Vivakor, a socially responsible operator, acquirer, and developer of clean energy technologies and environmental solutions, witnessed a substantial surge in its stock following a Shareholder Update delivered by its Chairman and Chief Executive Officer, James Ballengee, on Wednesday, November 1.
At the time of this publication, Vivakor Inc stock (VIVK) has witnessed a surge.
Vivakor Inc
Current Price: $0.83
Change : +0.25
Change (%): (43.10%)
Volume: 71.3K
Source: Tomorrow Events Market Data
In his Shareholder Update, CEO Vivakor, Ballengee expressed gratitude and pride for the collective effort of employees, partners, and shareholders in the company’s achievements thus far. He also conveyed his excitement for the promising future that lies ahead.
Since the strategic acquisition of two gathering facilities, Silver Fuels Delhi in Louisiana and Colorado City near Midland, Texas, in Q3 of 2022, the company has achieved several noteworthy milestones in business expansion.
Ballengee, a seasoned entrepreneur in the energy industry with a track record of successfully selling three oil and gas companies valued at approximately $1 billion, assumed the role of Chairman and CEO in Q4 of 2022. He emphasized his strategic positioning to maximize the potential of Vivakor’s patented technologies and business opportunities.
In Q1 of 2023, the company bolstered its Board of Directors with the addition of two independent members, John R. Harris and Albert Johnson, both possessing significant oil and gas experience. Furthermore, David Natan was appointed as an additional independent member to chair the Audit Committee, and Tyler Nelson, the Chief Financial Officer, joined the Board, enhancing the accounting expertise within the leadership.
During the initial half of 2023, the company surpassed revenue projections for the acquired entities, with the acquired companies realizing approximately $29.1 million in revenue, a notable 10.232% increase over the projected $26.42 million for the six months ending June 30, 2023. This robust performance led to reported revenues of $13.6 million for the second quarter, along with a slightly positive adjusted EBITDA, factoring in non-cash charges for stock-based compensation.
The strategic significance of the gathering centers in Louisiana and Texas aligns with the company’s long-term vision, as both locations have fostered valuable strategic relationships poised for future growth and profitability.
Vivakor’s legacy technology, the Remediation Processing Center (RPC) soil extraction technology, achieved significant updates. The RPC in Kuwait, which was redeployed for the Kuwait Environmental Remediation Project (KERP), demonstrated remarkable effectiveness in reducing oil content in soil, garnering the highest possible approval rating from the Kuwait Oil Company (KOC).
In light of successful trial results, the company secured a $1.9 million USD loan from Al Dai International Co. (DIC) to relocate RPC II from Utah to Kuwait, further supporting the KERP initiative. With RPC II en route to Kuwait, expectations are set for the processing of up to 40 tons per hour, contributing to the projected revenue and profitability of the company.
The financing structure via Special Purpose Vehicles (SPVs) has been instrumental in funding the RPCs, allowing investors to participate in gross revenue from oil sales. Management anticipates continued utilization of this financing model to expedite RPC expansion for ongoing and future projects, minimizing dilution to company shareholders.
While RPC II’s relocation has transpired, the lease for the Utah property remains, presenting an opportunity for future exploration.
In Houston, significant progress has been achieved with the RPC project. Lease finalization for approximately three acres near Lake Houston in Q4 of 2022, combined with a successful SPV offering netting approximately $13.7 million in Q1 of 2023, propelled the project forward. The addition of a washout facility, supported by a $2.2 million debt financing in Q2 of 2023, positions the Houston facility as a comprehensive remediation center for tank bottom sludge producers.
The construction of the RPC in Houston nears completion, with the wash plant in its final stages. Pending approvals from the Texas Railroad Commission and the EPA, operations are slated to commence shortly thereafter.
With estimated market rates for hazardous waste acceptance and wash fees, the Houston site is poised to make a substantial impact on revenue generation and oil reclamation.
In conclusion, the Shareholder Update from Vivakor underscores the company’s impressive strides in clean energy technologies and environmental solutions, setting a promising course for future growth and sustainability.
