KKR, Diamondback to buy Five Point's 70% stake in Deep Blue Midland Basin

Diamondback Energy and KKR agreed to jointly acquire Five Point Infrastructure's 70% stake in Deep Blue Midland Basin LLC. After the transaction, Diamondback and KKR would jointly own 100% of Deep Blue, building on Diamondback's existing 30% interest. The transaction is expected to close in the fourth quarter of 2026, subject to customary regulatory approvals and closing conditions.

Deep Blue was formed in 2023 as a joint venture between Diamondback and Five Point. It runs an integrated water network covering sourcing, transportation, storage, recycling and disposal for its oil and gas customers in the Midland Basin. KKR's investment will be funded primarily through KKR Global Infrastructure Investors V. Diamondback said the system is critical to its operations, which require transport of nearly 2 million barrels of water per day.