Shell buys Canada’s ARC Resources for $16.4 billion

LONDON AND CALGARY, April 28, 2026 – Shell has entered into a definitive agreement to acquire pure-play Montney shale producer ARC Resources, the companies announced on Monday.

Shell will pay a purchase price of CAD 32.80 per share of ARC, of which 75% in Shell shares and 25% in cash. The consideration equates to an equity value of approximately USD 13.6 billion. Shell will also assume net debt and leases for about USD 2.8 billion, resulting in an enterprise value of approximately USD 16.4 billion.

ARC holds more than 1.5 million net acres in Canada’s Montney shale basin, in the same region as Shell’s 440,000 acres across its Gold Creek, Alberta, and Groundbirch, British Columbia operations. The company produces oil, natural gas, condensates and GPLs and reported 374,000 boepd in gross output in 2025, of which about 40% was liquids.

 

The acquisition adds approximately 2 billion boe to Shell’s reserves and increases the company’s production CAGR to 4% through to 2030, relative to 2025 levels, in line with its target to sustain liquids production of around 1.4 million boepd through to 2030.

“ARC is a high-quality, low-cost and top quartile low carbon intensity producer operating in the Montney shale basin that complements our existing footprint in Canada and strengthens our resource base for decades to come. This establishes Canada as a heartland for Shell while furthering our strategy to deliver more value with less emissions,” said Shell CEO Wael Sawan.

Shell’s assets in Canada include the Scotford Complex oil refinery and chemicals plant in Alberta, the Sarnia Manufacturing Centre refinery in Ontario and a network of approximately 1,500 petrol stations across the country. The company also holds a 40% interest in LNG Canada, which exports Canadian natural gas to Asian markets. Shell’s partners in LNG Canada are Petronas, PetroChina, Mitsubishi and KOGAS.

Photo courtesy of ARC Resources