Vivakor appoints new CFO and COO to strengthen leadership team

DALLAS - Energy services provider Vivakor, Inc. (NASDAQ:VIVK), a $43 million market cap company with annual revenue of $111 million, announced Wednesday the appointments of Kimberly Hawley as Executive Vice President and Chief Financial Officer, and Les Patterson as Executive Vice President and Chief Operating Officer. According to InvestingPro analysis, the company faces profitability challenges despite strong revenue growth of 86% in the last twelve months.

Hawley brings over 25 years of financial experience across public and private companies, with expertise in SEC reporting, SOX compliance, treasury operations, and audit management. Her background spans energy, infrastructure, and logistics sectors.

Patterson joins with more than 30 years of leadership in the oil and gas industry, having previously worked with major energy companies including BP, ExxonMobil, Chevron, and Shell. His experience covers operations, engineering, construction, and project execution in both onshore and offshore environments.

"Les brings operational discipline and deep industry experience that will be instrumental as we focus on improving profitability and scaling efficiently," said James Ballengee, Vivakor’s Chairman, President, and Chief Executive Officer, according to the company’s press release.

Regarding Hawley’s appointment, Ballengee noted she "adds a new level of financial insight that strengthens our ability to deliver transparency and long-term value to our stakeholders."

Vivakor provides transportation, storage, reuse, and remediation services in the energy sector. The company operates integrated facilities that offer crude oil storage and transportation services under long-term contracts, while its oilfield waste remediation facilities focus on recovery and reuse of petroleum byproducts.

The appointments come as the company seeks to enhance its operational and financial capabilities. According to the press release, Patterson will focus on driving operational excellence and optimizing the company’s asset base, while Hawley will work on strengthening financial reporting and discipline. This leadership transition is particularly significant given the company’s current gross profit margin of 12.5%, which InvestingPro analysis identifies as an area requiring improvement. InvestingPro subscribers have access to over 30 additional financial metrics and exclusive insights about Vivakor’s financial health and growth potential.

In other recent news, Vivakor Inc. reported a significant surge in its first-quarter financial results, with revenue climbing 133% to $37.3 million and gross profit increasing by 345% to $4.8 million. The company’s gross margin improved to 12.7%, up from 6.7% the previous year, and adjusted EBITDA rose to $2.5 million. Additionally, Vivakor announced the sale of two non-core business units, Meridian Equipment Leasing, LLC and Equipment Transport, LLC, which will eliminate approximately $59 million in debt and provide net consideration of about $11 million. The company is also expanding its operations in the Permian and Eagle Ford Basins, where it owns and operates 10 pipeline injection stations. In financing news, Vivakor issued convertible promissory notes and shares to investors, raising approximately $5.1 million in principal amount through a Securities Purchase Agreement. These notes, which carry a 15% original issuance discount and a one-time 10% interest charge, are convertible at 80% of certain stock price metrics. Furthermore, the company engaged in unregistered sales of equity securities, issuing convertible notes totaling $575,000, with these notes carrying similar terms. These developments reflect Vivakor’s strategic moves to streamline operations and secure financing for future growth.

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