Shell Completes $16.5-Billion Acquisition of ARC Resources

Shell plc (SHEL) has completed its acquisition of Canadian oil and gas producer ARC Resources, significantly expanding the supermajor's position in the prolific Montney basin of British Columbia and Alberta.

The transaction has an updated enterprise value of approximately $16.5 billion, including $2.5 billion of net debt and leases. According to Shell, ARC shareholders receive C$8.20 in cash and 0.40247 Shell shares for each ARC share.

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

The deal also 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. The acquisition received shareholder backing in July and secured its final major regulatory approval from the Canadian government on August 25.