Vivakor Signs LOI for Proposed $40 Million Acquisition of Direct Midstream

Vivakor, Inc. announced it has entered into a non-binding Letter of Intent (LOI) to acquire Direct Midstream, LLC, a Permian Basin-based water midstream and oilfield waste management company. The proposed acquisition aims to significantly expand Vivakor's infrastructure and service capabilities in the region.

Key Details

• Transaction Value: The proposed gross purchase price is $40 million, based on 4x Direct Midstream's targeted 2027 free cash flow of $10 million.
• Deal Structure: The consideration includes a $10 million capital investment by Vivakor into Direct Midstream at closing, approximately $29 million in Vivakor Series B Preferred Stock, and $1 million in Vivakor common stock.
• Contingencies: The purchase price is subject to adjustment (ranging from $30M to $50M) based on actual 2027 performance. The LOI is non-binding and the transaction is subject to due diligence, the execution of a definitive agreement, and other closing conditions.