Vancouver, British Columbia--(Newsfile Corp. - May 2, 2013) - Investment firm Mackie Research has updated its coverage on NXT Energy Solutions (TSXV: SFD). Following the release of the company's fourth quarter and December 31, 2012 year end results, analyst Raveel Afzaal reiterated his speculative buy recommendation, maintaining his target price of $1.60, giving a projected return of 167% from the $.0.60 price the day the report was issued.
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The company reported revenue of $5.7 million for the fourth quarter, which was in line with Mackie's expectations. However, the EBITDA of $3 million was significantly above Mackie's conservative estimate of $1 million.
The company realized record revenues of $11 million in 2012, compared with revenues of $145,000 for 2011, and net income of $2 million for 2012, compared to a net loss of $3.6 million for 2011.
Using a Cessna 560 Citation jet, and flying at 300 miles per hour at 10,000 feet, the 2 systems record data at 2,000 cycles per second. NXT Energy uses the Stress Field Detector survey system to survey large tracts of land in order to identify and prioritize areas containing potential oil & gas reservoirs.
The system can be used both onshore and offshore to remotely identify areas with exploration potential for traps and reservoirs. By looking at the gravitational field in a different way, new information about the subsurface can be revealed. The company's system is about 10 to 30 times cheaper than the cost of conducting a seismic survey, and can be conducted at a fraction of the time.
The share price hit a high of $1.13 on the back of the PEMEX contract awarded in 2012. Since then, the share price has retreated primarily due to the absence of news.
Analyst Raveel Afzaal stated, "We are optimistic about NXT's prospects in securing a large contract with PEMEX in the near-term. We believe that a repeat contract with PEMEX could serve as an important valuation catalyst for the company's share price. In addition, the company is currently in discussions in Asia and Mediterranean for contracts with an aggregate dollar value ranging from $17 to $24 million."
The company had 39.6 million shares outstanding at the end of December, and given a current price of $0.72, the company is capitalized at $28.5 million.
For more information, please visit the company's website www.nxtenergy.com or contact Greg Leavens, VP of Finance at 403-206-0805.
The company's investor relations is handled by kin communications. They can be reached at 604-684-6730 or by email at sfd@kincommunications.com.
For more information about Mackie Research or to obtain the report on NXT Energy, contact your nearest Mackie Research office. Their branches are listed on their website at www.mackieresearch.com.
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