Olenox Industries Inc. (NASDAQ: OLOX) has executed 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 would be structured as a combination of cash, promissory note, and common and preferred stock.
The acquisition is based on $4.56 million in annual EBITDA supported by a take-or-pay guarantee from Vivakor. According to the company, CPE Gathering operates an on-basin crude-oil gathering, transportation, terminaling, and pipeline connectivity platform in Oklahoma. This acquisition aligns with Olenox's acquire-and-integrate strategy by expanding its midstream footprint and fee-based infrastructure.
The parties are working toward definitive agreements with a targeted closing on or before March 31, 2026, subject to customary closing conditions. The transaction represents a significant expansion of Olenox's operations in the Oklahoma energy sector, particularly in the STACK play region known for its substantial oil and gas reserves.
For investors and industry observers, this move signals Olenox's continued commitment to vertical integration and strategic growth through targeted acquisitions. The company's approach focuses on acquiring and optimizing underdeveloped assets while supporting operations with specialized services and proprietary technologies. More information about Olenox's operations and strategy can be found at https://www.Olenox.com.
The midstream sector plays a crucial role in the energy industry by providing the transportation and storage infrastructure necessary to move oil and gas from production sites to refineries and end markets. By expanding its midstream capabilities, Olenox positions itself to capture more value across the energy lifecycle while potentially increasing operational efficiency and revenue stability through fee-based services.
Industry analysts will be watching this development closely as it represents not only a significant corporate transaction but also reflects broader trends in energy infrastructure investment. The STACK play in Oklahoma has been a focus of energy development for years, and infrastructure investments like this one can influence production economics and regional energy flows.
The transaction's structure, combining various forms of consideration, provides flexibility for both companies while the take-or-pay guarantee offers revenue certainty for the acquired assets. This approach to acquisition financing may serve as a model for similar transactions in the energy sector, particularly as companies seek to balance growth objectives with financial prudence.
For the latest updates and information relating to OLOX, investors can access the company's newsroom at http://ibn.fm/OLOX. The full details of the press release announcement are available for review, providing additional context about this strategic move in the energy infrastructure sector.
