Diamondback Energy and KKR have agreed to buy the 70% interest held by Five Point Infrastructure LLC in Deep Blue Midland Basin LLC, giving them joint ownership of the operator if the transaction closes.
Five Point said it will receive cash, but no purchase price has been disclosed. Diamondback owns the other 30%, while the companies have not revealed how the acquired stake will be divided between the buyers.
Deep Blue’s work in the Midland Basin ranges from securing and holding water to transporting it, recycling it or disposing of it. The companies said they formed the venture in 2023.
A Nov. 4 Form 10-Q filed by Diamondback says its 15-year arrangement with Deep Blue covers water the company produces and supplies within a Midland Basin area spanning 12 counties. EconoTimes previously covered the stake sale.
The companies expect to complete the transaction in the fourth quarter of 2026, if regulatory approvals are obtained and the remaining closing requirements are met.
