Core Viewpoint - Vivakor, Inc. has announced a non-binding Letter of Intent to sell its midstream business and transportation assets to Olenox Industries for approximately $36 million, which is expected to strengthen Vivakor's balance sheet and allow a focus on its core businesses [1][3]. Group 1: Transaction Details - The transaction is valued at approximately $36 million and will be paid through a combination of cash, promissory notes, and stock, based on an annual EBITDA of $4.56 million [2]. - The parties are targeting a closing date on or before March 31, 2026, subject to customary closing conditions [4]. Group 2: Business Operations - Vivakor operates the Omega pipeline system, which serves the Oklahoma STACK play, providing crude oil gathering, transportation, terminaling, and pipeline connectivity [2][3]. - CPE Gathering, a subsidiary of Vivakor, operates the Omega system, which is designed to generate fee-based cash flows and reduce costs for producers [3]. Group 3: Strategic Implications - The sale is expected to complement Olenox's strategy by expanding its addressable market and increasing fee-based, predictable revenue through integrated services [3]. - The transaction is anticipated to generate operational synergies by aligning midstream logistics with Olenox's field services, thereby lowering per-well costs and improving uptime [3]. Group 4: Company Profiles - Olenox Industries is a vertically integrated energy company operating in oil and gas, energy services, and energy technologies, focusing on optimizing underdeveloped assets [5]. - Vivakor is an integrated provider of sustainable energy services, operating one of the largest fleets of oilfield trucking services in the U.S., with a mission to develop and operate energy sector assets [6].

Core Viewpoint - Olenox Industries Inc. has announced 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, which is based on an annual EBITDA of $4.56 million [1][2]. Group 1: Acquisition Details - The transaction will be financed through a combination of cash, promissory notes, common and preferred stock [2]. - The acquisition is expected to close on or before March 31, 2026, pending customary closing conditions [5]. Group 2: Strategic Importance - The acquisition of CPE Gathering is aimed at expanding Olenox's presence in the STACK region and enhancing its integrated operating model [3]. - CPE Gathering operates the Omega system, which provides critical midstream services including crude gathering, transportation, terminaling, and pipeline connectivity, thereby generating fee-based cash flows [3][4]. - This move aligns with Olenox's acquire-and-integrate strategy, which seeks to build an integrated energy, technology, and infrastructure platform, increasing predictable revenue and reducing exposure to commodity volatility [4]. Group 3: Company Overview - Olenox Industries is a vertically integrated energy company with operations in Oil and Gas, Energy Services, and Energy Technologies, focusing on optimizing underdeveloped oil and gas assets while supporting field operations with specialized services [6].