Shell completes $16.5-billion acquisition of ARC Resources

September 3, 2026 at 02:17 AM2 min

This digest was compiled by AI from multiple sources — links to the originals are below.

Shell has completed its acquisition of Canadian oil and gas producer ARC Resources for approximately $16.5 billion. The deal adds around 370,000 barrels of oil equivalent per day of production and more than 1.5 million net acres in the Montney basin. The transaction closed after receiving final Canadian regulatory approval on August 25.

Key Facts

The transaction has an enterprise value of approximately $16.5 billion, including $2.5 billion of net debt and leases.
ARC shareholders receive C$8.20 in cash and 0.40247 Shell shares for each ARC share.
The acquisition adds around 370,000 barrels of oil equivalent per day of natural gas and liquids production to Shell's portfolio.
ARC held around 2 billion barrels of oil equivalent of proved and probable reserves at the end of 2025.
Shell expects the acquisition to lift production growth across its Integrated Gas and Upstream businesses to around 4% annually through 2030.

Deal Terms

Shell completed the acquisition of ARC Resources with an updated enterprise value of approximately $16.5 billion, including $2.5 billion of net debt and leases. ARC shareholders received C$8.20 in cash and 0.40247 Shell shares for each ARC share. The transaction received overwhelming shareholder backing in July and secured its final major regulatory approval from the Canadian government on August 25.

Production and Reserves

The acquisition immediately adds around 370,000 barrels of oil equivalent per day of natural gas and liquids production to Shell's portfolio. It also adds more than 1.5 million net acres in the Montney basin of British Columbia and Alberta. At the end of 2025, ARC held around 2 billion barrels of oil equivalent of proved and probable reserves.

LNG Strategy

The deal strengthens Shell's Canadian LNG strategy, as ARC's gas resources sit close to Shell's existing Montney operations. Shell owns a 40% interest in LNG Canada, and ARC previously said its undeveloped gas properties could help Shell extract additional value through its integrated LNG business, including a potential second phase of LNG Canada. Shell expects the acquisition to lift production growth across its Integrated Gas and Upstream businesses to around 4% annually through 2030, compared with 2025. The company expects double-digit returns and says the deal should boost free cash flow per share beginning in 2027.