Shell reverses course in Canada and buys ARC Resources for $14 billion, doubling down on oil and gas
Fortune • • business
Key Points:
- Shell is acquiring ARC Resources in a deal valued at $16.4 billion including debt, expanding its presence in the Montney shale basin, a key emerging oil and gas region driven by growing global natural gas demand and exports.
- The acquisition strengthens Shell’s Canadian footprint with a high-quality, low-cost, and low carbon intensity producer, adding about 1.5 million net acres to its existing 440,000 net acres in the Montney region.
- ARC produces approximately 370,000 barrels of oil-equivalent per day, with 58% natural gas and 42% crude oil and other liquids, potentially supporting LNG Canada exports and other LNG projects targeting Asian markets.
- The deal, comprising 25% cash ($3.4 billion) and 75% Shell stock ($10.2 billion), is expected to close by the end of 2026 and makes a near-term Shell acquisition of BP unlikely, as Shell focuses on organic growth and smaller deals.
- This move marks Shell’s renewed strategic commitment to Canada, complementing its existing LNG Canada project and aligning with its goal to deliver more value with fewer emissions.
