By: Oil & gas Middle east

Shell and its Canadian subsidiary have entered into a definitive agreement to acquire all issued and outstanding common shares of ARC Resources in a cash-and-share transaction valued at approximately CAD22bn ($16.4bn), including assumed net debt.

Under the terms of the agreement, shareholders will receive CAD32.80 per share, payable 75% in ordinary shares of Shell and 25% in cash, representing a 27% premium to ARC’s closing price on April 24, 2026, on the Toronto Stock Exchange (TSX). The structure is designed to provide immediate liquidity alongside continued exposure to Shell’s global energy platform.

Terry Anderson, President and Chief Executive Officer of ARC Resources, said: “Over our 30-year history, we have built a strong and resilient Canadian energy company defined by the depth of our world-class Montney assets, low-cost operations, leadership in responsible development, and high-performance people and culture.

“Through this transaction, we will realise this tremendous value and become part of a dynamic global energy leader capable of delivering on Canada’s energy future.”

The acquisition strengthens Shell’s integrated gas business and establishes a larger platform for growth in Canada, supported by ARC’s long-duration Montney resources. The deal is expected to unlock additional value through Shell’s global LNG value chain, leveraging scale, infrastructure and market reach.

Shell will assume approximately $2.8bn in net debt and leases, with the equity portion of $13.6bn funded through $3.4bn in cash and $10.2bn in shares. The transaction is expected to increase Shell’s production compound annual growth rate (CAGR) from 1% to 4% compared to 2025 levels, while supporting its target of sustaining liquids production at around 1.4 million barrels per day through 2030 and beyond.

Hal Kvisle, Chair of the Board at ARC Resources, said: “The ARC Board unanimously recommends this strategic transaction to our shareholders, delivering compelling value and strengthening long-term value creation.”

Wael Sawan, Chief Executive Officer of Shell, added: “ARC is a high-quality, low-cost and top-quartile low carbon intensity producer that complements our existing footprint in Canada and strengthens our resource base for decades to come.”

The acquisition has received unanimous approval from ARC’s board and is expected to be put to shareholders at a special meeting in July 2026. Subject to customary conditions, the transaction is expected to close in the second half of the year.

ARC reported production of 374,000 barrels of oil equivalent per day in 2025, with operations located near Shell’s existing Groundbirch asset in British Columbia and Gold Creek project in Alberta. The Groundbirch assets currently supply gas to the LNG Canada liquefaction facility and domestic markets.