Diamondback Energy and KKR to Acquire Deep Blue Midland Basin from Five Point Infrastructure

Strategic partnership to support Deep Blue's continued investment in full-cycle water infrastructure across West Texas
Diamondback Energy and KKR to Acquire Deep Blue Midland Basin from Five Point Infrastructure
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”) 70% stake in Deep Blue Midland Basin LLC (“Deep Blue” or the “Company”), the leading full-cycle water infrastructure platform in the Midland Basin. Following the transaction, Diamondback and KKR will jointly own 100% of Deep Blue, building on Diamondback’s existing 30% ownership interest.

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 70% interest alongside KKR secures this capability for the long term and establishes a strategic partnership that is well positioned for traditional growth with additional opportunities to expand outside of oil and gas through advancements in new technology and potential industrial use cases in the Permian Basin.”

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.

Investor Relations Contacts

Diamondback Energy
Adam Lawlis
+1 (432) 221-7467
alawlis@diamondbackenergy.com

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KKR
KKR
New York, United States
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.
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