Olenox Industries Announces $36 Million LOI to Acquire Vivakor's Oklahoma Midstream Assets

Olenox Industries Inc. (NASDAQ: OLOX) announced the execution of a non-binding letter of intent to acquire the midstream business and transportation assets of CPE Gathering MidCon LLC from Vivakor Inc. (OTC: VIVK). The proposed transaction, valued at approximately $36 million, includes the Omega pipeline system serving the Oklahoma STACK play and is structured as a combination of cash, promissory note, and common and preferred stock. This acquisition is based on $4.56 million in annual EBITDA supported by a take-or-pay guarantee from Vivakor, providing financial stability and predictable revenue streams for Olenox.

The importance of this announcement lies in its strategic alignment with Olenox's acquire-and-integrate approach to expanding its midstream footprint. CPE Gathering operates an on-basin crude-oil gathering, transportation, terminaling, and pipeline connectivity platform in Oklahoma, which would enhance Olenox's existing operations across Texas, Kansas, and Oklahoma. By acquiring these fee-based infrastructure assets, Olenox strengthens its position in the energy sector's midstream segment, where consistent revenue from transportation and storage services can offset volatility in commodity prices. The transaction represents a significant step in Olenox's vertical integration strategy, potentially increasing operational efficiency and value capture across the energy lifecycle.

For investors and the energy market, this move signals Olenox's commitment to growth through strategic acquisitions in key producing regions like the STACK play, a major shale formation known for its oil and gas resources. The take-or-pay guarantee from Vivakor mitigates risk by ensuring minimum revenue, making the deal financially attractive despite its non-binding nature. The parties are working toward definitive agreements with a targeted closing on or before March 31, 2026, subject to customary closing conditions, indicating a deliberate timeline for integration and regulatory approvals. This acquisition could enhance Olenox's competitiveness against traditional operators by leveraging specialized assets often overlooked in the market.

Further details on the transaction and Olenox's broader strategy can be found in the company's newsroom at http://ibn.fm/OLOX, while general information about Olenox is available on its website at https://www.Olenox.com. The press release for this announcement is accessible at https://ibn.fm/YDqWT, providing additional context on the deal's structure and implications. As the energy industry evolves, such acquisitions highlight the ongoing consolidation and optimization trends in midstream operations, with companies like Olenox seeking to build resilient, diversified portfolios that can withstand market fluctuations and capitalize on regional demand.