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RENO/HOUSTON - Ormat Technologies (NYSE:ORA), a $6.46 billion market cap renewable energy company whose stock has surged 49% over the past six months, and SLB (NYSE:SLB) announced Monday an agreement to accelerate the development of geothermal assets, including enhanced geothermal systems (EGS) technology. According to InvestingPro data, Ormat is currently trading near its 52-week high, reflecting strong investor confidence in its growth strategy.
The partnership aims to streamline project deployment from concept to power generation, with plans to develop an EGS pilot at an existing Ormat facility. EGS technology creates thermal reservoirs in naturally hot rock, potentially expanding geothermal energy beyond conventional resource locations. With trailing twelve-month revenue of $906.3 million and positive earnings per share of $2.17, Ormat brings substantial operational expertise to this venture. For detailed analysis and additional insights, investors can access the comprehensive Pro Research Report available on InvestingPro.
"By bringing together the world’s leading experts in subsurface and geothermal power plant technologies, Ormat and SLB will accelerate the path to rapid deployment of commercial scale EGS facilities," said Doron Blachar, Chief Executive Officer of Ormat Technologies.
The collaboration will leverage Ormat’s expertise in power plant operations and SLB’s capabilities in subsurface engineering. Following the pilot project, the companies plan to pursue large-scale EGS commercialization targeting independent power producers, utilities, and data center operators.
Gavin Rennick, president of New Energy at SLB, noted the partnership addresses growing energy demand: "There is an urgent need to meet the growing demand for energy driven by AI and other factors. This requires accelerating the path to clean and reliable energy."
The U.S. Department of Energy estimates next-generation geothermal could provide 90 gigawatts by 2050, potentially reaching up to 300 gigawatts in the U.S. alone. Analysts maintain a bullish outlook on Ormat’s position in this growing market, with InvestingPro showing a consensus recommendation of 1.8 (where 1 is Strong Buy).
Ormat currently operates a 1,268MW geothermal and solar generation portfolio across six countries and a 350MW energy storage portfolio in the U.S.
This announcement was based on a press release statement from both companies.
In other recent news, Ormat Technologies has reported second-quarter 2025 results that surpassed consensus expectations for both revenue and earnings. Following this announcement, Oppenheimer raised its price target for Ormat to $100, maintaining an Outperform rating due to a strong growth outlook. In addition, Ormat has extended a 25-year power purchase agreement with the Southern California Public Power Authority for its Heber 1 geothermal facility, ensuring energy delivery to Los Angeles and the Imperial Irrigation District through 2052. Piper Sandler has upgraded Ormat Technologies from Neutral to Overweight, highlighting the impact of artificial intelligence on power demand as a significant industry catalyst. Piper Sandler also raised its price target to $102, citing the growing focus on geothermal energy. UBS has reiterated its Buy rating on Ormat, with a price target of $105, maintaining a positive outlook on the company. These developments reflect the increasing interest in renewable energy and Ormat’s strategic positioning in the market.
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