Zefiro Methane Corp [CBOE:ZEFI] [ETR:Y6B] [OTCQB:ZEFIF] said that its subsidiary Plants & Goodwin has acquired the remaining common shares of P&G from the entity’s CEO Luke Plants in exchange for newly issued preferred stock in P&G.
P&G plays an important role in Zefiro’s current methane abatement strategy in the Appalachian region, detecting harmful methane emissions from now defunct oil and gas wells.
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P&G has been busy on the ground capping wells and creating carbon credits which can then be sold on in the markets, creating further revenues for the already profitable company.
No cash component to Zefiro deal
Zefiro said that the transaction does not contain any cash component. The deal will be cash flow accretive and better position Zefiro to more effectively manage its liquidity and its use of debt capital, advancing critical commercial expansion initiatives.
Carbon credits are in demand from specialist energy traders who are now active in building the carbon credits market globally. Zefiro has already secured sales with EDF Trading and Mercuria Energy America. This is thanks to the expertise of its management team in working across the evolving carbon credits market.
P&G deal builds on 2023 acquisition
In May 2023, Zefiro acquired an initial 75% ownership stake in P&G to bolster Zefiro’s operational presence across the Appalachia region through P&G’s decades-long history of service in Pennsylvania, New York, West Virginia, and Ohio. Since becoming a Zefiro subsidiary, P&G has organically increased its revenues by 50%, eclipsed P&G’s prior profitability record, hired more than 60 full-time employees, and achieved numerous other commercial milestones.
P&G acquired an Ohio-based wireline services company to expand its suite of environmental remediation service offerings and also opened an additional facility in Buckhannon, West Virginia to increase southern Appalachia client services while decreasing operational expenses.
Luke Plants has been promoted to Chief Executive Officer of Zefiro Services and Executive Vice President of Business Development.
“For over a year, P&G has played a key role in Zefiro’s growth into one of the methane reduction sector’s leading remediation service providers,” said Zefiro Founder and CEO Talal Debs. “This transaction can not only bolster our capacity to generate high-quality carbon credits for leading institutional traders, but also promote alignment amongst subsidiary organizations throughout Zefiro’s fully integrated methane abatement services strategy, led by Luke and P&G field crews across our service territory.”
Debs added that the team’s extensive expertise positions Zefiro to continue both expanding across North America and partnering with state and federal agencies to reduce leaks from orphan wells.
Sustainable carbon credits
“Becoming an essential part of Zefiro’s innovative, fully integrated commercial blueprint has provided our abandonment specialists with exciting new challenges across our key Appalachian markets,” Plants said. “Producing repeatable, sustainable carbon credits will, we believe, become a vital instrument for financing critical environmental remediation projects, and this finalized agreement will best position P&G to continue expanding our operational footprint, bolster profitability, and help safeguard more communities in need.”
Last month Zefiro Methane successfully listed on the OTCQB market in the US under the ticker ZEFIF.
