Diamondback Energy and KKR to Acquire Deep Blue Midland Basin from Five Point Infrastructure
Key Highlights
- ➤Diamondback (FANG) and KKR will jointly acquire Five Point’s 70% Deep Blue stake
- ➤Diamondback and KKR will own 100% of Deep Blue after closing
- ➤Deep Blue supports nearly 2 million barrels of water transportation daily
- ➤Transaction expected to close in Q4 2026, pending regulatory approvals
- ➤KKR investment funded primarily through KKR Global Infrastructure Investors V
Expert Statements
Kaes Van’t Hof, Chief Executive Officer of Diamondback
“Through our strategic partnership with Five Point, we are proud to have established and scaled a world-class water infrastructure platform in the Midland Basin.”
Kaes Van’t Hof, Chief Executive Officer of Diamondback
“The Deep Blue system is critical for Diamondback’s core operations, which require reliable transportation of nearly 2 million barrels of water per day.”
Kaes Van’t Hof, Chief Executive Officer of Diamondback
“Acquiring Five Point’s 70% interest alongside KKR secures this capability for the long term and establishes a strategic partnership that is well positioned for traditional growth with additional opportunities to expand outside of oil and gas through advancements in new technology and potential industrial use cases in the Permian Basin.”
James Cunningham, Partner at KKR
“Deep Blue plays an important role in supporting energy production in the Permian Basin, and we see a compelling opportunity to build on its strong foundation to meet the region’s growing water infrastructure needs.”
James Cunningham, Partner at KKR
“We are particularly excited to work with Diamondback, whose longstanding presence in the region make them an ideal strategic partner.”
James Cunningham, Partner at KKR
“We view this investment as an important first step in building a broader relationship and look forward to exploring additional opportunities to invest together in essential infrastructure.”
MIDLAND and HOUSTON, Texas, Nov. 10, 2026 (GLOBE NEWSWIRE) -- Diamondback Energy, Inc. (NASDAQ: FANG) (“Diamondback”) and KKR, a leading global investment firm, today announced an agreement to jointly acquire Five Point Infrastructure’s (“Five Point”) 70% stake in Deep Blue Midland Basin LLC (“Deep Blue” or the “Company”), the leading full-cycle water infrastructure platform in the Midland Basin. Following the transaction, Diamondback and KKR will jointly own 100% of Deep Blue, building on Diamondback’s existing 30% ownership interest.
Deep Blue, which was formed in 2023 as a joint venture between Diamondback and Five Point, operates an extensive, integrated water infrastructure network that provides services across the full water lifecycle, including sourcing, transportation, storage, recycling and disposal. Through a combination of complementary acquisitions and organic growth, Deep Blue delivers reliable water supply and robust takeaway solutions at scale across its large E&P customer base, helping operators efficiently and responsibly manage water resources while enabling greater water reuse and reducing reliance on freshwater supplies.
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