Diamondback (FANG) JV Acquires New Water Infrastructure Assets

Core Viewpoint - Diamondback Energy's joint venture with Five Point Energy, Deep Blue Midland Basin, has acquired water infrastructure assets from Lagoon Operating Midland, emphasizing sustainable water management in the Midland Basin [1] Group 1: Acquisition Details - The acquisition includes a large-diameter pipeline of approximately 105 miles and a disposal capacity of 240,000 barrels per day (bpd), with an additional permitted capacity of 544,000 bpd, primarily located in Martin County, TX [2] - The financial details of the transaction have not been disclosed [1] Group 2: Strategic Importance - The acquired assets will enhance Deep Blue's water recycling capabilities and complement its existing infrastructure, driven by a strong portfolio of acreage dedications and minimum volume commitments from key producers [3] - The acquisition solidifies Deep Blue's position in water management and ensures steady demand from important producers in the Midland Basin [3] Group 3: Operational Expansion - Following the acquisition, the joint venture will have a permitted produced water disposal capacity of approximately 2.5 million barrels per day (MMbbl/d) and an extensive pipeline network of 1,000 miles with a redelivery capacity exceeding 600,000 bbl/d [5] - The joint venture has secured multiple third-party commercial contracts, representing nearly 60,000 dedicated acres and involving seven new counterparties [4] Group 4: Synergies and Growth - The acquisition unites complementary water infrastructure, expanding Deep Blue's footprint in the Midland Basin and driving synergies across the business [6] - The joint venture, formed in 2023, has made significant strides in expanding its commercial presence and asset base [4]