economy
Oil giant Shell to buy Canada’s ARC Resources for $16.4 billion in push to boost output
The transaction will add roughly 370,000 barrels of oil equivalent per day to Shell's portfolio and is designed to boost the firm's long-term production.
TL;DR
- Shell agreed to buy Canadian energy company ARC Resources for $16.4 billion.
- The deal is expected to add roughly 370,000 barrels of oil equivalent per day to Shell's portfolio.
- The acquisition aims to increase Shell's long-term oil and gas production.
- ARC Resources' assets are primarily located in the Montney shale basin in British Columbia and Alberta.
- Shell expects the transaction to yield double-digit returns and boost free cash flow per share from 2027.
- The total transaction value includes $13.6 billion in equity value and $2.8 billion in net debt and leases.