Private equity firm Carnelian Energy Capital is seeking to sell six North American oil and gas investments, in a move that would represent the bulk of its oil and gas portfolio and roughly 40% of its overall investments, according to a report by Reuters citing people familiar with the matter.
Carnelian is either actively marketing or preparing to auction the assets in the coming weeks, sources said, despite ongoing uncertainty around crude prices and a US energy M&A market that is less active than recent years.
Assets under consideration range from a few hundred million dollars to more than $1bn. Carnelian is understood to be in advanced discussions over the sale of Canadian producer Hawthorne Energy and Veritas Permian III, which it co-owns with Old Ironsides Energy.
Natural gas-focussed Azul Resources has reportedly agreed to sell Haynesville assets to Apex Natural Gas, while Grit Oil and Gas II, an Eagle Ford-focussed investment dating back to 2019, has also been marketed.
Further processes are expected next year for Bakken producer Zavanna Energy and operator Parallax Energy, with Moelis advising on the Zavanna sale. Carnelian’s most recent flagship vehicle, Carnelian Energy Capital V, closed at $975m in February 2024, while the firm also raised a $600m Canada-focussed fund last year.
