Diamondback, KKR to buy Five Point's stake in Permian water platform

Diamondback Energy

10/11/2026 19:04

By Dharna  Bafna
Nov 10 (Reuters) - Diamondback Energy FANG.O and private equity firm KKR KKR.N have agreed to acquire Five Point Infrastructure's 70% stake in Deep Blue Midland Basin, a water infrastructure firm in the Permian Basin, the companies said on Tuesday.
The financial terms of the deal were not disclosed.
The deal involves an estimated $2.1 billion in consideration for Five Point's stake in Deep Blue, a source familiar with the matter told Reuters.
Here are more details:
The companies said the investment could pave the way for further joint investments in infrastructure as energy and industrial activity expands across the Permian Basin
Deep Blue provides water sourcing, transport, recycling and disposal services in the Midland Basin
Diamondback, which already owned the remaining 30% stake in Deep Blue, said the system supports nearly 2 million barrels of water per day for its operations
Truist Securities analysts estimate Diamondback will contribute about $602 million to increase its ownership to 50% from 30%, while KKR will pay about $1.51 billion for the remaining 50%, assuming both buyers pay the same pro-rata price, with no acquisition-level financing, fees or earnout settlement
The transaction is expected to close in the fourth quarter this year
Diamondback Energy did not respond to a request for comment on the financial terms of the transaction, while KKR declined to comment

 (Reporting by Dharna Bafna in Bengaluru; Editing by Leroy Leo)
 ((Dharna.Bafna@thomsonreuters.com))