Vivakor Signs Term Sheet for $40 million Commodity Intermediation Facility

Rhea-AI Summary

Vivakor (Nasdaq: VIVK) signed a non-binding term sheet dated October 15, 2025 to establish a proposed $40 million commodity intermediation facility to support its crude oil marketing and trading platform. The Facility would provide up to $40 million in combined credit support over a one-year term through instruments such as letters of credit, surety bonds, cash deposits, and guarantees supplied by an undisclosed wholesaler.

Vivakor previously announced a $23 million working capital investment to expand crude oil trading. VST would remain responsible for transportation, logistics, and sales; the parties target a closing date of October 30, 2025, and execution is subject to definitive agreements and customary closing conditions.

Positive

• $40M potential credit support for crude trading
• Facility supports letters of credit and guarantees
• Leverages existing midstream assets and trucking fleet
• $23M prior working capital investment already announced

Negative

• Term sheet is non-binding; definitive agreements not executed
• Counterparty is undisclosed, increasing counterparty transparency risk
• Facility term is only one year, requiring near-term renewal

Insights

Commodities Finance Strategist

Vivakor secures a proposed $40 million commodity intermediation facility to expand crude oil trading and working capital.

Vivakor plans to pair this prospective $40 million facility with a previously announced $23 million working capital investment to increase credit support for its crude oil trading arm, VST. The Facility would supply letters of credit, surety bonds, cash deposits, and/or guarantees to sellers and act as intermediary credit support for physical crude transactions while VST retains responsibility for transportation, logistics, gathering, and sales.

The arrangement is structured as a one-year facility with up to $40 million availability and a target signing on October 30, 2025. Key dependencies include execution of definitive agreements and customary closing conditions; until those occur, the commitments remain non-binding. Watch closing progress and any specific collateral, pricing, or usage terms in the definitive agreements over the next two weeks for confirmation of available liquidity and operational rollout.

Facility to provide additional credit for crude oil supply and trading

Dallas, TX, Oct. 15, 2025 (GLOBE NEWSWIRE) -- Vivakor, Inc. (Nasdaq: VIVK) (“Vivakor” or the “Company”), an integrated provider of energy transportation, storage, reuse, and remediation services, has announced today that, in addition to its previously announced $23 million working capital investment to expand Vivakor’s crude oil marketing and trading operations, it has signed a non-binding term sheet with an undisclosed wholesaler to establish a $40 million commodity intermediation credit facility. The proposed facility will provide additional credit support for Vivakor’s crude oil trading platform.

The Facility, known as a commodity intermediation facility (the “Facility”), would function as a working capital and credit support arrangement for physical crude oil transactions conducted by Vivakor Supply & Trading, LLC (“VST”). Under the terms of the Facility, the wholesaler would provide credit support, including but not limited to letters of credit, surety bonds, cash deposits, and/or guarantees to sellers of physical commodities as an intermediary of VST for commodity trading activities.

VST would remain responsible for arranging transportation, logistics, and gathering operations for the commodities purchased, as well as coordinating their sale to prospective buyers. VST expects to utilize the midstream logistics capabilities of its affiliates, including its trucking fleet, network of crude oil stations and terminal facilities, and its gathering pipeline asset.

The prospective Facility would have a one-year term and have a total availability of up to $40 million in combined credit support extended from time to time.

Vivakor Chairman, President and CEO James Ballengee commented, "This proposed transaction highlights our growth initiative for Vivakor’s trading segment, focusing of supply-chain commodity control to integrate volumes across our trucking fleet and facilities, driving immediate accretive revenue while diversifying and expanding our crude oil marketing operations.”

Execution of the definitive agreements remains subject to ongoing negotiation and customary closing conditions. The parties have a target closing date of October 30, 2025.

About Vivakor, Inc.

Vivakor, Inc. is an integrated provider of transportation, storage, reuse, and remediation services. Its corporate mission is to develop, acquire, accumulate, and operate assets, properties, and technologies in the energy sector. Vivakor’s integrated facilities assets provide crude oil storage, transportation, future reuse, and remediation services under long-term contracts. Vivakor’s oilfield waste remediation facilities will facilitate the recovery, reuse, and disposal of petroleum byproducts and oilfield waste products.

For more information, please visit our website: http://vivakor.com

Cautionary Statement Regarding Forward-Looking Statements

This news release may contain forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based upon the current beliefs and expectations of our management and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are difficult to predict and generally beyond our control. Actual results and the timing of events may differ materially from the results anticipated in these forward-looking statements. Forward-looking statements may be identified but not limited by the use of the words “anticipates,” “expects,” “intends,” “plans,” “should,” “could,” “would,” “may,” “will,” “believes,” “estimates,” “potential,” or “continue” and variations or similar expressions. Our actual results may differ materially and adversely from those expressed in any forward-looking statements as a result of various factors and uncertainties, including, but not limited to, fluctuations in global and regional oil and gas prices and markets, the risk that any required regulatory approvals are not obtained, are delayed or are subject to unanticipated conditions that could adversely affect Vivakor, our ability to maintain the listing of our securities on The Nasdaq Capital Market , the parties failure to realize the anticipated benefits of pending transactions, disruption and volatility in the global currency, capital, and credit markets, changes in federal, local and foreign governmental regulation, changes in tax laws and liabilities, tariffs, legal, regulatory, political and economic risks, our ability to successfully develop products, rapid change in our markets, changes in demand for our future products, and general economic conditions.

These risks and uncertainties include, but are not limited to, risks and uncertainties discussed in Vivakor’s filings with the U.S. Securities and Exchange Commission, which factors may be incorporated herein by reference. Actual results, performance or achievements may differ materially, and potentially adversely, from any projections and forward-looking statements and the assumptions on which those forward-looking statements are based. There can be no assurance that the data contained herein is reflective of future performance to any degree. You are cautioned not to place undue reliance on forward-looking statements as a predictor of future performance as projected financial information and other information are based on estimates and assumptions that are inherently subject to various significant risks, uncertainties and other factors, many of which are beyond our control. All information set forth herein speaks only as of the date hereof in the case of information about Vivakor or the date of such information in the case of information from persons other than Vivakor, and we disclaim any intention or obligation to update any forward-looking statements as a result of developments occurring after the date of this communication. Forecasts and estimates regarding Vivakor’s industries and markets are based on sources we believe to be reliable; however, there can be no assurance these forecasts and estimates will prove accurate in whole or in part.

Investors Contact:
P: 469-480-7175
info@vivakor.com

FAQ

What is the value and term of Vivakor's proposed commodity intermediation facility (VIVK)?

The proposed facility would provide up to $40 million in combined credit support and have a one-year term.

How will the VIVK facility support Vivakor's crude oil trading operations?

The facility would supply credit support such as letters of credit, surety bonds, cash deposits, and guarantees to sellers as an intermediary for VST.

When is Vivakor targeting closing for the VIVK $40M facility?

The parties have a target closing date of October 30, 2025, subject to definitive agreements and customary closing conditions.

Who is providing the credit support for Vivakor's proposed facility (VIVK)?

An undisclosed wholesaler is the prospective provider of the credit support under the non-binding term sheet.

What parts of operations will Vivakor Supply & Trading (VST) continue to handle under the proposed VIVK facility?

VST would remain responsible for transportation, logistics, gathering operations, and coordinating sales to prospective buyers.

How does this proposed facility relate to Vivakor's earlier financing (VIVK)?

The proposed $40M facility is in addition to a previously announced $23M working capital investment to expand crude oil marketing and trading.