Diamondback Energy, KKR To Buy Deep Blue Midland Basin From Five Point Infrastructure

India, Nov. 10 -- 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 t...