Making Waves In The Midland Basin: Diamondback And Five Point Launch $500M Deep Blue Joint Venture
Portfolio Pulse from Lekha Gupta
Diamondback Energy Inc (FANG) has announced a joint venture with Five Point Energy LLC, named Deep Blue Midland Basin LLC. The 15-year deal involves FANG producing and supplying water in a 12-county area in the Midland Basin. FANG will hold a 30% stake in Deep Blue and has received upfront cash proceeds of around $500 million. Both companies plan to contribute $500 million in follow-on equity capital for future projects and acquisitions. Deep Blue has also secured long-term acreage dedications with two investment-grade customers.
September 11, 2023 | 5:00 pm
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Diamondback Energy (FANG) has entered into a joint venture with Five Point Energy, which could potentially increase its revenue and profitability. However, the stock is currently trading lower.
The joint venture could potentially increase Diamondback Energy's revenue and profitability in the long term. However, the short-term impact is neutral as the stock is currently trading lower, possibly due to market factors or investor sentiment.
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