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 operations.
The acquisition structure involves 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. CPE Gathering operates an on-basin crude-oil gathering, transportation, terminaling, and pipeline connectivity platform in Oklahoma, which would significantly enhance Olenox's existing infrastructure portfolio.
This transaction aligns with Olenox's acquire-and-integrate strategy by expanding its midstream footprint and fee-based infrastructure. The company's vertically integrated model across Oil and Gas, Energy Services, and Energy Technologies divisions positions it to optimize underdeveloped assets in key regions including Texas, Kansas, and Oklahoma. For more information about Olenox's operations, visit https://www.Olenox.com.
The parties are working toward definitive agreements with a targeted closing on or before March 31, 2026, subject to customary closing conditions. The full press release detailing this transaction is available at https://ibn.fm/YDqWT.
For business leaders monitoring energy sector consolidation, this acquisition demonstrates how midstream assets continue to attract strategic investment despite broader energy transition trends. The Oklahoma STACK play remains a significant production region, and control of gathering and transportation infrastructure provides predictable revenue streams through fee-based models. The take-or-pay guarantee structure offers investors additional confidence in the transaction's financial underpinnings.
This move reflects ongoing consolidation in the midstream sector as companies seek to optimize logistics networks and capture operational synergies. For technology leaders, the transaction highlights how traditional energy infrastructure continues to evolve through strategic acquisitions and integration, even as alternative energy sources gain market share. The extended closing timeline through 2026 suggests careful due diligence and regulatory planning for this substantial infrastructure transfer.
