economy
Shell to buy Canadian shale producer ARC Resources for $16.4bn
Deal comes five years after Shell sold its US shale business and is its biggest acquisition for a decade
TL;DR
- Shell will acquire Canadian shale producer ARC Resources for $16.4 billion, including $13.6 billion in cash and shares and assuming $2.8 billion in debt.
- This acquisition is Shell's largest since buying BG Group a decade ago and marks a return to US shale after selling its US shale business in 2021.
- ARC Resources will add approximately 370,000 barrels a day to Shell's production and increase its proved and probable reserves by 2 billion barrels.
- The deal is expected to boost Shell's production growth from 1% to 4% annually and strengthen its position in the liquefied natural gas (LNG) market.
- Shell considers Canada a "heartland" following this acquisition, which focuses on the Montney shale basin.