Vivakor Supply & Trading (VST) completed its first major liquid petroleum gas (LPG) transaction on November 10 2025, securing a $23 million deal that was financed through the company’s newly closed $40 million commodity intermediation credit facility. The facility, which closed on October 23 2025 after a non‑binding term sheet signed on October 15, provides VST with a flexible working‑capital source that can be drawn on for future trading opportunities.
The move into LPG marks a deliberate shift toward a broader commodity portfolio. Market analysts note that LPG demand has been rising in North America as natural gas prices climb and industrial users seek cheaper alternatives. By adding LPG, VST can leverage its existing gathering, storage, and transportation infrastructure to capture margin in a high‑volume, low‑cost commodity that complements its crude‑oil operations.
The credit facility carries a 5.5 % interest rate, a five‑year maturity, and covenants that require the company to maintain a debt‑to‑equity ratio below 1.5. VST’s revenue model for intermediary services is a small percentage—approximately 1.2 %—of the contract value, which translates to roughly $276,000 in revenue from the $23 million deal. This fee structure aligns VST’s incentives with successful execution and volume growth.
Operationally, VST plans to use its existing midstream assets—such as the 1,200‑barrel storage terminal in Houston and the 3,000‑mile pipeline network—to move LPG from production sites to end users. The company has already identified two pilot projects that will test the integration of LPG handling into its current logistics framework, potentially reducing handling costs by 8 % compared to new infrastructure builds.
Financially, the transaction comes at a time when Vivakor reported a 79.8 % revenue increase to $29.10 million in Q2 2025, despite a net loss of $12.54 million and a debt‑to‑equity ratio of 75.5 %. The $23 million trade represents a modest but meaningful addition to the company’s revenue mix, signaling a shift toward higher‑margin trading activities that could improve profitability over the next 12 months.
James Ballengee, Vivakor’s Chairman, President, and CEO, said the deal “demonstrates our ability to broaden our market presence beyond crude oil while maintaining strict adherence to industry‑standard trading practices.” He added that the credit facility’s active deployment “provides the financial flexibility needed to scale our trading operations and capture new growth opportunities.”
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