Vivakor, Inc. entered into a non‑binding Letter of Intent to sell its midstream business and transportation assets of CPE Gathering MidCon, LLC to Olenox Industries, Inc. for approximately $36 million. The deal is structured as a mix of cash, a promissory note, common stock and preferred stock, and is based on $4.56 million in annual EBITDA with a take‑or‑pay guarantee that obligates Vivakor to pay if the assets are not utilized by the agreed date.
The transaction reflects Vivakor’s strategy to strengthen its balance sheet and concentrate on its core Permian‑Basin operations, crude‑oil supply and trading, and its emerging Remediation Processing Centers. In 2025 Vivakor reduced debt by roughly $65 million and still carried an accumulated deficit of about $99 million as of December 31, 2024. The sale of the Oklahoma midstream assets is expected to free cash and reduce leverage, allowing the company to invest more heavily in high‑growth remediation and core oil‑and‑gas activities.
For Olenox, the acquisition expands its footprint in the Oklahoma STACK play, adding fee‑based, predictable revenue from gathering and terminaling and creating synergies with its existing field‑service operations. The deal is significant relative to Olenox’s market capitalization of $7.83 million at the time of the announcement, underscoring the company’s aggressive “acquire‑and‑integrate” strategy following its rebranding from Safe & Green Holdings Corp. to Olenox Industries, Inc. (NASDAQ:OLOX).
The payment structure, while disclosed as a mix of cash, promissory note, common and preferred stock, has not been broken down by proportion. The take‑or‑pay guarantee ensures that Vivakor will pay the agreed consideration even if the assets are not fully utilized, providing Olenox with a level of financial certainty and protecting the transaction’s value. The exact terms of the guarantee, however, remain confidential.
Market reaction to the announcement was mixed. Olenox’s shares fell 6.2% on January 29, 2026, before the February 2 announcement, as investors expressed concerns about the acquisition cost and integration challenges. Vivakor’s shares traded at $0.0070 on February 2 with low volume, indicating limited immediate market impact. The reaction reflects investor caution over the financial outlay and execution risk, despite management’s optimism about the strategic benefits of the deal.
The sale signals a clear shift for both companies: Vivakor is trimming non‑core midstream assets to focus on higher‑margin core operations and remediation technology, while Olenox is positioning itself for steady, fee‑based revenue growth in a key oil‑producing region. The transaction will likely reshape each company’s capital allocation, risk profile, and competitive positioning in the evolving energy landscape.
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