Akin Advises Diamondback Energy in JV with Five Point Energy to Form Deep Blue Midland Basin LLC

(Houston) – Akin advised Diamondback Energy Inc. in the formation of a new joint venture entity with Five Point Energy LLC to form Deep Blue Midland Basin LLC. The strategic joint venture will create the largest independent water infrastructure platform in the Midland Basin with substantial excess capacity to pursue growth opportunities.

As part of the transaction, Diamondback entered into a 15-year dedication for its produced water and supply water within a 12-county area of mutual interest in the Midland Basin and will retain a 30% equity interest in Deep Blue. Diamondback received approximately $500 million in upfront cash proceeds, with potential for more cash proceeds through performance-based earnouts over the next 24 months.

Click here to learn more about this transaction.

The Akin team was led by corporate partner John Goodgame, with support from U.S. oil & gas practice leader Stephen Boone. The team also included tax partner Alison Chen; labor and employment partner Desiree Busching; antitrust/competition partner Corey Roush; corporate counsel Leana Garipova and associates Courtney Beloin, Mary Day Royston and Madeline Sullivan; tax counsel Aaron Farovitch and Aaron Vera; antitrust/competition counsel Brian Rafkin; and environment & natural resources practice head David Quigley and senior counsel Andrew Oelz.

Akin is a leading international law firm with more than 900 lawyers in offices throughout the United States, Europe, Asia and the Middle East.

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