Carlyle is backing the acquisition of Canadian oil and gas producer Parallax Energy Operating by newly established Avenrock Energy, in the private equity firm’s latest move to expand its presence in the country’s energy sector, according to a report by Bloomberg.
The report cites unnamed people familiar with teh deal as saying that the transaction values Calgary-based Parallax at approximately CAD1bn ($719m). Avenrock will be headquartered in Calgary and is expected to produce around 20,000 barrels of oil equivalent per day once the transaction is completed.
Parallax’s assets are concentrated in Alberta’s East Shale Duvernay, with production focused on light oil and natural gas liquids. The company is currently owned by Houston-based Carnelian Energy Capital Management.
Paul Smith, a veteran oil executive who previously served as chief financial officer of Vesta Energy before its acquisition by Parallax, has been appointed chief executive of Avenrock.
Carlyle said the transaction reflects its confidence in Western Canada’s long-term energy prospects, pointing to the region’s resource base, improving access to export markets and continued investment across the sector.
The deal comes as Canada’s energy industry benefits from a shift in government policy towards increasing production and exports, alongside efforts to expand pipeline and other energy infrastructure.
It also marks Carlyle’s second significant investment in Canada’s oil sector in the past year. In 2025, the firm backed Cygnet Energy’s acquisition of Kiwetinohk Energy, a transaction valued at approximately CAD1.4 billion that took the energy company private.
Carlyle has appointed BMO Capital Markets as financial adviser and Torys as legal adviser on the Parallax transaction.
