Olenox Industries Inc. (NASDAQ: OLOX) has executed a non-binding letter of intent to acquire the midstream business and transportation assets of CPE Gathering MidCon LLC from Vivakor Inc. (OTC: VIVK). The proposed transaction, valued at approximately $36 million, includes the Omega pipeline system serving the Oklahoma STACK play and represents a strategic expansion of Olenox's midstream footprint.
The acquisition is structured as a combination of cash, promissory note, and common and preferred stock, based on $4.56 million in annual EBITDA supported by a take-or-pay guarantee from Vivakor. CPE Gathering operates an on-basin crude-oil gathering, transportation, terminaling, and pipeline connectivity platform in Oklahoma. This transaction aligns with Olenox's acquire-and-integrate strategy by expanding its fee-based infrastructure.
For investors and the energy sector, this acquisition matters because it demonstrates Olenox's commitment to growing its vertically integrated model through strategic asset purchases. The company operates across three synergistic divisions—Oil and Gas, Energy Services, and Energy Technologies—and this acquisition strengthens its midstream capabilities in a key producing region. The STACK play in Oklahoma represents a significant hydrocarbon resource, and controlling midstream assets there provides Olenox with greater control over the transportation and marketing of its production.
The parties are working toward definitive agreements with a targeted closing on or before March 31, 2026, subject to customary closing conditions. This timeline allows for thorough due diligence and regulatory approvals while providing market certainty about the transaction's completion. The take-or-pay guarantee from Vivakor provides revenue assurance for the acquired assets, which is particularly important in the volatile energy market where commodity price fluctuations can impact midstream economics.
This acquisition has implications for Olenox's operational efficiency and value creation potential. By integrating these midstream assets, the company can potentially reduce transportation costs for its Oklahoma production while generating fee-based revenue from third-party shippers. The vertical integration model allows Olenox to capture value across the energy lifecycle, from production through transportation to marketing. For more information about the company, visit https://www.Olenox.com.
The energy industry is increasingly focused on operational efficiency and integrated business models that can withstand commodity price cycles. Olenox's approach of acquiring and optimizing underdeveloped assets while building supporting infrastructure positions the company to capture opportunities often overlooked by traditional operators. This acquisition of Vivakor's Oklahoma assets represents a concrete step in executing that strategy and could serve as a template for future expansion into other producing regions where midstream infrastructure presents acquisition opportunities.
