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Olenox Industries, Inc. (N A S D A Q: OLOX) $OLOX 162 Miles of Pipeline Recommissioning: Multi-Product Revenue Engine.

MIAMI - AussieJournal -- Olenox Industries Inc. (N A S D A Q: OLOX) is executing a decisive expansion into high-value midstream infrastructure with a signed $36 million Letter of Intent to acquire strategic energy assets from Vivakor, Inc. serving Oklahoma's STACK play — one of America's most established and productive hydrocarbon basins.

This proposed acquisition marks a transformational step in OLOX's evolution into an integrated energy, infrastructure, and engineered solutions platform — delivering predictable, fee-based cash flows, vertical integration, and scalable power generation capacity.

$36 Million Acquisition: Immediate Cash Flow, Structural Upside

On January 29, OLOX executed a non-binding LOI to acquire the midstream business and transportation assets of CPE Gathering MidCon, LLC — operator of the Omega pipeline system in the STACK region.

Key Transaction Highlights:
  • Transaction Value: ~$36 million
  • EBITDA Base: $4.56 million annually
  • Take-or-Pay Guarantee: Backed by Vivakor
  • Consideration Structure: Cash, promissory note, common and preferred stock

This is not speculative acreage — this is operational infrastructure generating contracted EBITDA in an established basin.

CEO Michael McLaren stated:

"Integrated midstream platforms like CPE Gathering generate durable, fee-based cash flows and provide critical infrastructure in established producing basins. This acquisition expands our presence in the STACK while positioning these assets for continued development under an integrated operating model."

Strategic Advantages: Fee-Based Revenue + Cost Control + Integration

CPE Gathering's Omega system provides:
  • Crude gathering
  • Transportation
  • Terminaling
  • Pipeline connectivity

These assets generate fee-based revenue, reducing exposure to commodity price volatility while improving cost structure for producers.

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For OLOX, this means:
  • Higher-margin recurring revenue
  • Increased addressable market for services
  • Operational synergies with field services
  • Lower per-well costs
  • Improved uptime
  • Integrated logistics control

This acquisition aligns directly with OLOX's acquire-and-integrate strategy — turning standalone assets into a coordinated infrastructure ecosystem.

162 Miles of Pipeline Recommissioning: Multi-Product Revenue Engine

On January 27, OLOX commenced recommissioning 162 miles of pipeline as a wet gas system.

Revenue Streams From This Asset:
  • Natural Gas Liquids (NGLs) — high-value products used in blending and midstream markets
  • Dry Gas Sales — sold into open market contracts
  • Surplus Gas for Power Generation

This is a powerful pivot: transforming infrastructure into a multi-product cash-flow engine.

Power Generation: Converting Gas to Grid Revenue

Through its subsidiary Giant Containers, OLOX deploys high-quality containerized systems designed for rapid deployment and long-term performance.

The company intends to:
  • Utilize surplus dry gas as feedstock
  • Power containerized generator sets
  • Produce base-load and peak power
  • Sell electricity into the grid

This creates:
  • Vertical integration
  • Margin expansion
  • Energy-to-power conversion economics
  • Reduced flaring
  • ESG-friendly operational efficiencies

OLOX is effectively building a closed-loop energy infrastructure platform.

Strengthened Leadership: Institutional-Grade Governance

OLOX recently appointed two seasoned executives to its Board:

Erik Blum

CEO of Fynntechnical Innovations Inc.
  • 30+ years in corporate finance and debt markets
  • Extensive public company leadership
  • Turnaround and restructuring expertise
  • Structured finance depth

Adam Falkoff

President of CapitalKeys
  • 20+ years in public policy & global strategy
  • Senior leadership roles at Microsoft and Amazon
  • Experience advising Presidents, Prime Ministers, and Fortune 100 companies
  • Deep regulatory and infrastructure insight

This leadership expansion signals serious capital markets intent and strategic scaling capability.

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Balance Sheet Cleanup: Removing Overhang

On February 13, OLOX announced a mutual settlement agreement with Cedar Advance LLC, resolving outstanding merchant cash advance obligations.

This reduces financial overhang and strengthens the company's capital structure as it pursues integration and expansion.

The Investment Thesis: Why OLOX Stands Out

✔ Fee-based midstream EBITDA
✔ Take-or-pay revenue visibility
✔ 162-mile wet gas pipeline upside
✔ NGL + dry gas + power generation monetization
✔ Vertical integration strategy
✔ Engineered containerized systems
✔ Strengthened institutional board
✔ Reduced debt overhang

$OLOX is not a single-asset story — it is constructing a multi-layered energy infrastructure platform designed for scalable, predictable revenue with commodity downside mitigation.

Positioned in the Oklahoma STACK — A Proven Basin

The STACK (Sooner Trend Anadarko Canadian Kingfisher) play is a mature, infrastructure-supported basin with:
  • Established production
  • Active operators
  • Existing pipeline networks
  • Long-term development visibility

OLOX is inserting itself directly into the cash-flow layer of this ecosystem.

Bottom Line

With a $36 million LOI targeting contracted EBITDA, pipeline recommissioning underway, containerized power generation integration, strengthened board leadership, and balance sheet improvements — Olenox Industries (N A S D A Q: OLOX) is aggressively positioning itself as an integrated midstream and energy infrastructure growth platform.

For investors seeking:
  • Infrastructure-backed revenue
  • Fee-based cash flow
  • Energy-to-power monetization
  • Integration-driven margin expansion

OLOX is building momentum at the intersection of energy, logistics, and scalable engineered solutions.

Company: Olenox Industries Inc. (N A S D A Q: OLOX)
CEO:
Michael McLaren
Email: investors@olenox.com
Phone: (512) 354-7000
Country: United States
Website: https://olenox.com/

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