Vivakor Reports 111% Revenue Growth to $59.3 Million Revenue for 2023

DALLAS, TX / ACCESSWIRE / April 29, 2024 / Vivakor, Inc. (Nasdaq:VIVK) ("Vivakor" or the "Company"), a clean energy technology company focused on the oil remediation and natural resources sectors, today announced financial and operational results for the twelve months ended December 31, 2023.

Key Financial Highlights for the Year Ended December 31, 2023 (year-over-year):

• Revenue increased 111% to $59.3 million
• Gross profit increased 75% to $5.0 million
• Gross margin of 8.5%
• Operating loss decreased 72% to $6.3 million
• Adjusted EBITDA increased approximately 122% to $0.5 million
• Net loss decreased 45% to $10.7 million

Subsequent to the End of 2023:

• Signed Definitive Merger Agreement with Empire Diversified Energy for a Combined Enterprise Value of Approximately $250 Million at Time of Signing
• Signed Definitive Agreement to Acquire Endeavor Entities for $120 Million

Management Commentary

Vivakor Chairman and Chief Executive Officer James Ballengee commented, "We are pleased with our 2023 financial results, as our operating assets in Colorado City, Texas and Delhi, Louisiana continue to meet our expectations. This was our first full year owning these midstream crude oil storage and gathering operations under Vivakor and they have provided us a solid platform from which to build upon."

Ballengee concluded, "We remain enthused about various opportunities to commercialize our RPC technology, and we are repositioning such assets in order to maximize their potential. We believe our Houston site provides a tremendous opportunity to be able to recover and reuse approximately 1.3 barrels of oil per ton of waste. We continue to work with local authorities in Kuwait to re-position and ready our equipment to initiate production. Our recently announced proposed acquisitions of Empire Diversified Energy and the Endeavor Entities are both expected to advance us to our next phase as a socially responsible operator, acquirer and developer of clean energy technologies and environmental solutions."

March 4, 2024:

Signed Definitive Merger Agreement with Empire Diversified Energy for a Combined Enterprise Value of Approximately $250 Million

Empire's primary location is in Follansbee, West Virginia, where it operates The Port of West Virginia within its Eco-Industrial Complex, situated along the Ohio River, with nearly 1,000 acres of contiguous land where it serves as the crossroads of the East Coast and Midwest through its trimodal (road, river, rail) terminal facility. Empire is currently deploying a host of innovative and sustainable technologies serving the transportation, recyclable waste, steel, warehousing, and other energy sectors to help decarbonize the region.

In additional to the traditional facilities at The Port, Empire's flagship waste-to-energy pyrolysis plant, which is slated to come online in the second fiscal quarter of this year, is intended to provide behind-the-grid electrical power to The Port, while producing salable hydrochloric acid and excess gas. The plant is designed to recycle 70 tons of plastics per day through a pyrolysis process that employs high heat in the absence of oxygen, is environmentally friendly and virtually emission free. Additionally, the U.S. Department of Energy's (DOE) Office of Clean Energy Demonstrations (OCED) has selected the Appalachian Regional Clean Hydrogen Hub (ARCH2) as a recipient of up to $925 million in funding to advance the development of hydrogen projects throughout West Virginia, as well as parts of eastern Ohio and western Pennsylvania. Empire was selected from over 80 initial applicants and is slated to receive a portion of these funds to assist in the engineering and buildout of an anaerobic digester project at The Port as part of the ARCH2 project consortium. Our acquisition of Empire is scheduled to close on or before September 30, 2024, but certain closing conditions must be met by all parties in order for the transaction to close.

March 25, 2024

Signed Definitive Agreement to Acquire Endeavor Entities for $120 Million

The Endeavor Entities operate in the midstream segment of the oil industry, which targets oil logistics, gathering and storage, including crude oil and produced water trucking and disposal services, and also operate a crude oil pipeline gathering system and pipeline injection stations. Vivakor expects to benefit from the possible synergies these acquisitions will create. In addition, each of the material businesses have 10-year take or pay contracts with White Claw Crude, LLC, an affiliate of Jorgan, which began on January 1, 2024, that provide minimum revenue levels. In the crude oil and produced water trucking business, the Endeavor Crude, LLC contract with White Claw Crude, LLC guarantees a volume of 75,000 barrels of crude oil be transported each day. The pipeline gathering contract with CPE MidCon, LLC guarantees a minimum pipeline throughput revenue of $200,000 per month. Regarding the possible acquisition of Silver Fuels Processing (SFP) injection stations, minimum contract guarantees call for 200,000 barrels per month of throughput at $0.275 per barrel. Additionally, SFP is in the process of constructing a new station located in the Permian Basin that is expected add an additional 30,000 barrels per month for a new minimum of 230,000 barrels per month. The Endeavor entities are controlled by our Chief Executive Officer. Our acquisition of the Endeavor Entities is scheduled to close on or before June 30, 2024, but certain closing conditions must be met by all parties in order for the transaction to close.

Financial Results for Twelve Months Ended December 31, 2023

• Revenue for the twelve months ended December 31, 2023 increased $31.2 million, or 111%, to $59.3 million, compared to $28.1 million for the twelve months ended December 31, 2022. This increase in revenue is primarily attributed to our oil and natural gas liquid sales which have been realized through the operations from Silver Fuels Delhi, LLC, which was acquired through a business combination, which closed on August 1, 2022.
• Gross profit for the twelve months ended December 31, 2023 increased $2.2 million, or 75%, to $5.0 million, compared to $2.9 million for the twelve months ended December 31, 2022. The resulting gross margin for the twelve months ended December 31, 2023 was 8.5%, compared to 10.2% for the twelve months ended December 31, 2022.
• Operating loss for the twelve months ended December 31, 2023 decreased $16.4 million, or 72%, to $6.3 million, compared to $22.7 million for the twelve months ended December 31, 2022. Operating loss of the twelve months ended December 31, 2023 included non-cash expenses totaling $5.5 million, and is related to depreciation and amortization expense of $3.9 million and stock-based compensation of $1.6 million, compared to a total of $5.6 million, comprised of $3.0 million of depreciation and amortization expense and $2.6 million in stock-based compensation for the twelve months ended December 31, 2022.
• Adjusted EBITDA for the twelve months ended December 31, 2023 increased $2.9 million to $0.5 million, compared to negative Adjusted EBITDA of $2.4 million for the twelve months ended December 31, 2022. Our Adjusted EBITDA is calculated by adjusting earnings before interest, taxes, depreciation, and amortization (EBITDA) for non-cash or one-time expenses, including unrealized gains or losses on marketable securities, stock compensation expense, and non-qualified stock option expense, which led to net adjustments to EBITDA for the twelve months ended December 31, 2023 and 2022 of approximately $0.9 million and $15.8 million, respectively.
• Net loss for the twelve months ended December 31, 2023 decreased $8.7 million, or 45%, to $10.7 million, compared to $19.4 million for the twelve months ended December 31, 2022. The resulting net loss per share of common stock loss for the twelve months ended December 31, 2023, was ($0.56), compared to a net loss per share of common stock of ($1.22) for the twelve months ended December 31, 2022.

About Vivakor, Inc.

Vivakor, Inc. (NASDAQ:VIVK), is a clean energy technology company focused on the oil remediation and natural resources sectors. Vivakor's corporate mission is to create, acquire, accumulate, and operate distinct assets, intellectual properties, and exceptional technologies. Its Silver Fuels Delhi, LLC, and White Claw Colorado City, LLC subsidiaries include crude oil gathering, storage, and transportation facilities, which feature long-term ten year take-or-pay contracts.

The Company's patented Remediation Processing Centers allows for the environmentally-friendly recovery of bitumen (heavy crude) and other hydrocarbons from the remediation of contaminated soils. It is believed to be the only remediation system that can clean soils with more than 5% by weight oil contamination while recovering the oil and leaving the soil fully viable for reuse. The Company's Remediation Processing Centers focus on extraction from shallow, oil-laden sands, along with other petroleum-based remediation projects. The Company currently has projects under development in Kuwait and in Houston, Texas.

For more information, please visit our website: http://vivakor.com

Forward-Looking Statements

This news release may contain forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Such statements are based upon our current expectations and speak only as of the date hereof. Our actual results may differ materially and adversely from those expressed in any forward-looking statements as a result of various factors and uncertainties, including economic slowdown affecting companies, our ability to successfully develop products, rapid change in our markets, changes in demand for our future products, legislative, regulatory and competitive developments and general economic conditions. These risks and uncertainties include, but are not limited to, risks and uncertainties discussed in Vivakor's filings with the Securities and Exchange Commission, which factors may be incorporated herein by reference. Forward-looking statements may be identified but not limited by the use of the words "anticipates," "expects," "intends," "plans," "should," "could," "would," "may," "will," "believes," "estimates," "potential," or "continue" and variations or similar expressions. We undertake no obligation to revise or update publicly any forward-looking statements for any reason.

Investors Contact:
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SOURCE: Vivakor