Shell reached a definitive agreement to acquire ARC Resources Ltd. in a cash-and-stock deal. The transaction values the Canadian energy firm at an enterprise value of approximately $16.4 billion. ARC shareholders will receive a combination of cash and Shell stock for each share they hold.
The boards of both companies unanimously approved the acquisition. The companies expect the deal to close in the second half of 2026.
The purchase adds 370,000 barrels of oil equivalent per day to Shell’s portfolio. This move increases the company's exposure to the low-cost Montney shale basin.
Shell projects the acquisition will generate double-digit returns. The company expects the deal to be accretive to free cash flow per share starting in 2027.
Shell shares declined 0.1% during early trading in London.