Shell has completed its acquisition of ARC Resources, creating an approximately $16.5 billion enterprise value transaction that significantly expands Shell’s production position in Canada’s Montney basin.
The transaction has an updated equity value of approximately $13.9 billion, based on Shell’s September 2 closing share price and prevailing foreign exchange rates.
Shell is also assuming approximately $2.5 billion of net debt and leases. The equity consideration consists of approximately $3.3 billion in cash and $10.6 billion in newly issued Shell shares.
ARC shareholders receive C$8.20 in cash plus 0.40247 Shell ordinary shares for each ARC share.
The transaction became effective September 2 after receiving required shareholder, court and regulatory approvals.
ARC adds approximately 370,000 barrels of oil equivalent per day across liquids and natural gas to Shell’s production portfolio.
Shell said the acquisition supports an approximately 4% production compound annual growth rate through 2030 compared with 2025 and increases its exposure to long-duration, low-cost liquids production.
The transaction is expected to generate double-digit returns, strengthen long-term cash flows and become accretive to free cash flow per share beginning in 2027.
ARC’s Canadian assets also complement Shell’s LNG operations and its existing downstream businesses spanning refining, chemicals, fuel retail, aviation, lubricants and low-carbon solutions.
KEY QUOTE:
“Today we welcome ARC colleagues to Shell and look forward to building on their high-performance culture, operational excellence and technical expertise in Canada’s Montney basin. The acquisition increases Shell’s exposure to long-duration, low-cost liquids production. Through disciplined integration, we will build on the strengths of both organizations to unlock the value that underpins this transaction.”
Wael Sawan, Chief Executive Officer of Shell
