Vivakor Announces $36 Million LOI to Divest Midstream Assets to Olenox

Vivakor, Inc. (OTCPINK: VIVK) has executed a non-binding letter of intent to sell its midstream business and transportation assets of CPE Gathering MidCon, LLC to Olenox Industries, Inc. (NASDAQ: OLOX) 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 asset sale 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.

The significance of this announcement lies in its potential to reshape Vivakor's business strategy and financial structure. By divesting these midstream assets, Vivakor expects to strengthen its balance sheet and sharpen its focus on its Permian Basin operations, crude oil supply and trading activities, and remediation processing center businesses. This strategic move indicates a deliberate shift away from certain midstream operations toward what the company views as its core competencies and growth areas. The transaction's structure, incorporating both immediate cash and future payment instruments, provides Vivakor with both immediate liquidity and potential long-term value through equity participation in Olenox.

The parties are targeting a definitive agreement and closing on or before March 31, 2026, subject to customary conditions including due diligence, regulatory approvals, and final negotiation of terms. This extended timeline allows both companies to thoroughly evaluate the assets and structure the transaction appropriately. For investors and industry observers, this announcement matters because it represents a significant corporate realignment that could affect Vivakor's operational footprint and financial performance. The sale of assets generating approximately $4.56 million in annual EBITDA represents a substantial portion of Vivakor's business operations and could significantly impact the company's revenue streams and operational focus moving forward.

The implications extend beyond the immediate financial transaction. By focusing more intently on its Permian Basin operations and remediation processing centers, Vivakor may be positioning itself to capitalize on specific market opportunities in those segments. The remediation processing business aligns with growing environmental concerns and regulatory requirements in the energy sector, potentially offering sustainable growth opportunities. Meanwhile, the crude oil supply and trading operations could benefit from market volatility and supply chain optimization opportunities. The transaction's importance is further underscored by the structured nature of the deal, which includes a take-or-pay guarantee providing revenue certainty for the assets being sold. This arrangement reduces risk for both parties and makes the transaction more attractive from a financial perspective.

For Olenox Industries, the acquisition represents an expansion of its midstream capabilities in the Oklahoma STACK play, a significant producing region. The Omega pipeline system provides infrastructure that could enhance Olenox's operational efficiency and market position in the region. The transaction demonstrates ongoing consolidation and strategic repositioning within the energy midstream sector as companies seek to optimize their asset portfolios. The announcement follows typical corporate communications practices, with the company directing interested parties to its newsroom at https://ibn.fm/VIVK for further updates. The broader context of this transaction reflects evolving strategies in the energy sector as companies adapt to changing market conditions, regulatory environments, and shareholder expectations regarding operational focus and financial performance.