Shell to Acquire ARC Resources in $16.4 Billion Deal to Expand Montney Presence

Energy giant Shell announced on Monday that it has agreed to acquire Canadian energy company ARC Resources in a deal valued at $16.4 billion, including debt. The move is aimed at strengthening Shell’s portfolio with low-cost shale gas and liquids assets in Canada’s prolific Montney Basin, a region known for its high-quality reserves and long-term production potential.

Under the terms of the agreement, ARC shareholders will receive C$8.20 in cash along with 0.40247 Shell shares for each ARC share they hold. The transaction reflects Shell’s strategic focus on scaling up its upstream operations in resource-rich basins while maintaining capital discipline and enhancing shareholder value.

Shell stated that the acquisition will add approximately 370,000 barrels of oil equivalent per day to its production and bring in around 2 billion barrels of reserves. The company expects the deal to deliver double-digit returns and significantly boost free cash flow per share from 2027 onward, reinforcing its long-term growth outlook in the global energy market.

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