Vivakor, Inc. entered a non-binding Indication of Interest (IOI) regarding the proposed acquisition of 100% of the outstanding membership interests of Direct Midstream, LLC, a Midland based water midstream company providing produced water infrastructure and oilfield waste management services to oil and gas operators in the Permian basin.

Direct Midstream currently operates 17 saltwater disposal facilities and nine fresh water and brine stations, with about 11.5 MMbbl per month of permitted disposal capacity. The company provides an integrated suite of services including Class II UIC saltwater disposal, fresh water and brine supply, oilfield waste management, oil reclamation and recovery, and slop oil processing. Direct Midstream’s facilities utilize automated monitoring technology to provide real-time operational data across its network.

The proposed acquisition would expand Vivakor’s presence in the Permian basin and add produced water management and oilfield waste infrastructure that is complementary to the company’s existing transportation, terminaling, supply and trading, and environmental services businesses. Direct Midstream’s oil recovery, reclamation and waste-management capabilities also align with Vivakor’s Remediation Processing Center (RPC) strategy of recovering reusable hydrocarbons from oilfield waste streams.

The IOI is non-binding, except for certain specified provisions, and the proposed transaction remains subject to further negotiations, due diligence, execution of definitive agreements, and satisfaction of applicable closing conditions. There can be no assurance that a definitive agreement will be executed, or that the proposed transaction will be completed.