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 represents a strategic expansion of Olenox's midstream footprint.
The acquisition aligns with Olenox's acquire-and-integrate strategy by adding fee-based infrastructure to its portfolio. CPE Gathering operates an on-basin crude-oil gathering, transportation, terminaling, and pipeline connectivity platform in Oklahoma. The transaction is structured as a combination of cash, promissory note, and common and preferred stock, based on $4.56 million in annual EBITDA supported by a take-or-pay guarantee from Vivakor.
This move is significant for Olenox's vertical integration across its three divisions—Oil and Gas, Energy Services, and Energy Technologies. By acquiring established midstream assets, the company can enhance operational efficiency and increase production capabilities across its energy lifecycle. The targeted closing date is on or before March 31, 2026, subject to customary closing conditions, with both parties working toward definitive agreements.
The acquisition's importance lies in its potential to strengthen Olenox's position in the Oklahoma STACK play, a key oil-producing region. Midstream assets like pipelines and gathering systems provide stable, fee-based revenue streams and are critical for transporting oil from production sites to markets. For investors, this transaction could signal Olenox's commitment to growth through strategic acquisitions, potentially enhancing its competitive edge in the energy sector.
For more information on Olenox Industries, visit https://www.Olenox.com. Additional updates relating to OLOX are available in the company's newsroom at http://ibn.fm/OLOX. The full press release can be viewed at https://ibn.fm/YDqWT.
