VIVK Stock Rockets Today: Retail Eyes Over 12X Upside After Vivakor Unveils Proposed Direct Midstream Deal

Vivakor values Direct Midstream at $40 million, four times its expected 2027 annual free cash flow of $10 million

• The company plans to invest $10 million in Direct Midstream and will pay most of the remaining purchase price through preferred shares.
• The company has previously said that there is substantial doubt about its ability to continue as a going concern.
• Vivakor has completed three reverse stock splits in 2026, with the latest being a 1-for-15 reverse split earlier this week.

Shares of Vivakor (VIVK) traded over 25% higher on Friday after the energy transportation and remediation company announced plans to expand its operations in the Permian Basin by acquiring Direct Midstream.

VIVK stock had climbed over 80% after the opening bell but pared most of the gains at the time of writing.

VIVK’s Permian Expansion Plans

Vivakor values Direct Midstream at $40 million, four times its expected 2027 annual free cash flow of $10 million. The company plans to invest $10 million in Direct Midstream and will pay most of the remaining purchase price through preferred shares.

“The contemplated $10 million investment is intended to provide additional capital to support the continued development and expansion of the Direct platform,” said Vivakor’s CEO James Ballengee.

He added that the acquisition would expand Vivakor’s Permian Basin infrastructure and strengthen its oilfield waste-management capabilities.

Direct Midstream provides wastewater disposal, oil recovery and waste-management services to energy companies operating in the major oil-producing region.

However, the transaction remains subject to due diligence, and the estimated timeline for closure was not mentioned.

Vivakor’s Struggles

Vivakor has struggled with persistent losses and cash shortages. As of June 30, 2026, the company had just $259,416 in cash, a $58 million working capital deficit, and $24.3 million in debt due within a year. The company previously said that there is substantial doubt about its ability to continue as a going concern.

While Vivakor’s topline grew 10% in the second quarter (Q2), the company has continued to post steep losses.

Retail’s Take On VIVK

Retail sentiment surrounding VIVK turned ‘neutral’ from ‘extremely bearish’ on Stocktwits over the past 24 hours, amid ‘high’ message volumes.

One user said the stock could climb past $20 by the end of today’s session, before pushing for $50.

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Vivakor has completed three reverse stock splits in 2026, starting with a 1-for-200 consolidation in March, a 1-for-20 ratio in July, and a 1-for-15 reverse split earlier this week. The company took these steps to raise its share price and remain compliant with Nasdaq's listing requirements.

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