Vivakor, Inc. has entered into a non-binding Letter of Intent to acquire 100% of the outstanding membership interests of Direct Midstream, LLC. The proposed transaction values Direct Midstream at approximately $40 million based on four times its targeted 2027 free cash flow of $10 million, with a potential range between $30 million and $50 million depending on actual performance. At closing, Vivakor would make a $10 million capital investment in Direct Midstream, reducing the consideration payable to the seller dollar-for-dollar. The remaining consideration would consist of approximately $29 million of Vivakor Series B Preferred Stock and $1 million of common stock. The deal remains subject to customary due diligence, regulatory approvals, and execution of a definitive agreement. Vivakor is an integrated provider of sustainable energy transportation, storage, reuse, and remediation services.
