Why Fervo Energy Stock Surged This Week

Fervo Energy's shares surged 297% this week after securing a massive 15-year power purchase agreement with Alphabet and making significant progress at its Utah facility, according to S&P Global Market Intelligence data. The company's stock rose 29% to $11.51 on Friday, Nov. 13, from $9.54 on Nov. 6. During the same period, the S&P 500 rose 2.5%, while the Nasdaq-100 gained 3.5%.

On Nov. 9, Fervo reported that its contracted revenue backlog grew to $11.9 billion, up from $7.2 billion in the previous quarter, driven by the new deal with Google. Google's 396-megawatt geothermal electricity contract and the company's first 33-megawatt GeoBlock entering commercial operation in Utah on Sept. 30, 2026, were key factors in the surge.

Fervo, a pre-revenue geothermal developer, builds enhanced geothermal power plants using horizontal drilling and hydraulic fracturing adapted from the oil industry. The company's value depends on the success of its Utah project, which is expected to scale and produce multi-gigawatts of clean, continuous electricity to data centers and corporate customers.

Despite heavy selling following its May initial public offering and recent short-seller scrutiny, Fervo's cash runway of $1.9 billion from Sept. 30, 2026, and the $12 billion contracted revenue backlog provide confidence in its growth potential. However, investors should note that the company remains unprofitable, with a $19.5 million quarterly net loss, and the speculative nature of the investment should be carefully considered.