Fervo Energy Co

Previous wording

Factors that could cause the outcomes to differ materially include (but are not limited to) the following: risks related to expanding our geothermal operations and accessing new markets; challenges in maintaining compliance with extensive environmental regulations and permitting requirements, including evolving climate change initiatives that may impact operational costs; uncertainties in forecasting future operational results and growth due to economic conditions and market demand; inherent risks in the geothermal industry, including potential operational disruptions and associated liabilities; the influence of consumer preferences, government policies, and competition on the demand for geothermal energy; risks associated with fluctuations in energy prices and material costs; dependence on a complex supply chain and successful maintenance of our geothermal infrastructure; financial performance influenced by fluctuations in interest rates, capital availability, and other market conditions; capacity actually constructed or for which we enter power purchase agreements under non-binding agreements, like the GFA; exposure to legal proceedings and claims arising from our business operations; protecting our brand reputation and facing potential negative public perception; negative public perception and political opposition impacting our ability to secure regulatory approvals and market acceptance; the successful and timely execution of our growth strategy, with risks of delays or failures; reliance on key personnel and the potential impact of labor costs and workforce challenges; heavy reliance on technology systems and potential cybersecurity threats; global economic and political conditions affecting our operations, supply chain, and customer demand; the risk that our estimates of capacity potential and heat initially in place are inaccurate or that we are unable to produce quantities of electrical energy commensurate with such estimates; and other risks and uncertainties, including those set forth under the section entitled “Risk Factors” in this Report.

Current wording

Factors that could cause the outcomes to differ materially include (but are not limited to) the following: risks related to expanding our geothermal operations and accessing new markets; challenges in maintaining compliance with extensive environmental regulations and permitting requirements, including evolving climate change initiatives that may impact operational costs; uncertainties in forecasting future operational results and growth due to economic conditions and market demand; inherent risks in the geothermal industry, including potential operational disruptions and associated liabilities; the influence of consumer preferences, government policies, and competition on the demand for geothermal energy; risks associated with fluctuations in energy prices and material costs; dependence on a complex supply chain and successful maintenance of our geothermal infrastructure; financial performance influenced by fluctuations in interest rates, capital availability, and other market conditions; capacity actually constructed or for which we enter power purchase agreements under non-binding agreements, like the Geothermal Framework Agreement with Google Energy LLC (the “GFA”); exposure to legal proceedings and claims arising from our business operations; protecting our brand reputation and facing potential negative public perception; negative public perception and political opposition impacting our ability to secure regulatory approvals and market acceptance; the successful and timely execution of our growth strategy, with risks of delays or failures; reliance on key personnel and the potential impact of labor costs and workforce challenges; heavy reliance on technology systems and potential cybersecurity threats; global economic and political conditions affecting our operations, supply chain, and customer demand; the risk that our estimates of capacity potential and heat initially in place are inaccurate or that we are unable to produce quantities of electrical energy commensurate with such estimates; and other risks and uncertainties, including those set forth under the section entitled “Risk Factors” in this Report.

Previous wording

We completed our initial public offering (“IPO”) on May 14, 2026. We are advancing from demonstration to utility-scale commercialization and expect to begin delivering first power at Cape Station in Milford, Utah, which will support multi‑gigawatt power developments (“GeoCluster”). We expect our first standardized, 50-megawatt (“MW”) Organic Rankine Cycle (“ORC”) power plants (“GeoBlock”) to be operational at the end of 2026 and to reach approximately 100 megawatts of operating capacity by early 2027 and 500 megawatts of cumulative operating capacity by the end of 2028. As of March 31, 2026, we had signed 658 megawatts of binding power purchase agreements and other arrangements for the sale of power and related attributes (“PPAs”) with credit-worthy utility and corporate buyers, representing approximately $7.2 billion in potential revenue backlog. We have also entered into a 3-gigawatt Geothermal Framework Agreement with Google Energy LLC (the “GFA”), creating a repeatable commercial model that we believe can accelerate deployment.

Current wording

We completed our initial public offering (“IPO”) on May 14, 2026. We are advancing from demonstration to utility-scale commercialization and expect to begin delivering first power at Cape Station in Milford, Utah, which will support multi‑gigawatt power developments (“GeoCluster”). We expect our first standardized Organic Rankine Cycle (“ORC”) power plants (“GeoBlocks”) to be operational at the end of 2026 and to reach approximately 100 megawatts (“MWs”) of operating capacity by early 2027 and 500 megawatts of cumulative operating capacity by the end of 2028. As of June 30, 2026, we had signed 658 megawatts of binding power purchase agreements and other arrangements for the sale of power and related attributes (“PPAs”) with credit-worthy utility and corporate buyers, representing approximately $7.2 billion in potential revenue backlog. We have also entered into a 3-gigawatt GFA, creating a repeatable commercial model that we believe can accelerate deployment.

Previous wording

On May 14, 2026, we completed our IPO of an aggregate of 80,500,000 shares of Class A common stock of Fervo Energy Company, par value of $0.0001 per share (“Class A common stock”), at a price to the public of $27.00 per share, which includes the exercise in full by the underwriters of their option to purchase an additional 10,500,000 shares of Class A common stock. The gross proceeds from the initial public offering were approximately $2.2 billion, before deducting underwriting discounts and commissions and estimated offering expenses payable by us. We intend to use the net proceeds from the offering for general corporate purposes, including capital expenditures, continued development of our GeoClusters, expansion of our land holdings portfolio, working capital, and operating expenses.

Current wording

On May 14, 2026, we completed our IPO of an aggregate of 80,500,000 shares of Class A common stock of Fervo Energy Company, par value of $0.0001 per share (“Class A common stock”), at a price to the public of $27.00 per share, which includes the exercise in full by the underwriters of their option to purchase an additional 10,500,000 shares of Class A common stock. The gross proceeds from the IPO were approximately $2.2 billion, before deducting underwriting discounts and commissions and estimated offering expenses payable by us. We intend to use the net proceeds from the offering for general corporate purposes, including capital expenditures, continued development of our GeoClusters, expansion of our land holdings portfolio, working capital, and operating expenses.

Previous wording

Construction Progress at Cape Station. We are advancing our Cape Station project in Milford, Utah, where we have 500 megawatts of capacity under construction. We expect to deliver first power from Cape Station by late 2026 and to reach approximately 100 megawatts of operating capacity by early 2027. As of the date of this filing, 79 out of 80 governmental permits and approvals necessary to commence commercial operations at Cape Station Phase I have been received, with the remaining permit in process. Moreover, 82 out of 179 permits of the governmental permits and approvals necessary to commence commercial operations at Cape Station Phase II have been received, and the remaining 97 are in process.

Current wording

Construction Progress at Cape Station. We are advancing our Cape Station project in Milford, Utah, where we have 500 megawatts of capacity under construction. We expect to deliver first power from Cape Station by late 2026 and to reach approximately 100 megawatts of operating capacity by early 2027. As of the date of this filing, 79 out of 80 governmental permits and approvals necessary to commence commercial operations at Cape Station Phase I have been received, with the remaining permit in process. Moreover, 82 out of 179 governmental permits and approvals necessary to commence commercial operations at Cape Station Phase II have been received, and the remaining 97 are in process.

Previous wording

Incremental Public Company Expenses. Following the completion of our IPO, we have incurred and will continue to incur significant expenses that we did not incur as a private company. Those costs include director and officer liability insurance expenses, as well as costs associated with third-party and internal resources related to accounting, auditing, Sarbanes-Oxley Act compliance, legal, and investor relations activities. These costs will generally be expensed as general and administrative expense.

Current wording

Incremental Public Company Expenses. Following the completion of our IPO, we have incurred and will continue to incur significant expenses that we did not incur as a private company. Those costs include director and officer liability insurance expenses, as well as costs associated with third-party and internal resources related to accounting, auditing, Sarbanes-Oxley Act compliance, legal, and investor relations activities. These costs are expensed as incurred and included in General and administrative expense in the Condensed Consolidated Statements of Operations.

Previous wording

The following table summarizes our key business and operational metrics as of and for the periods indicated:

Current wording

The following table summarizes our key business and operational metrics as of and for the period indicated:

Previous wording

The following table sets forth our results of operations for the periods indicated:

Current wording

The following table sets forth our results of operations for the three months ended June 30, 2026 and 2025 including dollar and percentage change period-over-period:

Previous wording

Revenues increased by less than $0.1 million during the three months ended March 31, 2026 compared to the three months ended March 31, 2025. Revenues relate to ancillary fees associated with rights to geothermal production and are not expected to be a significant component of our long-term revenue, as we have not yet commenced large-scale commercial operations. The change was not material to overall results.

Current wording

Revenues increased by $0.1 million during the three months ended June 30, 2026 compared to the three months ended June 30, 2025. Revenues relate to ancillary fees associated with rights to geothermal production and are not expected to be a significant component of our long-term revenue, as we have not yet commenced large-scale commercial operations. The change was not material to overall results.

Previous wording

Operation and maintenance expenses increased approximately $0.2 million during the three months ended March 31, 2026 compared to the three months ended March 31, 2025. The increase was primarily attributable to modest increases in contracted labor, engineering support and site evaluation activities. The change was not material to overall results.

Current wording

Operation and maintenance expenses increased approximately $0.1 million during the three months ended June 30, 2026 compared to the three months ended June 30, 2025, primarily attributable to modest increases in contracted labor, engineering support and site evaluation activities. The change was not material to overall results.

Previous wording

Research and development (“R&D”) income, net increased less than $0.1 million during the three months ended March 31, 2026 compared to the three months ended March 31, 2025. R&D income, net reflects the excess of grant proceeds over qualifying R&D expenditures and is impacted by both the level of the underlying research activity and the timing of grant receivables. The increase was primarily driven by lower qualifying R&D expenditures relative to grant proceeds in the current period, both of which were insignificant for the periods presented.

Current wording

Research and development (“R&D”) (income) expense, net improved by approximately $1.1 million during the three months ended June 30, 2026 compared to the three months ended June 30, 2025, shifting the net R&D expense of $0.4 million in the prior-year period to net R&D income of $0.7 million in the current period. R&D income, net reflects the excess of grant proceeds over qualifying R&D expenditures and is impacted by both the level of the underlying research activity and the timing of grant receivables. The improvement was primarily driven by higher grant proceeds relative to qualifying R&D expenditures in the current period.

Previous wording

General and administrative expense increased by $9.3 million during the three months ended March 31, 2026 compared to the three months ended March 31, 2025. During the period, we experienced an increase in general and administrative cost activities, driven by employee-related costs and additional administrative and operational support functions required to support our growth.

Current wording

General and administrative expense increased by $17.9 million during the three months ended June 30, 2026 compared to the three months ended June 30, 2025, primarily driven by higher employee-related costs and additional administrative and operational support functions required to support our growth.

Previous wording

Operating lease expense increased by $0.6 million during the three months ended March 31, 2026 compared to the three months ended March 31, 2025, primarily attributable to 61 new lease agreements entered into to support the expansion of our geothermal portfolio across approximately 610,000 acres. These lease payments primarily pertain to geothermal resource rights, which maintain our exclusive access to subsurface geothermal resources during the exploration, development, and construction phases of our projects, as well as office facilities and equipment rentals.

Current wording

Operating lease expense increased by $1.3 million during the three months ended June 30, 2026 compared to the three months ended June 30, 2025, primarily due to additional lease arrangements supporting the expansion of our geothermal portfolio across approximately 630,000 acres. The increase reflects growth in our operating lease portfolio from 205 leases as of June 30, 2025 to 255 leases as of June 30, 2026. These lease arrangements primarily relate to geothermal resource rights, as well as office facilities and equipment rentals.

Previous wording

Depreciation and amortization increased less than $0.1 million during the three months ended March 31, 2026 compared to the three months ended March 31, 2025, primarily due to additional assets placed in service. The change was not material to overall results.

Current wording

Depreciation and amortization increased by $0.3 million during the three months ended June 30, 2026 compared to the three months ended June 30, 2025, primarily due to additional non-geothermal assets placed in service.

Previous wording

Interest income increased by $0.8 million during the three months ended March 31, 2026 compared to the three months ended March 31, 2025. The increase was due to higher average cash balances following our Series E preferred stock financing completed in December 2025.

Current wording

Interest income increased by $9.9 million during the three months ended June 30, 2026 compared to the three months ended June 30, 2025, primarily due to higher average cash balances following our successful IPO in May 2026.

Previous wording

Interest expense increased by $1.5 million during the three months ended March 31, 2026 compared to the three months ended March 31, 2025, primarily due to higher outstanding debt balances. Total debt increased by $137.3 million as of March 31, 2026 compared to March 31, 2025, reflecting borrowings under Mercuria Energy Trading SA (“Mercuria”), which include our credit agreement (the “Mercuria Credit Facility”) and the letter of credit facility (the “Mercuria Letter of Credit Facility”), as well as our Project Granite Facility to support our growth and operations.

Current wording

Interest expense increased by $0.5 million during the three months ended June 30, 2026 compared to the three months ended June 30, 2025, primarily due to higher outstanding debt balances. Total debt increased by $162.5 million as of June 30, 2026 compared to June 30, 2025, reflecting borrowings under the senior secured project financing facility entered into in March 2026 (“Project Granite Facility”) and Mercuria Energy Trading SA (“Mercuria”), which include our credit agreement (the “Mercuria Credit Facility”) and the letter of credit facility (the “Mercuria Letter of Credit Facility”) to support our growth and operations. The increase was partially offset by a gain on interest rate swaps recognized during the period ended June 30, 2026.

Previous wording

Other non-operating expense increased by $11.9 million during the three months ended March 31, 2026 compared to the three months ended March 31, 2025. This increase was driven by non-cash fair value remeasurement losses and gains, including a $13.1 million loss related to warrants, partially offset by a $1.2 million gain from the remeasurement of a bifurcated embedded derivative associated with our project-level subsidiary Cape Phase I Intermediate HoldCo, LLC (“Cape PI Intermediate HoldCo”) with Centaurus Capital LP (“Centaurus”).

Current wording

Other non-operating expense, net increased by $35.5 million during the three months ended June 30, 2026 compared to the three months ended June 30, 2025. This increase was driven by a $26.9 million non-cash loss related to the fair value remeasurement of warrants and a $9.0 million loss on extinguishment of debt related to the XRC Facility. These increases were partially offset by a $0.4 million gain from the remeasurement of a bifurcated embedded derivative associated with our project-level subsidiary Cape Phase I Intermediate HoldCo, LLC (“Cape PI Intermediate HoldCo”) with Centaurus Capital LP (“Centaurus”).

Previous wording

Employee‑related expenses increased by $7.4 million during the three months ended March 31, 2026 compared to the three months ended March 31, 2025, primarily due to an increase in headcount of 82 employees, which drove higher compensation-related costs as we expanded our technical, operational, and administrative functions to support project development, execution, and corporate operations. These costs included salaries, payroll taxes, health and welfare benefits, performance‑based bonuses, stock‑based compensation, and retirement plan contributions.

Current wording

Employee‑related expenses increased by $15.6 million during the six months ended June 30, 2026 compared to the six months ended June 30, 2025, primarily due to the cumulative impact of workforce growth to support project development, execution, and corporate operations. The expansion of our employee base resulted in higher compensation-related costs, including salaries, payroll taxes, health and welfare benefits, performance‑based bonuses, stock‑based compensation, and retirement plan contributions.

Previous wording

Additional increases in general and administrative expense of $1.3 million were attributable to higher software, information technology, and data‑related costs, including licensing fees and cloud‑based services, as well as an increase of $1.6 million in legal and professional services, primarily related to external advisory, compliance and public company readiness activities associated with scaling the business. The remaining changes were not individually significant period-over-period.

Current wording

Additional increases in general and administrative expense consisted of $6.4 million in legal and professional services, primarily related to external advisory, compliance and public company readiness activities associated with scaling the business, $2.0 million attributable to higher software, information technology, and data‑related costs, including licensing fees and cloud‑based services, and $2.1 million for insurance and surety bond expenses associated with our expanding asset base and operational footprint. The remaining changes were not individually significant period-over-period.

Previous wording

As of March 31, 2026, our liquidity position consisted of $280.8 million of unrestricted cash and cash equivalents (including $274.5 million held in money market funds) and $6.0 million of restricted cash. In addition, we had access to the following undrawn borrowing capacity: $70.0 million under our Mercuria Credit Facility, $44.5 million under our Mercuria Letter of Credit Facility, and $294.6 million under our Project Granite Facility. As of March 31, 2026, the XRC Facility was fully drawn.

Current wording

As of June 30, 2026, our liquidity position consisted of $2.1 billion of unrestricted cash and cash equivalents and $11.0 million of restricted cash. Our cash and cash equivalents are primarily maintained in highly liquid money market funds and deposit accounts with large financial institutions. In addition, we had access to the following undrawn borrowing capacity: $70.0 million under our Mercuria Credit Facility, $36.4 million under our Mercuria Letter of Credit Facility, and $157.8 million under our Project Granite Facility. We also entered into a letter of credit facility (the “Project Granite Letter of Credit Facility”) and had $33.4 million of undrawn borrowing capacity available thereunder.

Previous wording

On May 14, 2026, we completed our IPO of an aggregate of 80,500,000 shares of Class A common stock at a price of $27.00 per share, which includes 10,500,000 of the Class A common stock issued upon the underwriters’ full exercise of their option to purchase additional shares. The gross proceeds from the initial public offering were approximately $2.2 billion, before deducting underwriting discounts and commissions and estimated offering expenses payable by us.

Current wording

On May 14, 2026, we completed our IPO of an aggregate of 80,500,000 shares of Class A common stock at a price of $27.00 per share, which includes 10,500,000 of the Class A common stock issued upon the underwriters’ full exercise of their option to purchase additional shares. The gross proceeds from the IPO were approximately $2.2 billion, before deducting underwriting discounts and commissions and estimated offering expenses payable by us.

Previous wording

Our Cape Station Phase I project is financed through agreements with Granite Energy InvestCo, LLC (“Catalyst”) and Centaurus, which are accounted for as variable interest entities. These arrangements involve project-level preferred equity with priority distribution waterfalls that must be satisfied before any cash is available to the Company. Distributions under both financings are contingent upon the project achieving commercial operations and generating distributable cash flow; accordingly, we do not expect preferred distributions to be required during the twelve-month period following March 31, 2026.

Current wording

Our Cape Station Phase I project is financed through agreements with Granite Energy InvestCo, LLC (“Catalyst”) and Centaurus. The financing arrangements are held through Cape PI HoldCo, LLC and Cape PI Intermediate HoldCo, LLC, which are consolidated by the Company and accounted for as variable interest entities ("VIEs"). These arrangements involve project-level preferred equity with priority distribution waterfalls that must be satisfied before any cash is available to the Company. Distributions under both financings are contingent upon the project achieving commercial operations and generating distributable cash flow; accordingly, we do not expect preferred distributions to be required during the 12-month period following June 30, 2026.

Previous wording

Our capital requirements for 2026 and beyond are expected to remain substantial as we advance multiple GeoBlocks toward commercial operation, including Cape Station. While we have not yet achieved significant revenue generation, we anticipate our funding needs will include continued capital expenditures for projects under construction, such as Cape Station, exploration and development costs for new geothermal sites across our approximately 610,000-acre portfolio, personnel costs and general and administrative expense as we scale our organization and technical capabilities, and working capital to support expanded operations.

Current wording

Our capital requirements for 2026 and beyond are expected to remain substantial as we advance multiple GeoBlocks toward commercial operation, including Cape Station. While we have not yet achieved significant revenue generation, we anticipate our funding needs will include continued capital expenditures for projects under construction, such as Cape Station, exploration and development costs for new geothermal sites across our approximately 630,000-acre portfolio, personnel costs and general and administrative expense as we scale our organization and technical capabilities, and working capital to support expanded operations.

Previous wording

Based on current conditions, we believe our capital resources are sufficient to meet our financial obligations and fund our planned development activities for at least the next 12 months. As a company with significant development activities transitioning toward commercial operations, we continue to rely on external financing to fund our operations and growth initiatives.

Current wording

Based on current conditions, we believe our capital resources are sufficient to meet our financial obligations and fund our planned development activities. As a company with significant development activities transitioning toward commercial operations, we continue to rely on external financing to fund our operations and growth initiatives.

Previous wording

During 2024 and 2025, Cape Generating Station 3 LLC and Cape Generating Station 5 LLC, two of our wholly owned subsidiaries, issued three promissory notes under the XRC Facility. As of March 31, 2026, the XRC Facility consisted of three tranches totaling $145.6 million in commitments, all of which were fully drawn. The XRC Facility included customary restrictive covenants, including limitations on indebtedness, liens, restricted payments, and certain corporate actions.

Current wording

During 2024 and 2025, Cape Generating Station 3 LLC and Cape Generating Station 5 LLC, two of our wholly owned subsidiaries, issued three promissory notes under the XRC Facility. On April 14, 2026, we repaid all outstanding borrowings under the XRC Facility using proceeds from the Project Granite Facility, and the facility was terminated. See Note 3 – Debt and Off-Balance Sheet Arrangements in the notes to condensed consolidated financial statements for further discussion.

Previous wording

As of March 31, 2026, Fervo HoldCo LLC had drawn $30.0 million under the Mercuria Credit Facility and $35.5 million under the Mercuria Letter of Credit Facility. The Mercuria Credit Facility matures on November 20, 2027, while the Mercuria Letter of Credit Facility matures on the earlier of November 20, 2027 or upon acceleration of its obligations due to an event of default.

Current wording

As of June 30, 2026, Fervo HoldCo LLC had drawn $30.0 million under the Mercuria Credit Facility and $43.6 million under the Mercuria Letter of Credit Facility. The Mercuria Credit Facility matures on November 20, 2027, while the Mercuria Letter of Credit Facility matures on the earlier of November 20, 2027 or upon acceleration of its obligations due to an event of default.

Previous wording

As of March 31, 2026, the Borrowers had $14.2 million outstanding under the construction loan. The proceeds financed third-party debt issuance costs, agency fees and upfront lender fees incurred upon execution of the Granite Credit Agreement.

Current wording

As of June 30, 2026, the Borrowers had $212.3 million outstanding under the construction loan and tax credit transfer bridge loan facility and $17.9 million outstanding under the Project Granite Letter of Credit Facility. The proceeds financed third-party debt issuance costs, agency fees and upfront lender fees incurred upon execution of the Granite Credit Agreement. As of June 30, 2026, we had access to undrawn borrowing capacity of $157.8 million, consisting of the construction loan facility and a tax credit transfer bridge loan facility and $33.4 million under our Project Granite Letter of Credit Facility.

Previous wording

We have significant NOLs that may provide future offset to taxable income during the applicable carryover periods. As of March 31, 2026, we had approximately $95.9 million of net operating loss carryforwards for federal tax purposes, all of which are indefinitely lived. We continue to assess whether the deferred tax assets are likely to be realized based on future taxable income and the reversal of deferred tax liabilities. Because we have limited historical earnings, we believe it is still more likely than not that these assets will not be utilized, so a valuation allowance remains on the net deferred tax asset balance.

Current wording

We have significant NOLs that may provide future offset to taxable income during the applicable carryover periods. As of June 30, 2026, we had approximately $124.0 million of net operating loss carryforwards for federal tax purposes, all of which are indefinitely lived. We continue to assess whether the deferred tax assets are likely to be realized based on future taxable income and the reversal of deferred tax liabilities. Because we have limited historical earnings, we believe it is still more likely than not that these assets will not be utilized, so a valuation allowance remains on the net deferred tax asset balance.

Previous wording

Net cash used in operating activities increased by $26.1 million for the three months ended March 31, 2026 compared to the prior year period, primarily driven by a higher net loss, partially reduced by higher non-cash net expense and favorable working capital timing.

Current wording

Net cash used in operating activities increased by $50.0 million for the six months ended June 30, 2026 compared to the six months ended June 30, 2025, primarily driven by a higher net loss, partially reduced by higher non-cash items during the period.

Previous wording

Net loss, excluding non-cash activities, was $10.8 million for the three months ended March 31, 2026 compared to $7.9 million in the prior year period, which contributed to a $2.9 million increase in cash used in operating activities. Such increase reflects higher underlying cash operating expenses, including employee-related costs and other operating expenditures, as described in the “Management’s Disc ussionand Analysis of Financial Condition and Results of Operations - Results of Operations” section above.

Current wording

Net loss, excluding non-cash activities, was $26.0 million for the six months ended June 30, 2026 compared to $17.0 million in the prior year period, which contributed to a $9.0 million increase in cash used in operating activities. Such increase reflects higher underlying cash operating expenses, including employee-related costs and other operating expenditures, as described in the “Management’s Discussion and Analysis of Financial Condition and Results of Operations - Results of Operations” section above.

Previous wording

Changes in operating assets and liabilities provided $1.8 million of cash in the current period compared to $24.9 million in the prior year period, representing a $23.1 million decrease. This decrease was primarily driven by lower inflows from deposits of $18.7 million, reflecting fewer releases and increased funding of performance bond deposits, as well as higher cash outflows from prepaid expenses and other of $4.2 million and net changes in grant receivables and other assets and liabilities of $5.2 million, primarily due to timing of vendor payments and operating cost disbursements. This was partially offset by favorable change in accounts payable of $4.9 million, reflecting the timing of payments of operating and administrative expenses between periods.

Current wording

Changes in operating assets and liabilities used $17.8 million of cash in the current period compared to $23.3 million cash provided in the prior year period, representing a $41.1 million decrease. This decrease was primarily driven by lower inflows from deposits of $15.3 million, reflecting fewer releases and increased funding of performance bond deposits, as well as higher cash outflows from prepaid expenses and other of $24.7 million and net changes in grant receivables and other assets and liabilities of $9.6 million, primarily due to timing of vendor payments and operating cost disbursements. This was partially offset by favorable change in accounts payable of $8.5 million, reflecting the timing of payments of operating and administrative expenses between periods.

Previous wording

Cash used in investing activities during the three months ended March 31, 2026 and three months ended March 31, 2025 related entirely to capital expenditures, which increased by $67.4 million during the three months ended March 31, 2026 compared to the prior year period.

Current wording

Cash used in investing activities during the six months ended June 30, 2026 and the six months ended June 30, 2025 related entirely to capital expenditures, which increased by $185.9 million during the six months ended June 30, 2026 compared to the prior year period.

Previous wording

This increase reflects accelerated project development activities as we advanced GeoBlocks toward construction and operation. Capital expenditures during the three months ended March 31, 2026 were driven primarily by construction activities at Cape Station, including the drilling and completion of production and injection wells, development of surface facilities, and construction of related infrastructure necessary to support future commercial power generation.

Current wording

This increase reflects accelerated project development activities as we advanced GeoBlocks toward construction and operation. Capital expenditures during the six months ended June 30, 2026 were driven primarily by construction activities at Cape Station, including the drilling and completion of production and injection wells, development of surface facilities, and construction of related infrastructure necessary to support future commercial power generation.

Previous wording

Of our total capital expenditures during the three months ended March 31, 2026, the majority of spending was non‑discretionary, necessary to advance GeoBlocks already under development. They consisted of costs required to complete in‑process GeoBlocks, satisfy regulatory and safety requirements, and meet contractual milestones.

Current wording

Of our total capital expenditures during the six months ended June 30, 2026, the majority of spending was non‑discretionary, necessary to advance GeoBlocks already under development. They consisted of costs required to complete in‑process GeoBlocks, satisfy regulatory and safety requirements, and meet contractual milestones.

Previous wording

Net cash provided by financing activities during the three months ended March 31, 2026 was attributable to $0.8 million of proceeds from the issuance of common stock. We also received $14.2 million of proceeds from the Project Granite Facility that were entirely offset by third-party debt issuance costs, agency fees and upfront lender fees.

Current wording

Net cash provided by financing activities during the six months ended June 30, 2026 was primarily attributable to $2.0 billion of proceeds from our IPO. We also received $212.3 million of proceeds from the Project Granite Facility that were partially offset by $20.9 million of third-party debt issuance costs and $152.1 million repayment of long-term debt. In addition, we received $18.7 million of cash proceeds from the exercise of warrants and $1.2 million of proceeds from the issuance of common stock.

Previous wording

For the three months ended March 31, 2025, net cash provided by financing activities primarily reflected proceeds from equity and debt financings completed during the year, including $8.0 million of net proceeds from the XRC Facility and $0.1 million of proceeds from the issuance of common stock. These financing inflows were partially offset by $1.9 million of cash used for the repurchase of treasury stock during the period.

Current wording

For the six months ended June 30, 2025, net cash provided by financing activities primarily reflected proceeds from equity and debt financings completed during the year, including $81.2 million of proceeds from subsidiary stock, net of issuance costs, $23.0 million of net proceeds from the XRC Facility and Mercuria, and $0.2 million of proceeds from the issuance of common stock. These financing inflows were partially offset by $2.0 million of cash used for the repurchase of treasury stock during the period.

Previous wording

Our contractual obligations consist of purchase commitments, long-term debt and related interest payments, and operating lease obligations. We have entered into commitments with suppliers for materials and services to support the development and construction of our geothermal projects. As of March 31, 2026, we had total supplier contractual commitments of $496.3 million, the majority of which relates to our Cape Station Phase I and Cape

Current wording

Our contractual obligations consist of purchase commitments, long-term debt and related interest payments, and operating lease obligations. We have entered into commitments with suppliers for materials and services to support the development and construction of our geothermal projects. As of June 30, 2026, we had total supplier contractual commitments of $488.3 million, the majority of which relates to our Cape Station Phase I and Cape Station Phase II facilities. See Note 3 – Debt and Off-Balance Sheet Arrangements, Note 8 – Leases and Note 19 – Commitments and Contingencies of the notes to the condensed consolidated financial statements, for further information on our commitments.

Previous wording

In addition to the Mercuria Letter of Credit Facility described above, we maintain surety bond arrangements to support our contractual obligations under PPAs, land development agreements, and construction contracts. As of March 31, 2026, we had $59.8 million in outstanding surety bonds. We expect our surety bond requirements to increase as we continue to develop our geothermal projects and enter into additional commercial agreements.

Current wording

In addition to the Mercuria Letter of Credit Facility and Granite Letter of Credit Facility described above, we maintain surety bond arrangements to support our contractual obligations under PPAs, land development agreements, and construction contracts. As of June 30, 2026, we had $64.8 million in outstanding surety bonds. We expect our surety bond requirements to increase as we continue to develop our geothermal projects and enter into additional commercial agreements.

Previous wording

Additionally, we are a “smaller reporting company,” or “SRC”, as defined in Item 10(f)(1) of Regulation S-K. Smaller reporting companies may take advantage of certain reduced disclosure obligations, including, among other things, providing only two years of audited financial statements. We will be a smaller reporting company until the last day of any fiscal year for so long as either (1) the market value of common Stock held by non-affiliates did not exceed $250 million as of the prior June 30, or (2) our annual revenues did not exceed $100 million during such completed fiscal year and the market value of common Stock held by non-affiliates did not exceed $700 million as of the prior June 30.

Current wording

Additionally, we are a “smaller reporting company,” or “SRC”, as defined in Item 10(f)(1) of Regulation S-K. Smaller reporting companies may take advantage of certain reduced disclosure obligations, including, among other things, providing only two years of audited financial statements. We will be a smaller reporting company until the last day of any fiscal year for so long as either (1) the market value of common stock held by non-affiliates did not exceed $250.0 million as of the prior June 30, or (2) our annual revenues did not exceed $100.0 million during such completed fiscal year and the market value of common stock held by non-affiliates did not exceed $700.0 million as of the prior June 30.