Shell has agreed to acquire Canadian energy producer ARC Resources in a deal valued at $16.4 billion. The transaction consists of $13.6 billion in cash and shares, with Shell taking on $2.8 billion of ARC's debt. This represents the European energy giant's largest acquisition in over a decade, since its purchase of BG Group, and comes five years after Shell sold its North American shale business.
The acquisition is designed to boost Shell's long-term production and bolster its oil and gas reserves. The deal is expected to add approximately 370,000 barrels of oil equivalent per day to Shell's portfolio.
The move expands Shell's footprint in the Montney shale basin across British Columbia and Alberta. As U.S. shale basins mature, the Montney is emerging as a prominent oil and gas play. Analysts suggest the acquisition marks a vote of confidence in Prime Minister Mark Carney’s push to expand Canada’s hydrocarbon exports beyond the traditional U.S. market.
Following the announcement, shares of ARC Resources were on track for their largest gain since 2020, leading industry peers higher.