Shell to buy ARC Resources for $16.4bn in major Canada shale deal

Shell plc has entered a definitive agreement to acquire ARC Resources Ltd. (TSX: ARX), a Montney-focused Canadian shale producer, in a transaction that values ARC at roughly $13.6bn equity and about $16.4bn enterprise value including assumed net debt.

Under the terms, ARC shareholders will receive C$8.20 in cash and 0.40247 ordinary Shell shares per ARC share—approximately 25% cash and 75% Shell shares based on Shell's closing price on April 24, 2026—equating to C$32.80 per ARC share and representing a c.20% premium to ARC’s 30-day VWAP. Shell said it will take on about $2.8bn of net debt and leases and fund the equity element via roughly $3.4bn cash and $10.2bn in Shell shares (around 228 million shares).

Shell expects the acquisition to immediately add about 370 thousand barrels of oil equivalent per day to its output, increase its compound annual production growth target through 2030, and add roughly 2 billion boe of proved plus probable reserves at end-2025—moves the company says will be accretive to free cash flow per share from 2027. The boards of both companies have unanimously supported the transaction, which is subject to ARC shareholder, court and regulatory approvals and is expected to close in H2 2026.

Market reaction saw a sharp rise in ARC's Toronto-listed shares on the takeover news, while commentary from brokers highlights the strategic fit with Shell's existing Canadian footprint and LNG exposure. Observers note the deal is one of Shell’s biggest in a decade and positions the company to bolster long-duration, low-cost gas and liquids supply in North America.

Analysts caution, however, that successful integration, regulatory clearances and operational execution in the Montney basin will determine whether projected synergies and cash-flow improvements materialize. Investors will monitor Shell’s disclosure in upcoming earnings and the companies' filings for detailed assumptions on reserves, synergies and financing mechanics as the transaction progresses.