Deep Blue to acquire EDS in transaction valued at $750M

Deep Blue Midland Basin, Diamondback Energy (FANG), and Five Point Infrastructure announced an agreement for Deep Blue to acquire Environmental Disposal Systems, EDS, from Diamondback, nearly doubling Deep Blue’s scale and advancing its leadership in sustainable produced water management. The EDS acquisition is valued at $750 million and as part of the agreement, Diamondback renewed its 15-year dedication to Deep Blue for produced water and supply water within a 12-county area of mutual interest in the Midland Basin. 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.