Vivakor Pursues Permian Water Midstream Acquisition with Direct Midstream IOI
VIVK sits 28% above its 52-week low of $4.125 on light trading volume (0.3× avg).
Summary
Vivakor signed a non-binding Indication of Interest to acquire 100% of Direct Midstream, a Permian Basin water midstream operator with 17 saltwater disposal facilities, 9 fresh water/brine stations, and roughly 11.5 million barrels per month of permitted disposal capacity. The deal would add produced water infrastructure and oilfield waste management that complements Vivakor's existing transportation, terminaling, and environmental services. No purchase price or valuation was disclosed, and the IOI is subject to due diligence and definitive agreements. This follows Vivakor's recent 1-for-15 reverse split and aggressive expansion of its crude oil marketing programs, but the company still carries going concern doubt and a $58M working capital deficit from its Q2 10-Q. The acquisition, if completed, would materially expand Vivakor's Permian footprint and recurring revenue potential.
At the time of this announcement, VIVK was trading at $5.29 on NASDAQ in the Energy & Transportation sector, with a market capitalization of approximately $2.9M. The 52-week trading range was $4.13 to $35,760.00. This news item was assessed with positive market sentiment and an importance score of 7 out of 10. Source: GlobeNewswire.