Shell agrees to buy Canada’s ARC Resources for US$13.6 bil

Shell has agreed to buy Canada’s ARC Resources in a deal valued at about US$13.6 billion in equity, or roughly US$16.4 billion including debt. The move is meant to boost Shell’s production by about 370,000 barrels of oil equivalent per day and expand its Montney shale position in Canada.

Deal structure

Under the agreement, ARC shareholders will receive a mix of cash and Shell shares, with the equity value funded by about US$3.4 billion in cash and US$10.2 billion in Shell stock. Shell said it will also assume about US$2.8 billion in net debt and leases as part of the transaction.

Why Shell wants it

The acquisition strengthens Shell’s long-duration oil and gas portfolio, especially in the Montney basin in British Columbia and Alberta. Shell said the deal adds about 2 billion barrels of proved plus probable reserves and supports its production growth through 2030.

Timing and impact

The transaction is expected to close in the second half of 2026, pending shareholder and regulatory approval. For Shell, the deal is a bigger bet on Canadian shale gas and liquids tied to LNG demand growth.