(RTTNews) - Deep Blue Midland Basin LLC, Diamondback Energy, (FANG) and Five Point Infrastructure announced an agreement for Deep Blue to acquire Environmental Disposal Systems, LLC from Diamondback. The acquisition is valued at $750 million. Diamondback will maintain a 30% equity interest in Deep Blue and will receive approximately $675 million in upfront cash proceeds. 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.
"This transaction enhances our footprint and accelerates our mission to optimize water management across the Midland Basin while prioritizing greater sustainability by recycling massive amounts of produced water for upstream development," said Scott Mitchell, CEO of Deep Blue.
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