DEEP BLUE MIDLAND BASIN LLC ACQUIRES LAGOON OPERATING - MIDLAND, LLC
Deep Blue Midland Basin, a joint venture between Diamondback Energy and Five Point Energy, has acquired Lagoon Operating - Midland. This acquisition strengthens Deep Blue's presence in the Midland Basin with assets in Martin County, including 105 miles of large-diameter pipeline, 240,000 bpd disposal capacity, and 544,000 bpd additional permitted capacity. The acquisition enhances Deep Blue's recycling capabilities and includes 60,000 dedicated acres from seven new counterparties. Post-acquisition, the company has 2.5 million bpd disposal capacity and over 1,000 miles of pipeline. The deal underscores Deep Blue's leadership in sustainable water management.
Positive
Acquisition expands Deep Blue's footprint in the Midland Basin.
105 miles of large-diameter pipeline added.
240,000 bpd disposal capacity and 544,000 bpd additional permitted capacity acquired.
Enhances recycling capabilities.
New commercial agreements add 60,000 dedicated acres from seven new counterparties.
Post-acquisition, Deep Blue has 2.5 million bpd disposal capacity and over 1,000 miles of pipeline.
Reinforces position as a leading sustainable water solutions provider.
Potential for growth through synergies and enhanced efficiency.
Negative
Integration risks associated with merging Lagoon's assets.
Potential over-reliance on a concentrated geographic area in the Midland Basin.
High capital expenditures needed for asset maintenance and expansion.
Operational risks related to managing a larger asset base