28.04.2026 06:50
World-renowned oil giant Shell has decided to acquire Canada-based ARC Resources in a $16.4 billion deal. The company, aiming to boost its shale gas production and reserves with this move, expects the deal to make a strong contribution to cash flow starting from 2027.
Oil giant Shell has decided to acquire Canada-based ARC Resources in a deal worth $16.4 billion including debt. The move stands out as part of the company's strategy to expand its shale gas investments in North America.
STRATEGIC EXPANSION INTO THE MONTNEY BASIN
With the deal, Shell aims to expand its low-cost shale gas and liquid fuels portfolio in Canada's Montney Basin. The region attracts global energy companies due to its high efficiency and cost advantage.
CASH AND SHARE OFFER TO SHAREHOLDERS
Under the agreement, Shell will offer ARC Resources shareholders CAD 8.20 in cash and 0.40247 Shell shares for each share held.
GROWTH IN PRODUCTION AND RESERVES
The acquisition will add approximately 370,000 barrels of oil equivalent per day in production and 2 billion barrels of reserves to Shell's portfolio. The company expects the deal to deliver double-digit returns.
CASH FLOW TO INCREASE FROM 2027 ONWARDS
Shell stated that it expects the acquisition to increase free cash flow per share from 2027 onwards.