Vivakor shares jump 45% after two asset purchases

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By Chris Wack


Shares of Vivakor Inc. rose 45% to $2.57 after the company announced it was buying Silver Fuels Delhi LLC, operating in Louisiana, and White Claw Colorado City LLC in Texas.

The company said that if the two agreements are completed, they will allow Vivakor to enter a synergistic segment of the energy industry with the combination of a crude oil gathering, storage and transportation facility, which includes ten-year long-term contracts.

In 2021, SF Delhi generated $33 million in revenue and positive operating cash flow, the company said.

The acquisition is structured as a membership interest purchase agreement, with the owners of SF Delhi and WCCO selling 100% of the membership interests of SF Delhi and WCCO to Vivakor for a total consideration of 37.4 million dollars, subject to post-closing adjustments, Vivakor said.

SF Delhi owns and operates a crude oil gathering, storage and transportation facility located on 9.3 acres near Delhi, Louisiana. For a period of 10 years, SF Delhi is, under existing crude oil supply agreements with White Claw Crude, guaranteed a minimum gross margin under a take or pay contract. Currently, SF Delhi collects 1,400 to 1,700 barrels of crude oil daily.

WCCO has a 120,000 barrel oil storage reservoir in the heart of the Permian Basin, located near Colorado City, Texas.


Write to Chris Wack at [email protected]

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