Zefiro Methane: Operational turnaround in a structurally growing market - GBC
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Zefiro Methane: Operational turnaround in a structurally growing market - GBC

Zefiro Methane Corp. is a publicly-traded environmental services provider focused on the U.S. market and specializing in the identification, measurement, and reduction of methane emissions from decommissioned, abandoned, and orphaned oil and gas wells. Operational activities are now largely consolidated within Plants & Goodwin, whilst the wireline and downhole services acquired as part of the AWS acquisition have been integrated into P&G from an operational perspective. In addition, the company develops and markets emission credits derived from verifiably avoided methane emissions. In this way, Zefiro combines a projectbased service business with the prospect of additional, high-margin revenue from the voluntary carbon credit market.

As part of our DCF valuation model, in which we have also taken into account the most recent capital increases (net proceeds: USD 5.20 million), we have arrived at a target price of USD 1.50 per share. We therefore assign a BUY rating.
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