Diamondback Energy (FANG) and KKR to Acquire Deep Blue Midland Basin from Five Point Infrastructure

Diamondback Energy and KKR agreed to acquire Deep Blue Midland Basin from Five Point Infrastructure, forming a strategic partnership to fund the water midstream company's continued buildout of full-cycle water infrastructure across West Texas. The deal, announced without disclosed financial terms, pairs Diamondback's position as a Permian Basin producer with KKR's infrastructure capital. Deep Blue provides produced-water gathering, disposal and recycling services to operators in the Midland Basin, a segment that has drawn increasing investment as producers seek to manage water volumes and costs. The transaction underscores the growing role of private capital in backing energy infrastructure assets in the Permian. What to watch next: deal terms and financing structure, and whether the partnership pursues further water infrastructure acquisitions in the basin.