Diamondback Energy and KKR have agreed to acquire the 70% stake in Deep Blue Midland Basin held by Five Point Infrastructure, paying cash for the holding. The deal would move majority ownership of the Midland Basin water operator from Five Point Infrastructure to the two buyers. Since the stake being sold amounts to 70% of the company, the buyers would hold a controlling position rather than a minority one.
Deep Blue Midland Basin is a water operator whose business is tied to oil and gas development in the basin. Five Point Infrastructure is the seller, and the transaction covers its 70% interest in the business. Diamondback Energy and KKR would take over that holding jointly, sharing ownership of the water business between them.
Water handling is a routine part of development in the basin, where drilling and completion programs depend on sourcing, transfer and disposal capacity. Companies in this line of business own and operate the infrastructure that moves water to wells and carries produced water away, and the condition of that infrastructure affects how smoothly development work proceeds. Ownership changes at water operators are therefore watched for what they mean for service continuity and future investment in water assets.
For companies working in the Midland Basin, the deal places a water operator serving the area under new ownership, with the business set to continue under Diamondback Energy and KKR. The buyers take control of infrastructure tied to water demand from drilling and completion activity in the basin. For Five Point Infrastructure, the sale converts its stake into cash and ends its ownership position in the operator.
Source: Offshore Technology
