Olenox Industries Inc. (NASDAQ:OLOX) inked a non-binding Letter of Intent to acquire the midstream business and transportation assets of CPE Gathering MidCon, LLC from Vivakor, Inc. (OTC:VIVK) for around $36 million.
Olenox Industries is a vertically integrated energy company operating across three synergistic divisions – Oil and Gas, Energy Services, and Energy Technologies.
The company acquires and optimizes underdeveloped oil and gas assets in Texas, Kansas, and Oklahoma while supporting field operations with specialized well services and proprietary enhanced-recovery technologies.
Details
The company will pay the amount in a combination of cash, promissory notes, common, and preferred stock.
The deal amount is based on $4.56 million in annual EBITDA, pursuant to a take-or-pay guarantee of Vivakor.
Notably, CPE Gathering operates the Omega system, which is an on-basin midstream platform that offers crude gathering, transportation, terminaling, and pipeline connectivity in the STACK region of Oklahoma.
The deal is expected to close on or before March 31, 2026, subject to customary closing conditions.
Market Expansion
Olenox said it is pursuing an acquire-and-integrate strategy to strengthen its core brands and build a unified energy, technology, and infrastructure platform.
The acquisition is expected to support this strategy by expanding Olenox's serviceable market, boosting predictable, fee-based revenue through integrated gathering and terminaling, and creating operational synergies by aligning midstream logistics with field services to reduce per-well costs and enhance uptime.
Michael McLaren, Chief Executive Officer of Olenox added, "The proposed acquisition of Vivakor's Oklahoma midstream business would expand our presence in the STACK while positioning these assets for continued development under an integrated operating model."
Price Action: OLOX shares are down 1.38% at $1.430 premarket at the last check on Thursday.
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