Diamondback and KKR buy out Five Point's 70% stake in Deep Blue water platform
What's the deal? Diamondback EnergyDealroom has a profile for this one. Try Dealroom → and KKR have agreed to jointly acquire Five Point InfrastructureDealroom has a profile for this one. Try Dealroom →'s 70% stake in Deep Blue Midland Basin, a produced-water infrastructure platform in West Texas. Terms were not disclosed. Diamondback already owns the remaining 30%, so the pair will hold 100% once the deal closes.
Why now? Deep Blue was formed in 2023 as a joint venture between Diamondback and Five Point, and has scaled fast through acquisitions and organic growth. The transaction is expected to close in the fourth quarter of 2026, subject to regulatory approvals.
What's the endgame? The system is central to Diamondback's operations, which require moving nearly 2 million barrels of water per day. "Acquiring Five Point's 70% interest alongside KKR secures this capability for the long term," said Kaes Van't Hof, chief executive officer of Diamondback. The company also sees room to expand beyond oil and gas into industrial uses across the Permian Basin.
Deep Blue now manages more than 2.2 million barrels of water per day and delivers over 800,000 barrels daily. Its network spans more than 2,000 miles of pipeline, nearly 5 million barrels per day of permitted disposal capacity, and 142 million barrels of storage.
What does Five Point get? The sale caps an active stretch of monetisations for the firm, which recently sold Twin EagleDealroom has a profile for this one. Try Dealroom → to Expand EnergyDealroom has a profile for this one. Try Dealroom → for $1.25 billion and NorthwindDealroom has a profile for this one. Try Dealroom → to MPLXDealroom has a profile for this one. Try Dealroom → for roughly $2.4 billion. "We wish Scott and the entire team continued success," said David Capobianco, chief executive officer and managing partner of Five Point.
The signal: The deal reflects a broader push to scale and consolidate Permian water infrastructure as producers chase reliable supply, recycling, and disposal capacity. KKR, funding its share mainly through its Global Infrastructure Investors V fund, calls the investment "an important first step" in a wider partnership with Diamondback — pairing private infrastructure capital with a producer that depends on the system to operate.
Read more: businesswire.com
Image credit: Generated with Gemini
