Shell Moves to Acquire ARC Resources in $13.6B Montney Push

Shell plc has agreed to acquire ARC Resources Ltd. in a transaction valued at approximately $13.6 billion, strengthening its position in the Montney shale basin and advancing its long-term production and LNG growth strategy.

Under the terms of the agreement, ARC shareholders will receive CAD 8.20 in cash and 0.40247 Shell shares for each ARC share, implying a total consideration of CAD 32.80 per share. The deal structure is approximately 25% cash and 75% equity, with total enterprise value reaching about $16.4 billion, including $2.8 billion in net debt and leases. Shell will fund the transaction through $3.4 billion in cash and $10.2 billion in shares.

The acquisition is expected to generate annualized synergies of approximately $250 million within the first year following closing. Strategically, the deal enhances Shell’s production outlook, increasing its compound annual growth rate from 1% to 4% and supporting its goal of sustaining liquids production at roughly 1.4 million barrels per day through 2030 and beyond.

The combined entity will hold a significant footprint in the Montney formation, bringing together ARC’s more than 1.5 million net acres with Shell’s existing 440,000 acres. The transaction also adds approximately two billion barrels of oil equivalent in proved and probable reserves as of year-end 2025.

The transaction is anticipated to close in the second half of 2026. Goldman Sachs International is acting as exclusive financial advisor to Shell. RBC Capital Markets is acting as exclusive financial advisor to ARC.