Key Takeaways
- • KKR and Diamondback Energy have agreed to acquire Five Point Infrastructure's 70% stake in Deep Blue Midland Basin, a water infrastructure platform serving oil and gas producers in West Texas.
- • Reuters reported the stake is valued at about $2.1bn, citing a source familiar with the transaction; the companies did not disclose consideration.
- • Diamondback already owns 30% of Deep Blue, established with Five Point in 2023, and will hold joint ownership with KKR following the deal.
- • KKR will fund its investment primarily through KKR Global Infrastructure Investors V.
Summary
KKR and Diamondback Energy have agreed to acquire Five Point Infrastructure's 70% stake in Deep Blue Midland Basin, a water infrastructure platform serving oil and gas producers in West Texas. The companies did not disclose the purchase price, but Reuters reported, citing a source familiar with the transaction, that the stake is valued at about $2.1bn.
Diamondback already holds a 30% interest in Deep Blue, which it established with Five Point in 2023. Upon completion, Diamondback and KKR will hold joint ownership of the business. Deep Blue provides water sourcing, transportation, storage, recycling and disposal services across the Midland Basin, a core production region for operators in West Texas, where water handling is a material operating requirement for producers.
KKR will fund its portion primarily through KKR Global Infrastructure Investors V, positioning the transaction as an infrastructure investment rather than an operating-company acquisition. The source article does not disclose expected closing timelines or regulatory conditions.
The deal is one of several transactions reported in the same AltAssets roundup, including Blackstone's $535m investment for a roughly 16% stake in IIFL Finance, Marsh's agreement to acquire Wilshire from CC Capital and Motive Partners, and Mitsui Chemicals' ¥1.84tn ($11.6bn) acquisition of JSR from JIC Capital. Those transactions are separate and are not part of the Deep Blue deal.
Diamondback already holds a 30% interest in Deep Blue, which it established with Five Point in 2023. Upon completion, Diamondback and KKR will hold joint ownership of the business. Deep Blue provides water sourcing, transportation, storage, recycling and disposal services across the Midland Basin, a core production region for operators in West Texas, where water handling is a material operating requirement for producers.
KKR will fund its portion primarily through KKR Global Infrastructure Investors V, positioning the transaction as an infrastructure investment rather than an operating-company acquisition. The source article does not disclose expected closing timelines or regulatory conditions.
The deal is one of several transactions reported in the same AltAssets roundup, including Blackstone's $535m investment for a roughly 16% stake in IIFL Finance, Marsh's agreement to acquire Wilshire from CC Capital and Motive Partners, and Mitsui Chemicals' ¥1.84tn ($11.6bn) acquisition of JSR from JIC Capital. Those transactions are separate and are not part of the Deep Blue deal.
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