Service & Supply | Oilfield Services | Capital Markets | Capital Expenditure

Matrrix Energy Technologies 2015 Capex

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MATRRIX Energy Technologies Inc. has announced its 2015 capital budget and provide an operational update.

Capital Budget

The Corporation has suspended approximately $500,000 of previously announced capital expenditures, and is well positioned with equipment capacity given expected activity levels for 2015. Also, given the relatively young age of MATRRIX equipment, the Corporation does not anticipate the need for material capital expenditures in 2015.

MATRRIX believes a minimal 2015 capital budget reflects a prudent use of the Corporation's cash while ensuring sufficient financial flexibility for any prolonged downturn in industry activity levels.

The Corporation's previously announced $5 million secured revolving credit facility remains undrawn, and the Corporation has zero debt.

Recent oil and gas commodity price weakness has created an environment of uncertainty around capital expenditure levels for oil and gas clients in Western Canada , which is the Corporation's primary operating area. Given this uncertainty, it is difficult to anticipate the severity and length of any downturn. At this time, the Corporation anticipates materially lower activity levels in the first quarter of 2015 compared to the same period in 2014. To address anticipated lower activity levels, MATRRIX is moving to align costs with current and expected activity levels for the balance of the quarter and the year.

Operations Update

MATRRIX will continue to follow through with technology initiatives that it feels are core to exceptional service delivery for MATRRIX clients, while providing field data quality and efficiency improvements for the Corporation. MATRRIX will continue to be disciplined in evaluating its operations and adjust its capital budget as required to address client service needs and activity levels.