Fervo Energy Announces Investment From US Oil and Gas Leader Devon Energy

Rhea-AI Summary

Devon Energy has announced a $10 million strategic investment in Fervo Energy, marking a significant partnership in the geothermal sector. This investment leverages Devon’s over 50 years of experience in oil and gas, aimed at enhancing geothermal technology. Fervo Energy has pioneered horizontal well drilling for geothermal production, utilizing advanced techniques developed by Devon. This collaboration will potentially unlock new sources of renewable energy, positioning geothermal as a reliable 24/7 energy option. Devon's investment aligns with its strategy for new energy ventures, reflecting confidence in the geothermal industry’s growth.

Positive

• Strategic investment of $10 million in Fervo Energy, indicating confidence in geothermal industry growth.
• Fervo's pioneering horizontal drilling technology enhances geothermal production reliability.
• Partnership leverages Devon's 50+ years expertise in oil and gas to boost geothermal capabilities.

Negative

• None.

The $10 million strategic investment underscores Devon’s confidence in the growth of the geothermal industry and Fervo’s winning approach.

HOUSTON & OKLAHOMA CITY--(BUSINESS WIRE)-- Fervo Energy (“Fervo”), the next-generation leader in geothermal technology, today announced a $10 million strategic investment from Devon Energy Corporation (NYSE: DVN). The investment initiates a partnership between two technical leaders and applies Devon’s 50-plus years of innovation in oil and gas to Fervo’s advanced geothermal capabilities.

Fervo is the first geothermal company to successfully drill and complete a horizontal well pair for commercial geothermal production – leveraging technologies, skills and processes pioneered by Devon for oil and gas production.

“We are thrilled to have Devon as a partner,” said Tim Latimer, co-founder and CEO of Fervo. “Devon is a technology leader with historic and unparalleled expertise in drilling and completing wells. We expect this partnership will help unlock further potential for geothermal as the primary 24/7 renewable energy source.”

Fervo applies horizontal drilling, multi-stage well completion, and distributed fiber optic sensing to geothermal reservoir development, delivering higher reliability on projects. Fervo’s approach makes geothermal power accessible in far more places than before and dramatically increases its potential as a widespread energy source.

“We are excited about this partnership with Fervo, an innovator and leader in the enhanced geothermal space,” said David Harris, chief corporate development officer and executive vice president at Devon. “This investment is a good match for Devon’s new energy ventures strategy.”

About Fervo Energy

Fervo Energy provides 24/7 carbon-free energy through the development of next-generation geothermal power. Fervo’s mission is to leverage innovation in geoscience to accelerate the world’s transition to sustainable energy. Geothermal has a major role to play in the future electric grid, and Fervo’s key advancements in drilling and subsurface analytics bring a full suite of modern technology to make geothermal cost competitive. For more information, please visit www.fervoenergy.com.

About Devon Energy Corporation

Devon Energy is a leading oil and gas producer in the U.S. with a premier multi-basin portfolio headlined by a world-class acreage position in the Delaware Basin. Devon’s disciplined cash-return business model is designed to achieve strong returns, generate free cash flow and return capital to shareholders, while focusing on safe and sustainable operations. For more information, please visit www.devonenergy.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230418005349/en/

Fervo Energy

Ally Copple

713-201-8800

ally@innovantpr.com



Devon Energy

Lisa Adams

832-816-5086

Lisa.adams@dvn.com

Source: Fervo Energy

FAQ

What is the amount of Devon's investment in Fervo Energy?

Devon Energy's investment in Fervo Energy is $10 million.

What is the significance of the partnership between Devon Energy and Fervo Energy?

The partnership aims to enhance geothermal energy production by leveraging Devon's expertise in drilling and technology.

What is Fervo Energy known for in the geothermal industry?

Fervo Energy is known for being the first geothermal company to successfully drill and complete horizontal well pairs for commercial production.

How does Devon Energy's investment relate to its business strategy?

The investment is part of Devon's new energy ventures strategy, focusing on innovative renewable energy sources.

What technology advancements does Fervo Energy utilize for geothermal power?

Fervo applies horizontal drilling, multi-stage well completion, and distributed fiber optic sensing to enhance geothermal reservoir development.