Shell announces agreement to acquire Canadian energy company, ARC Resources Ltd (“ARC”).

Shell plc has signed a definitive agreement to acquire ARC Resources Ltd., an energy company focused on the Montney shale basin in British Columbia and Alberta, Canada.

“ARC is a high-quality, low-cost and top quartile low carbon intensity producer operating in the Montney shale basin that complements our existing footprint in Canada and strengthens our resource base for decades to come. We are accessing uniquely positioned assets and welcoming colleagues that bring deep expertise which, combined with Shell’s strong basin level performance, provides a compelling proposition for shareholders.” said Shell’s chief executive officer, Wael Sawan. “This establishes Canada as a heartland for Shell while furthering our strategy to deliver more value with less emissions.”

Shell plc expects the acquisition to raise its production CAGR from 1%, as outlined at its 2025 Capital Markets Day, to around 4% compared to 2025 levels. The deal also supports Shell’s target of maintaining liquids production at approximately 1.4 million barrels per day through 2030 and beyond.

The transaction will combine ARC Resources Ltd.’s more than 1.5 million net acres with Shell’s roughly 440,000 net acres in the Montney formation, adding around 2 billion barrels of oil equivalent in proved and probable reserves by the end of 2025. In 2025, liquids made up about 40% of ARC’s production but contributed roughly 70% of its revenue. Additionally, ARC’s gas reserves are expected to support Shell’s LNG growth ambitions in Canada.

Under the agreement, ARC shareholders will receive CAD 8.20 in cash plus 0.40247 Shell shares for each ARC share, representing a mix of approximately 25% cash and 75% shares based on the 24 April 2026 market close. Using Shell’s closing share price of GBP 33.08 and an exchange rate of 1.8480 GBP to CAD, the total consideration equates to about CAD 32.80 per share—around a 20% premium to ARC’s 30-day volume-weighted average price.

This values the equity at approximately US$13.6 billion. Including around US$2.8 billion in net debt and leases, the total enterprise value is about US$16.4 billion. The equity portion will be funded through US$3.4 billion in cash and US$10.2 billion in Shell shares, with approximately 228 million new shares to be issued.

The boards of both companies have unanimously approved the deal, which is expected to close in the second half of 2026, pending approval from ARC shareholders, the courts, and regulators.