Shell plc said on Tuesday it completed the acquisition of ARC Resources Ltd. for about $13.9 billion, adding roughly 370,000 barrels of oil equivalent per day to its portfolio.
The deal, which carries an enterprise value of approximately $16.5 billion including $2.5 billion in net debt and leases assumed, was financed with $3.3 billion in cash and $10.6 billion in new Shell shares. ARC shareholders received CAD $8.20 in cash and 0.40247 Shell ordinary shares for each ARC common share.
The acquisition bolsters Shell’s presence in Canada’s Montney basin, expanding its production footprint in Alberta and British Columbia. Shell said the transaction complements its existing liquefied natural gas operations and downstream businesses in the country, including refining, chemicals, fuel retail, aviation, lubricants and low-carbon solutions.
Wael Sawan, Shell’s chief executive officer, said the company welcomed ARC’s team and aimed to leverage their expertise in the Montney basin. The deal received all required shareholder, court and regulatory approvals, including a Canadian securities regulator exemption regarding issuer bid requirements.
Shell projects the acquisition will generate double-digit returns and be accretive to free cash flow per share from 2027 onward. The company also expects the transaction to support a compound annual production growth rate of around 4% through 2030, compared with 2025 levels. Share delivery to ARC shareholders is expected to conclude within several days of the effective date.
