Shell signed a definitive agreement to acquire Canadian producer ARC Resources for $22 billion. This valuation includes assumed debt. The cash-and-stock deal offers a 27% premium over ARC’s recent closing price. It ranks among the largest energy sector acquisitions this year.
The purchase expands Shell’s presence in the Montney shale basin. It adds approximately 370,000 barrels of oil equivalent per day to Shell’s portfolio. This production features low-cost and low-carbon intensity characteristics.
Chief Executive Wael Sawan stated the deal establishes Canada as a heartland for the company. The strategy aims to deliver more value with fewer emissions. Shell expects the transaction to generate double-digit returns. The deal should increase free cash flow per share starting in 2027.