Vivakor Forms Petroleum Marketing Division

Rhea-AI Summary

Vivakor, Inc. (NASDAQ:VIVK), an integrated energy services provider, has formed a new business unit called Vivakor Supply & Trading (VST). This division will focus on petroleum marketing operations, aiming to enhance the company's existing facilities in Louisiana and Texas. VST is expected to diversify revenue streams, manage market risk, and complement the activities of the Endeavor Entities upon acquisition closure.

James Ballengee, Chairman, President & CEO, stated that this move is an opportunity to create a more diversified and profitable company. VST's marketing efforts will focus on maximizing performance of existing facilities and supporting Vivakor's planned mergers and acquisitions. This strategic expansion is seen as a natural evolution for Vivakor, allowing the company to capture more of the value chain and better manage commodity market risk around its assets.

Positive

• Formation of new petroleum marketing division (VST) to diversify revenue streams
• Potential to enhance performance of existing facilities in Louisiana and Texas
• Expected to complement activities of Endeavor Entities upon acquisition closure
• Opportunity to capture more of the value chain and manage commodity market risk

Negative

• None.

Insights

Financial Analyst

Vivakor's formation of VST represents a strategic move to diversify revenue streams and enhance operational efficiency. While the immediate financial impact is unclear, this vertical integration could potentially improve profit margins and mitigate market risks. The focus on maximizing performance at existing facilities suggests a cost-effective approach to growth.

However, investors should note that entering the petroleum marketing space may expose Vivakor to additional market volatility and competitive pressures. The success of this initiative will largely depend on management's execution and the synergies achieved with existing operations and planned acquisitions. Without concrete financial projections, it's challenging to quantify the potential upside, making this a speculative development for now.

Market Research Analyst

Vivakor's entry into petroleum marketing through VST is a strategic alignment with industry trends. As energy markets evolve, companies are increasingly seeking vertical integration to capture more value across the supply chain. This move could potentially enhance Vivakor's competitive position in the energy services sector.

The formation of VST also signals Vivakor's proactive approach to market dynamics. By managing commodity market risk and maximizing facility performance, the company is positioning itself to better navigate market fluctuations. However, success in this venture will depend on Vivakor's ability to effectively leverage its existing assets and capitalize on synergies with planned acquisitions. Investors should monitor how this strategic shift impacts Vivakor's market share and financial performance in the coming quarters.

DALLAS, TX / ACCESSWIRE / August 13, 2024 / Vivakor, Inc. (NASDAQ:VIVK) ("Vivakor" or the "Company"), an integrated provider of energy transportation, storage, reuse, and remediation services, has formed a new business unit, Vivakor Supply & Trading ("VST"), focusing on petroleum marketing operations.

Vivakor management intends that VST will bolster operations, diversify revenue streams, and manage market risk at the Company's Delhi, Louisiana and Colorado City, Texas facilities through petroleum marketing activities. In addition, VST's marketing operations will complement the activities of the Endeavor Entities upon closing of the Company's acquisition thereof, as previously announced.

"This is an opportunity to create a more diversified and profitable Company," said James Ballengee, Chairman, President & CEO. "VST's marketing efforts will focus on maximizing performance of existing facilities and complementing the Company's planned mergers and acquisitions."

Ballengee continued, "Bolstering our footprint with VST is a natural next step in the evolution of Vivakor. Capitalizing upon available marketing opportunities and exposure compliments our existing facilities, our planned mergers and acquisitions, and gives us opportunities to capture more of the value chain and manage commodity market risk around those assets."

About Vivakor, Inc.

Vivakor, Inc. (NASDAQ:VIVK) is an integrated provider of sustainable energy transportation, storage, reuse, and remediation services. Vivakor's corporate mission is to develop, acquire, accumulate, and operate assets, properties, and technologies in the energy sector. Its Delhi, Louisiana, and Colorado City, Texas facilities provide crude oil gathering, storage, transportation, reuse, and remediation services under long-term contracts.

Vivakor's oilfield waste remediation facilities, currently under construction, will facilitate the recovery, reuse, and disposal of petroleum byproducts and oilfield waste products.

For more information, please visit our website: http://vivakor.com

Cautionary Statement Regarding Forward-Looking Statements

This news release may contain forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based upon the current beliefs and expectations of our management and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are difficult to predict and generally beyond our control. Actual results and the timing of events may differ materially from the results anticipated in these forward-looking statements. Forward-looking statements may be identified but not limited by the use of the words "anticipates," "expects," "intends," "plans," "should," "could," "would," "may," "will," "believes," "estimates," "potential," or "continue" and variations or similar expressions. Our actual results may differ materially and adversely from those expressed in any forward-looking statements as a result of various factors and uncertainties, including, but not limited to, , the expected transaction and ownership structure, the valuation of the transaction, the likelihood and ability of the parties to successfully and timely consummate planned acquisitions, the risk that any required regulatory approvals are not obtained, are delayed or are subject to unanticipated conditions that could adversely affect Vivakor or the expected benefits of the such transaction, our ability to maintain the listing of our securities on The Nasdaq Capital Market, the parties failure to realize the anticipated benefits of pending transactions, disruption and volatility in the global currency, capital, and credit markets, changes in federal, local and foreign governmental regulation, changes in tax laws and liabilities, tariffs, legal, regulatory, political and economic risks, our ability to successfully develop products, rapid change in our markets, changes in demand for our future products, and general economic conditions.

These risks and uncertainties include, but are not limited to, risks and uncertainties discussed in Vivakor's filings with the U.S. Securities and Exchange Commission, which factors may be incorporated herein by reference. Actual results, performance or achievements may differ materially, and potentially adversely, from any projections and forward-looking statements and the assumptions on which those forward-looking statements are based. There can be no assurance that the data contained herein is reflective of future performance to any degree. You are cautioned not to place undue reliance on forward-looking statements as a predictor of future performance as projected financial information and other information are based on estimates and assumptions that are inherently subject to various significant risks, uncertainties and other factors, many of which are beyond our control. All information set forth herein speaks only as of the date hereof in the case of information about Vivakor and the Endeavor Entities or the date of such information in the case of information from persons other than Vivakor and the Endeavor Entities, and we disclaim any intention or obligation to update any forward-looking statements as a result of developments occurring after the date of this communication. Forecasts and estimates regarding the Endeavor Entities industries and markets are based on sources we believe to be reliable; however, there can be no assurance these forecasts and estimates will prove accurate in whole or in part.

Investor Contact:

Phone: (949) 281-2606
info@vivakor.com

ClearThink
nyc@clearthink.capital

SOURCE: Vivakor, Inc.

View the original press release on accesswire.com

FAQ

What is Vivakor's new business unit called and what will it focus on?

Vivakor's new business unit is called Vivakor Supply & Trading (VST) and it will focus on petroleum marketing operations.

How does Vivakor (VIVK) expect VST to benefit the company?

Vivakor expects VST to bolster operations, diversify revenue streams, manage market risk at existing facilities, and complement activities of the Endeavor Entities upon acquisition closure.

Where are Vivakor's (VIVK) existing facilities that will be impacted by VST?

Vivakor's existing facilities that will be impacted by VST are located in Delhi, Louisiana and Colorado City, Texas.

What did James Ballengee, CEO of Vivakor (VIVK), say about the formation of VST?

James Ballengee stated that forming VST is an opportunity to create a more diversified and profitable company, and that it's a natural next step in Vivakor's evolution to capture more of the value chain and manage commodity market risk.