Diamondback Energy and KKR to Acquire Deep Blue Midland Basin from Five Point Infrastructure

Impact · against what's priced in

The acquisition of Deep Blue provides Diamondback with a concrete mechanism to realize the structural low-cost advantages the market currently discounts. For KKR, the deal is a standard infrastructure addition that does not address the high growth targets the price currently demands.

FANG+0.20

Challenges what's priced in

The price assumes

The structural low-cost advantage that management claims protects dividends down to $36 WTI