Deep Blue Midland Basin, Diamondback Energy and Five Point Infrastructure said last week they agreed for Deep Blue to acquire Environmental Disposal Systems from Diamondback. The transaction doubles Deep Blue’s scale and advances “its leadership in sustainable produced water management.” The acquisition is valued at $750 million. Diamondback renewed its 15-year dedication to Deep Blue for produced water and supply water in a 12-county area and maintained its 30 percent interest in Deep Blue.
Scott Mitchell, CEO of Midland’s Deep Blue, said Sept. 2, “This transaction enhances our footprint and accelerates our mission to optimize water management across the Midland Basin while prioritizing greater sustainability by recycling massive amounts of produced water for upstream development.” Kaes Van’t Hof, CEO of Diamondback, added, “This transaction provides meaningful value for Diamondback while allowing us to remain closely aligned with Deep Blue as both a partner and customer.”
After the transaction, Deep Blue’s system will include 1.2 million b/d of treatment and recycling capacity, 1.6 million b/d of water gathered, 1,871 miles of pipeline in the basin, 3.4 million b/d of permitted disposal capacity and 783,000 dedicated acres.
Leave a Reply