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 strategic divestiture 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 transaction represents a significant strategic shift for Vivakor, which expects the divestiture to strengthen its balance sheet and sharpen focus on its Permian Basin operations, crude oil supply and trading, and remediation processing center businesses. By shedding these midstream assets, the company aims to reallocate resources toward areas it identifies as having greater growth potential and alignment with its core mission. 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 negotiations.
For the energy industry, this transaction highlights ongoing portfolio optimization among companies operating in the midstream sector. The Oklahoma STACK play remains a significant production area, and the transfer of the Omega pipeline system to Olenox could signal consolidation or strategic realignment within regional infrastructure. The take-or-pay guarantee structure provides revenue predictability, which is particularly valuable in volatile energy markets. Investors and analysts monitoring Vivakor can access the latest news and updates relating to VIVK in the company's newsroom at https://ibn.fm/VIVK.
The broader implications of this announcement extend to market participants tracking corporate restructuring in the energy sector. Divestitures of non-core assets have become increasingly common as companies seek to improve financial health and operational focus. For Vivakor, the approximately $36 million infusion—whether through immediate cash, deferred payments via promissory note, or equity in Olenox—could provide capital for expansion in its remediation and Permian Basin activities. The remediation processing center business, which focuses on recovering, reusing, and disposing of petroleum byproducts and oilfield waste, aligns with growing environmental, social, and governance (ESG) considerations in the industry.
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As the energy sector continues to evolve, moves like Vivakor's asset sale to Olenox may influence how integrated service providers allocate capital and manage asset portfolios. The focus on remediation and specific basin operations reflects a trend toward specialization and sustainability in energy services. Market observers will monitor the progression toward a definitive agreement by the 2026 target, assessing its impact on both companies' strategic trajectories and the midstream infrastructure landscape in Oklahoma.
