Diamondback, KKR Agree to Buy Five Point's 70% Deep Blue Stake

Diamondback Energy and KKR agreed to acquire Five Point Infrastructure LLC's 70% stake in Deep Blue Midland Basin LLC, a deal that would give the buyers joint ownership of the water infrastructure company after closing.

Diamondback already owns the other 30% of Deep Blue. The transaction is a cash sale, and the companies expect it to close in the fourth quarter of 2026, subject to regulatory approvals and customary closing conditions.

Deep Blue operates a water network in the Midland Basin. Its services include sourcing, transporting and storing water, as well as recycling and disposal.