On April 27, 2026, Shell announced a definitive agreement to acquire ARC Resources in a transaction valued at $16.4 billion. The deal includes $3.4 billion in cash, $10.2 billion in equity, and the assumption of approximately $2.8 billion in net debt. Both companies’ boards of directors have unanimously approved the transaction, which is expected to close in the second half of 2026.
This acquisition will add approximately 370,000 boe/d to Shell’s portfolio, along with 1.5 million net acres in the Montney and 2 billion boe in reserves. The newly acquired acreage is adjacent to Shell’s existing Groundbirch asset in British Columbia, which supplies natural gas to LNG Canada, a project in which Shell holds a 40% interest. By acquiring ARC Resources, Shell significantly expands its presence in Canada and gains access to an extensive low-cost drilling inventory, strategically positioned near its western Canadian LNG operations.
Following the transaction, Shell’s Canadian production is expected to represent roughly 10% of total volumes from British Columbia and Alberta, underscoring the strategic importance of this acquisition to Shell’s North American growth and LNG strategy. Be sure to check back in for more Energy Market Insights as we continue to cover M&A activity across the energy sector.
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