08:54 AM EDT, 09/02/2025 (MT Newswires) -- Diamondback Energy ( FANG ) will sell Environmental Disposal Systems to Deep Blue Midland Basin for $750 million and renew a 15-year water dedication across a 12-county Midland Basin area, Deep Blue said Tuesday.

The 30% stake in Deep Blue will be retained by Diamondback, and it will receive about $675 million in cash, and may earn up to $200 million through 2028, the company said.

The acquisition, which is still subject to customary closing conditions, nearly doubles Deep Blue's scale and advances its produced-water recycling strategy for upstream development, it added.

After closing, Deep Blue's system will include 1.2 million barrels/day of treatment and recycling, 1.6 million barrels/day gathered, 3.4 million barrels/day of permitted disposal, 1,871 miles of pipeline, and 783,000 dedicated acres, the company said.