Business
VIVAKOR UNLOCKS $59 MILLION IN DEBT REDUCTION AND IMPROVES PROFITABILITY WITH STRATEGIC SALE OF NON-CORE BUSINESS UNITS
Focusing on Higher Margin and Growth Opportunities DALLAS, TX, July 30, 2025 (GLOBE NEWSWIRE) -- Vivakor, Inc. (NASDAQ:VIVK) ("Vivakor" or the "Company"), an
About this update from Vivakor, Inc.
[{"type":"text","content":"Focusing on Higher Margin and Growth Opportunities DALLAS, TX, July 30, 2025 (GLOBE NEWSWIRE) -- Vivakor, Inc. (NASDAQ:VIVK) (\"Vivakor\" or the \"Company\"), an integrated provider of energy transportation, storage, reuse, and remediation services, has announced the sale of the non-core business units of Meridian Equipment Leasing, LLC, and Equipment Transport, LLC, subsidiaries of Vivakor Transportation, LLC, an indirect wholly-owned subsidiary of the Company. “This transaction reflects Vivakor’s continued commitment to strategic realignment and disciplined financial management,” said James H. Ballengee, Chairman, President, and Chief Executive Officer. “With net consideration from the transaction of approximately $11 million and the elimination of approximately $59 million in debt, we are significantly improving our credit metrics and strengthening the Company’s capital structure. The transaction results in a modest increase in net equity due to the transfer of associated assets, reduces our overall risk profile and positions us to better focus on core, high-growth opportunities, with minimal impact on EBITDA.” Through this transaction, Vivakor exits the produced water transportation sector and expects to realize meaningful annualized interest expense savings. The sale enables the Company to streamline operations and focus capital and management attention on higher margin business segments. “Strategically, we are refocusing our efforts on expanding crude oil transportation, midstream infrastructure, and environmental remediation service, particularly those centered on reuse technologies,” added Ballengee. “This divestiture supports our ongoing objective to raise cash, reduce expenses, and accelerate the transition toward a more streamlined, capital efficient business model.” Meridian Equipment Leasing, LLC and Equipment Transport, LLC collectively owned and operated a fleet of trucks and trailers dedicated to transporting oilfield produced water, primarily serving producers in the Permian and Eagle Ford Basins. About Vivakor, Inc. Vivakor, Inc. (NASDAQ: VIVK), is an integrated provider of energy transportation, storage, reuse, and remediation services. Vivakor's strategy is to develop, acquire, accumulate, and operate assets, properties, and technologies in the energy sector. Its integrated trucking and facility assets provid...