Olenox Industries to Acquire Vivakor's Oklahoma Midstream Assets for $36M

Olenox Industries (NASDAQ: OLOX), a vertically integrated energy company, is making a strategic move to strengthen its position in U.S. energy infrastructure by pursuing the acquisition of Vivakor Inc.'s midstream business in Oklahoma. The company has signed a non-binding letter of intent to acquire the midstream and transportation assets of CPE Gathering MidCon, LLC, a Vivakor subsidiary, for approximately $36 million. This transaction specifically targets the Omega pipeline system, which serves the prolific STACK play in Oklahoma, a key oil and gas producing region. The assets are notable for generating stable, fee-based revenue supported by a take-or-pay EBITDA guarantee from Vivakor, providing a predictable cash flow stream. This deal is a significant step in Olenox's broader strategy to build an integrated energy model that spans upstream exploration, midstream transportation, services, and technology, thereby reducing its exposure to volatile commodity price swings.

The proposed acquisition, detailed further in the company's newsroom at https://ibn.fm/OLOX, would be financed through a combination of cash, a promissory note, and common and preferred equity. The valuation is based on an annual EBITDA of $4.56 million, underscoring the financial attractiveness of the assets. By expanding its midstream footprint, Olenox aims to enhance its operational resilience and create a more diversified business portfolio. This move aligns with the company's vision to deepen its involvement in critical energy infrastructure, leveraging assets like the Omega pipeline to secure a stronger market position. For more in-depth coverage, readers can explore the full story through the InvestorWire platform, which provides advanced wire-grade press release syndication and is part of the Dynamic Brand Portfolio at IBN, offering extensive distribution and corporate communications solutions.

The strategic importance of this acquisition cannot be overstated, as it represents Olenox's commitment to building a robust, vertically integrated energy enterprise. The Omega pipeline system is a vital asset in the STACK play, facilitating the transportation of hydrocarbons and supporting regional energy production. By integrating these midstream capabilities, Olenox not only mitigates risks associated with price fluctuations but also positions itself for long-term growth in a competitive market. This development is particularly relevant for investors and stakeholders following Olenox Industries, as it signals proactive management and a forward-looking approach to energy sector challenges. The broader implications for the energy industry include potential shifts in midstream consolidation and infrastructure development, making this news a key point of discussion for market analysts and industry observers.