This paper presents a transformed arm power analysis of the Modular Multilevel Matrix Converter (M3C). It enables the energy balancing in the whole frequency range for high power variable-speed drive applications. Four balancing directions are identified for the active power exchange between the converter arms with minimal internal currents. At critical operating points a zero sequence voltage is used. Additionally, the reactive power components can be used to perform a real time calculation of the energy pulsation in all four balancing directions to improve the control performance. A low voltage prototype with 5 cells in each of the nine arms has been realized to verify the theoretical analysis.