Deep Blue to Acquire Environmental Disposal Systems from Diamondback Energy (FANG)

Diamondback Energy, Inc. (NASDAQ:FANG) is one of the Best Low Cost Stocks to Buy According to Analysts. On September 2, the company announced that Deep Blue will acquire Environmental Disposal Systems, LLC from Diamondback in a deal valued at $750 million.

The acquisition is expected to nearly double Deep Blue’s size, and as part of the agreement, Diamondback Energy, Inc. (NASDAQ:FANG) renewed a 15-year agreement for produced and supplied water within a 12-county area in the Midland Basin. Diamondback will keep a 30% ownership stake in Deep Blue and will receive about $675 million upfront, plus up to $200 million more through performance-based earnouts until 2028.

Moreover, after the acquisition, Deep Blue’s system will handle 1.2 million barrels per day of treatment, 1.6 million barrels per day gathered, 3.4 million barrels per day disposal capacity, plus extensive pipeline infrastructure and dedicated acreage.

Diamondback Energy, Inc. (NASDAQ:FANG) is an independent oil and natural gas company focused on exploring and developing unconventional reserves in the Permian Basin, Texas.

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Disclosure: None. This article is originally published at Insider Monkey.