- The company signed a letter of intent to acquire Vivakor’s Oklahoma midstream and transportation assets for about $36 million.
- The transaction targets the Omega pipeline system serving the STACK play in Oklahoma.
- Assets generate fee-based revenue supported by a take-or-pay EBITDA guarantee.
- The deal would expand Olenox’s midstream presence and reduce exposure to commodity price swings.
- Management is pursuing an integrated energy model spanning upstream, midstream, services, and technology.
Olenox Industries (NASDAQ: OLOX), a vertically integrated energy company, is seeking to deepen its position in U.S. energy infrastructure with a proposed acquisition of Vivakor Inc.’s midstream business in Oklahoma. The company announced it has signed a non-binding letter of intent to acquire the midstream and transportation assets of CPE Gathering MidCon, LLC, a Vivakor subsidiary that owns and operates the Omega pipeline system in the Oklahoma STACK play (https://ibn.fm/1oC9H).
The transaction is valued at approximately $36 million and would be paid through a mix of cash, a promissory note, and common and preferred equity. The valuation is based on annual EBITDA of $4.56 million, supported by a take-or-pay guarantee from Vivakor. Olenox and Vivakor are working toward…
NOTE TO INVESTORS: The latest news and updates relating to OLOX are available in the company’s newsroom at https://ibn.fm/OLOX
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