Strategic Acquisition Expands Deep Blue's
Footprint in the Midland
Basin
MIDLAND,
Texas, June 3, 2024 /PRNewswire/ -- Deep Blue
Midland Basin LLC ("Deep Blue" or the "Company"), a joint venture
between Diamondback Energy (NASDAQ: FANG) and Five Point Energy LLC
("Five Point"), announced today it has acquired Lagoon Operating –
Midland, LLC ("Lagoon"). This
strategic acquisition further solidifies Deep Blue's position as a
key player in sustainable water management in the core of the
Midland Basin.
The Lagoon assets are located primarily in Martin County and include approximately 105
miles of large diameter pipeline, 240,000 bpd of disposal capacity
and 544,000 bpd of additional permitted disposal capacity. Lagoon's
assets significantly expand Deep Blue's existing recycling
capabilities and are underpinned by a strong portfolio of acreage
dedications and MVCs from leading producers in the Midland Basin.
"The acquisition of Lagoon brings together complementary water
systems that expand our footprint and unlock synergies across
the broader business that will enhance efficiency, reliability and
growth opportunities," said Scott
Mitchell, CEO of Deep Blue. "The combined business
reinforces Deep Blue's position as a leading sustainable water
solutions provider, capable of navigating the changing needs of our
customers in the Midland
Basin."
Since the formation of the joint venture in September 2023, Deep Blue has added multiple
third-party commercial contracts and continues to expand the
Company's asset footprint. These commercial agreements represent
approximately 60,000 dedicated acres with seven new counterparties.
With the closing of the Lagoon transaction, the Company has
approximately 2.5 million bpd of permitted produced water disposal
capacity and over 1,000 miles of large-diameter pipeline with
redelivery capacity of over 600,000 bpd.
David Capobianco, CEO of Five
Point and Chairman of Deep Blue, said, "We are proud to have built
the premier sustainable water management platform in the
Midland Basin, and to count among
our partners many of the Permian Basin's most respected producers.
Deep Blue will continue to expand its customer base, bringing next
generation water management solutions, including recycling,
enhanced evaporation and desalination technologies to our
partners."
Jackson Walker LLP and Skadden, Arps, Slate, Meagher & Flom
LLP served as legal counsel to Deep Blue.
About Deep Blue
Deep Blue is headquartered in The
Woodlands and Midland,
Texas and develops, owns, and operates integrated midstream
water infrastructure networks to manage water for exploration and
production companies throughout the Midland Basin. The Company's mission is to
create value for its customers and stakeholders by addressing their
long-term water management requirements through integrated pipeline
systems and sustainable water management practices. Deep Blue's
goal is to minimize disposal through water recycling and advanced
technologies such as desalination and enhanced evaporation. For
more information about Deep Blue, please visit:
www.deepbluewater.com.
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 Five Point Energy
Five Point Energy is a private equity firm focused on building
businesses within the environmental water management and
sustainable infrastructure sectors. The firm was founded by
industry veterans who have had successful careers investing in,
building, and running midstream infrastructure companies. Five
Point's strategy is to buy and build assets, create companies, and
grow them into sustainable enterprises with premier management
teams and industry-leading E&P partners. Based in Houston, Five Point targets equity investments
up to $1 billion and has
approximately $5 billion of assets
under management across multiple investment funds. For more
information about Five Point Energy, please visit:
www.fivepointenergy.com.
Deep Blue Media Contact
Robert
Norton
+1 (303) 775-3562
robert@deepbluewater.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
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SOURCE Deep Blue Midland Basin LLC
