Shell Completes $16.5 Billion Acquisition of ARC Resources
Royal Dutch Shell has completed its acquisition of Canadian oil and gas producer ARC Resources for approximately $16.5 billion, including $2.5 billion in net debt and leases. The deal significantly expands Shell's presence in the Montney basin across British Columbia and Alberta by adding around 370,000 barrels of oil equivalent per day in production and over 1.5 million net acres to its portfolio. At year-end 2025, ARC held approximately 2 billion boe (barrels of oil equivalent) in proved and probable reserves. The acquisition supports Shell's Canadian LNG strategy by integrating ARC’s gas resources with existing operations and a 40% stake in LNG Canada. Shell anticipates annual production growth of around 4% through 2030, double-digit returns on the deal, and an increase in free cash flow per share starting in 2027. The acquisition received strong shareholder support in July and final regulatory approval from Canadian authorities on August 25. The transaction reflects a broader trend of increased global competition for natural gas assets, with M&A activity reaching its highest level in over a decade during the first half of 2026.
Topics: acquisitions LNG strategy natural gas production oil and gas