The Conversation (0)
Five Point Infrastructure LLC ("Five Point") today announced that it has entered into a definitive agreement to sell its majority interest in Deep Blue Midland Basin LLC ("Deep Blue"), a produced-water infrastructure platform serving the Midland Basin, to Deep Blue's current minority owner, Diamondback Energy, Inc. (NASDAQ: FANG) ("Diamondback"), and KKR, for cash consideration.
The sale of Deep Blue reflects an active period of investment, development and monetization for Five Point Infrastructure and its limited partners. Recent milestones include the initial public offerings of LandBridge and WaterBridge, groundbreaking of PowerBridge's Alpha Digital Campus in Reeves County, Texas; the $1.25 billion sale of Twin Eagle, a natural gas marketing and optimization platform, to Expand Energy; and the approximate $2.4 billion sale of Northwind, a sour-gas gathering, treating and processing platform, to MPLX. These events underscore Five Point's pioneering strategy of establishing critical energy infrastructure platforms across environmental water management, surface management, sustainable infra and powered data center campuses.
Founded in 2023 as a joint venture between Five Point and Diamondback, Deep Blue operates an integrated water infrastructure network across the Midland Basin, providing full-cycle water management solutions to E&P customers, including gathering, transportation, storage, treatment and recycling, reuse, and responsible disposal. Deep Blue works closely with customers to support operational reliability, aligning water resources and infrastructure capacity with their needs.
David Capobianco, CEO and Managing Partner of Five Point Infrastructure, said, "In founding Deep Blue three years ago, we foresaw a critical and expanding need for environmental water management solutions across the Midland Basin. We are proud to have established and scaled a world-class platform in partnership with Diamondback and a host of blue-chip customers, addressing their water management requirements through integrated systems and pioneering practices. Diamondback has been a great partner, and they are a superb operator. We wish Scott and the entire team continued success."
Since its formation, Deep Blue has thoughtfully scaled its operations through infrastructure development and targeted acquisitions. Today, Deep Blue manages more than 2.2 million barrels of water per day, including recycling and delivers more than 800,000 barrels per day. Deep Blue's portfolio includes more than 2,000 miles of pipeline, nearly 5 million barrels per day of permitted produced water capacity and 142 million barrels of storage capacity.
Scott Mitchell, CEO of Deep Blue, said, "When we launched Deep Blue, alongside Five Point and Diamondback, our vision was to build a best-in-class integrated produced water management platform in the Midland Basin. Five Point's partnership and strategic guidance have been instrumental in bringing that vision to life, as we expanded our footprint, developed our infrastructure and met our customers' needs. This transaction marks an exciting next chapter as we build on our foundation in continued strategic partnership with Diamondback and now KKR."
The transaction is expected to close in the fourth quarter of 2026, subject to applicable regulatory approvals and other customary closing conditions.
About Deep Blue
Deep Blue is headquartered in The Woodlands and Midland, Texas. It develops, owns and operates integrated midstream water infrastructure networks to manage water for exploration and production companies throughout the Midland Basin. The Company's mission is to create value for its customers and stakeholders by addressing their long-term water management requirements through integrated pipeline systems and sustainable water management practices. Deep Blue's goal is to minimize disposal through water recycling and advanced technologies such as desalination and enhanced evaporation. For more information about Deep Blue, please visit: www.deepbluewater.com .
About Five Point Infrastructure
Five Point Infrastructure LLC is a private equity and infrastructure investor focused on building industry leading businesses within the North American water management, surface management, powered land, and sustainable infrastructure sectors. The firm was founded by industry veterans with demonstrated records of success investing in, building, and running infrastructure companies. Headquartered in Houston, Texas, Five Point has more than $10 billion of assets under management across multiple investment funds. For more information, please visit www.fpinfra.com .
View source version on businesswire.com: https://www.businesswire.com/news/home/20261109306170/en/
Daniel Yunger / Nathaniel Shahan
Kekst CNC
Daniel.Yunger@kekstcnc.com / Nathaniel.Shahan@kekstcnc.com
