Shell has announced an agreement to acquire Canadian energy firm ARC Resources in a deal valued at $16.4 billion, including debt assumption. The acquisition aims to strengthen Shell's North American presence and extend its resource base.
Shell said on Tuesday it has agreed to acquire ARC Resources in a deal valued at $16.4 billion, including about $2.8 billion in debt assumption. The company stated the acquisition strengthens its resource base for decades and bolsters its North American presence. Under the terms, ARC shareholders will receive 8.20 Canadian dollars and approximately 0.4 Shell shares per ARC share, the company added.
Shell said the deal combines ARC's more than 1.5 million net acres with its approximately 440,000 acres in the Montney gas resource in Canada. The company expects the acquisition to increase its production growth rate from 1% to 4% through to 2030 compared with 2025. The move aligns with Shell's new growth strategy focused on extracting more oil and gas and reducing spending on renewables, the company said. Shell hopes the shift will support production targets and drive greater returns for investors. Shell executives anticipate the deal will generate substantial free cash flow, enabling increased returns to shareholders through dividends and buybacks, the company added.
Shell said it cut its gas production forecast for the first quarter of 2026 after being affected by the conflict in the Middle East. The company noted that volumes from Qatar were particularly affected during recent attacks.
The deal is expected to complete in the second half of 2026, subject to shareholder, court and regulatory approvals, Shell stated.