Shell to expand Canadian operations with $16.4-billion acquisition of ARC Resources
Shell plc has agreed to acquire ARC Resources Ltd. in a transaction valued at about $16.4 billion, including $13.6 billion in equity and roughly $2.8 billion in assumed net debt and leases.
The acquisition is expected to strengthen Shell’s integrated gas portfolio and expand its position in Canada through the addition of long-life Montney resources in British Columbia and Alberta, the companies said Apr. 27.
“ARC is a high-quality, low-cost, and top-quartile low carbon intensity producer in the Montney that complements our existing footprint in Canada and strengthens our resource base for decades,” said Wael Sawan, Shell chief executive officer. “This establishes Canada as a heartland for Shell while furthering our strategy to deliver more value with less emissions.”
ARC produced 374,000 boe/d in 2025 (before royalties). Its assets overlap with Shell’s existing Groundbirch position in British Columbia and the Gold Creek development in Alberta. Groundbirch supplies gas to the 14-million tonnes/year LNG Canada liquefaction plant (Shell, 40%), as well as to the domestic market.
The transaction combines ARC’s more than 1.5 million net acres with Shell’s 440,000 net acres in the Montney and adds about 2 billion boe of proved plus probable reserves at yearend 2025. Liquids accounted for about 40% of ARC’s production and roughly 70% of its revenue last year.
Shell expects to achieve annual synergies of about $250 million within a year of closing. The company said it can absorb the additional capital spending within its existing cash capex framework, maintaining its 2027–28 guidance of $20–22 billion.
The deal is subject to ARC shareholder, court, and regulatory approvals and is expected to close in the second half of 2026.