Diamondback and KKR acquire Five Point stake in Permian water platform
Permian Basin infrastructure investment is expanding as Diamondback Energy and KKR agree to buy Five Point Infrastructure's 70% stake in Deep Blue Midland Basin. The deal gives Diamondback a larger position in a water system that supports nearly 2 million barrels of water per day for its operations, while opening the door to further joint infrastructure investments in the region.
Highlights
- Diamondback Energy and KKR will acquire Five Point Infrastructure's 70% stake in Deep Blue Midland Basin, valuing the transaction at an estimated $2.1 billion.
- Diamondback will increase its Deep Blue ownership from 30% to 50% for about $602 million, while KKR will acquire the remaining 50% for approximately $1.51 billion.
- The deal highlights strategic investment in Permian Basin water infrastructure, supporting nearly 2 million barrels per day and positioning for future midstream expansion amid increasing oilfield activity.
Deal structure and ownership changes
As reported by Reuters, Diamondback Energy and private equity firm KKR say they have agreed to acquire Five Point Infrastructure's 70% stake in Deep Blue Midland Basin, a water infrastructure company serving the Permian Basin.Financial terms are not disclosed by the companies. However, a source familiar with the matter tells Reuters the transaction involves an estimated $2.1 billion in consideration for Five Point's stake in Deep Blue.
Diamondback already owns the remaining 30% of Deep Blue. Truist Securities analysts estimate Diamondback will contribute about $602 million to raise its ownership to 50% from 30%, while KKR will pay about $1.51 billion for the other 50%, assuming both buyers pay the same pro-rata price and excluding acquisition-level financing, fees or any earnout settlement.
The transaction is expected to close in the fourth quarter of this year. Diamondback does not respond to a request for comment on the financial terms, while KKR declines to comment.
Permian infrastructure implications
Deep Blue provides water sourcing, transport, recycling and disposal services in the Midland Basin, a key operating area within the Permian. Diamondback says the system supports nearly 2 million barrels of water per day for its operations, highlighting the strategic role of water handling in shale production.The companies say the investment could pave the way for further joint investments in infrastructure as energy and industrial activity expands across the Permian Basin. That points to continued demand for midstream-style water assets as producers and investors look to support higher operating volumes in one of the U.S. oil industry's most active regions.
Earlier, we reported on AI data center financing risks as rising costs and project delays cloud U.S. infrastructure buildouts.
Latest KKR & Co. News
-
Afghanistan
-
Albania
-
Algeria
-
Angola
-
Argentina
-
Armenia
-
Australia
-
Austria
-
Azerbaijan
-
Bahamas
-
Bahrain
-
Bangladesh
-
Belarus
-
Belgium
-
Bolivia
-
Botswana
-
Brazil
-
Brunei
-
Bulgaria
-
Cambodia
-
Cameroon
-
Canada
-
Chile
-
China
-
Colombia
-
Congo
-
Costa Rica
-
Cote d'Ivoire
-
Croatia
-
Cuba
-
Cyprus
-
Czechia
-
DR Congo
-
Denmark
-
Dominican Republic
-
Ecuador
-
Egypt
-
El Salvador
-
Estonia
-
Eswatini
-
Ethiopia
-
Finland
-
France
-
Georgia
-
Germany
-
Ghana
-
Greece
-
Haiti
-
Hong Kong
-
Hungary
-
India
-
Indonesia
-
Iran, Islamic republic
-
Iraq
-
Ireland
-
Israel
-
Italy
-
Jamaica
-
Japan
-
Jordan
-
Kazakhstan
-
Kenya
-
Korea
-
Kuwait
-
Kyrgyzstan
-
Laos
-
Latvia
-
Lebanon
-
Lesotho
-
Libya
-
Lithuania
-
Luxembourg
-
Madagascar
-
Malaysia
-
Malta
-
Mauritius
-
Mexico
-
Moldova
-
Mongolia
-
Montenegro
-
Morocco
-
Mozambique
-
Myanmar
-
Namibia
-
Nepal
-
Netherlands
-
New Zealand
-
Nigeria
-
North Macedonia
-
Norway
-
Oman
-
Pakistan
-
Palestine
-
Panama
-
Papua New Guinea
-
Paraguay
-
Peru
-
Philippines
-
Poland
-
Portugal
-
Puerto Rico
-
Qatar
-
Reunion
-
Romania
-
Rwanda
-
Saudi Arabia
-
Serbia
-
Singapore
-
Slovakia
-
Slovenia
-
Somalia
-
South Africa
-
Spain
-
Sri Lanka
-
Sweden
-
Switzerland
-
Syria
-
Taiwan
-
Tajikistan
-
Tanzania
-
Thailand
-
Trinidad and Tobago
-
Tunisia
-
Turkey
-
UAE
-
Uganda
-
Ukraine
-
United Kingdom
-
United States
-
Uruguay
-
Uzbekistan
-
Venezuela
-
Vietnam
-
Yemen
-
Zambia
-
Zimbabwe
- Forex
- Crypto
