Shell plc said on Thursday it completed the acquisition of ARC Resources Ltd. for approximately $13.9 billion, deepening its presence in Canada’s energy sector.
The Calgary-based ARC operates in British Columbia and Alberta, with core assets in the Montney basin. Under the terms, ARC shareholders received CAD $8.20 in cash and 0.40247 Shell ordinary shares per ARC common share. Shell will assume about $2.5 billion in net debt and leases, bringing the total enterprise value to roughly $16.5 billion.
The equity portion of the deal will be financed with $3.3 billion in cash and $10.6 billion in new Shell shares. The transaction adds approximately 370,000 barrels of oil equivalent per day to Shell’s global production mix.
Shell expects the acquisition to support a compound annual growth rate of around 4% in production through 2030, compared with 2025 levels. The company projects the deal will deliver double-digit returns and become accretive to free cash flow per share starting in 2027.
Wael Sawan, Shell’s chief executive officer, said the acquisition increases the company’s exposure to long-duration, low-cost liquids production. The deal also expands Shell’s producing interests in Canada and complements its existing liquefied natural gas, refining, chemicals, fuel retail, aviation, lubricants and low-carbon businesses in the country.
Shell said the share exchange process for delivering new shares in exchange for ARC shares is expected to conclude within several days of the transaction’s effective date.
