Olenox Industries Inc. (OLOX) is making a play for midstream infrastructure in Oklahoma. The vertically integrated energy company has signed a non-binding letter of intent to acquire the midstream business and transportation assets of CPE Gathering MidCon, LLC from Vivakor, Inc. (VIVK) for around $36 million.
For context, Olenox operates across three divisions—Oil and Gas, Energy Services, and Energy Technologies. The company's business model focuses on acquiring and optimizing underdeveloped oil and gas assets in Texas, Kansas, and Oklahoma, then supporting those field operations with specialized well services and proprietary enhanced-recovery technologies.
The Deal Structure
Olenox plans to pay for the acquisition using a combination of cash, promissory notes, and both common and preferred stock. The $36 million price tag is based on $4.56 million in annual EBITDA, backed by a take-or-pay guarantee from Vivakor.
What exactly is Olenox buying? CPE Gathering operates the Omega system, an on-basin midstream platform that handles crude gathering, transportation, terminaling, and pipeline connectivity in Oklahoma's STACK region. That's energy-speak for the infrastructure that moves oil from wells to where it needs to go.
The transaction is expected to close on or before March 31, 2026, subject to customary closing conditions.
Building an Integrated Platform
This acquisition fits into Olenox's broader acquire-and-integrate strategy, which aims to strengthen its core brands and build a unified energy, technology, and infrastructure platform.
The company expects the deal to expand its serviceable market, boost predictable fee-based revenue through integrated gathering and terminaling operations, and create operational synergies by aligning midstream logistics with field services. The goal is to reduce per-well costs and enhance uptime across operations.
Michael McLaren, CEO of Olenox, explained the strategic rationale: "The proposed acquisition of Vivakor's Oklahoma midstream business would expand our presence in the STACK while positioning these assets for continued development under an integrated operating model."
Price Action: OLOX shares were down 1.38% at $1.430 in premarket trading on Thursday.
