Vivakor Provides 2024 Review and 2025 Outlook

Rhea-AI Summary

Vivakor (NASDAQ:VIVK) reported a successful 2024 and provided outlook for 2025, highlighting its highest contracted revenue level in company history. The company exited 2024 with an annual projected revenue run-rate exceeding $160 million.

Key 2024 achievements include:

• Completion of the $120 million acquisition of Endeavor Entities, expanding operations with 10-year take-or-pay contracts
• Pipeline expansion project in Blaine County, Oklahoma's STACK play
• Completion of factory acceptance tests for Remediation Processing Center in Houston
• Formation of Vivakor Supply & Trading division

The company now moves over 300,000 barrels/month through various assets, operates 165 crude oil transportation units across major oil production basins, and 105 water transportation trucks in Texas. Their technology is exclusively approved by Kuwait Oil Company for soil remediation.

Positive

• Acquired Endeavor Entities for $120M with guaranteed 10-year take-or-pay contracts
• Achieved highest contracted revenue level in company history
• Annual projected revenue run-rate exceeding $160M
• Expanded pipeline system with new gathering lines in Oklahoma
• Secured guaranteed daily transportation of 75,000 barrels of crude oil
• Completed factory acceptance tests for Houston RPC facility

Negative

• None.

Insights

Energy Infrastructure Analyst

Vivakor has transformed into a significant energy infrastructure player through strategic acquisitions and organic growth, securing stable revenue streams via long-term contracts.

Vivakor's strategic transformation through the $120 million Endeavor Entities acquisition represents a fundamental reshaping of the company's operational footprint. This transaction has created one of the largest oilfield service fleets in the continental U.S., with operations now spanning 165+ crude oil transportation units across all major domestic production basins and 105+ water transportation trucks in Texas markets. The company now processes over 300,000 barrels monthly through its gathering and storage infrastructure.

The completion of the Omega Pipeline System expansion in Oklahoma's STACK play demonstrates organic growth capability, with the project finished ahead of schedule and under budget. This 40-mile crude oil gathering system, connected to the strategic Cushing trading hub, creates immediate incremental volume opportunities from connected production.

Most significant from an infrastructure stability perspective are the 10-year take-or-pay contracts with White Claw Crude that began January 1, 2024. These agreements establish guaranteed minimum throughputs including 75,000 barrels daily of crude transport, $200,000 monthly pipeline throughput revenue, and 230,000 barrels monthly of gathering/storage throughput. Such contractual guarantees create remarkable revenue visibility through 2034, effectively de-risking the business model against industry cyclicality.

The Houston Remediation Processing Center represents a technological innovation addressing tank bottom sludge and oil-industry waste typically destined for hazardous landfills. By recovering embedded oil from waste streams, Vivakor is creating value from environmental remediation, potentially opening an entirely new sustainable revenue category.

Financial Analyst

Vivakor's financial trajectory strengthened with $160M revenue run-rate, guaranteed long-term contracts, and diversified business units positioned for earnings growth.

Vivakor exited 2024 with its strongest financial position to date, reporting a projected annual revenue run-rate exceeding $160 million - the highest contracted revenue level in company history. The October 2024 closing of the Endeavor Entities acquisition fundamentally transforms the company's financial scale and stability through 2034.

The acquisition's financial structure includes substantial downside protection through 10-year take-or-pay agreements with White Claw Crude These contracts provide exceptional revenue predictability through guaranteed transport volumes and minimum throughput commitments, creating a solid base revenue foundation regardless of market conditions.

Integration synergies from consolidating operations are expected to deliver sustainable earnings accretion, enhancing shareholder value beyond simple revenue addition. Management's focus on "financial responsibility and operational efficiency" alongside efforts to "fully integrate and improve efficiencies" indicates a disciplined approach to margin enhancement post-acquisition.

The formation of Vivakor Supply & Trading represents strategic diversification of revenue streams while creating mechanisms for managing market risk at existing facilities. This vertical integration opens opportunities to capture additional margin across the value chain.

The pipeline expansion completion ahead of schedule and under budget demonstrates operational efficiency and capital discipline - critical factors for generating returns in infrastructure investments. The company's integrated approach across midstream segments (transportation, gathering, storage) creates operational leverage that should drive improved financial performance as volumes increase.

Looking forward to 2025, management's statements suggest continued expansion both organically and through acquisitions, building on the foundational improvements established in 2024.

Entered 2025 With its Highest Level of Contracted Revenue in Company History

DALLAS, TX / ACCESS Newswire / April 23, 2025 / Vivakor, Inc. (NASDAQ:VIVK) ("Vivakor" or the "Company"), an integrated provider of energy transportation, storage, reuse, and remediation services,is pleased to summarize its successful 2024 and provide a corporate and business outlook for 2025.

2025 Corporate Outlook

Having expanded its strong foundation in 2024, Vivakor is now looking ahead to continue to expand its diversified infrastructure assets even further in 2025. Based on its contracted revenue, Vivakor believes 2025 could shape up to be another record year, as it exited 2024 on an annual projected revenue run-rate of greater than $160 million.

"Thanks to the support of our shareholders, lenders, business partners, operating and management teams and Board of Directors, Vivakor had a highly successful 2024, expanding our business organically and through acquisitions, highlighted with the closing of the acquisition of the Endeavor Entities. The Vivakor team has been, and continues to, work tirelessly to fully integrate and improve efficiencies from the business combination with those entities, and I couldn't be more pleased with the results," stated James Ballengee, President and CEO of Vivakor, Inc.

"This past year was transformative for our Company and a testament to our evolution as a diversified infrastructure company, with midstream assets in logistics, gathering and storage, as well as sustainable assets in environmental services, remediation and processing solutions. In gathering and storage, Vivakor moves over 300,000 barrels/month through various assets. In logistics, Vivakor owns and operates over 165 crude oil transportation units in every major domestic oil production basin and over 105 water transportation trucks in south and west Texas. In environmental services, Vivakor's technology is the only approved Recycling Processing Center (RPC) approved by the Kuwait Oil Company to successfully reduce oil concentration in soil to less than 0.5%," continued Mr. Ballengee.

"By maintaining a strong focus on financial responsibility and operational efficiency, we aim to maximize shareholder value, while advancing our growth mission to expand organically and through acquisitions in 2025 and thereafter," concluded Mr. Ballengee.

2024 in Review Highlights

Vivakor Completes Pipeline Expansion Project

Vivakor completed the expansion and construction of additional gathering lines connected to its Omega Pipeline System in Blaine County, Oklahoma. The expansion is expected to result in immediate incremental customer volumes from connected oil production. The project consists of two new gathering lines and was completed ahead of schedule and under-budget.

The Omega Pipeline System is an approximately 40-mile crude oil gathering and shuttle pipeline system that serves the STACK play in Oklahoma's Anadarko Basin. It is supported by acreage dedications from key producer and marketing customers, and is connected to the Cushing, Oklahoma storage and trading hub via the Plains STACK Pipeline. The Omega Pipeline System's operations are complemented by and integrated with a fleet of approximately two dozen trucks supporting additional incremental volumes from customers.

Vivakor Closed $120 Million Acquisition of Endeavor Entities

Effective October 1, 2024, Vivakor closed its previously announced acquisition of Endeavor Crude, LLC, Meridian Equipment Leasing, LLC, Equipment Transport, LLC, and Silver Fuels Processing, LLC, and their subsidiaries (collectively, the "Endeavor Entities").

Vivakor now owns one of the largest combined fleets of oilfield services in the continental United States. The integration and consolidation of existing operations creates immediate value within our financial framework, by delivering what we believe will be sustainable accretion to earnings resulting in increased shareholder value over time.

The Endeavor Entities operate in the midstream segment of the oil industry, which targets oil logistics, gathering and storage, including crude oil and produced water trucking and disposal services, and also operates a crude oil pipeline gathering system and pipeline injection stations. Vivakor believes it will benefit from the expected synergies that these acquisitions will create. In addition, each of the material businesses have 10-year take or pay contracts with White Claw Crude, LLC, a company affiliated with Vivakor's CEO, which began on January 1, 2024, that provide minimum revenue levels. In the crude oil and produced water trucking business, the Endeavor Crude, LLC contract with White Claw Crude, LLC guarantees a volume of 75,000 barrels of crude oil to be transported each day. The pipeline gathering contract with CPE Gathering Midcon, LLC guarantees minimum pipeline throughput revenue of $200,000 per month. For Silver Fuels Processing, LLC (SFP) the gathering and storage facilities have a minimum contract guarantee, that call for 230,000 barrels per month of throughput at $0.275 per barrel.

Vivakor Achieved Milestone for its RPC in Houston, Texas

Vivakor completed the factory acceptance tests for its Remediation Processing Center (RPC) in Houston, Texas. The tests were done in conjunction with RK Energy, LLC and checked out all the Control Logic, Operating Screens, PLC controls, Plant Interlocks and all plant equipment/instruments/devices.

This represents a major milestone in moving forward towards operation. The Vivakor team is pressing forward to gain the necessary permits and access to power for the site, which are the final steps needed to enter quality control checks and enter into commercial operation.

This is a first-of-its-kind center for processing and recovery of tank bottom sludge and other oil-industry waste. Millions of tons of this waste are generated annually, just within the U.S., and are typically treated with hardening agents and disposed of in hazardous waste landfills. The goal of our facility is to process this waste and recover and recycle the embedded oil - reducing the need to drill for new oil and preventing the waste from ending up in landfills.

Vivakor Formed Petroleum Marketing Division

Formed a new business unit, Vivakor Supply & Trading, focusing on petroleum marketing operations. Vivakor management intends that Vivakor Supply & Trading 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, Vivakor Supply & Trading's marketing operations will complement the activities of the Endeavor Entities.

About Vivakor, Inc.

Vivakor, Inc. is an integrated provider of sustainable energy transportation, storage, reuse, and remediation services, operating one of the largest fleets of oilfield trucking services in the continental United States. Its corporate mission is to develop, acquire, accumulate, and operate assets, properties, and technologies in the energy sector. Vivakor's integrated facilities assets provide crude oil and produced water 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.

Investors Contact:
P:949-281-2606
info@vivakor.com

ClearThink
nyc@clearthink.capital

SOURCE: Vivakor

View the original press release on ACCESS Newswire

FAQ

What is Vivakor's (VIVK) projected revenue run-rate for 2025?

Vivakor exited 2024 with an annual projected revenue run-rate of greater than $160 million.

How many barrels does Vivakor's Endeavor contract guarantee for daily transportation?

The Endeavor Crude contract guarantees transportation of 75,000 barrels of crude oil per day.

What is the monthly throughput guarantee for Vivakor's Silver Fuels Processing facilities?

Silver Fuels Processing facilities guarantee 230,000 barrels per month of throughput at $0.275 per barrel.

What is the size of Vivakor's transportation fleet after the Endeavor acquisition?

Vivakor operates 165 crude oil transportation units across major oil basins and 105 water transportation trucks in south and west Texas.

What is the minimum monthly pipeline throughput revenue guaranteed in Vivakor's CPE Gathering contract?

The CPE Gathering Midcon contract guarantees minimum pipeline throughput revenue of $200,000 per month.