WS Investor
10 Nov 2026, 17:09
Diamondback Energy and KKR to Acquire Full Ownership of Deep Blue Midland Basin
Diamondback Energy (NASDAQ: FANG) and KKR agreed to jointly acquire Five Point Infrastructure’s 70% stake in Deep Blue Midland Basin, giving the two companies full ownership of the water infrastructure platform.
Diamondback already owns 30% of Deep Blue, which was formed in 2023 with Five Point. Following the transaction, Diamondback and KKR will jointly own 100% of the business.
Deep Blue operates an integrated water infrastructure network across the Midland Basin, providing sourcing, transportation, storage, recycling and disposal services for oil and gas operators. Diamondback said the system is critical to its own operations, which require transportation of nearly 2 million barrels of water per day.
The transaction also creates a broader infrastructure partnership between Diamondback and KKR. The companies said they see potential opportunities to expand Deep Blue beyond traditional oil and gas applications, including new technology and industrial uses in the Permian Basin.
KKR will fund its investment primarily through KKR Global Infrastructure Investors V. The transaction is expected to close in the fourth quarter of 2026, subject to regulatory approvals and customary closing conditions.
For Diamondback, the deal secures long-term control over strategically important water infrastructure supporting its Permian Basin operations, while also creating a platform for future infrastructure investment alongside KKR.
Diamondback Energy (NASDAQ: FANG) and KKR agreed to jointly acquire Five Point Infrastructure’s 70% stake in Deep Blue Midland Basin, giving the two companies full ownership of the water infrastructure platform.
Diamondback already owns 30% of Deep Blue, which was formed in 2023 with Five Point. Following the transaction, Diamondback and KKR will jointly own 100% of the business.
Deep Blue operates an integrated water infrastructure network across the Midland Basin, providing sourcing, transportation, storage, recycling and disposal services for oil and gas operators. Diamondback said the system is critical to its own operations, which require transportation of nearly 2 million barrels of water per day.
The transaction also creates a broader infrastructure partnership between Diamondback and KKR. The companies said they see potential opportunities to expand Deep Blue beyond traditional oil and gas applications, including new technology and industrial uses in the Permian Basin.
KKR will fund its investment primarily through KKR Global Infrastructure Investors V. The transaction is expected to close in the fourth quarter of 2026, subject to regulatory approvals and customary closing conditions.
For Diamondback, the deal secures long-term control over strategically important water infrastructure supporting its Permian Basin operations, while also creating a platform for future infrastructure investment alongside KKR.
