WASHINGTON (dpa-AFX) - Diamondback Energy, Inc. (FANG), a hydrocarbon explorer, and KKR & Co. Inc. (KKR), an investment firm, on Tuesday announced a deal to jointly buy Five Point Infrastructure LLC's 70% stake in Deep Blue Midland Basin LLC, a full-cycle water infrastructure platform.
Kaes Van't Hof, CEO of Diamondback, said: 'The Deep Blue system is critical for Diamondback's core operations, which require reliable transportation of nearly 2 million barrels of water per day. Acquiring Five Point's 70% interest alongside KKR secures this capability for the long term and establishes a strategic partnership.'
KKR's investment in the transaction will be funded primarily through KKR Global Infrastructure Investors V. The transaction is expected to close in the final quarter of 2026.
Post transaction, Diamondback and KKR will jointly own 100% of Deep Blue, building on Diamondback's existing 30% ownership interest.
Founded in 2023, Deep Blue is a joint venture between Diamondback and Five Point. This operates an integrated water infrastructure network to serve across the full water lifecycle, including sourcing, transportation, storage, recycling, and disposal.
FANG was down by 1.22% at $176 in the pre-market trade on the Nasdaq.
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