Oil giant Shell agrees to buy Canada’s ARC Resources for $16.4 billion
Shell gas station logo on display in Austin, Texas on February 13, 2025.
Brandon Bell | Getty Images News | Getty Images
British oil expert Shell It announced Monday that it had reached an agreement to acquire Canadian energy company ARC Resources worth $16.4 billion.
The transaction will add approximately 370,000 barrels of oil equivalent per day to Shell’s portfolio and is designed to increase the London-listed firm’s long-term oil and gas production.
Shell CEO Wael Sawan described ARC Resources, which focuses on the Montney shale basin in British Columbia and Alberta, Canada, as a “high-quality, low-cost, top-quartile low-carbon-intensity producer” that will strengthen the firm’s resource base for decades to come.
“We have access to uniquely positioned assets and welcome colleagues who bring deep expertise, which, combined with Shell’s strong performance at the basin level, provides a compelling proposition for shareholders,” Sawan said in a statement.
Terry Anderson, president and CEO of ARC Resources, welcomed the announcement and said the firm’s assets and personnel “will play a key role in helping Shell further strengthen Canada’s resource environment while providing the secure energy the world needs.”
Shell said the deal would deliver double-digit returns from 2027 and increase free cash flow per share. The company is expected to pay ARC Resources shareholders C$8.20 ($6.03) in cash and 0.40247 shares of common stock per ARC Resources share.
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