Vivakor Provides 2024 Review And 2025 Outlook Including Closing $120M Acquisition Of Endeavor Entities

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.