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Deep Blue Midland Basin LLC (“Deep Blue”), Diamondback Energy, Inc. (NASDAQ: FANG) (“Diamondback”) and Five Point Infrastructure LLC (“Five Point”) today announced an agreement for Deep Blue to acquire Environmental Disposal Systems, LLC (“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.

“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, Chief Executive Officer of Deep Blue. “It ensures our customers benefit from unmatched scale and innovative solutions while shaping the future of water management in the Midland Basin.”

Following the acquisition, the Deep Blue system will include:

• 1.2 million barrels per day of treatment and recycling capacity
• 1.6 million barrels per day of water gathered
• 1,871 miles of interconnected pipeline across the basin
• 3.4 million barrels per day of permitted disposal capacity
• 783,000 dedicated acres

Formed in 2023 as a joint venture between Diamondback and Five Point, Deep Blue has rapidly built the Midland Basin’s largest independent water infrastructure platform. This acquisition continues that trajectory, adding reliability and unlocking new opportunities to capitalize on operational and commercial synergies across the integrated system. EDS also broadens Deep Blue’s customer base, which already includes several of the leading operators in the Midland Basin.

Kaes Van’t Hof, Chief Executive Officer and Director of Diamondback said, “This transaction provides meaningful value for Diamondback while allowing us to remain closely aligned with Deep Blue as both a partner and a customer. Together, we are creating the premier system that supports the most demanding development schedules in the Midland Basin.”

David Capobianco, Chief Executive Officer of Five Point and Chairman of Deep Blue said, “As a pioneer in produced water infrastructure and state-of-the-art water treatment practices, Five Point is proud to back Deep Blue, in partnership with Diamondback. Deep Blue is raising the bar and setting an industry standard for resource-efficient water management across U.S. energy production.”

Skadden, Arps, Slate, Meagher & Flom LLP and Vinson & Elkins LLP served as legal counsel to Deep Blue. Akin Gump Strauss Hauer & Feld LLP served as legal counsel and Piper Sandler & Co. served as financial advisor to Diamondback.

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HOUSTON–(BUSINESS WIRE)–Five Point Infrastructure LLC (“Five Point”) today announced that it has entered into a definitive agreement to sell Northwind Delaware Holdings LLC (“Northwind” or the “Company”) to MPLX LP (“MPLX”) for $2.375 billion in cash consideration, subject to customary purchase price adjustments.

Founded by Five Point in 2022, Northwind provides sour gas gathering, treating, and processing services in Lea County, New Mexico. The Company is solving a highly critical issue in the Northern Delaware Basin, where upstream development has generally been restricted due to the lack of sour natural gas treating, acid-gas injection and sequestration well capacity. In addition, the Company contributes meaningfully to its customers’ sustainability objectives by capturing and sequestering the CO₂ in the natural gas stream.

Northwind’s portfolio today includes over 200,000 dedicated acres, 200+ miles of gathering pipelines, two in-service carbon sequestration and acid gas injection (AGI) wells with a combined capacity of 20 million cubic feet per day (MMcf/d), and a third permitted well that will bring total capacity to 37 MMcf/d when completed in 2026.

David Capobianco, CEO and Managing Partner of Five Point Infrastructure, said, “We’re proud to have played a key role in unlocking development potential in the Northern Delaware Basin, which we continue to expect will be one of the most important oil producing regions in North America. This transaction is a clear validation of our investment thesis regarding the need for critical infrastructure development across the nation’s most productive energy basins. We congratulate MPLX on its acquisition of a great business and look forward to Northwind’s continued growth under their stewardship.”

The transaction is expected to close in the third quarter of 2025, subject to customary closing conditions, including clearance under the Hart-Scott-Rodino Antitrust Improvements Act of 1976.

Piper Sandler & Co. served as the exclusive financial advisor and Latham & Watkins LLP acted as legal advisor to the seller in connection with the transaction.

About Five Point Infrastructure

Five Point Infrastructure LLC is a private equity and infrastructure investor focused on investments within the North American powered land, surface management, water management, and sustainable infrastructure sectors. The firm was founded by industry veterans with demonstrated records of success investing in, building, and running infrastructure companies. Based in Houston, Texas, Five Point has approximately $8 billion of assets under management across multiple investment funds. For more information about Five Point, please visit: www.fpinfra.com.

About Northwind Midstream

Established in 2022, Northwind’s strategy is to develop, own and operate off-spec gas infrastructure in the Permian Basin. Northwind operates a highly efficient, environmentally focused and exceedingly reliable midstream system, which unlocks overall customer value while mitigating customer environmental concerns. Northwind’s developed solution provides producers with (i) a superior economic alternative, (ii) significant operational enhancements, (iii) meaningful emissions reductions, and (iv) tangible ESG benefits. Learn more at www.nwmidstream.com.

About MPLX LP

MPLX is a diversified, large-cap master limited partnership that owns and operates midstream energy infrastructure and logistics assets and provides fuels distribution services. MPLX’s assets include a network of crude oil and refined product pipelines; an inland marine business; light-product terminals; storage caverns; refinery tanks, docks, loading racks, and associated piping; and crude and light-product marine terminals. The company also owns crude oil and natural gas gathering systems and pipelines as well as natural gas and NGL processing and fractionation facilities in key U.S. supply basins. More information is available at www.MPLX.com.

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HOUSTON–(BUSINESS WIRE)–Northwind Midstream Partners LLC (“Northwind” or the “Company”) today announced that it has received a final order from the New Mexico Oil Conservation Commission approving an additional acid gas injection (“AGI”) and carbon sequestration well to be located at the Company’s Titan Treating Complex in Lea County, New Mexico.

New Devonian AGI Well

This will be Northwind’s third AGI well, increasing the Company’s total permitted daily injection capacity to ~37 million standard cubic feet per day (MMSCFD) of total acid gas (“TAG”) when completed in 2026. The injection zone of the new well will target the Devonian formation in the Northern Delaware Basin, and combined with Northwind’s existing Devonian AGI well, it will give the Company a total of ~29 MMSCFD of permitted Devonian injection capacity. The new well also provides additional redundancy for Northwind’s existing TAG disposal operations at the Titan Treating Complex and will underpin the Company’s previously announced expansion of the Titan Complex.

The Titan Complex currently operates 150 million cubic feet per day (MMcf/d) of high-circulation amine treating capacity and two AGI and carbon sequestration wells. As part of the buildout of the Titan Complex, Northwind expects to complete its Train #3 by mid-year 2025, which will increase total treating capacity to 200 MMcf/d. Additionally, Northwind has reached FID and customer support to further expand total treating capacity to 400 MMcf/d by 2026.

EPA Approval of MRV Plan

Northwind has also received a milestone approval from the U.S. Environmental Protection Agency (“EPA”) for its monitoring, reporting and verification (“MRV”) plan for the permanent sequestration of carbon dioxide (“CO₂”) at the Titan Treating Complex. Northwind’s MRV plan documents how the Company will ensure permanent sequestration of CO₂ in its AGI wells from natural gas treated at the Titan Complex. The MRV approval, in conjunction with meeting other statutory requirements, will allow Northwind to qualify for 45Q tax credits.

Completion of Pelham Compressor Station

In addition to building out the Titan Complex, Northwind has significantly expanded its natural gas gathering and compression network throughout Lea County. The Company recently placed into service its fifth NACE standard compressor station with initial capacity of 25 MMcf/d. This brings Northwind’s total compression capacity to ~225 MMcf/d across its full system. Northwind’s gathering and compression network, which is designed specifically to manage produced natural gas with high levels of hydrogen sulfide and carbon dioxide, includes over 200 miles of large-diameter steel pipelines and 47,250 horsepower of compression across five compressor stations.

Five Point Perspective

David Capobianco, CEO and Managing Partner of Five Point Infrastructure, said, “Regulatory approval validates Northwind’s platform as providing the essential infrastructure needed to expand safe and reliable capacity in Lea County, New Mexico, an increasingly important oil producing region.”

Management Perspective

“With these approvals in hand, we look forward to advancing the build out of our Titan Treating Complex, providing our producer partners in Lea County with essential off-spec gas gathering, treating, and sequestration capacity,” said Northwind CEO Matt Spicer. “The expansion of this facility, along with the addition of our new compressor station, will contribute to the continued growth of the oil and gas industry across the Northern Delaware Basin, while also helping producers manage emissions.”

About Northwind Midstream Partners

Established in 2022, Northwind’s strategy is to develop, own and operate off-spec gas infrastructure in the Permian Basin. Northwind operates a highly efficient, environmentally focused and exceedingly reliable midstream system, which unlocks overall customer value while mitigating customer environmental concerns. Northwind’s developed solution provides producers with (i) a superior economic alternative, (ii) significant operational enhancements, (iii) meaningful emissions reductions, and (iv) tangible ESG benefits. Learn more at www.nwmidstream.com

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Five Point Infrastructure LLC (formerly known as Five Point Energy, “Five Point”) today announced that Jeff Eaton has joined the firm as a Partner, bringing decades of experience in private capital advisory, energy and infrastructure investing. Jeff will play a key role in shaping firm strategy and enhancing client solutions, further strengthening Five Point’s position as a leader in the energy infrastructure sector.

Jeff joins Five Point after a distinguished career at Eaton Partners, where he was instrumental in growing the firm into one of the most respected private capital advisory and fund placement platforms in the industry.

“We are excited to welcome Jeff to Five Point,” said David Capobianco, CEO and Managing Partner at Five Point. “His leadership, industry relationships, and strategic insight will be invaluable as we continue to expand our platform and provide best-in-class investment opportunities to our partners. We’ve known and worked with Jeff for over a decade, and we are excited to be adding him to our team.”

For nearly two decades, Jeff advised top-tier private equity and infrastructure firms, helping to drive capital formation and long-term partnerships with institutional investors. In addition to leading and managing Eaton Partners, Jeff built Eaton’s Real Assets business into an industry leader. After helping to lead the sale of Eaton Partners to Stifel Financial in 2016, Jeff continued in a leadership role until 2023, before transitioning into a position as a Senior Advisor to Stifel. Prior to Eaton Partners, Jeff held key roles at Constellation Energy, where he was focused on investments in the midstream energy infrastructure sector.

Jeff expressed his enthusiasm for joining the firm, stating, “I have always admired the Five Point team’s vision, expertise, and ability to drive transformational investments in the critical infrastructure sector. They have built an exceptional platform, and I am eager to contribute to their continued success as a leader in infrastructure investing.”

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HOUSTON–(BUSINESS WIRE)–Northwind Midstream Partners LLC (“Northwind” or the “Company”) today announced that it has constructed and put into service 150 million cubic feet per day (MMcf/d) of high-circulation amine treating capacity, two acid-gas disposal and carbon sequestration wells, over 200 miles of large-diameter pipelines and 41,750 horsepower of compression across five compressor stations. Northwind’s system construction is underpinned by long-term commitments and greater than 165,000 dedicated acres from several of the basin’s leading public and private independent oil and gas producers.

Expansion of Titan Treating Complex

Northwind is building one of the industry’s leading off-spec, NACE standard, natural gas infrastructure systems in Lea County, New Mexico, designed to manage produced natural gas with high levels of carbon dioxide and hydrogen sulfide. Northwind’s Phase 1 buildout, to be completed by mid-year 2025, is anchored by its Titan Treating Complex, where the Company recently added 100 MMcf/d of high-circulation amine treating capacity and an additional deep acid-gas injection and carbon sequestration well. The Titan Complex now operates total amine treating capacity of 150 MMcf/d and two acid gas injection wells. The completion of Phase 1 will increase total treating capacity to 200 MMcf/d and Northwind has also reached FID and customer support to further expand total treating capacity to 400 MMcf/d by 2026.

Completion of Initial Natural Gas Gathering and Compression Network

In addition to commissioning a significant expansion of its Titan Complex, Northwind also recently expanded its low and high-pressure natural gas gathering and compression network throughout Lea County. Northwind’s natural gas pipeline system consists of over 200 miles of large-diameter, NACE standard natural gas pipelines designed specifically to manage produced natural gas with high levels of hydrogen sulfide and carbon dioxide. Northwind also placed into service four additional NACE standard compressor stations with the ability to handle approximately 200 MMcf/d, expandable to up to 400 MMcf/d of aggregate capacity.

Market Opportunity

David Capobianco, CEO of Five Point Energy, said: “We believe that Lea County, New Mexico is one of the premier oil producing regions in North America, and that reliable energy infrastructure is the key to unlocking its development potential. Sustainably managing off-spec hydrocarbon production through treating and sequestration has and will continue to be paramount for the industry.” Mr. Capobianco continued, “In short order, Northwind’s system has enabled its customers to unlock new development horizons and extend the boundary for known horizons, with demand for its offerings rapidly accelerating.”

Management Perspective

“Increased off-spec gas gathering, treating, and sequestration capacity is vital to the oil and gas industry’s continued success in Lea County,” said Northwind CEO Matt Spicer. “The expanded Titan facility and associated pipelines and compression commissioned by Northwind provide our upstream producer partners a safe and economical solution for off-spec gas. Our facilities and infrastructure enable producers to effectively develop the prolific benches in the Northern Delaware Basin while also meaningfully reducing emissions.”

About Northwind Midstream Partners

Established in 2022, Northwind’s strategy is to develop, own and operate off-spec gas infrastructure in the Permian Basin. Northwind operates a highly efficient, environmentally focused and exceedingly reliable midstream system, which unlocks overall customer value while mitigating customer environmental concerns. Northwind’s developed solution provides producers with (i) a superior economic alternative, (ii) significant operational enhancements, (iii) meaningful emissions reductions, and (iv) tangible ESG benefits. Learn more at www.nwmidstream.com

About Five Point Energy

Five Point Energy is a leading private equity firm focused on building world-class 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 companies. Five Point’s strategy is to buy and build assets, create companies, and grow them into sustainable enterprises with experienced management teams and industry-leading E&P partners. Based in Houston, Five Point targets equity investments up to $1 billion and has ~$8 billion of assets under management across multiple investment funds. Learn more at www.fivepointenergy.com.

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