Vivakor Signs LOI for Proposed $40 Million Acquisition of Direct Midstream
Key Highlights
- ➤Vivakor signs non-binding LOI to acquire 100% of Direct Midstream for $40 million
- ➤Direct Midstream valued at four times targeted 2027 free cash flow of $10 million
- ➤Vivakor would invest $10 million, reducing seller consideration dollar-for-dollar
- ➤Remaining consideration includes approximately $29 million Series B preferred stock and $1 million common stock
- ➤Transaction value could adjust between $30 million and $50 million based on 2027 free cash flow
Expert Statements
James Ballengee, Chairman, President and Chief Executive Officer of Vivakor
“The execution of this LOI represents an important next step toward the proposed acquisition of Direct Midstream and provides a framework for moving the transaction toward a definitive agreement.”
James Ballengee, Chairman, President and Chief Executive Officer of Vivakor
“Direct would significantly expand our Permian Basin infrastructure while adding produced water, disposal and oilfield waste capabilities that complement our existing operations and Remediation Processing Center strategy.”
James Ballengee, Chairman, President and Chief Executive Officer of Vivakor
“The contemplated $10 million investment is intended to provide additional capital to support the continued development and expansion of the Direct platform.”
Chris Early, President and Chief Executive Officer of Direct Midstream
“We are pleased to have reached this next stage with Vivakor and to establish a framework for the proposed transaction.”
Chris Early, President and Chief Executive Officer of Direct Midstream
“We believe Vivakor’s broader platform and the contemplated capital investment could provide meaningful resources to support Direct Midstream’s continued growth in the Permian Basin.”
Proposed Transaction Values Direct Midstream at 4x Targeted 2027 Free Cash Flow
Dallas, TX, Oct. 09, 2026 (GLOBE NEWSWIRE) -- Vivakor, Inc. (Nasdaq: VIVK) ("Vivakor" or the "Company"), an integrated provider of energy transportation, storage, reuse and remediation services, today announced that it has entered into a non-binding Letter of Intent (“LOI”) for the proposed acquisition of 100% of the outstanding membership interests of Direct Midstream, LLC (“Direct Midstream”), a Midland, Texas-based water midstream company providing produced water infrastructure and oilfield waste management services throughout the Permian Basin.
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