Vivakor Expands Cushing, Midland Crude Marketing Platform

Vivakor has signed four recurring crude oil purchase and sale agreements that will expand its marketing platform across the Cushing and Midland hubs, increasing annual marketed volumes to 3.6 million barrels.

(P&GJ) — Vivakor Inc. has signed four recurring physical crude oil purchase and sale agreements that will expand its crude marketing platform across the Cushing and Midland markets, increasing marketed volumes to approximately 300,000 barrels per month, or 3.6 million barrels annually.

The agreements, executed through subsidiary Vivakor Supply & Trading (VST), begin Aug. 1 and run through July 31, 2027, with month-to-month renewals thereafter.

The transactions involve two commercial counterparties and expand the company's physical crude marketing activities at Enterprise's Cushing and Midland facilities.

Following the agreements, Vivakor said its recurring commercial programs represent approximately 8.1 million barrels of annual marketed crude volumes. Based on current commodity prices, those programs equate to approximately $709 million in annualized commercial activity.

Vivakor said the new transactions complement its existing transportation, terminaling and storage operations.

CEO James Ballengee said the agreements support the company's strategy of integrating crude marketing with its midstream assets.

"These agreements increase our recurring marketed volumes, broaden our commercial relationships and further demonstrate our strategy of integrating commodity marketing with our transportation, terminaling and storage assets."

The company noted that, as a physical crude marketer, it recognizes only a small portion of the overall transaction value as gross profit because it acts as an intermediary in the supply chain.