Diamondback Energy, KKR to Acquire Deep Blue Midland Basin
By Kelly Cloonan
Diamondback Energy and KKR agreed to acquire Five Point Infrastructure's majority stake in Deep Blue Midland Basin, a water-infrastructure project in Texas, bringing their total joint ownership in Deep Blue to 100%.
Under the terms of the deal, which was announced Tuesday, Diamondback and KKR would get Five Point's 70% stake in the venture. Diamondback currently has a 30% minority stake in the project.
Deep Blue was formed in 2023 as a joint venture between Diamondback and Five Point. Headquartered in The Woodlands and Midland, Texas, it operates a water-infrastructure network that provides services like sourcing, transportation, storage, recycling and disposal for oil and natural-gas customers.
Diamondback's Chief Executive Kaes Van't Hof said the project is crucial for Diamondback's core operations, which he said require transportation of nearly two million barrels of water per day.
The deal "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," Van't Hof said.
The transaction is expected to close in the fourth quarter, subject to regulatory approvals and closing conditions.
Write to Kelly Cloonan at kelly.cloonan@wsj.com
(END) Dow Jones Newswires
November 10, 2026 08:06 ET (13:06 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.The articles, information, and content displayed on this webpage may include materials prepared and provided by third parties. Such third-party content is offered for informational purposes only and is not endorsed, reviewed, or verified by Morningstar.
Morningstar makes no representations or warranties regarding the accuracy, completeness, timeliness, or reliability of any third-party content displayed on this site. The views and opinions expressed in third-party content are those of the respective authors and do not necessarily reflect the views of Morningstar, its affiliates, or employees.
Morningstar is not responsible for any errors, omissions, or delays in this content, nor for any actions taken in reliance thereon. Users are advised to exercise their own judgment and seek independent financial advice before making any decisions based on such content. The third-party providers of this content are not affiliated with Morningstar, and their inclusion on this site does not imply any form of partnership, agency, or endorsement.
Popular
4 Growth Stocks to Buy While They’re Still Undervalued
The 10 Best Companies to Invest in Now
Your Year-End Financial Checklist: 5 Things to Tackle Before 2027
Why Morningstar Thinks Anthropic Is Worth $1.7 Trillion
United States