| Each month The Savvy Investor analysts study, research, and examine hundreds of stocks, in an effort to pinpoint the one with the most promise. This month's pick: Matrix Energy Services Corp Symbol:
MXES
Recent Price:
$.075
Opinion: Upgraded from Accumulate to Strong Buy | | In Related News: |
 |
The exploration and production sector consistently outperforms the S&P 500
when the consensus forecast for crude oil and natural gas prices, in
particular, is rising.
More...
Oil prices soar on Iraqi resistance. Futures up on strong demand
from China and reports of renewed violence.
More...
In 2003, an average 35 percent increase in gas prices pumped up
average oil company profits nearly 10-fold -- by 926 percent.
More...
OPEC oil producers appear to have lost control of a surge in prices that
ministers say is being driven by forces out of the cartel's hands.
More... | Financial Analysis |
 | 7500+ acres of core holdings with an additional 10,000 acres planned for acquisition. $310+ Million in projected cash flow at current commodity prices from existing holdings. Capacity to drill 75+ wells in the next 36 months. Negotiations planned with a major energy capital lender to provide up to $30 million in financing. An attractive return on investment with natural gas prices of $2.00, and an outstanding return at $3.00 Current prices are now
over $5.00+
Chart |
| | Corporate Snapshot |
 | | Matrix Energy Services Corporation is a North America energy resource company engaged in oil and gas development drilling and production using advanced exploration and recovery technologies on proven reserve fields. Matrix Energy focuses its exploration efforts on its significant holdings in Texas. It is redeveloping existing fields in and around Corsicana, Texas and other areas of the region where fields have been partially depleted by conventional production methods; but where significant, proven reserves of oil and gas still remain. These fields can become commercially viable and provide long-term revenue streams utilizing the latest technology The Company currently leases 4,500 acres in Barnett Shale Play in Wise and Denton Counties in northeast central Texas. The leased acreage is located in the Texas Railroad Commission District 9, considered one of the largest gas reserves in North America, with an estimated 40 rigs currently deployed, and over 700 wells drilled the past twenty years without a dry hole. |
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| Analyst Conclusion
Natural gas producers are poised to reap windfall profits as energy prices
remain at their highest levels in 15 years. These higher prices are being driven
, in part, by recent economic data showing that the global economic
recovery is gaining momentum. Increasing demand for energy to power
overseas economies is forming a strong foundation of price support.
Furthermore, supply is being limited by the recent cuts in production by
OPEC.
Higher
energy prices translate directly into more profits for oil companies.
(Remember how this
winter's price spike in natural gas positively impacted MXES's bottom
line. ) Energy analysts are expecting another price spike right around the
corner, just before this summer's driving season.
 Editing Chairman | | |
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