EXCLUSIVE: Olenox Looks To Acquire Vivakor's Midstream Assets

Core Viewpoint - Olenox Industries Inc. has signed a non-binding Letter of Intent to acquire the midstream business and transportation assets of CPE Gathering MidCon, LLC from Vivakor, Inc. for approximately $36 million [1] Group 1: Acquisition Details - The acquisition will be financed through a combination of cash, promissory notes, common, and preferred stock [3] - The deal is based on an annual EBITDA of $4.56 million, supported by a take-or-pay guarantee from Vivakor [3] - CPE Gathering operates the Omega system, which provides crude gathering, transportation, terminaling, and pipeline connectivity in the STACK region of Oklahoma [3] Group 2: Strategic Implications - Olenox aims to strengthen its core brands and build a unified energy, technology, and infrastructure platform through an acquire-and-integrate strategy [5] - The acquisition is expected to expand Olenox's serviceable market and enhance predictable, fee-based revenue through integrated gathering and terminaling [5] - Operational synergies are anticipated by aligning midstream logistics with field services, which will reduce per-well costs and improve uptime [5] Group 3: Management Perspective - Michael McLaren, CEO of Olenox, stated that the acquisition would enhance the company's presence in the STACK region and position the assets for continued development under an integrated operating model [6]