Vivakor Inc (NASDAQ:VIVK) told investors it is now targeting the third quarter of 2024 to close its previously announced acquisition of Endeavor Crude, LLC, Meridian Equipment Leasing, LLC, its subsidiary CPE Gathering MidCon, LLC, Equipment Transport, LLC, its subsidiary ET EmployeeCo, LLC, and Silver Fuels Processing, LLC, known collectively as the Endeavor Entities.
The Endeavor Entities are providers of oil and gas logistics, transportation, gathering, blending, storage, remediation, and reuse of crude oil, crude oil byproducts, produced water, and oilfield waste, including truck and pipeline transportation of such commodities, Vivakor highlighted.
Closing of the acquisition is subject to the completion of due diligence, Vivakor said, as well as delivery of audited financials for the periods ended December 31, 2022, and 2023, delivery of unaudited financial statements for any quarterly periods in 2024, Vivakor's receipt of a satisfactory fairness opinion to the underlying transaction, approval under the Hart Scott Rodino Act (HSR), and other customary closing conditions.
Vivakor said it is completing its due diligence and received audited financials for the respective fiscal years 2022 and 2023.
It intends to file its HSR pre-merger notification in the near future, now targeting closing of the acquisition in Q3.
"The Endeavor Entities represent an incredible opportunity for Vivakor to consolidate various affiliated businesses under common control, creating a more diversified and profitable company,” Vivakor CEO James Ballengee said in a statement.
“Synergies between business segments allow Vivakor the opportunity to more completely capture the value chain and streamline operations, resulting in significant cost efficiencies, while providing positive free cash-flow to support on-going growth and current operations."
The update was welcomed by investors, with the company's shares adding 10% at $2.74 mid-morning on Tuesday.
Vivakor is an integrated provider of sustainable energy transportation, storage, reuse, and remediation services.