Vivakor signs $40 million credit facility term sheet for oil trading

DALLAS - Vivakor, Inc. (NASDAQ:VIVK), an integrated provider of energy transportation and storage services with a current market capitalization of $9.16 million, announced Wednesday it has signed a non-binding term sheet with an undisclosed wholesaler to establish a $40 million commodity intermediation credit facility. InvestingPro data shows the company has achieved impressive revenue growth of 98.83% over the last twelve months, though it operates with significant debt obligations.

The proposed facility would provide credit support for Vivakor’s crude oil trading platform, supplementing the previously announced $23 million working capital investment to expand the company’s oil marketing and trading operations. According to InvestingPro analysis, the company’s current ratio stands at 0.22, indicating potential challenges in meeting short-term obligations.

Under the terms of the arrangement, the wholesaler would function as an intermediary for Vivakor Supply & Trading, LLC (VST), providing credit support including letters of credit, surety bonds, cash deposits, and guarantees to sellers of physical commodities.

VST would maintain responsibility for arranging transportation, logistics, and gathering operations for purchased commodities, as well as coordinating their sale to buyers. The company expects to utilize its affiliated midstream logistics capabilities, including its trucking fleet, network of crude oil stations, terminal facilities, and gathering pipeline asset.

The prospective facility would have a one-year term with total availability of up to $40 million in combined credit support. The parties have set a target closing date of October 30, 2025, with execution remaining subject to ongoing negotiation and customary closing conditions.

"This proposed transaction highlights our growth initiative for Vivakor’s trading segment, focusing of supply-chain commodity control to integrate volumes across our trucking fleet and facilities," said James Ballengee, Vivakor Chairman, President and CEO, in the press release statement.

Vivakor describes itself as an integrated provider of transportation, storage, reuse, and remediation services in the energy sector, with facilities that provide crude oil storage, transportation, and remediation services under long-term contracts. Trading at just 0.09 times book value, InvestingPro analysis suggests the stock may be undervalued, though investors should note the company’s overall Financial Health score is rated as "FAIR" with significant operational challenges to consider.

In other recent news, Vivakor, Inc. disclosed entering a Second Forbearance and Amendment to Loan Agreement with J.J. Astor & Co., which includes an additional loan of up to $2,450,000. The company is not in default under its initial and second notes, provided it complies with the new agreement. Vivakor also reported unregistered sales of equity securities related to the conversion of promissory notes, resulting in the issuance of 6,488,276 shares of common stock. This conversion involved $900,000 of principal from a junior secured convertible promissory note. Additionally, Vivakor issued 5,235,602 shares following a $700,000 note conversion with J.J. Astor & Co.

The company signed a non-binding term sheet for a potential $23 million funding deal, which could provide resources for its crude oil marketing and remediation activities. Despite these developments, Vivakor received a notice of default from J.J. Astor & Co., with approximately $7.66 million now immediately due and payable. This notice relates to a junior secured convertible promissory note initially issued in March 2025. The terms of this note had been amended in July 2025 through a forbearance agreement.

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