KKR and Diamondback Energy Acquire Stake in Deep Blue Midland Basin for $2.1 Billion

✦ Meridian Analysis

KKR and Diamondback Energy have signed an agreement to acquire Five Point Infrastructure's 70% stake in Deep Blue Midland Basin, according to Reuters. Diamondback, which currently holds a 30% interest in the water infrastructure business, will increase its holding to 50%, while KKR acquires the remaining 50%. The transaction values the business at approximately $2.1 billion. Truist Securities analysts estimate that Diamondback will contribute approximately $602 million, with KKR investing around $1.51 billion, though the companies have not disclosed financial terms. Deep Blue operates in Texas's Permian Basin, providing water sourcing, transportation, recycling, and disposal services that support nearly two million barrels of water per day for Diamondback's operations. The transaction is expected to close in the fourth quarter of 2026. Financial terms have not been disclosed by the companies.

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