Vivakor launches $24 million crude oil trading operation in Permian Basin

DALLAS - Vivakor, Inc. (NASDAQ:VIVK) announced Thursday it has executed its first major commodity transaction through its Vivakor Supply & Trading (VST) platform, marking the company’s entry into crude oil marketing operations in the Permian Basin.

The $24 million transaction will utilize Vivakor’s existing midstream assets, including its trucking fleet, storage facilities, pipeline injection stations, and other logistics infrastructure to support the trading operations.

According to the company, VST is expected to recognize approximately 1% of the contract value from the transaction, consistent with standard crude oil trade arrangements. The trading platform is designed to arrange transportation, logistics, and gathering operations for commodities purchased, while coordinating sales to prospective buyers.

"The execution of Vivakor Supply & Trading’s first major $24 million crude oil transaction marks an important inflection point for our company," said James Ballengee, Vivakor Chairman, President and CEO, in a press release statement.

The company indicated the trading platform is expected to generate revenue contributions as volumes increase under long-term operational and credit facilities. Vivakor aims to integrate its trading activities with its existing logistics and midstream assets to manage supply flows across the crude oil supply chain.

Vivakor describes itself as an integrated provider of energy transportation, storage, reuse, and remediation services. The company operates facilities that provide crude oil storage, transportation, reuse, and remediation services under long-term contracts.

The announcement comes as the company continues to develop its presence in the energy sector through asset acquisition and operational expansion.

In other recent news, Vivakor, Inc. has made significant financial maneuvers. The company announced the closure of a $40 million commodity intermediation credit facility to bolster its crude oil trading operations. This facility will support Vivakor Supply & Trading, LLC with credit for various financial assurances. Additionally, Vivakor secured approximately $3.5 million through a registered direct offering involving securities purchase agreements with a single institutional investor. The offering included both common stock and pre-funded warrants, with D. Boral Capital LLC acting as the exclusive placement agent.

Further developments include Vivakor’s issuance of over 10.9 million shares upon the conversion of a junior secured convertible promissory note by its lender, J.J. Astor & Co. This conversion occurred through three separate notices, resulting in the issuance of shares totaling $1,050,000 in principal amount. Another debt conversion with J.J. Astor & Co. saw Vivakor issue 3,923,492 shares after converting $400,000 of the note’s principal amount. Lastly, Vivakor’s participation in the upcoming ThinkEquity conference in New York is noteworthy, with CEO James Ballengee scheduled to present and engage in one-on-one meetings with institutional analysts and investors.

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