Calgary, April 27, 2026, 12:05 MDT
Shell has struck a deal to acquire ARC Resources Ltd. for roughly US$16.4 billion, debt included, a transaction set to boost the British energy giant’s footprint in Canada’s Montney shale. ARC investors are looking at C$8.20 in cash plus 0.40247 Shell shares per ARC share.
This deal lands at a critical point for Shell, bolstering its gas and liquids volumes just as majors face nagging questions over reserve depletion. ARC brings roughly 370,000 barrels of oil equivalent per day into the fold—industry shorthand for total oil and gas output. With the transaction, Shell is pushing its production growth target up to 4% through 2030.
Shell is set to gain a firmer hold on western Canadian gas with the deal. ARC’s properties are located right by Shell’s Groundbirch assets—these feed gas to LNG Canada, the Kitimat, B.C. export project where Shell holds a 40% stake. LNG, or liquefied natural gas, is natural gas cooled to liquid so it can be shipped by sea.
ARC put its price tag at C$32.80 per share, marking a 27% premium over where it closed in Toronto on April 24. The Calgary-based board gave unanimous approval and is setting up a shareholder vote for July.
Shell CEO Wael Sawan called ARC a deal that “strengthens our resource base for decades to come.” ARC’s Terry Anderson, the chief executive, said the merger allows shareholders to “realise value” and stay linked to Shell’s performance, since part of the payment comes in shares. Shell
ARC jumped over 22% in Toronto trading, Reuters said, but Shell shares in London slipped 2.1% by the afternoon. The market’s split is telling: ARC investors pocket a quick premium, while Shell shareholders are left weighing execution risk and dilution from a bigger share base.
The real story here is Montney. Tom Pavic, president at Sayer Energy Advisors in Calgary, called the deal a sign that the Montney “is a world-class resource play,” speaking with The Canadian Press. Pavic also suggested more M&A in the basin could be on the horizon. CFJC Today Kamloops
Andrew Dittmar, principal analyst with Enverus Intelligence Research, said Canada brings majors a choice of long-life resources, pointing to Montney gas and oil sands crude. Shell’s deal, he wrote, stands as “a firm confirmation” of the basin’s role in global gas. CFJC Today Kamloops
The agreement comes on the heels of several other western Canadian shale deals. Back in November, Ovintiv Inc. moved to acquire NuVista Energy Ltd. for C$3.8 billion. Just a month before that, Cygnet Energy Ltd., a private player, lined up its C$1.4 billion purchase of Kiwetinohk Energy Corp.
Shell expects the ARC deal to bring roughly 2 billion barrels of proved and probable reserves, paired with around US$250 million in yearly synergies after the first year post-closing. The company kept its projected cash capital spend for 2027-2028 unchanged, sticking to a range of US$20 billion to US$22 billion.
Still, the agreement isn’t finalized yet. ARC said it will require backing from at least two-thirds of shareholders who vote, plus sign-offs from the Court of King’s Bench of Alberta and several regulators—among them, authorities responsible for Canada’s Competition Act, the Investment Canada Act, and the U.S. Hart-Scott-Rodino rules. If all approvals come through, closing is targeted for the second half of 2026.
