Deep Blue Midland Basin, the joint venture between Diamondback Energy and Five Point Energy, has acquired water infrastructure from Lagoon Operating Midland as the JV solidifies its position as a key player in sustainable water management in the core of the basin.
The value of the transaction wasn’t disclosed.
The Lagoon assets, largely in Martin County, Texas, include approximately 105 miles of large diameter pipeline, 240,000 bbl/d of disposal capacity and 544,000 bbl/d of additional permitted disposal capacity. Lagoon's assets “significantly expand” Deep Blue's existing recycling capabilities and are underpinned by a strong portfolio of acreage dedications and minimum volume commitments (MVC) from leading producers in the Midland Basin, according to a June 3 press release.