Vivakor announces sale of non-core business units

Vivakor (VIVK) announced the sale of the non-core business units of Meridian Equipment Leasing and Equipment Transport subsidiaries of Vivakor Transportation 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.