Shell to Buy ARC Resources for $16.4bn, Boosting Montney Output by 370,000 boepd
Shell will acquire ARC Resources in a $16.4bn cash-and-stock deal to consolidate over 1.94mn net acres in the Montney basin and add 370,000 boepd. ARC holders receive C$8.2 and 0.40247 Shell shares per unit, valuing ARC at C$32.8 each, a 20% premium.
1. Deal Terms
Shell agreed to acquire ARC Resources for $16.4bn through a mix of 25% cash and 75% Shell shares. ARC shareholders will receive C$8.2 per share plus 0.40247 Shell shares, valuing ARC at C$32.8 each.
2. Asset and Production Gains
The combined assets include over 1.94 million net acres across British Columbia and Alberta, increasing Shell’s production by about 370,000 barrels of oil equivalent per day. ARC’s 2P reserves of roughly two billion barrels of oil equivalent will bolster Shell’s resource base.
3. Strategic Rationale
ARC’s substantial gas reserves support Shell’s Canadian LNG growth and elevate Shell’s annual production growth target to 4% through 2030. Liquids production is expected to remain near 1.4 million barrels per day over the same period.
4. Timeline and Approvals
The deal carries an implied equity value of $13.6bn and assumes $2.8bn of net debt. Both boards have approved the transaction, with completion anticipated in the second half of 2026 subject to shareholder, court and regulatory approvals.