Diamondback Energy and KKR to Acquire Deep Blue Midland Basin from Five Point Infrastructure
The transaction would move Deep Blue from Diamondback and Five Point ownership to full joint ownership by Diamondback and KKR.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Rhea-AI Summary
Diamondback Energy (NASDAQ: FANG) and KKR agreed to jointly acquire Five Point Infrastructure’s 70% stake in Deep Blue Midland Basin.
Following the transaction, Diamondback and KKR will jointly own 100% of Deep Blue, building on Diamondback’s existing 30% interest. The water infrastructure business was formed in 2023 as a joint venture between Diamondback and Five Point. Diamondback said the acquisition would secure infrastructure supporting its core operations, which require reliable transportation of nearly 2 million barrels of water per day, while creating potential expansion opportunities outside oil and gas.
KKR’s investment will be funded primarily through KKR Global Infrastructure Investors V. Closing is expected in Q4 2026, subject to customary regulatory approvals and closing conditions. The companies also see opportunities for broader infrastructure collaboration in the region.
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Hollow bars mark forward-looking points. How the balance works
Positive
- Moderate point. Forward-looking: it has not happened yet and may not happen.Five Point’s 70% stake acquisition would give Diamondback and KKR joint ownership of 100% of Deep Blue.
- Minor point. Forward-looking: it has not happened yet and may not happen.Water transportation infrastructure supports Diamondback operations requiring nearly 2 million barrels per day, which Diamondback says the acquisition would secure.
- Minor point. Forward-looking: it has not happened yet and may not happen.Expansion outside oil and gas is a potential opportunity Diamondback identifies through technology and industrial uses.
- Minor point. Forward-looking: it has not happened yet and may not happen.Broader infrastructure collaboration in the region is an opportunity Diamondback and KKR intend to explore.
Negative
- Minor pointRegulatory approvals remain a condition of the transaction, with closing expected in Q4 2026.
Key Figures
- Five Point stake to be acquired
- 70%
- Deep Blue Midland Basin
- Post-transaction ownership
- 100%
- Diamondback and KKR will jointly own Deep Blue
- Water transportation requirement
- Nearly 2 million barrels per day
- Diamondback's core operations
- Expected transaction close
- Q4 2026
- Subject to customary regulatory approvals and closing conditions
AI-generated analysis. How Rhea-AI works. Not financial advice.
Strategic partnership to support Deep Blue's continued investment in full-cycle water infrastructure across West Texas
MIDLAND and HOUSTON, Texas, Nov. 10, 2026 (GLOBE NEWSWIRE) -- Diamondback Energy, Inc. (NASDAQ: FANG) (“Diamondback”) and KKR, a leading global investment firm, today announced an agreement to jointly acquire Five Point Infrastructure’s (“Five Point”)
Deep Blue, which was formed in 2023 as a joint venture between Diamondback and Five Point, operates an extensive, integrated water infrastructure network that provides services across the full water lifecycle, including sourcing, transportation, storage, recycling and disposal. Through a combination of complementary acquisitions and organic growth, Deep Blue delivers reliable water supply and robust takeaway solutions at scale across its large E&P customer base, helping operators efficiently and responsibly manage water resources while enabling greater water reuse and reducing reliance on freshwater supplies.
The strategic partnership brings together Diamondback's deep operational expertise, built over nearly two decades of operating in West Texas, with KKR's experience investing in and scaling businesses within the energy sector.
Kaes Van’t Hof, Chief Executive Officer of Diamondback, said, “Through our strategic partnership with Five Point, we are proud to have established and scaled a world-class water infrastructure platform in the Midland Basin. 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
The investment builds on Diamondback and KKR’s complementary strengths and shared commitment to advancing infrastructure that supports responsible energy production and long-term growth across the region. Beyond Deep Blue, the companies see opportunities for broader collaboration to support the region's evolving infrastructure needs.
“Deep Blue plays an important role in supporting energy production in the Permian Basin, and we see a compelling opportunity to build on its strong foundation to meet the region’s growing water infrastructure needs,” said James Cunningham, Partner at KKR. “We are particularly excited to work with Diamondback, whose longstanding presence in the region make them an ideal strategic partner. We view this investment as an important first step in building a broader relationship and look forward to exploring additional opportunities to invest together in essential infrastructure.”
KKR’s investment in the transaction will be funded primarily through KKR Global Infrastructure Investors V. The transaction is expected to close in Q4 2026, subject to customary regulatory approvals and closing conditions.
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.
About KKR
KKR is a leading global investment firm that offers alternative asset management as well as capital markets and insurance solutions. KKR aims to generate attractive investment returns by following a patient and disciplined investment approach, employing world-class people, and supporting growth in its portfolio companies and communities. KKR sponsors investment funds that invest in private equity, credit and real assets and has strategic partners that manage hedge funds. KKR’s insurance subsidiaries offer retirement, life and reinsurance products under the management of Global Atlantic Financial Group. References to KKR’s investments may include the activities of its sponsored funds and insurance subsidiaries. For additional information about KKR & Co. Inc. (NYSE: KKR), please visit KKR’s website at www.kkr.com. For additional information about Global Atlantic Financial Group, please visit Global Atlantic Financial Group’s website at www.globalatlantic.com.
Forward-Looking Statements
This news release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act, which involve risks, uncertainties, and assumptions. All statements, other than statements of historical fact, including statements regarding Diamondback’s: future performance; business strategy; future operations (including drilling plans and capital plans); estimates and projections of revenues, losses, costs, expenses, returns, cash flow, and financial position; reserve estimates and its ability to replace or increase reserves; anticipated benefits or other effects of strategic transactions (including the Deep Blue acquisition and other acquisitions, divestitures or reorganizations); and plans and objectives of management (including plans for future cash flow from operations and for executing environmental strategies) are forward-looking statements. When used in this news release, the words “aim,” “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “forecast,” “future,” “guidance,” “intend,” “may,” “model,” “outlook,” “plan,” “positioned,” “potential,” “predict,” “project,” “seek,” “should,” “target,” “will,” “would,” and similar expressions (including the negative of such terms) are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. Although Diamondback believes that the expectations and assumptions reflected in its forward-looking statements are reasonable as and when made, they involve risks and uncertainties that are difficult to predict and, in many cases, beyond Diamondback’s control. Accordingly, forward-looking statements are not guarantees of future performance and Diamondback’s actual outcomes could differ materially from what Diamondback has expressed in its forward-looking statements. Additional information concerning these risks and uncertainties can be found in Part I, Item 1A of Diamondback’s Annual Report on Form 10-K, filed with the SEC on February 25, 2026, and those risks disclosed in its subsequent filings on Forms 10-Q and 8-K, which can be obtained free of charge on the SEC’s website at http://www.sec.gov and Diamondback’s website at www.diamondbackenergy.com/investors.
Investor Relations Contacts
Diamondback Energy
Adam Lawlis
+1 (432) 221-7467
alawlis@diamondbackenergy.com
Media Contacts
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What stake in Deep Blue are Diamondback and KKR acquiring?
Diamondback and KKR agreed to acquire Five Point Infrastructure’s 70% stake in Deep Blue Midland Basin. After the transaction, the two buyers will jointly own 100% of the business, building on Diamondback’s existing 30% ownership interest.
When is the Diamondback and KKR Deep Blue acquisition expected to close?
The transaction is expected to close in Q4 2026, subject to customary regulatory approvals and closing conditions.