Fervo Energy Shares Under Pressure After Research Report Questions Geothermal Projects

Key Facts

1Morpheus Research published a report alleging Fervo Energy failed to disclose existential issues including thermal decline and excessive water loss.

2FRVO stock closed at $14.33, which is approximately 46% below its $27 IPO price.

Morpheus Research published a report alleging that Fervo Energy failed to disclose existential issues regarding its geothermal projects, according to a statement carried by PR Newswire. The report claims the company concealed data on thermal decline, excessive water loss, and equipment damage caused by seismic activity, raising concerns over the transparency of the company's IPO disclosures.

FRVO shares closed at $12.87 on October 12, 2026, significantly below the initial public offering price of $27. According to the Morpheus Research report, the company's Cape Station site has experienced approximately 58 yellow-level seismic events, while Project Red reportedly exhibits a water loss rate of 30%, far exceeding the sub-1% loss rate required for commercial-scale operations.