Vivakor signs non-binding LOI to acquire Direct Midstream for $40 million at 4x targeted 2027 free cash flow

Vivakor, Inc.

LOI covers 100% of Direct Midstream, LLC, a Midland, Texas produced water and oilfield waste company in the Permian Basin; price is 4x targeted 2027 free cash flow of $10 million.
At closing Vivakor would invest $10 million in Direct Midstream, reducing consideration dollar-for-dollar; remainder would be ~$29 million Series B Preferred plus $1 million common stock.
Gross purchase price is adjustable on actual 2027 free cash flow, with minimum and maximum thresholds of $30 million and $50 million.
Between Oct 5-6, 2026, J.J. Astor converted $350,000 of the $5,940,000 Second Note into 128,965 VIVK common shares.
Deal remains subject to due diligence, audited financials, a fairness opinion, funding of the $10 million investment, and a definitive purchase agreement.

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