Diamondback, KKR to Buy Five Point’s Deep Blue Stake

Formed in 2023 by Diamondback and Five Point, Deep Blue operates a network serving oil and natural-gas customers. Its services include water sourcing, transportation, storage, recycling and disposal, with operations based in The Woodlands and Midland, Texas.

Diamondback Chief Executive Kaes Van’t Hof said the project is critical to the company’s core operations, which require the transportation of nearly two million barrels of water per day. The deal, announced Tuesday, “secures this capability for the long term and establishes a strategic partnership that is well positioned for traditional growth with additional opportunities to expand outside of oil and gas,” he said.

The transaction is expected to close in the fourth quarter, subject to regulatory approvals and other closing conditions.