Diamondback, KKR Agree on $2.1B Deep Blue Stake

Diamondback Energy and KKR agreed to jointly acquire Five Point Infrastructure’s 70% stake in Deep Blue Midland Basin, giving them full ownership of the Permian water-management platform and valuing the transaction at about $2.1 billion, according to reports citing people familiar with the deal. Diamondback already owns 30% of Deep Blue, whose network supplies, transports, stores, recycles and disposes of water used in oil and gas production; it handles nearly 2 million barrels a day for Diamondback’s operations. The acquisition would give Diamondback greater control over infrastructure essential to its drilling while making KKR a strategic partner, with the companies also eyeing further infrastructure investment in the region. The deal is expected to close in the fourth quarter of 2026, subject to regulatory approvals and other conditions. Rising oil and gas activity and potential industrial uses, including water for expanding data centers, are adding to interest in treating and reusing produced water in West Texas.