Shell (NYSE:SHEL) announced on Monday, April 27, 2026, that it has reached a definitive agreement to acquire Canadian energy leader ARC Resources in a transaction valued at approximately $16.4 billion, including debt.
The deal represents a significant bet on the Montney shale play and marks a major pivot in Shell's global production trajectory.
The acquisition values ARC’s equity at approximately $13.6 billion (CAD 32.80 per share), representing a 20% premium to its 30-day volume-weighted average price.
The consideration will be funded through a mix of approximately 25% cash ($3.4 billion) and 75% newly issued Shell shares.
Upon completion, Shell will assume approximately $2.8 billion in ARC’s net debt and leases.
This strategic move immediately adds 370,000 barrels of oil equivalent per day (kboe/d) to Shell’s portfolio.
More importantly, it raises Shell’s anticipated production compound annual growth rate (CAGR) from 1% to 4% through 2030, compared to 2025 levels.
The deal also secures approximately 2 billion barrels of oil equivalent in proved plus probable reserves and combines ARC’s 1.5 million net acres with Shell’s existing 440,000 acres in the Montney formation.
The transaction has received unanimous approval from both boards and is expected to close in the second half of 2026.