Fervo Energy Stock: Will There Be an IPO?

Explore ways to acquire Fervo Energy stock and its potential for an IPO. Invest in pre-IPO startups like OpenAI, Databricks, Anduril, and Anthropic via the Fundrise Innovation Fund. 

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Notable Fervo Energy News

09/24/2024: Big Tech Is Rushing to Find Clean Power to Fuel AI
06/25/2024: Good news for 100% clean energy
02/29/2024: Fervo Energy Raises $244 Million
09/25/2023: Fervo Energy Breaks Ground in Utah
Older news…

About Fervo Energy

Fervo Energy is a geothermal energy company that uses the power of the Earth’s heat to generate clean electricity.

The company deploys drilling techniques and horizontal well technology developed in the oil and gas industry to create enhanced geothermal systems (EGS). 

Cold water is pumped underground, heated by the Earth’s natural heat, and returned to the surface. The Organic Rankine Cycle technology efficiently converts this geothermal energy into electricity with zero carbon emissions or pollutants. 

By applying innovations learned in oil drilling, Fervo Energy aims to scale geothermal energy cost-effectively, overcoming nagging barriers to widespread adoption.

Tim Latimer and Jack Norbeck founded the company in 2017. With energy engineering and geosciences backgrounds, the duo has raised at least $421 million in private funding.

The company aims to provide 24/7 carbon-free geothermal electricity, becoming a cornerstone of the renewable energy mix.

Fervo Energy has two active projects: Project Red in northern Nevada and Cape Station in Beaver County, Utah. 

Here’s a Bill Gates video explaining the technology and opportunity:

Ownership

Fervo Energy is a venture-backed startup. Equity owners include founders, employees, venture capital firms, and private investors.

The company has raised more than $421 million since 2017.

The latest confirmed funding round was a Series D in February 2024. The funding round raised $244 million. 

Prominent venture capital investors include Breakthrough Energy Ventures, CPP Investments, Capricorn Investment Group, Congruent Ventures, DCVC, Grantham Foundation, Impact Science Ventures, Liberty Energy, Macquarie, and Prelude Ventures.

Public companies Helmerich & Payne (HP) and Devon Energy (DVN) also own a stake with strategic partnerships. 

Funding Rounds

WordPress Data Table Plugin

Valuation 

The Fervo Energy valuation is estimated to be $650 million after the February 2024 funding round.

IPO Potential

The Fervo Energy IPO date is unknown and unlikely to occur in the next several years. 

The company has demonstrated that its technology and plant design meets its intended energy generation outcomes. It has also established demand for its 24/7 carbon-free energy, partnering with Google on its initial plant in Northern Nevada. 

Companies like Google and others committed to clean energy consumption goals need overnight power when wind and solar are unreliable. Southern California Edison has agreed to purchase

Despite proven technology and industry demand, Fervo Energy is still years from becoming a sustainable company. It will need to raise more private funds and scale multiple geothermal plants and surrounding infrastructure to capitalize on its technology and progress. 

Once public, the company will likely operate as a utility, being paid market rates or a slight premium for its carbon-free energy. Therefore, the excitement around its positive impact on climate may outweigh its potential for investor returns. 

Fervo Energy may also become an acquisition candidate. With at least two corporate investors and partnerships with tech giants, innovative companies are always in the crosshairs.

Bookmark this page for the latest developments.

How to Buy Fervo Energy Stock

Since Fervo Energy is a private company, becoming an equity owner today is challenging. As of Q3 2024, its valuation remains below $1 billion, so limited private shares will be available for pre-IPO investors.

However, you can take action to improve your chances of early equity ownership or acquire shares later during the IPO. If the company raises funds at a higher valuation, we may see more opportunities to own the company. 

Here are some potential ways to acquire equity exposure before and after an IPO.

1. Buy Devon Energy (DVN) or Helmerich & Payne (HP)

Devon Energy and Helmerich & Payne own stakes in Fervo Energy. Both businesses are familiar with drilling and resource exploration and can lend expertise to Fervo Energy as it scales its business.

Ordinary investors can buy either stock to gain indirect investment exposure today. Devon Energy’s known stake is at least $10 million, based on an April 2023 partnership announcement. The Helmerich & Payne stake remains unknown. 

2. Access shares on pre-IPO investing platforms

The author has yet to see evidence of Fervo Energy stock availability on pre-IPO investing platforms.

Shares may become available if early investors or employees want to cash out before an IPO if that ever occurs. 

This may become more likely if the company raises another round of venture capital. Check out our list of top pre-IPO investing platforms for current share availability. 

Accredited investors can watch pre-IPO investing platforms such as Hiive, Linqto, ForgeGlobal, and EquityZen for Fervo Energy share availability. 

Minimum investment amounts on these platforms range from $2,500 to $50,000 or more. Signing up for online access to pre-IPO data and deal alerts is free. 

Non-accredited investors can own pre-IPO companies by owning the Fundrise Innovation Fund (review).

However, you cannot select individual pre-IPO companies, and Fervo Energy stock is not currently in the portfolio.

Please note: This is a testimonial in partnership with Fundrise. We earn a commission from partner links on AccessIPOs.com. All opinions are my own.

As companies mature, gain more shareholders, and delay their IPO due to macro conditions, more equity holders may seek liquidation before the IPO. 

3. Participate in the Fervo Energy IPO

If it ever materializes, the Fervo Energy IPO will likely be several years away. When the time comes, investors can position themselves to participate in IPOs if the strategy can help them meet their investment objectives. 

But it takes some upfront homework. 

IPO access has become more attainable to retail investors in the past few years. 

The following online brokers give customers free access to IPOs, even with low account balances:

• TradeStation 
• Robinhood 

TradeStation has a longer track record of accessing more than 360 IPOs and secondary offerings via its partnership with Click markets.

But Robinhood has the advantage of Silicon Valley networks and a history of getting allocations for high-profile IPOs.

Check out this list of best brokers for IPO investing to learn more about IPO access for retail investors.

4. Buy Fervo stock after the IPO

Waiting for the IPO requires patience. Fervo Energy’s IPO may never happen or be five or ten years away.

But there are advantages to waiting until after the IPO before owning stocks. 

IPOs allow investors to review financials via the S-1 filing. Pre-IPO investing has limited financials available. 

An IPO is a sign that the company is viable for the long term. Fervo Energy has not yet demonstrated its ability to be a sustainable company, though it promises a high-demand end product (24/7 clean electricity). 

IPO stock prices typically rise with high-demand companies. You can benefit if you’re in early and sell when the price overheats.

Overheated companies may rise irrationally initially but lose value as the market or industry turns. Stock price declines after IPOs can be excellent entry points.

Avoid buying overvalued shares immediately after the IPO. Shares often fall after the IPO due to lockup expirations and quarterly earnings disappointments. 

Frequently Asked Questions (FAQs)

Is Fervo Energy Publicly Traded?

No. Fervo Energy is not publicly traded. 

What is the Fervo Energy Stock Price?

There is no public Fervo Energy stock price yet. The company is private. 

According to multiple sources, the February 2024 Series D funding round raised funds at an average price per share of around $2.34.

What is the Fervo Energy Stock Symbol?

Fervo Energy is a private company and is expected to be for some time. There is no Fervo Energy stock symbol yet. 

Companies release their stock symbols along with their public SEC filings, so we won’t see it until the company is close to an IPO. 

Here are two Fervo Energy ticker suggestions that appear to be available in the U.S.: 

• FERV
• FRVO

Where is the Fervo Energy S-1 Filing?

Fervo Energy is unlikely to start the IPO process in the next five years as it scales its business. So, investors will not find any SEC IPO filings. 

When the company makes progress with its technology and can generate reliable revenue, it may choose the public route.

If Fervo Energy ever submits an S-1 filing and releases it to the public, we’ll post it here. 

In the meantime, you can check out the most recent S-1 filings in our S-1 filings feed. 

Fervo News Archive

07/18/2023: Fervo Energy Announces Technology Breakthrough
04/18/2023: Devon Energy Invests $10 Million into Fervo Energy
08/22/2022: Fervo Energy Raises $138 Million
04/30/2021: Fervo Energy Raises $28 Million Series B

Conclusion

Retail investors get excited about extraordinary technologies and scientific breakthroughs like geothermal energy and energy storage. 

Geothermal is one of the more promising clean energies because it is available 24/7, unlike solar and wind. 

Previous efforts to harness the Earth’s underground heat have proved too inefficient to scale. However, Fervo Energy is leveraging existing technologies deployed in oil and gas drilling and extraction practices to improve efficiencies and lower costs to produce electricity. 

Buying private stocks of companies valued at under $1 billion is difficult for ordinary investors because of the lack of share supply. 

This company needs to grow over the next few years and raise more private funds before early investors, and employees look to liquidate shares, at which point retail investors may get a chance to invest. 

Though pre-IPO investing platforms have opened more opportunities, private equity investing is still primarily reserved for accredited investors because of the added risk. Fervo Energy is scaling with no profitability in sight. That decreases the potential to invest and the likelihood of share availability. 

If Fervo Energy stock is on your radar, you must be patient. We may be several years away from ownership opportunities, public or private. Invest in pre-IPO and IPO companies with caution.

Read more: Climate Tech Startups in the IPO Pipeline

* Disclosure: The web page contains affiliate links from our partners. If a reader opens an account or buys a service from a link in this article, we may be compensated at no additional cost to the reader. Opening an account with a broker that provides access to IPOs does not guarantee the customer allocations of specific IPOs. The author is long HOOD and the Fundrise Innovation Fund. This is a testimonial in partnership with Fundrise. We earn a commission from partner links on AccessIPOs.com. All opinions are my own.