MIDLAND, Texas — September 2, 2025 — Leads & Copy — Deep Blue Midland Basin LLC (“Deep Blue”), Diamondback Energy, Inc. (NASDAQ: FANG) (“Diamondback”) and Five Point Infrastructure LLC (“Five Point”) announced an agreement for Deep Blue to acquire Environmental Disposal Systems, LLC (“EDS”) from Diamondback. The EDS acquisition, valued at $750 million, nearly doubles Deep Blue’s scale and advances its leadership in sustainable produced water management.
Diamondback renewed its 15-year dedication to Deep Blue for produced water and supply water within a 12-county area. Diamondback will maintain a 30% equity interest in Deep Blue and will receive approximately $675 million in upfront cash proceeds, subject to customary closing conditions and adjustments. Diamondback will also have the potential to receive up to $200 million of additional cash proceeds through performance-based earnouts until the end of 2028.
Following the acquisition, the Deep Blue system will include: 1.2 million barrels per day of treatment and recycling capacity; 1.6 million barrels per day of water gathered; 1,871 miles of interconnected pipeline across the basin; 3.4 million barrels per day of permitted disposal capacity and 783,000 dedicated acres.
Scott Mitchell, Chief Executive Officer of Deep Blue, said the transaction enhances their footprint and accelerates their mission to optimize water management across the Midland Basin while prioritizing greater sustainability by recycling massive amounts of produced water for upstream development. Kaes Van’t Hof, Chief Executive Officer and Director of Diamondback said, this transaction provides meaningful value for Diamondback while allowing them to remain closely aligned with Deep Blue as both a partner and a customer.
David Capobianco, Chief Executive Officer of Five Point and Chairman of Deep Blue said Deep Blue is raising the bar and setting an industry standard for resource-efficient water management across U.S. energy production.
Deep Blue Media Contact: Shahreen Abedin, +1 (347) 419-2657, sabedin@themach1group.com
Diamondback Investor Contact: Adam Lawlis, +1 (432) 221-7467, alawlis@diamondbackenergy.com
Five Point Media Contact: Daniel Yunger, +1 (917) 574-8582, daniel.yunger@kekstcnc.com
Source: Deep Blue
