Washington funds remediation through to the end of the decade
The US faces a massive legacy problem. For decades, oil and gas wells were abandoned without being properly plugged. Methane, a particularly potent greenhouse gas, continues to escape from many of these sites. At the same time, the wells can threaten groundwater and make former production sites harder to use.
Through the Infrastructure Investment and Jobs Act (IIJA) of 2021, the US Congress allocated around USD 4.7 billion for the remediation of orphaned wells. Of this, USD 4.3 billion is allocated to state and private land. Under the original plans, funding from individual grant programmes is available through September 2030.
For specialist service providers, this means long-term business opportunities. However, contracts are awarded through public tenders. There is no guaranteed share of the funding.
Zefiro secures contracts worth USD 40 million
One active provider is Zefiro Methane. The North American company plugs abandoned wells, surveys former production sites and measures methane emissions. Through its subsidiary Plants & Goodwin, Zefiro has more than 50 years of industry experience.
In mid-October, the company reported a backlog of public projects already awarded worth around USD 40 million. Some of the work extends through June 2029.
A three-year contract with the Ohio Department of Natural Resources alone is worth USD 19.6 million. Under this contract, crews will decommission around 200 problematic wells. In addition, there is a state-funded contract worth USD 11.5 million in the Great Lakes region.
Around USD 4.9 million of the order backlog is to be completed in the current quarter ending in December 2026. A further USD 34.6 million is scheduled mainly for 2027 and 2028. These figures do not yet include additional private industrial contracts.
Revenue grows by 31% – losses fall significantly
The expansion is increasingly reflected in the financial results. In the 2026 financial year, ended June 30, Zefiro increased revenue by 31.1% to USD 42.5 million. Gross profit rose 66% to USD 12.4 million.
At the same time, the net loss narrowed from USD 10.8 million to USD 3.5 million. Adjusted EBITDA improved from minus USD 4 million to plus USD 3.8 million.
The acquisition of operating assets from Viking Well Service in May opened up additional growth opportunities. For USD 4.3 million, Zefiro secured, among other things, five additional drilling rigs. This is expected to increase annual revenue capacity by around USD 10 million.
New customers are increasingly coming from industry. Particularly in energy and data centre projects, former production sites often have to be remediated before new infrastructure can be built.
Analysts see more than 200% upside potential
Augsburg-based GBC AG also takes a positive view of the development. In their study dated October 28, 2026, the analysts confirmed their Buy rating with a price target of USD 1.42 by June 2027.
Compared with the current share price of USD 0.47, this represents a calculated upside potential of around 202%.
For the 2026/27 financial year, GBC forecasts revenue of USD 57.92 million and EBITDA of USD 10.02 million. Revenue is expected to rise to USD 75.21 million by 2028/29.
Methane credits as an additional source of income
Alongside public and private remediation contracts, Zefiro is working on another business area. The company recently reported on its involvement in developing a certification standard for the decommissioning of orphaned oil and gas wells.
The framework developed by the provider Isometric is still undergoing public consultation. In the future, eligible projects not already publicly funded could generate additional income from verified methane avoidance.
The company is not yet profitable on the bottom line. However, growing revenue, additional drilling rigs and the large order backlog significantly improve its starting position.
Zefiro benefits from a problem that is likely to occupy the US for years to come. The decisive factor will be whether the government programmes worth billions and private remediation contracts generate sustained profit growth.
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