Shell to Buy ARC Resources in $16.4 Billion Deal to Expand Canada Output
The deal would boost Shell’s production and reserves in western Canada as Ottawa seeks to establish itself as an energy superpower.
TL;DR
- Shell is set to acquire ARC Resources for C$22 billion (US$16.4 billion), including assumed net debt and leases.
- The acquisition will expand Shell's production in western Canada by integrating ARC's assets in British Columbia and Alberta with Shell's existing ones.
- ARC's assets are primarily located in the Montney region, near Shell's current operations and the LNG Canada export project.
- Shell expects the deal to increase its production by approximately 370,000 barrels of oil equivalent per day and add 2 billion barrels in reserves.
- The company projects double-digit returns and an increase in free cash flow per share starting in 2027 from this transaction.