Shell plc said on Wednesday it had completed the acquisition of ARC Resources Ltd. for approximately $13.9 billion in equity value, creating a combined enterprise value of about $16.5 billion including $2.5 billion in assumed net debt and leases.
The deal was funded with $3.3 billion in cash and $10.6 billion in newly issued Shell ordinary shares. ARC shareholders received CAD $8.20 in cash and 0.40247 Shell shares for each ARC common share. The share component is expected to be delivered several days after the effective date.
The acquisition strengthens Shell’s position in Canada’s Montney basin, adding around 370,000 barrels of oil equivalent per day across liquids and gas. Management said the deal supports a compound annual production growth rate of roughly 4% through 2030, based on 2025 levels.
Shell expects the transaction to generate double-digit returns and become accretive to free cash flow per share from 2027 onward. The combined assets align with Shell’s existing liquefied natural gas footprint and downstream businesses, including refining, chemicals, fuel retail, aviation, lubricants and low-carbon solutions.
Shell Chief Executive Officer Wael Sawan said in a statement that the company welcomed ARC’s workforce and looked forward to leveraging their operational expertise in the Montney basin.
