Diamondback Energy Divests Permian Water Assets in $160 Million Dropdown

Diamondback Energy Inc. is selling certain water assets to its midstream affiliate, Rattler Midstream LP, through a recent dropdown transaction.

Rattler, according to an Oct. 21 release, agreed to pay $160 million in cash to acquire the assets, which consist primarily of produced water gathering and disposal systems, produced water recycling facilities and sourced water gathering and storage assets acquired by Diamondback through its acquisitions of QEP Resources and Guidon Operating earlier this year.

Additionally, Rattler and Diamondback mutually agreed to amend commercial agreements covering the produced water gathering and disposal and sourced water gathering services between Rattler and Diamondback to add certain Diamondback leasehold acreage to the Rattler dedication.