Vivakor, Inc. (Nasdaq: VIVK) announced a non‑binding letter of intent to acquire Coyote Oilfield Services, LLC, a growth‑oriented energy infrastructure and logistics provider, through its affiliate Vivakor Midstream, LLC. The deal is expected to close by February 28, 2026, subject to customary conditions.
Coyote brings a proven track record in designing, constructing, owning, and operating crude‑oil pipelines, gathering systems, and terminal assets across major producing regions. Its oilfield services arm delivers construction management and consulting for capital projects, allowing Vivakor to extend its capabilities earlier in the asset lifecycle and better support customer development needs. The transaction is projected to enhance Vivakor’s ability to optimize volumes, improve asset utilization, and deepen long‑term relationships with producers, marketers, refiners, and end‑use customers.
Vivakor’s CEO James Ballengee said the combination would strengthen the company’s integrated midstream platform and accelerate growth in core markets. Coyote’s principals are expected to remain with the business post‑closing, ensuring continuity and facilitating integration. The acquisition aligns with Vivakor’s strategy of rapid expansion and diversification, building on the $120 million Endeavor Entities acquisition that closed on October 1, 2024 and added Endeavor Crude, Meridian Equipment Leasing, Equipment Transport, and Silver Fuels Processing to its portfolio.
Financially, Vivakor has been working to strengthen its balance sheet. In 2025 the company announced approximately $65 million in debt reduction, largely driven by the divestiture of non‑core subsidiaries Meridian Equipment Leasing and Equipment Transport for $11 million in net proceeds, which eliminated about $59 million in debt. The company also secured a $40 million commodity intermediation credit facility in October 2025 to support its crude‑oil trading operations, signaling a shift toward a more vertically integrated model.
The market reacted negatively to the announcement, with VIVK shares falling 17.45 % on the day of the news. Investors likely viewed the non‑binding nature of the letter, the lack of disclosed financial terms, and Vivakor’s ongoing profitability challenges—net margin of –55.68 % and operating margin of –23.33 %—as headwinds that outweighed the strategic upside.
Management emphasized that the acquisition would add pipeline development, terminal operations, oilfield services, and marketing capabilities, positioning Vivakor to capture higher‑margin opportunities in the Permian and Eagle Ford basins. The company’s CEO also highlighted the importance of maintaining a disciplined cost structure while pursuing growth, noting that the deal would be financed through a combination of equity and debt, consistent with its recent capital‑raising activities.
Overall, the transaction represents a significant step in Vivakor’s strategy to build an integrated midstream platform, but the lack of disclosed deal value and the company’s current profitability profile suggest that investors will closely monitor how the acquisition is financed and integrated before reassessing the company’s long‑term prospects.
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