Vivakor Signs Term Sheet to Expand Crude Oil Marketing and Remediation Businesses

Rhea-AI Summary

Vivakor (Nasdaq: VIVK) has signed a term sheet for up to $23 million in funding through a new series of convertible preferred stock. The transaction aims to boost the company's crude oil marketing and remediation businesses while enhancing integration across its transportation operations in the Permian and Eagle Ford Basins.

The deal structure includes $15 million in restricted cash for crude oil marketing, $3 million in unrestricted working capital, and $5 million in remediation assets. The counterparty will exclusively use Vivakor's trucking fleet for three years. The company will issue $25 million in Series B Convertible Preferred Stock, convertible after one year at a maximum price of $0.75 per share, with closing targeted by year-end 2025.

Positive

• Secured $23 million in potential funding through preferred stock issuance
• Three-year exclusive trucking agreement in Permian and Eagle Ford Basins
• $15 million earmarked for crude oil marketing credit facility
• Acquisition of $5 million in remediation assets and facilities
• Enhanced vertical integration across all four operating segments

Negative

• Potential dilution from convertible preferred stock issuance
• Non-binding term sheet subject to definitive agreements
• Restricted nature of majority of funding ($15M of $23M)

Insights

Financial Analyst

Vivakor secured $23M funding via preferred stock to boost oil operations, with potential revenue growth through strategic integration of services.

Vivakor has signed a term sheet to receive up to $23 million in funding through a new series of convertible preferred stock issuance. This non-binding agreement is structured to specifically enhance the company's crude oil marketing and remediation businesses while strengthening integration across its transportation operations in key oil-producing regions.

The funding allocation is strategically distributed with $15 million in restricted cash for establishing a credit facility dedicated to crude oil marketing and trading activities, $3 million in unrestricted working capital for immediate operational needs, and at least $5 million in tangible assets including land, equipment, and crude oil inventory for the remediation segment.

A particularly valuable component is the counterparty's commitment to exclusively utilize Vivakor's trucking fleet in the Permian and Eagle Ford Basins for three years, which should drive predictable revenue and improve fleet utilization rates. This arrangement creates a vertical integration advantage by potentially increasing throughput across Vivakor's injection and terminaling facilities.

The financial structure involves Vivakor issuing $25 million in Series B Convertible Preferred Stock, convertible to common stock after one year at a maximum conversion price of $0.75 per share. With an exclusivity period through December 31, 2025, and targeted year-end closing, this transaction represents a significant capital infusion for operational expansion without immediate dilution to existing shareholders.

Consideration would be paid in new Series of Preferred Equity

Dallas, TX, Sept. 29, 2025 (GLOBE NEWSWIRE) -- Vivakor, Inc. (Nasdaq: VIVK) (“Vivakor” or the “Company”), an integrated provider of energy transportation, storage, reuse, and remediation services, announced today it has signed a term sheet with a non-affiliate counterparty to provide up to $23 million in funding in exchange for the issuance of a new series of convertible preferred stock.

The contemplated transaction is designed to accelerate the growth of Vivakor’s crude oil marketing and remediation businesses, while also strengthening integration across its trucking and transportation operations in the Permian and Eagle Ford Basins.

Vivakor Chairman, President and CEO James Ballengee commented, “This proposed transaction would directly support two of our expanding business segments, crude oil marketing and remediation, while also driving additional volumes across our trucking fleet. By aligning new customer commitments with existing infrastructure, we create synergies across all of our operating divisions, including our network of facilities that provide crude oil injection and terminaling services. We believe this structure provides immediate revenue opportunities and sets the stage for long-term value creation.”

Under the non-binding terms of the prospective transaction, Vivakor’s marketing segment, Vivakor Supply & Trading, would receive $15 million in restricted cash to further establish a credit facility earmarked specifically for its crude oil marketing and trading activities, while Vivakor would receive $3 million in unrestricted working capital to support near-term operational needs. Additionally, the Company’s remediation segment would receive at least $5 million in assets and facilities, including land, equipment, and crude oil inventory.

In addition, the counterparty would agree to exclusively utilize Vivakor’s trucking fleet for a three-year period in the Permian and Eagle Ford Basins, further strengthening utilization and throughput across the Company’s transportation network. Although not a direct component of the contemplated transaction, the added trucking volumes and expanded marketing activities are also expected to drive incremental demand across Vivakor’s network of crude oil injection and terminaling facilities, supporting integration across all four of the Company’s operating segments

Les Patterson, Chief Operating Officer of Vivakor, added, “From an operations perspective, this contemplated transaction would bring in both capital and assets that can be deployed immediately to enhance our crude oil throughput and remediation capabilities. The exclusive trucking commitment would ensure stronger utilization of our fleet in the Permian and Eagle Ford Basins, while the added working capital would give us the flexibility to execute efficiently and scale with demand. We view this as a catalyst for deeper vertical integration across our platform.”

Under the proposed terms, Vivakor would issue $25 million in Series B Convertible Preferred Stock. The securities would be convertible into common stock beginning one year after the execution of definitive agreements, subject to a maximum conversion price of $0.75 per share. Vivakor has agreed to an exclusivity period with the third party through December 31, 2025, with a target closing date of year-end.

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 size of Vivakor's (VIVK) new funding agreement?

Vivakor has signed a term sheet for up to $23 million in funding through a new series of convertible preferred stock issuance worth $25 million.

How will the funding be allocated in Vivakor's business segments?

The funding will be allocated as $15 million in restricted cash for crude oil marketing, $3 million in unrestricted working capital, and $5 million in remediation assets and facilities.

What are the terms of VIVK's new convertible preferred stock?

The Series B Convertible Preferred Stock will be convertible into common stock after one year, with a maximum conversion price of $0.75 per share.

When is Vivakor's term sheet expected to close?

The company has an exclusivity period through December 31, 2025, with a target closing date of year-end 2025.

What is the trucking agreement included in Vivakor's term sheet?

The counterparty has agreed to exclusively use Vivakor's trucking fleet for a three-year period in the Permian and Eagle Ford Basins.