Vivakor, Inc. has executed a non-binding letter of intent to sell the midstream business and transportation assets of its subsidiary CPE Gathering MidCon, LLC to Olenox Industries, Inc. for approximately $36 million. The proposed transaction involves Vivakor's Omega pipeline system, an integrated crude oil gathering, transportation, terminaling, and pipeline connection platform serving the Oklahoma STACK play. This strategic move represents a significant shift for Vivakor as it repositions its business portfolio toward areas where it sees greater growth potential.
The deal is structured as a combination of cash, promissory note, and common and preferred stock based on approximately $4.56 million in annual EBITDA under a take-or-pay guarantee. Vivakor expects the divestiture to strengthen its balance sheet and sharpen focus on its Permian Basin, crude oil supply and trading, and remediation processing center businesses. The parties are targeting a definitive agreement and closing on or before March 31, 2026, subject to customary conditions.
Vivakor operates one of the largest fleets of oilfield trucking services in the continental United States and provides crude oil and produced water gathering, storage, transportation, reuse, and remediation services under long-term contracts. The company's corporate mission is to develop, acquire, accumulate, and operate assets, properties, and technologies in the energy sector. Once operational, Vivakor's oilfield waste remediation facilities will facilitate the recovery, reuse, and disposal of petroleum byproducts and oilfield waste products.
The announcement was published by InvestorWire, a specialized communications platform with a focus on advanced wire-grade press release syndication for private and public companies and the investment community. It is one of 75+ brands within the Dynamic Brand Portfolio that delivers access to a vast network of wire solutions via https://www.InvestorWire.com to efficiently and effectively reach target markets, demographics and diverse industries. The latest news and updates relating to VIVK are available in the company's newsroom at https://ibn.fm/VIVK.
