interests in the consolidated financial statements. The Class A Units issued by Cape PI HoldCo (“CPI HoldCo Class A Units”) and Intermediate Class A Units issued by Cape PI Intermediate HoldCo (“Intermediate Class A Units”) contain redemption features that are outside the control of the respective issuers but are contingent upon the availability of distributable cash. Accordingly, these Class A Units are classified as redeemable noncontrolling interest and are presented as mezzanine equity on the Condensed Consolidated Balance Sheets. CPI HoldCo Class A Units are initially recorded at fair value at the time of issuance, less the direct and incremental issuance costs, and are subsequently measured at the current redemption value to the extent such current redemption value exceeds the attribution of income (loss) to the CPI HoldCo Class A Units. Intermediate Class A Units are initially recorded at proceeds received less the fair value of the warrants issued along with the Intermediate Class A Units and allocated issuance cost. Intermediate Class A Units are subsequently remeasured at their maximum redemption value, to the extent such amounts exceed the allocation of income or loss attributable to the noncontrolling interest. Additionally, two derivatives were identified as being embedded in the Intermediate Class A Units. As of June 30, 2026, conditions relevant to the embedded derivatives were evaluated and one feature was determined to have a fair value of $ 0.1 million. This amount is included in Other current liabilities (see Note 7 – Other Current Liabilities). Changes in the fair value of the embedded derivative are recognized in earnings. For the three and six months ended June 30, 2026, the Company recognized gains of $ 0.4 million and $ 1.6 million, respectively, which were recorded in Other non-operating expense, net. F-20 Table of Contents Fervo Energy Company and Subsidiaries Notes to Condensed Consolidated Financial Statements (Unaudited) There were no material changes to the terms, classification or measurement of the Company’s redeemable noncontrolling interests during the six months ended June 30, 2026. The following table is a summary of the changes in redeemable noncontrolling interest for CPI HoldCo Class A Units for the six months ended June 30, 2026: (Dollars in thousands) Balance at December 31, 2025 $ 102,586 Remeasurement of redeemable noncontrolling interest 2,532 Balance at June 30, 2026 $ 105,118 The following table is a summary of the changes in redeemable noncontrolling interest for Intermediate Class A Units for the six months ended June 30, 2026: (Dollars in thousands) Balance at December 31, 2025 $ 77,344 Remeasurement of redeemable noncontrolling interest 4,514 Balance at June 30, 2026 $ 81,858 NOTE 14 – SEGMENT INFORMATION The Company operates in a single operating and reportable segment, which is consistent with the reporting structure of the Company’s internal organization. The Company’s Chief Executive Officer, who is the Chief Operating Decision Maker (“CODM”), uses the Company’s condensed consolidated financial information to allocate resources and assess performance. The primary measure of segment profit or loss used by the CODM is net loss, as presented in the Condensed Consolidated Statements of Operations. All segment financial information is presented on a consolidated basis in the accompanying condensed consolidated financial statements. There were no changes in the Company’s operating segment structure or the measures used by the CODM to assess performance during the six months ended June 30, 2026. NOTE 15 – EARNINGS PER SHARE The number of shares has been restated to reflect the Reverse Stock Split effected on May 14, 2026. All historical share and per share amounts reflected in the condensed consolidated financial statements for the six months ended June 30, 2026 and 2025 have been retrospectively restated to reflect the change in capital structure for the periods prior to the completion of the Reverse Stock Split, as applicable. See Note 2 – Significant Accounting Policies for details. Basic and diluted net loss per share is calculated as follows: (Dollars and shares in thousands, except per share amounts) Three months ended June 30, Six months ended June 30, 2026 2025 2026 2025 Numerator: Net loss attributable to common stock, Class A common stock and Class B common stock $ ( 59,527 ) $ ( 11,627 ) $ ( 94,791 ) $ ( 20,773 ) Denominator: Weighted-average common stock, Class A common stock and Class B common stock 157,003 8,844 83,643 8,902 Net loss per share – basic and diluted $ ( 0.38 ) $ ( 1.31 ) $ ( 1.13 ) $ ( 2.33 ) F-21 Table of Contents Fervo Energy Company and Subsidiaries Notes to Condensed Consolidated Financial Statements (Unaudited) The following potentially dilutive instruments, based on amounts outstanding and restated to reflect the Reverse Stock Split, that could result in dilution, were excluded from the diluted earnings per share computation because including them would have had an anti-dilutive effect: (Shares in thousands) As of June 30, 2026 2025 Option-based awards 31,758 13,504 Restricted stock units 589 — ESPP 274 — Preferred shares — 160,756 Total 32,621 174,260 NOTE 16 – GRANT INCOME Grant income of $ 0.8 million and $ 0.9 million for the three and six months ended June 30, 2026, respectively, attributable to research and development is netted against eligible expenses in Research and development (income) expense, net in the Condensed Consolidated Statements of Operations. Grant income attributable to research and development activities recognized during the comparable 2025 periods was nominal. Grant income totaling $ 20.7 million and $ 14.1 million attributable to project development is netted against Construction-in-process on the Condensed Consolidated Balance Sheets as of June 30, 2026 and December 31, 2025, respectively. In 2024, the Company was awarded a reimbursement-type grant from the DOE in the amount of $ 22.1 million. The effective date of the grant was July 1, 2024, and the contract was extended through July 31, 2027. Funding under the grant is recognized as qualifying expenditures are incurred in accordance with the terms of the grant agreement. In 2025 and during the six months ended June 30, 2026, the Company has been awarded several smaller grants, totaling $ 0.7 million, which are accounted for consistent with the Company’s grant income policy. NOTE 17 – INCOME TAXES The Company’s effective tax rate was 0.0 % for the three and six months ended June 30, 2026 and 2025. The effective rate differs from the federal statutory rate of 21.0% primarily due to the exercise of warrants and valuation allowance. State and local income tax impacts primarily relate to minimal filing obligations in Utah, California, and the District of Columbia, which collectively comprise the majority of the Company’s state and local income tax exposure. Such obligations did not result in a material current state or local tax expense or benefit and had no material impact on the Company’s effective tax rate for the three and six months ended June 30, 2026 and 2025. NOTE 18 – RELATED PARTY TRANSACTIONS The Company evaluates its relationships and transactions with related parties in accordance with ASC 850, Related Party Disclosures. Related parties include affiliates, principal owners, management, members of the Board of Directors, and their immediate family members, as well as entities under common control or significant influence. During the three and six months ended June 30, 2026 and 2025, the Company incurred costs for technical services provided by a supplier that was a major investor in the Company and a member of the Company’s Board of Directors. The supplier ceased to be a related party during the three months ended June 30, 2026. Costs related to these services were $ 0.0 million and $ 0.1 million for the three and six months ended June 30, 2026, respectively, and $ 0.1 million and $ 0.2 million for the three and six months ended June 30, 2025, respectively. These costs were recorded in General and administrative expense in the Condensed Consolidated Statements of Operations. F-22 Table of Contents Fervo Energy Company and Subsidiaries Notes to Condensed Consolidated Financial Statements (Unaudited) NOTE 19 – COMMITMENTS AND CONTINGENCIES Contractual Commitments As of June 30, 2026, the Company had outstanding contractual commitments of approximately $ 488.3 million, primarily related to its Cape Station Phase I and Cape Station Phase II facilities. This amount represents the Company’s contractual obligations under binding supplier contracts, including fixed and variable components. Litigation and Other Legal Proceedings The Company records liabilities related to litigation and other legal proceedings when they are either known or considered probable and can be reasonably estimated. Legal proceedings are inherently unpredictable and subject to significant uncertainties, and significant judgment is required to determine both probability and the estimated amount. As a result of these uncertainties, any liabilities recorded are based on the best information available at the time. As any new information becomes available, the Company reassesses the potential liability related to pending litigation. Management is not aware of any legal, environmental or other commitments or contingencies that would have a material effect on the Company’s financial condition, results of operations or cash flows for the periods presented. Environmental permits U.S. environmental permitting regimes with respect to geothermal projects center upon several general areas of focus. The first involves land use approvals. These may take the form of Special Use Permits or Conditional Use Permits from local planning authorities or a series of development and utilization plan approvals and right-of-way approvals where the geothermal facility is entirely or partly on BLM lands. Certain federal approvals require a review of environmental impacts in conformance with the federal National Environmental Policy Act. These federal and local land use approvals typically impose conditions and restrictions on the construction, scope and operation of geothermal projects. The second category of permitting focuses on the installation and use of the geothermal wells themselves. Geothermal projects typically have three types of wells: (i) exploration wells designed to define and verify the geothermal resource, (ii) production wells to extract the hot geothermal liquids (also known as brine), and (iii) injection wells to inject the brine back into the subsurface resource. For geothermal wells, including exploration, production and injection wells, the Company obtains applicable drilling, construction, operating and/or injection permits from the relevant federal, state or local agencies in the jurisdictions in which the wells are located. A third category of permits involves the regulation of potential air emissions associated with the construction and operation of wells. Generally, each well requires a preconstruction air permit and storm water discharge permit before earthwork can commence. Certain jurisdictions may also require ministerial or administrative permits such as building permits, hazardous materials storage and management permits, and pressure vessel operating permits. In some cases, projects may also require permits, issued by the applicable federal agencies or authorized state agencies, regarding threatened or endangered species, permits to impact wetlands or other waters and notices of construction of structures which may have an impact on airspace. Environmental laws and regulations may change in the future that may modify the time to receive such permits and associated costs of compliance. All of the material environmental permits and approvals currently required have been obtained. The Company sometimes experiences regulatory delays in obtaining various permits and approvals required for projects in development and construction. These delays may lead to increases in the time and cost to complete these projects. The Company’s operations are designed and conducted to comply with applicable environmental permits and approval requirements. F-23 Table of Contents Fervo Energy Company and Subsidiaries Notes to Condensed Consolidated Financial Statements (Unaudited) Environmental laws and regulations The Company’s facilities and operations are subject to several federal, state, local and foreign environmental laws and regulations relating to development, construction and operation. In the U.S., these may include the Clean Air Act, the Clean Water Act, the Emergency Planning and Community Right-to-Know Act, the Endangered Species Act, the National Environmental Policy Act, the Resource Conservation and Recovery Act, and related state laws and regulations. NOTE 20 – SUBSEQUENT EVENTS Management has evaluated subsequent events that occurred after the date of the Condensed Consolidated Balance Sheets through the date the financial statements were issued. • On July 8, 2026, the Borrowers completed a fourth draw under the Granite Credit Agreement of approximately $ 25.1 million. Other than the matters described above, the Company identified no subsequent events that require adjustment to or disclosure in the condensed consolidated financial statements. F-24 Table of Contents