Zefiro's Management Team Highlights Key Business Segments Driving Growth in 2026 Following Landslide Proxy Contest Victory

Executive Summary

• Shareholders voted overwhelmingly (≈55 million votes) to reject the dissident group, confirming incumbent management and adding venture investor Hudheifa Moawalla to the board.
• FY 2026 first two quarters delivered Adjusted EBITDA of ~$3.8 M and Net Income of $0.3 M, indicating a return to profitability.
• The company outlined its strategic focus on Environmental Services (Plug‑and‑Abandonment, remediation) and Emissions Monitoring/Carbon Markets, highlighting recent contracts, project completions, and carbon‑offset sales.

Key Details

• Proxy Contest Result: Over 55 M votes cast in favor of management’s nominees; dissident slate defeated.
• Board Appointment: London‑based venture investor Hudheifa Moawalla appointed to the Board of Directors.
• Financial Performance (Q1‑Q2 FY 2026):
• Adjusted EBITDA: ≈ $3.8 M
• Net Income: ≈ $0.3 M (positive)
• Business Segments & Growth Drivers:
• Environmental Services – Core Plug‑and‑Abandonment (P&A):
  • Subsidiary Plants & Goodwin, Inc. (P&G) holds ~30 % of Ohio Phase 1 Formula Grant funding under the Infrastructure Investment and Jobs Act.
  • Active in PA, NY, OH, WV, KY, OK, VA, LA – representing roughly one‑third of U.S. states with unplugged wells; two‑thirds remain untapped.
  • Recent contracts:
  • $5 M remediation of 9 wells (Lake Charles, LA) for a private energy‑facility developer.
  • Survey/plug work for major global e‑commerce warehouse sites.
  • $1.5 M project plugging 9 marginal wells in Indiana County, PA for a coal‑to‑natural‑gas plant conversion.
  • Louisiana project completed three weeks ahead of schedule; P&G now a licensed LA contractor.
• Emissions Monitoring & Quantification:
  • Participation in EPA’s Methane Emissions Reduction Program (MERP) with $1.36 B federal assistance pool.
  • Initial MERP contract (West Virginia DEP) grew from $0.8 M to $1.3 M, covering >700 wells monitored.
  • Plans to commercialize monitoring services throughout 2026, leveraging low‑capex, asset‑light model.
• Environmental Markets – Carbon Origination & Sales:
  • First carbon‑offset sale (2025) under American Carbon Registry methodology for orphan wells, sold to Mercuria and EDF Trading.
  • Ongoing work by CCO Tina Reine on new methodologies for orphaned/abandoned/marginal wells, expected in coming months, to expand offset origination pipeline.
• Management Commentary: CEO Catherine Flax emphasized disciplined growth, profitable cash‑flow focus, and strengthened board composition as foundations for a “best year yet” in 2026.
• Board Member Quote (Hudheifa Moawalla): Highlighted Zefiro’s integrated service model, government partnerships, private‑sector demand, and first‑mover status in carbon markets as key differentiators.

Notable Quotes

“Our team is very excited to be entering a promising new era for Zefiro… Now that we have properly straightened out Zefiro's Board of Directors, the Company is better positioned than ever to take a focused, disciplined, and results‑oriented approach…” – Catherine Flax, CEO

“I’m delighted to join Zefiro at this pivotal time… Zefiro is rapidly cementing itself as a nationwide leader in methane abatement, whose work is both critical and category‑defining.” – Hudheifa Moawalla, Board Member