Shell reached a definitive agreement to acquire Canadian energy firm ARC Resources Ltd. for an enterprise value of $16.4 billion. The transaction consists of $3.4 billion in cash and $10.2 billion in Shell shares. This offer represents a 20% premium over ARC’s recent volume-weighted average price.
The acquisition adds approximately 370,000 barrels of oil equivalent per day to Shell’s output. Shell will gain roughly 2 billion barrels of oil equivalent in proved and probable reserves. These assets are located within the productive Montney shale basin.
Liquids account for about 40% of ARC’s production. The extensive natural gas reserves will support Shell’s liquefied natural gas portfolio in Canada. This strategy focuses on securing long-duration, low-cost upstream assets to increase cash flows.
The boards of both companies have unanimously approved the deal. The transaction is expected to close in the second half of 2026. Completion depends on shareholder and regulatory approvals. CEO Wael Sawan is scheduled to host a Q&A session about the acquisition today.