The transaction, which received all necessary regulatory and shareholder approvals, adds roughly 370,000 barrels of oil equivalent per day to Shell’s portfolio. Under the terms of the agreement, ARC shareholders will receive a combination of cash and Shell ordinary shares. Specifically, investors are entitled to CAD $8.20 in cash and 0.40247 Shell shares for each ARC common share held.
Shell finalizes $16.5 billion acquisition of ARC Resources
Shell plc has officially closed its acquisition of Canada-based ARC Resources Ltd., a move that bolsters the energy giant’s position in the Montney basin. The deal, valued at approximately $16.5 billion including debt, aims to secure long-term, low-cost liquids production and support steady growth through 2030.
Shell CEO Wael Sawan noted that the integration is designed to leverage ARC's technical expertise in the Montney basin while enhancing Shell’s downstream and LNG footprint in Canada. Beyond immediate production gains, the company expects the acquisition to generate double-digit returns and contribute to free cash flow starting in 2027. The deal includes an equity value of roughly US$13.9 billion, funded through a mix of cash and new stock, alongside the assumption of US$2.5 billion in net debt and leases.
Comments (0)
No comments yet. Be the first!