Zefiro Methane Corp. Announces Quarterly Earnings with Revenue of USD $7.5 Million

FORT LAUDERDALE, Fla., Feb. 14, 2025 (GLOBE NEWSWIRE) — ZEFIRO METHANE CORP. (Cboe Canada: ZEFI) (Frankfurt: Y6B) (OTCQB US: ZEFIF) (the “Company”, “Zefiro”, or “ZEFI”) today announced the Company’s consolidated financial results for the fiscal quarter ended December 31, 2024 (“fiscal quarter 2”).

• Zefiro generated revenue of $7.5 million USD for fiscal quarter 2, an approximate 9% increase compared to the quarter ending December 31, 2023. The second fiscal quarter is seasonally affected by interruptions in environmental remediation operations due to adverse weather conditions, which are expected to be mitigated by further expansion into Texas, Oklahoma, and Louisiana.
• The Company yielded gross profit of $0.6 million USD in fiscal quarter 2.
• Revenue for the second half of 2024 increased 18% to $17.5 million USD as compared to $14.8 million USD for the comparable 2023 period, exhibiting growth in core operations.

Please refer to Zefiro’s SEDAR+ profile at http://www.sedarplus.ca/ for full filings containing these financial results.

Zefiro Founder and Chief Executive Officer Talal Debs PhD commented, “As our team continues to dig in for what is expected to be the Company’s busiest year yet, Zefiro is primed to implement a variety of short and long-term growth plans that aim to solve unaddressed market demands. By bolstering our operational capacity, Zefiro’s well remediation and carbon market specialists have positioned the Company to expand its footprint in key regions, enter a host of new North American markets, and accelerate commercial momentum.”

Mohit Gupta, Chief Financial Officer, commented, “Zefiro’s scale, impact, and marketplace momentum is rapidly accelerating. We are executing on our growth strategy, expanding into new markets, and developing additional sources of revenue. The Company has a robust acquisition pipeline, and the carbon credit opportunity continues to grow as the demand for power from tech and AI companies, data centers, and energy producers increases. This is all resulting in strong tailwinds for Zefiro.”

Zefiro’s business strategy updates include:

1)   Entry into new marketplaces with outsized opportunities and levels of publicly available funding

Continuing its rapid geographic expansion, Zefiro subsidiary Plants & Goodwin (“P&G”) successfully earned its certification to conduct oil and gas well remediation operations in the state of Texas. According to publicly available data, the state has only spent $7.7 million of the $79 million that Texas’ government was allocated via federal grants to remediate the projected tens of thousands of orphan wells that experts believe could be spread throughout the state. Additionally, the Railroad Commission of Texas recently requested an additional $100 million in state funding to address groundwater contamination in West Texas stemming from orphaned and abandoned wells. As such, the state government is actively listing various projects for bidding, which the Zefiro family of companies is now permitted to participate in. This development provides Zefiro the capacity to operate in six states, up from four one year ago, and represents the Company’s ambitions to expand and fortify operations across the south-central U.S., including in Louisiana and Oklahoma, within the next twelve months.

2)   Expanding its operational footprint in regions of the U.S. that contain high numbers of orphaned and abandoned oil and gas wells

Zefiro has bolstered its existing operations in several states, including the Company’s efforts to maximize its position in Ohio. Specifically, P&G began work this past quarter on a number of new oil and gas well remediation projects for the Ohio Department of Natural Resources, a public agency that has access to approximately $78 million in funding to plug the over 36,000 known wells that the agency notes are located throughout the state. At current rates, this pool of resources should ensure well remediation project flow in the state for at least the next four years.

Zefiro also continues to actively plug methane leaking from oil and gas wells and expand its business in states throughout Appalachia.

3)   Originating and distributing quality carbon offsets from Company plugging operations

This past November, Zefiro completed a project that not only represented the Company’s first-ever Oklahoma-based gas well remediation effort, but also produced American Carbon Registry-approved offset products. This high-quality carbon credit generating initiative is in service of addressing the needs of Fortune 1000 companies, other large corporations, financial intermediaries, and high-quality carbon offset exchanges that have committed to a carbon-neutral footprint via the acquisition of blue-chip offsets such as those originated by Zefiro. Specifically, the Company continues to actively engage with energy producers and technology companies to offset these entities’ rising emissions and increasing energy demands stemming from artificial intelligence and data center operations.

Regarding the Company’s carbon credit operations, Zefiro Founder & Chief Executive Officer Talal Debs PhD commented, “As our team continues to connect with landowners, regulators, and political leaders across the nation, the complex needs of these key stakeholder groups have solidified our conviction that Zefiro’s methane abatement carbon credits represent the best free market solution for addressing the country’s orphan well methane challenge.”

4)   International expansion and partnerships

Zefiro announced in the second quarter that the Company secured a membership position within the Alberta, Canada-based Drilling and Completion Committee’s “Mature Asset Strategy Working Group” (the “Working Group”). A collection of public, private, and non-profit sector stakeholders, the Working Group is seeking to stem the proliferation of orphaned and marginal oil and gas wells throughout the Canadian province, a region that experts have estimated contains approximately 170,000 potentially toxic offline wells.

This membership is the latest in a series of strategic initiatives that the Company has executed to forge innovative partnerships with government agencies, including P&G’s successful completion of both New York and Pennsylvania’s first-ever Infrastructure Investment and Jobs Act (“Bipartisan Infrastructure Law ”)-funded oil and gas well plugging projects.

Second Fiscal Quarter Financial Highlights (in USD):

About Zefiro Methane Corp.

Zefiro is an environmental services company, specializing in methane abatement. Zefiro strives to be a key commercial force towards Active Sustainability. Leveraging decades of operational expertise, Zefiro is building a new toolkit to clean up air, land, and water sources directly impacted by methane leaks. The Company has built a fully integrated ground operation driven by an innovative monetization solution for the emerging methane abatement marketplace. As an originator of high-quality U.S.-based methane offsets, Zefiro aims to generate long-term economic, environmental, and social returns.

On behalf of the Board of Directors of the Company,

ZEFIRO METHANE CORP.

“Talal Debs”

Talal Debs, Founder & CEO

For further information, please contact:

Zefiro Investor Relations
1 (800) 274-ZEFI (274-9334)
investor@zefiromethane.com

For media inquiries, please contact:

Rich Myers – Profile Advisors (New York)
media@zefiromethane.com
+1 (347) 774-1125

Forward-Looking Statements

This news release contains “forward-looking information” within the meaning of applicable Canadian securities legislation. Forward-looking information is often, but not always, identified by the use of words such as “seeks”, “believes”, “plans”, “expects”, “intends”, “estimates”, “anticipates” and statements that an event or result “may”, “will”, “should”, “could” or “might” occur or be achieved and other similar expressions. In particular, this news release contains forward-looking information including statements regarding: the Company’s intention to reduce emissions from end-of-life oil and gas wells and eliminate methane gas; the Company’s partnerships with industry operators, state agencies, and federal governments; the Company’s expectations for continued increases in revenues and EBITDA growth as a result of these partnerships; the Company’s intentions to build out its presence in the United States; the anticipated federal funding for orphaned well site plugging, remediation and restoring activities; the Company’s expectations to become a growing environmental services company; the Company’s ability to provide institutional and retail investors alike with the opportunity to join the Active Sustainability movement; the Company’s ability to generate long-term economic, environmental, and social returns; and other statements regarding the Company’s business and the industry In which the Company operates. The forward-looking information reflects management’s current expectations based on information currently available and are subject to a number of risks and uncertainties that may cause outcomes to differ materially from those discussed in the forward-looking information. Although the Company believes that the assumptions and factors used in preparing the forward-looking information are reasonable, undue reliance should not be placed on such information and no assurance can be given that such events will occur in the disclosed timeframes or at all. Factors that could cause actual results or events to differ materially from current expectations include, but are not limited to: (i) adverse general market and economic conditions; (ii) changes to and price and volume volatility in the carbon market; (iii) changes to the regulatory landscape and global policies applicable to the Company’s business; (iv) failure to obtain all necessary regulatory approvals; and (v) other risk factors set forth in the Company’s Annual Information Form for the year ended June 30, 2024 under the heading “Risk Factors”. The Company operates in a rapidly evolving environment where technologies are in the early stage of adoption. New risk factors emerge from time to time, and it is impossible for the Company’s management to predict all risk factors, nor can the Company assess the impact of all factors on Company’s business or the extent to which any factor, or combination of factors, may cause actual results to differ from those contained in any forward-looking information. Forward-looking information in this news release is based on the opinions and assumptions of management considered reasonable as of the date hereof, including, but not limited to, the assumption that general business and economic conditions will not change in a materially adverse manner. Although the Company believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information. The forward-looking information included in this news release is made as of the date of this news release and the Company expressly disclaims any intention or obligation to update or revise any forward-looking information whether as a result of new information, future events or otherwise, except as required by applicable law.

Non-IFRS Financial Measures

Zefiro has included certain performance measures in this press release that do not have any standardized meaning prescribed by International Financial Reporting Standards (IFRS) including: (a) Adjusted EBITDA. Adjusted EBITDA is not a standardized financial measure under IFRS and might not be comparable to similar financial measures disclosed by other issuers. The Company believes that, in addition to conventional measures prepared in accordance with IFRS, certain investors use this information to evaluate the Company’s performance and ability to generate cash flow.

(1) Adjusted Net Income

Adjusted Net Income is a non-IFRS measure that excludes from net income (loss): amortization and share-based compensation and includes maintenance capital expenditures attributable to maintaining current activity. Management uses Adjusted Net Income to evaluate the Company’s operating performance. The Company presents Adjusted Net Income as it believes that certain investors use this information to evaluate the Company’s performance in relation to its peers who present on a similar basis (though Adjusted Net Income does not have a standardized meaning under IFRS and therefore may not be comparable to similar measures presented by other issuers). However, Adjusted Net Income does not represent and should not be considered an alternative to net income (loss) or cash flow provided by operating activities as determined under IFRS.

Statement Regarding Third-Party Investor Relations Firms

Disclosures relating to investor relations firms retained by Zefiro Methane Corp. can be found under the Company’s profile on SEDAR+ at http://www.sedarplus.ca/.

¹ See Non-IFRS Financial Measures