Deep Blue Closes Acquisition of Environmental Disposal Systems from Diamondback
Deep Blue Midland Basin has completed its acquisition of Environmental Disposal Systems (EDS) from Diamondback Energy (NASDAQ:FANG). The transaction includes $695 million in upfront cash and potential additional earnouts of up to $200 million through 2028.
Deep Blue, formed in 2023 as a joint venture between Diamondback and Five Point Infrastructure, operates the largest independent water infrastructure platform in the Midland Basin, with nearly 2,000 miles of pipeline. To fund the acquisition, Deep Blue secured a $950 million seven-year senior secured term loan B facility and received corporate ratings of BB- from Fitch and S&P, and Ba3 from Moody's.
Deep Blue Midland Basin ha completato l'acquisizione di Environmental Disposal Systems (EDS) da Diamondback Energy (NASDAQ:FANG). L'operazione prevede 695 milioni di dollari in contanti anticipati e ulteriori earn-out di fino a 200 milioni di dollari entro il 2028.
Deep Blue, nata nel 2023 da una joint venture tra Diamondback e Five Point Infrastructure, gestisce la più grande piattaforma indipendente di infrastrutture idriche nel Midland Basin, con quasi 2.000 miglia di tubazioni. Per finanziare l'acquisizione, Deep Blue ha ottenuto un finanziamento senior secured a termine di 950 milioni di dollari su sette anni e ha ricevuto rating corporate BB- da Fitch e S&P, e Ba3 da Moody's.
Deep Blue Midland Basin ha completado la adquisición de Environmental Disposal Systems (EDS) de Diamondback Energy (NASDAQ:FANG). La operación incluye 695 millones de dólares en efectivo inicial y posibles earnouts adicionales de hasta 200 millones de dólares hasta 2028.
Deep Blue, creada en 2023 como una empresa conjunta entre Diamondback y Five Point Infrastructure, opera la mayor plataforma independiente de infraestructuras hídricas en el Midland Basin, con casi 2.000 millas de tubería. Para financiar la adquisición, Deep Blue obtuvo un préstamo sindicado senior garantizado de 950 millones de dólares a siete años y recibió calificaciones corporativas de BB- de Fitch y S&P, y Ba3 de Moody's.
Deep Blue Midland Basin이 Environmental Disposal Systems (EDS)를 Diamondback Energy (NASDAQ:FANG)로부터 인수했습니다. 거래에는 현금으로 선지급 6억9500만 달러와 2028년까지 최대 2억 달러의 추가 수익실현 가능성이 포함되어 있습니다.
Deep Blue는 2023년 Diamondback과 Five Point Infrastructure의 공동투자로 설립되었으며 Midland Basin에서 독립형 물 관리 인프라 플랫폼 중 최대 규모를 운영하고 있으며 약 2,000마일의 파이프라인을 보유하고 있습니다. 인수를 위한 자금 조달로 7년 만기의 9억 5천만 달러의 우선 담보 대출을 확보했고, Fitch와 S&P의 BB- 등급과 Moody's의 Ba3 등급을 받았습니다.
Deep Blue Midland Basin a finalisé l'acquisition de Environmental Disposal Systems (EDS) auprès de Diamondback Energy (NASDAQ:FANG). La transaction comprend 695 millions de dollars en cash upfront et des earnouts éventuels jusqu'à 200 millions de dollars jusqu'en 2028.
Deep Blue, créée en 2023 par une coentreprise entre Diamondback et Five Point Infrastructure, exploite la plus grande plateforme indépendante d'infrastructures hydrauliques dans le Midland Basin, avec près de 2 000 miles de pipeline. Pour financer l'acquisition, Deep Blue a obtenu une facilité de prêt senior garanties à terme de 950 millions de dollars sur sept ans et a reçu les notations d'entreprise BB- de Fitch et S&P, et Ba3 de Moody's.
Deep Blue Midland Basin hat die Übernahme von Environmental Disposal Systems (EDS) von Diamondback Energy (NASDAQ:FANG) abgeschlossen. Die Transaktion umfasst 695 Millionen US-Dollar als Barkaufpreis und potenzielle zusätzliche Earn-outs von bis zu 200 Millionen US-Dollar bis 2028.
Deep Blue, 2023 als Gemeinschaftsunternehmen von Diamondback und Five Point Infrastructure gegründet, betreibt die größte unabhängige Wasserinfrastruktur-Plattform im Midland Basin und verfügt über fast 2.000 Meilen Pipeline. Zur Finanzierung der Übernahme sicherte sich Deep Blue eine siebenjährige Senior Secured Term Loan Facility in Höhe von 950 Millionen US-Dollar und erhielt Kreditratings von Fitch und S&P BB- bzw. Ba3 von Moody's.
Deep Blue Midland Basin أكملت استحواذها على Environmental Disposal Systems (EDS) من Diamondback Energy (NASDAQ:FANG). تتضمن الصفقة تسليم نقدي مقدم بقيمة 695 مليون دولار وإمكانية إضافية لعمولات اكتساب حتى 200 مليون دولار حتى عام 2028.
Deep Blue، التي تأسست في 2023 كشراكة بين Diamondback وFive Point Infrastructure، تدير أكبر منصة بنية تحتية مائية مستقلة في منطقة Midland Basin، مع ما يقرب من 2000 ميل من خطوط الأنابيب. لتمويل الاستحواذ، حصلت Deep Blue على تسليفات بقيمة 9.5 مليار دولار كقرض مدني مضمون لمدة سبع سنوات وتلقت تقييمات شركات BB- من Fitch وS&P، وBa3 من Moody's.
Deep Blue Midland Basin 已完成从Diamondback Energy (NASDAQ:FANG)处收购Environmental Disposal Systems (EDS)。交易包括6950万美元的前期现金和到2028年可达的额外earnouts最高2亿美元。
Deep Blue成立于2023年，是 Diamondback 与 Five Point Infrastructure 的合资企业，运营中部盆地最大的独立水务基础设施平台，拥有近2000英里的管道。为融资收购，Deep Blue 获得了一笔7年期的高级担保定期贷款（Term Loan B）9.5亿美元，并获得Fitch和S&P的BB-评级，Moody's为Ba3。
- Significant expansion of Deep Blue's water infrastructure operations in the Midland Basin
- Substantial upfront cash proceeds of $695 million for Diamondback
- Potential for additional $200 million through performance-based earnouts until 2028
- Successful securing of $950 million term loan facility with stable ratings outlook
- Diamondback maintains 30% equity interest in Deep Blue
- Increased debt burden with new $950 million term loan facility
- Integration risks associated with combining operations
- Significant capital expenditure required for the acquisition
Insights
Diamondback's $695M water infrastructure sale strengthens balance sheet while maintaining strategic 30% stake in growing Deep Blue platform.
This transaction represents a significant monetization event for Diamondback Energy (FANG), generating
The transaction reflects a strategic approach to Diamondback's midstream water assets. By selling EDS to Deep Blue (a JV that Diamondback formed with Five Point Infrastructure in 2023), the company effectively monetizes infrastructure assets while maintaining partial ownership in what has become the largest independent water infrastructure platform in the Midland Basin. This allows Diamondback to focus capital on core upstream operations while still benefiting from the growth of these essential midstream assets.
Deep Blue's successful closing of a
For Permian Basin operators, water management represents a critical and growing expense. Deep Blue's expanded scale positions it as the dominant player in this essential service sector, potentially creating competitive advantages through economies of scale and comprehensive service offerings across the water management value chain.
Doubles scale in the Midland Basin and further solidifies leadership in sustainable produced water management
MIDLAND, Texas, Oct. 01, 2025 (GLOBE NEWSWIRE) -- Deep Blue Midland Basin LLC (“Deep Blue”), the Midland Basin’s largest independent water infrastructure platform, today announced the closing of its previously announced acquisition of Environmental Disposal Systems, LLC (“EDS”) from Diamondback Energy, Inc. (“Diamondback”). Deep Blue was formed in 2023 as a joint venture between Diamondback and Five Point Infrastructure.
Diamondback maintained a
With nearly 2,000 miles of pipeline and millions of barrels per day of capacity, Deep Blue delivers comprehensive water management services in the critically important Midland Basin – from gathering and transporting to treating, recycling and disposing of produced water.
“We’re excited to add EDS to our rapidly growing independent water infrastructure platform, the largest in the Midland Basin,” said Scott Mitchell, Chief Executive Officer of Deep Blue. “The integration of EDS will create tremendous value for current and prospective customers who seek operational excellence and commercial synergies. This acquisition exemplifies our ability to scale alongside rising industry demand, as we continuously develop sustainable solutions that contribute to the Texas economy and U.S. energy leadership.”
In conjunction with the transaction, Deep Blue successfully closed a
J.P. Morgan Securities LLC served as lead financial advisor to Deep Blue.
About Deep Blue
Deep Blue is headquartered in The Woodlands and Midland, Texas and 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.
Deep Blue Media Contact
Shahreen Abedin
+1 (347) 419-2657
sabedin@themach1group.com
About Diamondback Energy
Diamondback is an independent oil and natural gas company headquartered in Midland, Texas focused on the acquisition, development, exploration and exploitation of unconventional, onshore oil and natural gas reserves in the Permian Basin in West Texas. For more information about Diamondback please visit: www.diamondbackenergy.com.
Diamondback Investor Contact
Adam Lawlis
+1 (432) 221-7467
alawlis@diamondbackenergy.com
About Five Point Infrastructure
Five Point Infrastructure LLC is a private equity and infrastructure investor focused on investments within the North American powered land, surface management, water management, and sustainable infrastructure sectors. The firm was founded by industry veterans with demonstrated records of success investing in, building, and running infrastructure companies. Based in Houston, Texas, Five Point has approximately
Five Point Infrastructure Media Contact
Daniel Yunger / Nathaniel Shahan
Kekst CNC
Daniel.yunger@kekstcnc.com / Nathaniel.shahan@kekstcnc.com
FAQ
How much did Deep Blue pay for Environmental Disposal Systems?
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