initiates coverage of Zefiro Methane Corp. with a BUY rating, “Integrated platform addresses long-term multibillion-dollar demand for methane abatement and well remediation”

GBC AG initiates coverage of Zefiro Methane Corp. with a BUY rating, “Integrated platform addresses long-term multibillion-dollar demand for methane abatement and well remediation”
Augsburg, 24 July 2026 – GBC AG has initiated coverage of Zefiro Methane Corp. (ISIN: CA98926D1069; WKN: A3DVHU) and, in its German- and English-language Initial Coverage reports dated 21 July 2026, assigns a BUY rating with a target price of USD 1.50, equivalent to CAD 2.12, on a time horizon until 30 June 2027. The reports were prepared by analysts Cosmin Filker and Matthias Greiffenberger.
“Operational turnaround in a structurally growing market”
Zefiro Methane Corp. is a publicly traded environmental services company with an operational focus on the United States. The company specialises in identifying, measuring and reducing methane emissions from decommissioned, abandoned and orphaned oil and gas wells. Through its operating businesses Plants & Goodwin and Appalachian Well Surveys, Zefiro provides key elements of the decommissioning process within an integrated platform – ranging from methane measurement, technical planning, wireline and cementing services to well plugging, transportation, dismantling and site reclamation.
According to GBC AG, Zefiro is addressing a structurally growing market. Approximately two million inactive oil and gas wells in the United States remain unplugged. The cost of plugging documented inactive onshore wells alone is estimated at approximately USD 280 billion, excluding an estimated further 1.2 million undocumented onshore wells. The USD 4.7 billion made available under the Infrastructure Investment and Jobs Act therefore represents only a fraction of the long-term remediation requirement.
In addition to government-funded orphan-well programmes, further demand is being generated by private oil and gas producers as well as energy, infrastructure and data-centre developers. Improperly decommissioned legacy wells may delay the construction or expansion of such sites and may therefore require remediation at short notice.
Zefiro has expanded its operating presence to 13 U.S. states. Through the acquisition of five rigs and supplementary equipment from Viking Well Service, the company increased its annual revenue capacity by approximately USD 10 million, according to management. The additional equipment enables Zefiro to execute more projects simultaneously, expand existing customer relationships and enter further regional markets.
A significant operational turnaround has also become apparent since the management change in June 2025. During the first nine months of fiscal year 2025/26, revenue increased by 35.8% to USD 33.19 million. EBITDA improved to USD 3.10 million, compared with negative USD 5.52 million in the prior-year period. At the same time, Zefiro generated positive operating cash flow of USD 4.12 million and significantly reduced its financial debt.
For fiscal year 2025/26, GBC AG forecasts revenue of USD 45.18 million and EBITDA of USD 3.73 million. For fiscal year 2026/27, revenue is expected to increase to USD 57.92 million, with EBITDA reaching USD 10.02 million. For fiscal year 2027/28, GBC forecasts revenue of USD 66.85 million and EBITDA of USD 12.22 million. Additional earnings momentum could arise from the resumption of the carbon credit business from the second half of fiscal year 2026/27.
Cosmin Filker, analyst at GBC AG, comments:
“Zefiro is addressing a market whose scale extends far beyond the government funding programmes currently available. Millions of inactive and inadequately sealed wells, an estimated remediation requirement of approximately USD 280 billion and additional demand from energy, infrastructure and data-centre projects create significant long-term market opportunities. With its integrated platform, expanded rig capacity and presence in 13 U.S. states, we believe Zefiro is well positioned to participate in both government programmes and growing private-sector demand. The prospective resumption of the carbon credit business could provide an additional high-margin growth component.”
Based on a three-stage DCF valuation, GBC AG derives a target price of USD 1.50, equivalent to CAD 2.12, and initiates coverage with a BUY rating. Key value drivers include the increasing utilisation of the expanded fleet capacity, the execution of multi-year government and private-sector projects, further regional expansion and the expected improvement in gross and EBITDA margins. The carbon credit business provides an additional long-term upside opportunity.
The full original Initial Coverage reports dated 21 July 2026 are available for download in German and English:
German research report:
https://nwr.eqs-cockpit.com/fncls2.ssx?fn=redirect&u=71cecba2f7f1bff1e7cb67e65ffce2f9
English research report:
https://nwr.eqs-cockpit.com/fncls2.ssx?fn=redirect&u=f2faa8e1f24a4975f17c41b5374f6402
About Zefiro Methane Corp.
Zefiro Methane Corp. (ISIN: CA98926D1069; WKN: A3DVHU) is a publicly traded environmental services company with an operational focus on the United States. The company provides integrated services for the identification, measurement and reduction of methane emissions from decommissioned, abandoned and orphaned oil and gas wells.
Through Plants & Goodwin and Appalachian Well Surveys, Zefiro provides methane measurement, technical planning, wireline, cementing, transportation, well-plugging and reclamation services. In addition, the company develops and markets carbon credits generated from verifiably avoided methane emissions. Its customers include government-funded orphan-well programmes, private energy companies and infrastructure operators.
Risk notice
This announcement is for information purposes only and does not constitute financial analysis, investment advice, an investment recommendation or an invitation to buy or sell financial instruments. Investments in shares are generally associated with risks, including the possible total loss of the invested capital. Only the full research report is authoritative; it contains the complete disclaimer, risk notices and further legal information. (EQS News)
Disclosure of potential conflicts of interest pursuant to § 85 WpHG and Art. 20 MAR
GBC AG and the responsible analysts point out that the following potential conflicts of interest may exist at the time of publication: 5a, 11. Further details can be found in the full research report and at: https://www.gbc-ag.de/de/Offenlegung
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