"Diamondback Energy and Five Point Energy Join Forces to Create Deep Blue Midland Basin LLC"
Diamondback Energy and Five Point Energy have formed a joint venture called Deep Blue Midland Basin, creating the largest independent water infrastructure platform in the Midland Basin. The joint venture includes over 800 miles of pipelines for gathering, transport, disposal, and reuse, with permitted disposal capacity of approximately 2 million barrels per day and over 65 million barrels of water storage. Diamondback has entered into a 15-year dedication for its produced water and supply water, retaining a 30% equity interest in Deep Blue and receiving $500 million in upfront cash proceeds. The joint venture also executed long-term acreage dedications with two investment-grade customers.