UK-based energy giant Shell has made a move to bolster its liquefied natural gas arsenal through a multi-billion-dollar cash and stock deal to acquire Canada.‘s Natural gas producer ARC Resources.
Shell and its Canadian subsidiary have entered into a definitive arrangement agreement to acquire all of the issued and outstanding common shares of ARC Resources in a cash and stock transaction valued at approximately C$22 billion (US$16.4 billion), including net debt assumed.
Terry AndersonARC Resources President and CEO commented: “Over our 30-year history, we have built a strong, resilient Canadian energy company defined by the depth of our world-class Montney assets, low-cost operations, leadership in responsible development, and high-performance people and culture.
“On behalf of our leadership team, I would like to thank our employees for their dedication and commitment to excellence in all aspects of our business. Through this transaction, we will realize this tremendous value and become part of a dynamic global energy leader capable of realizing the full potential of our business and realizing Canada’s exciting energy future.”
The $32.80 per share purchase price, payable 75% in Shell common stock and 25% in cash, represents a 27% premium to the Canadian player’s April 24, 2026 closing price on the Toronto Stock Exchange (TSX). As a result, near-term liquidity for ARC shareholders in the form of cash, combined with highly liquid Shell shares, is seen as providing positive exposure to an integrated global energy platform.
The agreement strengthens the British energy giant’s integrated gas business and creates a new platform for growth in Canada by adding long-term, high-quality Montney resources. This acquisition is said to come with significant opportunities to unlock and accelerate LNG-related value through Shell’s integrated natural gas value chain, where scale, infrastructure footprint and global reach support improved long-term profitability.
This acquisition increases Shell’s production CAGR from 1% to 4%, compared to 2025, and supports its goal of maintaining physical liquids production at approximately 1.4 million barrels per day through 2030 and beyond. Last year, about 40% of ARC’s production was liquids, accounting for about 70% of its revenue. Shell will assume approximately $2.8 billion of net debt and leases, resulting in an enterprise value of approximately $16.4 billion. The $13.6 billion equity value will be funded by $3.4 billion in cash and $10.2 billion in Shell shares.
Hal KviselThe Chairman of the ARC Board of Directors emphasized the following: “ARC’s Board of Directors unanimously recommends this strategic transaction to our shareholders. This agreement provides compelling value to our shareholders and brings together two companies with shared commitments to safety, operational excellence and caring for communities and people – enhancing our ability to deliver resilient, long-term value for many years to come.”
The acquisition has received unanimous approval from the ARC Board of Directors, which has recommended that shareholders vote on the transaction at a special meeting expected to be held in July 2026. The proposed acquisition is scheduled to be completed by way of a plan of arrangement under the Business Corporations Act (Alberta) (ABCA). Subject to the fulfillment of the typical conditions for a transaction of this type, it is expected to close in the second half of 2026.
Last year, ARC, whose operations are located in the same region as Shell’s existing Groundbirch assets in British Columbia and the Gold Creek project in neighboring Alberta, reported production of 374,000 barrels of oil equivalent per day before royalties. UK giant Groundbirch’s assets supply gas to… LNG Canada Liquefaction plant and local gas market.
Wael SawanShell CEO confirmed: “ARC is a high-quality, low-cost, low-carbon-intensive producer that complements our existing footprint in Canada and strengthens our resource base for decades to come.
“ARC has demonstrated a strong record of operational excellence and responsible development that is closely aligned with how we do business. We look forward to welcoming our new colleagues to the organization and working together, to advance our strategy of delivering more value with less emissions.”
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