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. This arrangement provides financial security while allowing Olenox to integrate these assets into its existing operations. According to the company, CPE Gathering operates an on-basin crude-oil gathering, transportation, terminaling, and pipeline connectivity platform in Oklahoma, making it a natural fit for Olenox's acquire-and-integrate strategy.
The transaction aligns with Olenox's broader business model of acquiring and optimizing underdeveloped energy assets while supporting field operations with specialized services and proprietary technologies. By expanding its fee-based infrastructure through this acquisition, Olenox strengthens its position in the midstream sector, which typically offers more stable revenue streams compared to exploration and production activities. The parties are working toward definitive agreements with a targeted closing on or before March 31, 2026, subject to customary closing conditions.
This move into Oklahoma's STACK play represents a calculated expansion for Olenox, which already operates across Texas, Kansas, and Oklahoma. The STACK (Sooner Trend Anadarko Basin Canadian and Kingfisher counties) play has been a significant area of oil and gas development, making midstream infrastructure particularly valuable for supporting production operations. The acquisition of these assets positions Olenox to capture additional value across the energy lifecycle through enhanced operational efficiency and expanded service capabilities. For more information about Olenox Industries, visit their website at https://www.Olenox.com. Additional news and updates relating to OLOX are available through the company's newsroom at http://ibn.fm/OLOX.
