The proposed Vivakor acquisition of Direct Midstream moved past due diligence on October 23, 2026, but remains unsigned. Vivakor said it had completed its review of the Permian Basin fluid-management business and was working toward a definitive agreement for the proposed $40 million transaction.
Key Takeaways
- Due diligence is complete, but neither a definitive purchase agreement nor the acquisition has been completed.
- The proposed terms include a $10 million capital investment that would reduce seller consideration dollar-for-dollar.
- Direct Midstream would add water-management and oil-reclamation infrastructure serving Permian Basin operators.
Table of Contents
- Vivakor acquisition terms remain subject to agreement
- A broader Permian Basin services platform
- Conclusion
Vivakor acquisition terms remain subject to agreement
The previously announced letter of intent contemplates a $40 million gross purchase price and a $10 million investment by Vivakor into Direct Midstream at closing. That investment would reduce the consideration payable to the seller dollar-for-dollar, rather than being added to the stated gross purchase price.
Final transaction terms would be established in a definitive agreement, if one is executed. Signing and closing remain subject to agreement on those terms, funding of the contemplated capital investment and other applicable conditions. Vivakor cautioned that neither signing nor completion is assured.
Chairman, President and Chief Executive Officer James Ballengee said the company’s focus had shifted to finalizing the agreement after completing due diligence. The announcement did not provide a target signing or closing date.
| Item | Details |
|---|---|
| Saltwater disposal facilities | 17 in Direct Midstream’s platform |
| Freshwater and brine stations | 9 in Direct Midstream’s platform |
| Permitted disposal capacity | Approximately 11.5 million barrels per month; not a measure of actual throughput |
A broader Permian Basin services platform
Direct Midstream provides produced-water management, saltwater disposal, oil recovery and reclamation, slop-oil processing and related oilfield waste services. Its facilities would complement Vivakor’s existing energy transportation and terminaling operations.
Vivakor also sees the proposed purchase as supporting its Remediation Processing Center strategy, which focuses on recovering reusable hydrocarbons from oilfield waste streams. The intended expansion would broaden its services across multiple stages of energy infrastructure, rather than simply adding transportation assets.
Direct Midstream uses Class II underground injection control wells. The EPA’s explanation of Class II injection wells describes how these wells handle fluids associated with oil and gas production, including brines separated from hydrocarbons and reinjected into underground formations for disposal. That regulatory background explains the technology involved; it does not verify Direct Midstream’s facilities or transaction terms.
Conclusion
The next milestone is a signed definitive agreement establishing final terms. Until then, Direct Midstream’s infrastructure remains a proposed addition to Vivakor’s business, with funding and closing conditions still unresolved.
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