KKR and US energy producer Diamondback Energy have agreed to acquire Five Point Infrastructure's 70% stake in Deep Blue Midland Basin, a water infrastructure business operating in Texas's Permian Basin, in a transaction valued at approximately $2.1bn, according to a report by Reuters.

Diamondback, which already owns 30% of Deep Blue, is expected to increase its holding to 50%, with KKR acquiring the remaining 50%. Analysts at Truist Securities estimate Diamondback will contribute approximately $602m, while KKR will invest around $1.51bn, although the companies have not disclosed financial terms.

Deep Blue provides water sourcing, transportation, recycling and disposal services to energy producers in the Midland Basin. Its infrastructure currently supports nearly two million barrels of water per day for Diamondback's operations.

The investment could also establish a platform for further joint infrastructure investments as energy production and industrial activity expand across the Permian Basin. The transaction is expected to close in the fourth quarter of 2026.