KKR and Diamondback to acquire Five Point's 70% stake in Deep Blue for $2.1bn
KKR and US energy producer Diamondback Energy have agreed to acquire Five Point Infrastructure's 70% stake in Deep Blue Midland Basin, a water infrastructure business operating in Texas's Permian Basin, in a transaction valued at approximately $2.1bn, according to a report by Reuters. Diamondback, which already owns 30% of Deep Blue, is expected to increase its holding to 50%, with KKR acquiring…
KKR and energy company Diamondback Energy have reached an agreement to acquire 70% of Five Point Infrastructure's stake in Deep Blue Midland Basin, a water infrastructure business in Texas's Permian Basin, for roughly $2.1bn, according to a Reuters report. Diamondback already holds 30% of Deep Blue, intending to boost its share to 50%, while KKR will acquire the remaining 50%.
Truist Securities analysts estimate Diamondback's investment at around $602m and KKR's at approximately $1.51bn, though the companies have not disclosed the financial details. Deep Blue offers services such as water sourcing, transportation, recycling, and disposal to energy producers in the Midland Basin, providing water for nearly two million barrels daily for Diamondback's operations.
This investment may also serve as a foundation for future joint infrastructure investments as energy production and industrial activity grow in the Permian Basin. The transaction is set to close in the fourth quarter of 2026.
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