Key facts
- Diamondback Energy and KKR agreed to buy Five Point Infrastructure's 70% stake in Deep Blue Midland Basin.
- A source familiar with the matter told Reuters the consideration for Five Point's stake was estimated at $2.1 billion.
- Diamondback said Deep Blue's system supports nearly 2 million barrels of water per day for its operations.
- The companies said the investment could pave the way for further joint infrastructure investments in the Permian Basin.
Diamondback Energy and private equity firm KKR agreed to acquire Five Point Infrastructure's 70% stake in Deep Blue Midland Basin, a water infrastructure company in the Permian Basin, the companies said on Tuesday, November 10, 2026.
The companies did not disclose financial terms. A source familiar with the matter told Reuters the deal involves an estimated $2.1 billion in consideration for Five Point's stake.
Deep Blue provides water sourcing, transport, recycling and disposal services in the Midland Basin. Diamondback, which already owned the remaining 30% stake, said the system supports nearly 2 million barrels of water per day for its operations.
Truist Securities analysts estimated Diamondback will contribute about $602 million to increase its ownership to 50% from 30%, while KKR will pay about $1.51 billion for the remaining 50%, assuming both buyers pay the same pro-rata price, with no acquisition-level financing, fees or earnout settlement.
The companies said the investment could pave the way for further joint investments in infrastructure as energy and industrial activity expands across the Permian Basin. The transaction is expected to close in the fourth quarter of 2026.
Diamondback Energy did not respond to a request for comment on the financial terms, while KKR declined to comment.