Fervo Energy Company (FRVO) Scrutinized in New Report Questioning Geothermal Narrative, Stock Closes 46% Below IPO – HBSS
Key Highlights
- ➤Fervo shares closed at $14.33, about 46% below its $27 IPO price
- ➤Morpheus Research alleged undisclosed thermal decline, water loss, and seismicity-related equipment damage
- ➤Project Red reportedly exhibited approximately 30% water loss, versus a sub-1% commercial requirement
- ➤Cape Station reportedly experienced at least approximately 58 yellow-level seismic events
- ➤Hagens Berman expanded its investigation into Fervo’s disclosures and IPO transparency
Expert Statements
Reed Kathrein, Partner at Hagens Berman
“We’re focused on the validity of Morpheus’ conclusions and, whether Fervo was sufficiently transparent about its ability to deliver on its GFA power backlog”
SAN FRANCISCO, Oct. 09, 2026 (GLOBE NEWSWIRE) -- Fervo Energy Company (NASDAQ: FRVO) faces renewed scrutiny amid an October 6, 2026 report published by investigative research firm Morpheus Research in which Morpheus concludes “that Fervo has failed to disclose existential issues” – namely, thermal decline, excessive water loss, and seismicity-related equipment damage.
The report triggered an intraday decline in the price of Fervo shares before recovering to close at $14.33 that day (about 46% below the price of Fervo’s $27 IPO last May) and follows last August’s surprise revelation that the company expected a temporary shutdown of certain transmission infrastructure it relies on to deliver electricity from its Cape Station project.
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