BAKU, Azerbaijan, April 27. Shell plc has
signed a definitive agreement to acquire Canadian energy producer
ARC Resources Ltd. (TSX: ARX), which operates in the Montney shale
basin across British Columbia and Alberta, Trend reports via
Shell.
The transaction is expected to significantly boost Shell’s
production outlook, increasing its compound annual growth rate
(CAGR) from 1%—as previously outlined at its 2025 Capital Markets
Day—to around 4% compared to 2025 levels. The deal also supports
Shell’s strategy to maintain liquids production at approximately
1.4 million barrels per day through 2030 and beyond.
The acquisition will combine ARC’s more than 1.5 million net
acres with Shell’s existing ~440,000 net acres in the Montney
formation. It will also add around 2 billion barrels of oil
equivalent in proved and probable reserves as of end-2025. In 2025,
liquids accounted for about 40% of ARC’s production but generated
roughly 70% of its revenues. The company’s gas reserves are also
expected to support Shell’s expansion in liquefied natural gas
(LNG) projects in Canada.
Under the terms of the agreement, ARC shareholders will receive
CAD 8.20 in cash and 0.40247 Shell shares for each ARC share,
implying a consideration of approximately CAD 32.80 per share. This
represents a 20% premium to ARC’s 30-day volume-weighted average
price. The deal values ARC’s equity at about $13.6 billion.
Shell will also assume approximately $2.8 billion in net debt
and leases, bringing the total enterprise value of the transaction
to around $16.4 billion. The equity portion will be financed
through $3.4 billion in cash and $10.2 billion in newly issued
Shell shares, equivalent to roughly 228 million shares.
The boards of both companies have unanimously approved the
transaction, which is expected to close in the second half of 2026,
subject to shareholder, court, and regulatory approvals.
