Midland-based joint venture Deep Blue-Midland said last week it has acquired Lagoon Operating-Midland to solidify its position “as a key player in sustainable water management in the core of the Midland Basin.” Lagoon’s assets are located primarily in Martin County, including 105 miles of large diameter pipeline, 240,000 b/d of disposal capacity, and 544,000 b/d of additional permitted disposal capacity. Deep Blue is a JV of Diamondback Energy and Five-Point Energy formed in September 2023.
In its announcement, Deep Blue said June 3, “Lagoon’s assets significantly expand Deep Blue’s existing recycling capabilities and are underpinned by a strong portfolio of acreage dedications and MVCs (minimum volume commitments) from leading producers in the Midland Basin.”
At Lagoon closing, Deep Blue will have about 2.5 million b/d of permitted produced water disposal capacity and more than 1,000 miles of large diameter pipelines.