Fervo Raises Contracted Revenue to $11.9 Billion After Google Deal
Key Facts
Fervo Energy said on November 9, 2026, that a binding power purchase agreement with Google raised capacity covered by its agreements to 1,054 megawatts and contracted revenue to about $11.9 billion. The company had reported 658 megawatts and about $7.2 billion at the end of the second quarter of 2026. It said the Google agreement covers 396 megawatts, adding a substantial share of the new capacity to its contract portfolio. The $11.9 billion represents revenue tied to binding power purchase agreements, while accounting revenue recorded during the quarter was $116,000. The figures put project execution and commissioning schedules at the center of the company’s construction phase.
The Google agreement runs for 15 years and covers capacity across eight grid-connected GeoBlocks at fixed terms, according to Fervo’s disclosure. The company expects the first deliveries from the units to begin in mid-2028, with full capacity targeted to be operational by the end of the same year. Fervo signed a 115-megawatt power purchase agreement with Google and NV Energy in June 2024, according to its filing with the U.S. Securities and Exchange Commission. The new agreement adds greater capacity to that collaboration under the Cape Google 400 project. The company says the agreement expands its contracted revenue base, while conversion into deliveries and actual operations remains tied to completing the units on schedule.
On results, Fervo reported accounting revenue of $116,000 in the third quarter of 2026, compared with $55,000 in the same quarter of 2025. The company posted net income of $11.7 million, but also reported a net loss attributable to common shareholders of $20.8 million, or $0.07 per share. It said net income was affected by interest income, gains and nonrecurring tax benefits. The contracted revenue of about $11.9 billion therefore differs from the revenue reported in the quarter’s financial statements. The results show that growth in the contract base does not mean accounting revenue has already turned into operating cash flows of the same scale.
Fervo ended the quarter on September 30, 2026, with $1.9 billion in unrestricted cash and cash equivalents, against current and long-term debt of $301.6 million. The liquidity comes as the company executes its projects and incurs construction-related capital spending. It said the efficiency of building and commissioning GeoBlock units allowed it to defer some Cape Google 400 spending to later stages of the construction cycle. It added that the timing does not change expected commercial operation dates or total expected investment. The company said the lower second-half spending outlook reflects spending timing and execution efficiency, not a change in the project’s scope or target schedule.
At Cape Station, Fervo said GeoBlock 2 connected to the grid and began early operations with test power deliveries, while mechanical construction of GeoBlock 3 was completed and it entered the cold commissioning phase. The company expects both units to begin commercial operations before January 1, 2027, completing the project’s first phase. This provides a near-term indicator of execution progress ahead of the expected start of Google agreement deliveries in mid-2028. An independent study by DeGolyer and MacNaughton also raised the estimate of potential capacity at Cape Station to about 8.4 gigawatts, compared with a previous estimate of 4.3 gigawatts. These figures remain estimates of potential capacity, while announced binding contracts cover specified capacity under power purchase agreements.
Fervo set its next investor event for November 19, 2026, when it will host an open house at the Cape Station site, including the drilling rig and power plant. The company said the event will not include new disclosures. It follows the third-quarter results announcement and updates on GeoBlock 2 and 3. Before then, the next operational milestone announced by the company is its expectation that the units will begin commercial operations before January 1, 2027. For the Google agreement, Fervo is targeting the first deliveries in mid-2028 and operation of full capacity by the end of that year.