Diamondback Energy and KKR have agreed to buy Five Point Infrastructure's 70% stake in Deep Blue Midland Basin, the companies said on 10 November 2026, in a cash deal that people familiar with the matter valued at about US$2.1bn.
Why Diamondback Energy and KKR is buying Deep Blue Midland Basin LLC (70% stake)
Diamondback said the Deep Blue system is critical to its core operations, which need reliable transport of nearly 2 million barrels of water a day, and that the partnership with KKR is positioned for growth including possible uses beyond oil and gas.
Deal terms and financing
Diamondback and KKR will jointly own 100% of Deep Blue after closing. Financial terms were not disclosed. KKR's investment will be funded primarily through KKR Global Infrastructure Investors V.
Regulatory approvals and timing
Completion is expected in the fourth quarter of 2026, subject to regulatory approvals and customary closing conditions.
Market context
Deep Blue manages more than 2.2 million barrels of water a day across a network of more than 2,000 miles of pipeline, according to Five Point. It bought Diamondback's Environmental Disposal Systems for about US$750m in 2025. Five Point has also sold Twin Eagle to Expand Energy and Northwind to MPLX.
