June 22nd, 2026 | 06:30 CEST
Boom in the Gas Market: A Look at EQT, Zefiro Methane, and Kinder Morgan Stocks!
The gas business in North America is booming. On one hand, demand remains strong due to the expansion of AI data centers in the US. On the other hand, countries like Germany are also having to import gas from the United States as a result of the war in Ukraine. Supplies from Russia have been subject to sanctions. Last but not least, supply disruptions in the Middle East are driving high demand and rising prices—another consequence of the war. And despite the current negotiations, it is likely to be a while before production facilities and supply chains are back to operating at full capacity. That is why we are looking at the North American natural gas market today. EQT Corporation is the largest pure-play natural gas producer in the US, with vast reserves in the northeastern part of the country. We are also looking at Kinder Morgan, which controls the largest natural gas pipeline network in the US. Last but not least, it is worth taking a look at Zefiro Methane's shares, as the company handles cleanup operations for both smaller operators and major industry participants.
time to read: 5 minutes
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Author:
Tarik Dede
ISIN:
ZEFIRO METHANE CORP | CA98926D1069 | NEO: ZEFI , EQT CORP. | US26884L1098 , KINDER MORGAN P DL-_01 | US49456B1017
Table of contents:
Author
Tarik Dede
Even as a high school student in northern Germany, he developed a strong interest in the “Neuer Markt” and the dynamics of the equity markets. Small- and mid-cap companies were at the center of his focus from the very beginning. After completing his training as a certified bank clerk, he deepened his economic expertise through formal studies in economics as well as through various positions within Frankfurt’s financial sector. Today, he has been actively involved in the capital markets for more than 25 years, both professionally and as a private investor.
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EQT Corporation: The Gas Giant from Pittsburgh
In the 19th century, industrial barons dominated the business world in the US. In 1884, brothers Michael and Obediah Haymaker struck gas outside Pittsburgh. Just four years later, the Equitable Gas Company was officially founded with the participation of the famous inventor and entrepreneur George Westinghouse. The original plan was simply to supply Pittsburgh's streetlights with gas. Today, with a market capitalization of around USD 32 billion, EQT Corporation is one of the biggest players in this industry.
This is also underscored by the first-quarter figures. The company benefited from significantly higher natural gas prices and achieved USD 5.08/Mcfe. That is about a third more than in the same quarter of the previous year (USD 3.77/Mcfe). With gas gushing from the wells, production volume reached 618 Bcfe (billion cubic feet equivalent), which was at the upper end of the company's own forecast. Bottom line, EQT posted a profit of USD 1.487 billion, equivalent to USD 2.33 per share. Due to high surpluses and very strong free cash flow of USD 1.83 billion, the quarterly dividend of USD 0.165 per share was confirmed. On an annualized basis, the market expects approximately USD 0.66. There will be no share buybacks for the time being. Management of the Pittsburgh-based company intends to further reduce its debt. Net debt currently stands at around USD 5.7 billion.
EQT's growth stems primarily from the acquisitions of Equitrans Midstream and Olympus Energy over the past two years. The synergies and full vertical integration with its own pipelines are significantly reducing costs. AI data centers and the gradual commissioning of new LNG terminals are currently driving EQT's growth. EQT's stock is actually a classic cyclical stock. However, the global conflicts of recent years are currently creating a very solid business environment. Since the beginning of 2022, the share has tripled at its peak. It is currently trading at about a quarter below its peak. Investing in EQT means betting on future demand growth in the US gas market.
Zefiro Methane: The Gas Industry's Cleanup Crew
However, North America's long history in the oil and gas industry has also left behind many legacy issues. According to estimates, there are around 2.2 million abandoned oil and gas wells in the US alone. Companies were founded, produced gas, went bankrupt, and left behind an environmental mess. Or, the holes left by these wells were not properly plugged after production ceased. Gas continues to escape, causing enormous environmental damage—especially methane, which is considered one of the most harmful greenhouse gases.
But in the US, people have now become aware of this environmental problem. The federal government in Washington, D.C., as well as individual states, have launched a program to plug these orphaned wells. Overall, approximately USD 4.7 billion has been allocated for these tasks. The market volume itself is estimated at more than USD 400 billion. One of the biggest beneficiaries is Zefiro Methane Corp. The Canadian company has focused on plugging these old oil and gas wells—using its own technology. The company has been very successful in winning contracts. Based in Vancouver, British Columbia, Zefiro Methane has so far secured about a quarter of the projects it has bid on and is active in more than a dozen US states. Its focus is on the Western Appalachian Mountains, where a particularly large number of these abandoned wells are located. Last year, Zefiro plugged over 200 wells.
With this approach, the company is firmly on a growth trajectory. After nine months of the current fiscal year (a split fiscal year), revenue of approximately USD 33.2 million was reported. In addition, Zefiro generated EBITDA of USD 4.25 million. The company has already reported further successes in the current quarter. In May, it secured follow-on contracts from a major gas company. In mid-June, four additional new customers were onboarded. Shortly thereafter, the company announced another USD 2.4 million in orders to plug oil and gas wells in Ohio.
Given the enormous market size, the small number of competitors, and a low market capitalization of approximately EUR 40 million, the stock offers considerable upside potential. Financially, Zefiro Methane is also well-positioned to fund its growth. The company recently raised CAD 3.3 million from investors at a placement price of CAD 0.65 per share. Zefiro plans to use the funds primarily to finance new equipment. The share has been on an upward trend since the beginning of the year. Zefiro's value has more than doubled during this period. This offers investors the opportunity to participate in the long-term cleanup of the US natural gas sector! Especially since CEO Catherine Flax has another ace up her sleeve: Zefiro is actively participating in the carbon credit trading market, as its work ultimately contributes to reducing emissions.
Kinder Morgan: The Network Giant
The name may confuse unsuspecting investors: Kinder Morgan has nothing to do with Kinder Chocolate—which comes from Italy—but is instead one of the largest energy infrastructure companies in the US. The market capitalization of the Houston-based company stands at around USD 70 billion. The company was founded as recently as 1997 by Richard D. Kinder (who remains Executive Chairman to this day) and William V. Morgan. Kinder comes from the management ranks of the bankrupt Enron, but had nothing to do with the company's collapse.
Since 1997, Kinder Morgan's management has expanded the business primarily through an aggressive acquisition strategy. The company remains on a growth trajectory. Revenue in the first quarter rose by 13.8% to USD 4.83 billion. Net income increased by about one-third to USD 976 million. Both revenue and net income were well above analysts' consensus estimates.
The cold US winter and severe winter storms were the company's biggest drivers at the start of the year. Kinder Morgan pursues a reliable dividend policy. In Q1, it paid out USD 0.2975 per share; the full-year dividend is expected to be USD 1.19. The dividend yield is thus approximately 3.7%. In addition, a share buyback program is underway. Like EQT, Kinder Morgan is benefiting from the expansion of AI infrastructure in the US. An estimated 153 gigawatts of new gas-fired power plants are set to be added in the coming years. As the owner of the country's largest natural gas network, the company benefits directly from this. Its financial strength is also reflected in its order book: the project backlog most recently stood at around USD 10 billion. These infrastructure projects are being implemented gradually and will therefore generate contractually secured cash flows over the long term.
With EQT and Kinder Morgan, investors are betting on the gas boom in the US driven by the expansion of AI data centers and strong global demand resulting from supply bottlenecks in Europe and the Middle East. Kinder impresses with its strong financial health and a solid dividend yield. EQT is more cyclical and is still working on reducing its debt. Zefiro Methane, on the other hand, handles the cleanup of abandoned and orphaned oil and gas wells and is currently on an upward trend.
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