BAKU, Azerbaijan, April 27. Shell plc has signed a definitive agreement to acquire Canadian energy producer ARC Resources Ltd. (TSX: ARX), which operates in the Montney shale basin across British Columbia and Alberta, Trend reports via Shell.
The transaction is expected to significantly boost Shell’s production outlook, increasing its compound annual growth rate (CAGR) from 1%—as previously outlined at its 2025 Capital Markets Day—to around 4% compared to 2025 levels. The deal also supports Shell’s strategy to maintain liquids production at approximately 1.4 million barrels per day through 2030 and beyond.
The acquisition will combine ARC’s more than 1.5 million net acres with Shell’s existing ~440,000 net acres in the Montney formation. It will also add around 2 billion barrels of oil equivalent in proved and probable reserves as of end-2025. In 2025, liquids accounted for about 40% of ARC’s production but generated roughly 70% of its revenues. The company’s gas reserves are also expected to support Shell’s expansion in liquefied natural gas (LNG) projects in Canada.
Under the terms of the agreement, ARC shareholders will receive CAD 8.20 in cash and 0.40247 Shell shares for each ARC share, implying a consideration of approximately CAD 32.80 per share. This represents a 20% premium to ARC’s 30-day volume-weighted average price. The deal values ARC’s equity at about $13.6 billion.
Shell will also assume approximately $2.8 billion in net debt and leases, bringing the total enterprise value of the transaction to around $16.4 billion. The equity portion will be financed through $3.4 billion in cash and $10.2 billion in newly issued Shell shares, equivalent to roughly 228 million shares.
The boards of both companies have unanimously approved the transaction, which is expected to close in the second half of 2026, subject to shareholder, court, and regulatory approvals.