Led by Significant Increase in Oil and Natural Gas Liquid Sales from Recent Acquisition of Silver Fuels Delhi, LLC
IRVINE, CA / ACCESSWIRE / November 29, 2022 / Vivakor, Inc. (NASDAQ:VIVK) (“Vivakor” or the “Company”), a socially responsible operator, acquirer and developer of clean energy technologies and environmental solutions, today announced financial and operational results for the third quarter and nine months ended September 30, 2022.
Key Financial Highlights for Three Months Ended September 30, 2022 Compared to Prior Year Period:
- Revenue increased 1,118% to $11.8 million
- Gross profit increased $1.2 million
- Gross margin of 10.3%
- Net loss decreased 46% to $1.6 million
- Cash balance of $4.4 million
- Total assets of $94.8 million
Key Business Highlights for Three Months Ended September 30, 2022:
- Closed Acquisitions with Operations and Long-Term Contracts in Louisiana and Texas Servicing Two Major U.S. Oil Basins
Subsequent to the End of the Third Quarter Ended September 30, 2022
- Appointed Prominent Oil Industry Expert James Ballengee as Chief Executive Officer and Chairman of the Board
Vivakor Chairman and Chief Executive Officer James Ballengee, commented, “We are very pleased with our quarterly results, our first quarter including our newly acquired assets in the oil and natural gas segment. Our team has already identified many areas that make our recent business combination complementary and synergistic. We expect to realize these benefits throughout 2023.”
Ballengee concluded, “As our business advances, our team is also moving forward with our capital markets strategy in order to increase our visibility and shareholder value. The combination of this vision and the acquisition of the midstream oil and gas assets of Silver Fuels Delhi and White Claw Colorado City, along with our Remediation Processing Centers, presents a unique opportunity to bring ESG technology to the existing traditional midstream industry. We look forward to sharing our progress with existing and prospective new shareholders over the coming months.”
The Company’s pro-forma unaudited revenue of $47.7 million for the nine months ended September 30, 2022 represents the combined results of operations of the Company, Silver Fuels Delhi and White Claw Colorado City for the nine months ended September 30, 2022, as though the companies had been combined as of January 1, 2021.
Financial Results for Three Months Ended September 30, 2022
- Revenue for the three months ended September 30, 2022 increased by 1,118% to $11.8 million, compared to $1.0 million for the three months ended September 30, 2021. This increase was due to the significant increase in oil and natural gas liquid sales from the recent acquisitions of Silver Fuels Delhi, LLC and White Claw Colorado City, LLC.
- Gross profit for the three months ended September 30, 2022 increased to $1.2 million, compared to $0.0 million for the three months ended September 30, 2021. The resulting gross margin for the three months ended September 30, 2022 was 10.3%, compared to 2.9% for the three months ended September 30, 2021.
- Net loss for the three months ended September 30, 2022 decreased by $1.3 million, or 46%, to $1.6 million, compared to $2.9 million for the three months ended September 30, 2021. The resulting net loss per share of common stock loss for the three months ended September 30, 2022, was ($0.09), compared to a net loss per share of common stock of ($0.24) for the three months ended September 30, 2021.
- Cash and cash equivalents totaled $4.4 million at September 30, 2022, an increase of $3.1 million compared to $1.3 million at December 31, 2021.
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 and accumulate 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 fully recovering the oil and leaving the soil fully viable for reuse. Its Remediation Processing Centers currently focus on extraction from shallow, oil-laden sands in Eastern Utah, along with generating petroleum-based remediation projects in Kuwait and in Houston, Texas.
For more information, please visit our website: http://vivakor.com
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.
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