DEEP BLUE MIDLAND BASIN LLC ACQUIRES LAGOON OPERATING - MIDLAND, LLC

Core Insights - Deep Blue Midland Basin LLC has acquired Lagoon Operating – Midland, LLC, enhancing its position in sustainable water management within the Midland Basin [1][3] - The acquisition significantly expands Deep Blue's existing recycling capabilities and includes substantial pipeline and disposal capacity [2][3] Company Overview - Deep Blue is a joint venture between Diamondback Energy and Five Point Energy, focused on integrated midstream water infrastructure for exploration and production companies in the Midland Basin [5] - The company aims to minimize water disposal through recycling and advanced technologies such as desalination and enhanced evaporation [5] Acquisition Details - Lagoon's assets include approximately 105 miles of large diameter pipeline, 240,000 barrels per day (bpd) of disposal capacity, and an additional 544,000 bpd of permitted disposal capacity [2] - Following the acquisition, Deep Blue's total permitted produced water disposal capacity is approximately 2.5 million bpd, with over 1,000 miles of large-diameter pipeline [3] Strategic Impact - The acquisition is expected to unlock synergies across Deep Blue's operations, enhancing efficiency, reliability, and growth opportunities [3] - Deep Blue has secured multiple third-party commercial contracts, representing around 60,000 dedicated acres with seven new counterparties since its formation in September 2023 [3] Leadership Statements - Scott Mitchell, CEO of Deep Blue, emphasized the complementary nature of the acquisition, which reinforces the company's position as a leading sustainable water solutions provider [3] - David Capobianco, CEO of Five Point, highlighted the establishment of a premier sustainable water management platform in the Midland Basin [4]