Shell Locks in US$13.6 Billion ARC Resources Deal, Big Oil Expands
Shell’s big oil push got larger on April 28, 2026, when it entered a definitive agreement to acquire ARC Resources Ltd. for about US$13.6 billion in equity value. The deal pairs cash with stock and would fold a Canadian Montney producer into Shell’s existing footprint.
ARC shareholders are set to receive CAD 8.20 in cash and 0.40247 ordinary shares of Shell for each ARC share, a package Shell values at CAD 32.80 per share. That price represents a 20 per cent premium to ARC’s 30-day VWAP, giving investors an exit at a level above the recent trading average rather than a pure stock-for-stock exchange.
Shell’s Canada footprint
More than 1.5 million net acres at ARC would join Shell’s about 440 thousand net acres in the Montney formation, creating a much larger position in British Columbia and Alberta. Shell said the transaction also adds about 2 billion barrels of oil equivalent proved plus probable reserves at the end of 2025, while ARC’s proved plus probable gas reserves could support Shell’s LNG growth in Canada.
Wael Sawan said: “ARC is a high-quality, low-cost and top quartile low carbon intensity producer operating in the Montney shale basin that complements our existing footprint in Canada and strengthens our resource base for decades to come.” He also said: “This establishes Canada as a heartland for Shell while furthering our strategy to deliver more value with less emissions.”
Cash, shares and debt
The US$13.6 billion equity value will be funded with US$3.4 billion in cash and US$10.2 billion in Shell shares, and Shell said it will issue approximately 228 million ordinary shares. Shell will also take on approximately US$2.8 billion in net debt and leases, putting the enterprise value at about US$16.4 billion.
Shell said the transaction increases its production CAGR from 1% to 4% compared with 2025 and supports its aim to sustain material liquids production of about 1.4 million barrels per day towards 2030 and beyond. ARC said the deal gives shareholders value now while keeping exposure to Shell through the stock portion, a structure that ties part of the payout to Shell’s future share performance.
Approval path in 2026
The boards of both companies unanimously supported the transaction, but the deal still needs ARC shareholder, court and regulatory approvals before closing in the second half of 2026. Terry Anderson said: “This combination is a great opportunity for ARC to realise value for our shareholders and continue to benefit from Shell’s success in the future.” He added: “I’m excited that ARC’s assets and world class people will play an important role in helping Shell to further strengthen Canada’s resource landscape whilst also providing the secure energy that the world needs.”
