Shell (LSE:SHEL) has entered a definitive agreement to acquire ARC Resources, a Montney-focused Canadian oil and gas producer, for CAD 32.80 per share, adding immediate production across liquids and gas of 370 kboe/d post-royalties.
ARC reported about 374 kboe/d in 2025, owns more than 1.5 million net acres in the Montney which combines with Shell’s ~440,000 net acres, and the deal adds roughly 2 billion barrels of oil equivalent proved plus probable reserves at end-2025.
"This establishes Canada as a heartland for Shell while furthering our strategy to deliver more value with less emissions," said Wael Sawan, Chief Executive Officer.
ARC shareholders will receive CAD 8.20 in cash plus 0.40247 ordinary Shell shares per ARC share (c.25% cash / 75% shares as of 24 April), with the consideration funded by US$3.4 billion cash and US$10.2 billion of Shell stock (about 228 million shares), and Shell assuming ~US$2.8 billion of net debt and leases.
Shell expects the transaction to generate double‑digit returns, be accretive to free cash flow per share from 2027, and deliver roughly US$250 million of annualised synergies within a year, while supporting sustained liquids production of ~1.4 million bpd to 2030.
Both boards have unanimously supported the deal, which is expected to close in the second half of 2026 subject to ARC shareholder, court and regulatory approvals.
Shell said it will absorb additional organic cash capex within its existing capex ceiling post-2026, keep the 2027-28 cash capex range at $20-22 billion, and maintain its shareholder distribution policy.
