Shell has completed its acquisition of Canadian energy producer ARC Resources, adding about 370,000 barrels of oil equivalent per day to its production base and strengthening its position in the prolific Montney basin.

 

The deal, completed on September 2 after securing all required shareholder, court and regulatory approvals, gives Shell a major new foothold in British Columbia and Alberta and is expected to lift the company’s production compound annual growth rate to around 4% through 2030, compared with 2025 levels.

 

“Today we welcome ARC colleagues to Shell and look forward to building on their high-performance culture, operational excellence and technical expertise in Canada’s Montney basin,” said Shell’s Chief Executive Officer, Wael Sawan. 

 

“The acquisition increases Shell's exposure to long-duration, low-cost liquids production. Through disciplined integration, we will build on the strengths of both organizations to unlock the value that underpins this transaction.”

 

Under the terms of the agreement, ARC shareholders receive CAD $8.20 in cash plus 0.40247 Shell shares for each ARC share.

 

Based on Shell’s closing share price of £34.43 on September 2 and the latest foreign-exchange rates, the transaction puts ARC’s equity value at about US$13.9 billion. Shell is also assuming approximately US$2.5 billion in net debt and leases, taking the deal’s enterprise value to roughly US$16.5 billion.

 

Shell will fund the equity portion with approximately US$3.3 billion in cash and US$10.6 billion in newly issued Shell shares.

 

The acquisition is expected to generate double-digit returns, strengthen Shell’s long-term cash flows and become accretive to free cash flow per share from 2027 onward.

 

The transaction expands Shell’s producing assets in Canada while complementing its existing liquefied natural gas operations and downstream businesses, which span refining, chemicals, fuel retail, aviation, lubricants and low-carbon solutions.

 

Shell said the accounting value of the acquired assets and liabilities will be determined through a purchase price allocation process following completion.

 

The company also secured regulatory relief from Canadian formal issuer-bid requirements in connection with purchases of Shell shares through marketplaces outside Canada, subject to specified conditions.

 

Shell cautioned that its projections and other forward-looking statements are subject to a range of risks, including fluctuations in oil and natural gas prices, changes in demand, currency movements, drilling and production results, regulatory changes, geopolitical conflicts, economic conditions and the pace of the global energy transition.

 

The company said actual results could differ materially from those contained in its forward-looking statements and warned investors not to place undue reliance on them.