Vivakor signs LOI for proposed $40 million Direct Midstream acquisition
VIVK•Vivakor signed a non-binding letter of intent to acquire Midland-based Direct Midstream for a gross purchase price of $40 million, based on targeted 2027 free cash flow of $10 million.
1. Proposed deal terms
The proposed transaction includes a $10 million capital investment at closing, which would reduce seller consideration dollar-for-dollar. The remaining consideration is expected to be about $29 million in Series B preferred stock and $1 million in common stock. The purchase price would adjust to actual 2027 free cash flow, within a range of $30 million to $50 million.
