Shell enriches gas business with $16.4 billion ARC Resources takeover

April 27, 2026, by Melisa Cavcic

UK-headquartered energy giant Shell has made a move to strengthen its liquefied natural gas (LNG) arsenal through a multibillion-dollar cash‑and‑share deal for the acquisition of Canada‘s natural gas producer ARC Resources.

Shell and its Canadian subsidiary have entered into a definitive arrangement agreement to acquire all of the issued and outstanding common shares of ARC Resources in a cash and share transaction valued at approximately CAD 22 billion ($16.4 billion), including assumed net debt.

Terry Anderson, President and Chief Executive Officer of ARC Resources, commented: “Over our 30-year history, we have built a strong and resilient Canadian energy company defined by the depth of our world-class Montney assets, low-cost operations, leadership in responsible development, and high-performance people and culture.

“On behalf of our leadership team, I would like to thank our people for their dedication and commitment to excellence in all facets of our business. Through this transaction, we will realize this tremendous value and become part of a dynamic global energy leader capable of realizing the full potential of our business and delivering on Canada’s exciting energy future.”

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The $32.80 per share purchase price, payable 75% in ordinary shares of Shell and 25% in cash, represents a 27% premium to the Canadian player’s April 24, 2026, closing price on the Toronto Stock Exchange (TSX). As a result, the near-term liquidity to ARC shareholders in the form of cash, with highly liquid Shell shares, is perceived to provide upside exposure to an integrated global energy platform.

The agreement bolsters the UK energy giant’s integrated gas business and creates a new platform for growth in Canada by adding long‑duration, high‑quality Montney resource. This acquisition is said to come with significant opportunities to unlock and accelerate LNG-related value through Shell’s integrated natural gas value chain, as scale, infrastructure footprint, and global reach underpin enhanced long-term profitability.

This acquisition increases Shell’s production CAGR from 1% to 4%, compared to 2025, and supports its aim to sustain material liquids production of around 1.4 million barrels per day towards 2030 and beyond. Last year, about 40% of ARC’s production was liquids, which accounted for around 70% of its revenues. Shell will take on approximately $2.8 billion in net debt and leases, resulting in an enterprise value of approximately $16.4 billion. The equity value of $13.6 billion will be funded via $3.4 billion in cash and $10.2 billion in Shell shares.

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Hal Kvisle, Chair of the ARC Board, emphasized: “The ARC Board unanimously recommends this strategic transaction to our shareholders. This agreement delivers compelling value for our shareholders and brings together two companies with shared commitments to safety, operational excellence and care for communities and people – strengthening our ability to deliver resilient, long-term value creation for many years to come.”

The takeover has received unanimous approval from ARC’s board of directors, which recommends that shareholders vote for the transaction at a special meeting expected to be held in July 2026. The proposed acquisition is to be completed by way of a plan of arrangement under the Business Corporations Act (Alberta) (the ABCA). Subject to the satisfaction of conditions typical for a transaction of this nature, it is expected to close in the second half of 2026.

Last year, ARC, whose operations are situated in the same region as Shell’s existing Groundbirch asset in British Columbia and Gold Creek project in neighbouring Alberta, reported production of 374,000 barrels of oil equivalent per day before royalty burdens. The UK giant’s Groundbirch assets supply gas to the LNG Canada liquefaction plant and the domestic gas market.

Wael Sawan, Chief Executive Officer of Shell, underlined: “ARC is a high-quality, low-cost and top-quartile low carbon intensity producer that complements our existing footprint in Canada and strengthens our resource base for decades to come.

“ARC has demonstrated a strong track record of operational excellence and responsible development which aligns closely to how we do business. We look forward to welcoming our new colleagues into the organization and together, furthering our strategy of delivering more value with less emissions.”