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On April 27, 2026, UK oil and gas giant Shell announced an agreement to acquire Canadian energy company ARC Resources for $13.6 billion in cash and shares, significantly expanding its North American energy production capacity. Including $2.8 billion in assumed net debt, the deal carries an enterprise value of $16.4 billion.
Under the terms of the agreement, ARC Resources shareholders will receive C$8.20 in cash and 0.40247 Shell ordinary shares per ARC share, representing a mix of approximately 25% cash and 75% stock. Following the announcement, ARC Resources shares surged 22% on the Toronto Stock Exchange.
ARC Resources focuses on operations in the Montney shale basin spanning British Columbia and Alberta. Shell said the acquisition will add 370,000 barrels per day of oil and gas production, increase exposure to “long-duration, low-cost and top quartile low carbon intensity shale gas and liquids,” and is expected to generate double-digit returns.
Shell CEO Wael Sawan said: “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. We are accessing uniquely positioned assets and welcoming colleagues that bring deep expertise. This establishes Canada as a heartland for Shell while furthering our strategy to deliver more value with less emissions.”
The deal comes amid turbulent global energy markets. Goldman Sachs has raised its oil price forecasts against the backdrop of continued Iran tensions — with Brent crude expected to average $90 per barrel in the final quarter of this year in a base case scenario, and potentially reaching $120 per barrel in an “adverse scenario” involving further supply disruptions.
Shell’s acquisition reflects a broader strategic trend among international energy majors to consolidate low-cost North American shale assets amid geopolitical uncertainty. The move also signals that industry consolidation may be accelerating, as major players seek to secure long-duration production bases.
Source: The Guardian, Reuters