Diamondback Energy forms water infrastructure platform with Five Point Energy

Diamondback Energy Inc.
FANG,
-2.22%
stock was up 0.8% in premarket trades on Monday after the company said it would get a $500 million payment and retain a 30% equity interest as part of the formation of a new joint venture entity, Deep Blue Midland Basin LLC, with Five Point Energy LLC, a private-equity firm. Diamond Back and Five Point will also contribute an additional $500 million for future growth and acquisitions by Deep Blue Midland. Diamondback said the joint venture will create the largest independent water infrastructure platform in the Midland Basin, with more than 800 miles of pipelines for gathering, transport, disposal and reuse of water, which is used in hydraulic fracturing for extracting oil and natural gas.