Shell Plc on Monday announced it has agreed to acquire ARC Resources Ltd, an energy company focused on the Montney shale basin in British Columbia and Alberta, Canada in a deal valued at $16.4 billion.
Shell in a statement said under the terms of the agreement, ARC’s shareholders will receive CAD 8.20 in cash and 0.40247 ordinary shares of Shell for each ARC share, representing approximately 25 per cent cash and 75 per cent shares as of the 24th April 2026 market closing.
This, it said, equates to an equity value of approximately $13.6 billion.
“Shell will take on approximately $2.8 billion in net debt and leases resulting in an enterprise value of approximately $16.4 billion. The equity value of $13.6 billion will be funded via $3.4 billion in cash and $10.2 billion in Shell shares, the latter valued based on Shell’s closing price on the 24th April and the issuance of approximately 228 million ordinary shares,” the company said in the statement.
It explained that the agreement grows its producing interests in Canada and complements its existing Liquefied Natural Gas (LNG) footprint and extensive downstream businesses including refining, chemicals, fuel retail, aviation, lubricants and low-carbon solutions.
Shell’s Chief Executive Officer, Wael Sawan, said: “ARC is a high-quality, low-cost and top quartile low carbon intensity producer operating in the Montney shale basin that complements our existing footprint in Canada and strengthens our resource base for decades to come.
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“We are accessing uniquely positioned assets and welcoming colleagues that bring deep expertise which, combined with Shell’s strong basin level performance, provides a compelling proposition for shareholders. This establishes Canada as a heartland for Shell while furthering our strategy to deliver more value with less emissions.”
ARC President and Chief Executive Officer, Terry Anderson, said: “This combination is a great opportunity for ARC to realise value for our shareholders and continue to benefit from Shell’s success in the future. ARC is combining with a company that has a global portfolio of best-in-class assets.
“I’m excited that ARC’s assets and world class people will play an important role in helping Shell to further strengthen Canada’s resource landscape whilst also providing the secure energy that the world needs.”
