Vivakor said that for the six months ended June 30, the Endeavor companies generated $9.3 million in EBITDA on revenues of $47.3 million, yielding an estimated, annualized $94.6 million in revenue and $18.6 million of EBITDA. (Source: Shutterstock/ Vivakor)
Energy transportation company Vivakor Inc. said its board has approved closing a planned acquisition of Endeavor Crude LLC and related companies in a $120 million deal.
The Endeavor companies comprise a fully-integrated, “flexible and scalable” midstream logistics business that transports, stores, treats, remediates and sells crude oil, produced water and associated hydrocarbons, Vivakor said in a Sept. 24 press release. Endeavor and the related companies have a series of long-term strategic partnerships with customers in the Permian Basin, Eagle Ford Shale and the Oklahoma STACK play.
The companies— which include Meridian Equipment Leasing LLC, Equipment Transport LLC and Silver Fuels Processing LLC—own and operate one of the largest combined oilfield trucking fleets in the continental U.S. Endeavor transports crude oil, petroleum products and produced water through a fully integrated network of station, terminal and pipeline facilities for blending, processing, reuse and remediation.
Vivakor said that for the six months ended June 30, the Endeavor companies generated $9.3 million in EBITDA on revenues of $47.3 million, yielding an estimated, annualized $94.6 million in revenue and $18.6 million of EBITDA.
"The acquisition of the Endeavor Entities is a significant milestone for Vivakor," said James Ballengee, Vivakor’s chairman, president and CEO. "They strategically integrate with our existing Colorado City, Texas and Delhi, Louisiana, facilities, provide an immediate platform for our company to expand, and unlock additional opportunities and revenues for the Company."
The purchase price for the Endeavor is $120 million, subject to standard post-closing adjustments, including assumed debt and an earn-out adjustment, payable by the company in a combination of company common stock and Series A Convertible Preferred Stock.
"Our focus on flexible and [scalable] crude oil and produced water logistics solutions that are fully integrated with our network of station, terminal, and pipeline facilities providing blending, reuse, and remediation services will provide us with a key competitive advantage,” Ballengee said.
The deal is expected to close on Oct. 1.
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