Diamondback, investment firm KKR acquire 100 percent interest in Deep Blue

Midland’s Diamondback Energy and global investment firm KKR this week said they will jointly acquire the 70 percent stake in Deep Blue Midland Basin held by Five Point Infrastructure.  Deep Blue is a leading full cycle water infrastructure platform.  Diamondback and KKR now will own 100 percent of Deep Blue to build on Diamondback’s previous 30 percent ownership interest.

Deep Blue, formed in 2023 as a joint venture of 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.  Closing is expected in 4Q.  Financial details were not announced.

Kaes Van’t Hof, CEO of Diamondback, said Tuesday, “The Deep Blue system is critical for Diamondback’s core operations which require reliable transportation of nearly 2 million barrels of water per day.”  James Cunningham, KKR partner, added, “Deep Blue plays an important role in supporting energy production in the Permian Basin.”