Shell plc has entered into an agreement to acquire Canadian energy company ARC Resources Ltd., in a transaction that will strengthen Shell’s natural gas and liquids position in Western Canada.
The deal, announced on April 27, 2026, will add ARC’s operations in the Montney shale basin, located across British Columbia and Alberta, to Shell’s existing Canadian portfolio. Shell said the acquisition would immediately add around 370,000 barrels of oil equivalent per day to its production, across both liquids and gas.
ARC is one of Canada’s major Montney-focused producers, with assets that include more than 1.5 million net acres. Combined with Shell’s existing roughly 440,000 net acres in the Montney formation, the transaction would significantly expand Shell’s position in one of North America’s key natural gas-producing regions. Shell said the deal would also add around 2 billion barrels of oil equivalent in proved plus probable reserves, based on end-2025 figures.
Under the terms of the agreement, ARC shareholders will receive 0.40247 of a Shell share and C$8.20 in cash for each ARC share. ARC said this represented total consideration of C$32.80 per share, based on Shell’s London Stock Exchange closing price and the Bank of Canada’s GBP/CAD exchange rate on April 24, 2026. The transaction is expected to close in the second half of 2026, subject to shareholder, court and regulatory approvals.
Reuters reported that the transaction has an enterprise value of about US$16.4 billion, including approximately US$2.8 billion in net debt and leases. The equity value is expected to be funded through about US$3.4 billion in cash and US$10.2 billion in Shell shares.
Shell said the acquisition supports its wider strategy to build long-term cash flow from lower-cost, lower-carbon intensity upstream assets. The company expects the deal to increase its production compound annual growth rate from 1% to 4% through to 2030, compared with 2025 levels. It also said the acquisition is expected to be accretive to free cash flow per share from 2027 onward.
Shell Chief Executive Officer Wael Sawan described ARC as a “high-quality, low-cost” producer that complements Shell’s existing Canadian footprint. He said the deal would strengthen Shell’s resource base for decades and establish Canada as a larger part of Shell’s long-term portfolio.
ARC President and CEO Terry Anderson said the transaction would allow ARC shareholders to realise value while continuing to participate in Shell’s future performance through the share component of the deal. ARC’s board has unanimously recommended that shareholders vote in favour of the transaction at a special meeting expected to be held in July 2026.
The transaction also strengthens Shell’s position around its Canadian LNG interests. ARC’s production is located near Shell’s existing Canadian fields, which feed into LNG Canada, where Shell holds a 40% interest. Reuters noted that LNG Canada is positioned to serve Asian buyers more quickly than many other North American LNG projects.
For Shell, the acquisition would deepen its North American gas portfolio and give the company a larger position in one of Canada’s most established gas-producing regions. It also comes as LNG-linked gas resources remain an important part of the company’s long term strategy, particularly as demand from Asian markets continue to shape investment decisions across the sector.
