Shell completes acquisition of ARC Resources
- The deal adds approximately 370 kboe/d of liquids and gas production to Shell.
- ARC shareholders receive CAD $8.20 in cash plus 0.40247 Shell shares per ARC share.
- Equity value is about US$13.9 billion; Shell takes on ~US$2.5 billion net debt, giving an enterprise value of ~US$16.5 billion.
- Transaction is expected to deliver double-digit returns and be accretive to free cash flow per share from 2027.
Deal completion
Shell has completed its previously announced arrangement to acquire ARC Resources Ltd. The effective date of the transaction is September 2, 2026, and Shell said it will integrate ARC colleagues and operations in Canada’s Montney basin.
Terms and financing
Under the Arrangement Agreement, ARC shareholders receive CAD $8.20 in cash plus 0.40247 ordinary Shell shares for each ARC share. Based on Shell’s closing share price of GBP £34.43 on September 2, 2026 and prevailing FX rates, the equity value is approximately US$13.9 billion. Shell will assume about US$2.5 billion of net debt and leases, yielding an enterprise value of roughly US$16.5 billion. The equity consideration will be funded with US$3.3 billion in cash and US$10.6 billion in newly issued Shell shares.
Operational and financial impact
The acquisition immediately adds about 370 kboe/d across liquids and gas and supports a production compound annual growth rate of around 4% to 2030 compared with 2025. Shell said the deal increases exposure to long-duration, low-cost liquids production, is expected to generate double-digit returns and to be accretive to free cash flow per share from 2027 onwards.
Timing and notes
Delivery of Shell shares to ARC shareholders is expected to be completed several days after the Effective Date. Measurement of acquired assets and liabilities for accounting will be subject to a purchase price allocation exercise. The transaction also benefited from a Canadian exemption order related to share buyback rules under specified conditions.
Source: Shell
