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17h ago

Shell to Acquire Canada’s ARC Resources in $16.4 Billion Cash-and-Stock Deal

The deal signals a push for longer-life gas assets to support LNG growth in Canada.

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A Shell-led consortium is contemplating the expansion of LNG Canada, which operates a liquified natural gas facility and export terminal in Kitimat, B.C.
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The LNG Canada facility in Kitimat, B.C.

Overview

  • Shell and ARC Resources agreed Monday to a cash-and-stock acquisition valued at about US$16.4 billion including debt.
  • The purchase adds roughly 370,000 barrels of oil equivalent per day and about 2 billion barrels of proved and probable reserves from Montney assets that can supply Shell’s LNG Canada project.
  • ARC shareholders will receive C$8.20 in cash plus 0.40247 of a Shell share per ARC share, valuing ARC at about C$32.80 a share with roughly 25% paid in cash and 75% in Shell stock.
  • Both boards unanimously approved the plan, with an ARC shareholder vote expected in July 2026 and additional court and regulatory reviews pending before a targeted close in the second half of 2026; the agreement includes a C$600 million termination fee in specified cases.
  • Shell projects about US$250 million in annual synergies within a year of closing, expects free cash flow per share to rise starting in 2027, plans to keep capital spending at US$20–22 billion through 2028, and has lifted its production growth target for the decade to 4% from 1%.