Diamondback Energy and KKR to buy Five Point’s 70% stake in Deep Blue water platform
+1 new source since this summary was written
Diamondback Energy and investment firm KKR announced a joint agreement to purchase the 70% interest that Five Point Infrastructure holds in Deep Blue Midland Basin, a water‑service business for Permian operators. The deal will give each buyer a 50% ownership share after closing, which is slated for the fourth quarter of 2026 and is subject to regulatory approvals. Diamondback already owns 30% of Deep Blue, which moves its stake to 50% once the transaction completes.
Why it matters
The acquisition secures long‑term water‑handling capacity for Diamondback’s oil and gas operations, which rely on roughly 2 million barrels of water per day, and creates a joint venture that could generate recurring service revenue for both owners. Investors will need to watch the closing timeline and any disclosed purchase price to assess the impact on Diamondback’s cash flow and capital allocation.
Key facts
- 1Diamondback currently holds a 30% interest in Deep Blue, which was formed in 2023 as a joint venture with Five Point. globenewswire.com
- 2Five Point Infrastructure is selling its 70% ownership in Deep Blue to Diamondback and KKR. globenewswire.com
- 3After the transaction, Diamondback and KKR will each own 50% of Deep Blue. oilandgas360.com
- 4The purchase price is reported to be about $2.1 billion. oilandgas360.com
- 5The deal is expected to close in the fourth quarter of 2026, pending customary regulatory approvals and closing conditions. globenewswire.com
- 6Deep Blue manages more than 2.2 million barrels of water daily and operates over 2,000 miles of pipelines. oilandgas360.com
Open questions
- Some sources list the closing period as Q4 2023 while others state Q4 2026; the majority and the primary source indicate Q4 2026.
Summary written by AlphAI AI Desk from 14 of 14 sources. Not investment advice. Figures are as stated by the linked sources.