Vivakor Sells Water Transport Units To Cut Debt And Refocus On Core Growth Areas

(RTTNews) - Vivakor, Inc. (VIVK) has sold its non-core subsidiaries, Meridian Equipment Leasing, LLC, and Equipment Transport, LLC, which were focused on transporting oilfield produced water in the Permian and Eagle Ford Basins.

The divestiture is part of Vivakor's broader strategy to streamline operations and improve financial health.

The sale generated approximately $11 million in net proceeds and eliminated about $59 million in debt, enhancing Vivakor's capital structure and lowering its risk profile. CEO James Ballengee noted the move will have minimal EBITDA impact while improving credit metrics and slightly boosting net equity.

With this exit from the produced water transportation sector, Vivakor plans to concentrate on its higher-margin businesses, including crude oil transportation, midstream infrastructure, and environmental remediation services, especially those focused on reuse technologies. The company anticipates notable annual interest savings and a more capital-efficient operating model.

VIVK currently trades at $1.0066, or 11.70% lower on the NasdaqCM.