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Vivakor Inc. In Oil & Gas sector announced that its Board has approved the acquisition of several key assets, including Endeavor Crude, Meridian Equipment Leasing, Equipment Transport, and Silver Fuels Processing. The acquisition, which is set to close on October 1, 2024, will significantly expand Vivakor’s presence in the oilfield logistics sector.
Endeavor Entities Overview
The Endeavor Entities form an integrated midstream logistics business that provides specialized services such as transportation, storage, treatment, and sale of crude oil, produced water, and hydrocarbons. These entities operate one of the largest oilfield trucking fleets in the United States, with significant operations in key energy regions including the Permian Basin, Eagle Ford Basin, and Oklahoma’s STACK play. In addition to trucking services, their assets include a network of stations, terminals, and pipelines for crude oil processing and remediation.
Financial Performance and Strategic Significance
For the first half of 2024, the Endeavor Entities generated $47.3 million in revenue and $9.3 million in EBITDA. They are on track to achieve an annual revenue of $94.6 million and EBITDA of $18.6 million, according to Vivakor (NASDAQ:VIVK)’s statement. This acquisition is viewed as a major step in expanding Vivakor’s capabilities in oilfield logistics.
James Ballengee, CEO of Vivakor, described the acquisition as a transformative milestone for the company. He emphasized that the integration of the Endeavor Entities with Vivakor’s existing facilities will facilitate immediate expansion and create new revenue streams. The purchase will position Vivakor as a significant player in the oilfield logistics sector, with enhanced logistics capabilities through one of the largest oilfield trucking fleets in the country.
Acquisition Details
Vivakor will pay $120 million for the Endeavor Entities, using a combination of stock and Series A Convertible Preferred Stock, with provisions for additional post-closing adjustments. This acquisition is expected to strengthen Vivakor’s competitive position and provide significant operational benefits as it scales its oilfield logistics solutions.
