Vivakor Inc (NASDAQ:VIVK) has announced the closing of the acquisitions of two companies with operations and long-term contracts servicing major US oil basins in Louisiana and Texas.
Vivakor said under the previously-announced membership interest purchase agreement between the company, Jorgan Development LLC and JBAN LLC, it has acquired Silver Fuels Delhi LLC (SFD) and White Claw Colorado City LLC (WCCC).
The total consideration paid for SFD and WCCC was $37.4 million, consisting of shares of restricted common stock equal to 19.99% of the company's total issued and outstanding shares, subject to lock-up agreements preventing their sale for a period of up to 18 months, promissory notes, and certain assumed liabilities which are subject to post-closing adjustments.
READ: Vivakor strikes $37.7M deal to acquire energy companies with assets in key US oil basins
SFD owns and operates a crude oil gathering, storage, and transportation facility located near Delhi, Louisiana, currently gathering between 1,400 and 1,700 barrels of crude oil per day.
WCCC owns a 120,000-barrel oil tanking facility in the heart of the Permian Basin near Colorado City, Texas, presently connected to the Lotus pipeline system with Vivakor intending to further connect the facility to additional pipeline systems.
Vivakor said WCCC will provide the company with the infrastructure to blend and sell oil recovered via its Remediation Processing Center machine from tank bottom sludge and contaminated soil which exists in the Permian Basis.
SFD and WCCC generated approximately $33 million in aggregate revenue and positive earnings before interest, taxes, depreciation, and amortization (EBITDA) in 2021, according to Vivakor.
Vivakor CEO Matthew Nicosia said these synergistic acquisitions represented a momentous and transformative event for the company and its shareholders.
“Given the long-term contracts presently in place at both SFD and WCCC, we expect to realize significant annual revenue and for both entities to generate meaningful EBITDA and profitability,” he said.
“We continue to be excited for the future of Vivakor and believe adding SFD and WCCC to our portfolio of assets will accelerate the company's business plan,” he added,
Vivakor is a clean energy technology company focused on the oil remediation and natural resources sectors.
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