22 Apr 2026
Shell plc has signed a definitive agreement to acquire ARC Resources Ltd. in a transaction valued at approximately USD 16.4 billion.
Shell plc has signed a definitive agreement to acquire ARC Resources Ltd., which is listed on the Toronto Stock Exchange under the ticker ARX. ARC is a major producer in the Montney shale basin spanning British Columbia and Alberta, Canada.
The transaction carries an enterprise value of approximately USD 16.4 billion, including an equity valuation of about USD 13.6 billion and roughly USD 2.8 billion in net debt and lease obligations that Shell will assume.
Shell stated that the acquisition will immediately add around 370 thousand barrels of oil equivalent per day (kboe/d) across liquids and natural gas. This is expected to lift its combined Integrated Gas and Upstream production CAGR to 4% through 2030, compared to 2025 levels. The deal is also projected to deliver double-digit returns and become accretive to free cash flow per share from 2027 onward.
Commenting on the deal, Wael Sawan said ARC represents a high-quality, low-cost, and low-carbon-intensity asset base that complements Shell’s existing Canadian footprint. He added that the acquisition strengthens Shell’s long-term resource position and reinforces Canada as a strategic core region for the company.
Terry Anderson described the agreement as a strong value-creation opportunity for ARC shareholders, noting that the company’s assets and workforce will contribute to strengthening Canada’s energy landscape while supporting global energy security.
Transaction structure
Under the agreed terms, ARC shareholders will receive CAD 8.20 (USD 6.03) in cash along with 0.40247 ordinary Shell shares for each ARC share. This equates to a consideration mix of roughly 25% cash and 75% equity based on the April 24, 2026 closing prices.
Using Shell’s closing share price of GBP 33.08 (USD 44.82) and a GBP-to-CAD exchange rate of 1.8480, the offer values ARC at CAD 32.80 (USD 24.11) per share—representing a 20% premium to its 30-day volume-weighted average price.
The USD 13.6 billion equity portion will be financed through USD 3.4 billion in cash and USD 10.2 billion in newly issued Shell shares, with approximately 228 million shares to be issued.
Both companies’ boards have unanimously approved the deal, which is expected to close in the second half of 2026, subject to shareholder, court, and regulatory approvals.
Strategic and operational impact
ARC reported production of about 374 kboe/d (pre-royalty) last year. Its operations are located near Shell’s existing Groundbirch asset in British Columbia and the Gold Creek project in Alberta. Groundbirch supplies gas to the LNG Canada liquefaction facility—where Shell holds a 40% stake—as well as to the domestic market. Post-acquisition, ARC’s operations will be integrated into Shell’s Integrated Gas division.
The deal combines ARC’s more than 1.5 million net acres with Shell’s approximately 440 thousand net acres in the Montney formation, adding around 2 billion barrels of oil equivalent in proved and probable reserves (as of end-2025). Liquids accounted for roughly 40% of ARC’s production last year, contributing about 70% of its revenues.
Shell noted that ARC’s gas reserves will support its long-term growth in liquefied natural gas (LNG), further strengthening its position in Canada across upstream, LNG, and downstream businesses—including refining, chemicals, fuel retail, aviation, lubricants, and low-carbon solutions. The company confirmed that its 2030 climate targets remain unchanged.
Financial outlook
Shell expects to absorb the incremental capital expenditure within its existing post-2026 cash capex framework. Its projected capex range for 2027–2028 remains unchanged at USD 20–22 billion annually. The company also anticipates achieving annual synergies of approximately USD 250 million within a year of closing.
Shell’s shareholder return policy remains intact, targeting distributions of 40%–50% of cash flow from operations through a combination of progressive dividends (growing at around 4% annually) and share buybacks. Future buyback plans will be announced alongside first-quarter results, subject to board approval, while maintaining a strong investment-grade credit rating.
Goldman Sachs International is acting as Shell’s exclusive financial advisor, while RBC Capital Markets is advising ARC on the transaction.
The detailed article is published by https://www.shell.com/ can be accessed from https://www.shell.com/news-and-insights/newsroom/news-and-media-releases/2026/shell-announces-agreement-to-acquire-canadian-energy-company-arc-resources.html
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