{"id":632435,"date":"2026-04-27T18:38:14","date_gmt":"2026-04-27T18:38:14","guid":{"rendered":"https:\/\/www.newsbeep.com\/ca\/632435\/"},"modified":"2026-04-27T18:38:14","modified_gmt":"2026-04-27T18:38:14","slug":"shell-to-buy-canadas-arc-resources-in-output-boosting-16-4-billion-deal","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ca\/632435\/","title":{"rendered":"Shell to buy Canada\u2019s ARC Resources in output-boosting $16.4 billion deal"},"content":{"rendered":"

Shell has agreed to buy Calgary-based Canadian energy company ARC Resources<\/a> in a deal valued at $16.4 billion, including debt, which the British oil and gas major said on Monday would boost its output by 370,000 barrels of oil equivalent \u200cper day.<\/p>\n

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Analysts and the company had forecast Shell needed an acquisition or exploration breakthrough to make up for an expected \u2060production shortage of 350,000 to 800,000 boed (barrels of oil equivalent per day) roughly by \u200cthe middle of the next decade due to maturing fields unable to meet its output targets, Reuters previously reported.<\/p>\n

ARC\u2019s production lies near Shell\u2019s existing Canadian \u2060fields which feed into the LNG Canada plant, in which Shell holds a 40 per cent share and whose liquefied \u200cnatural gas can reach Asian buyers faster than most other North American LNG.<\/p>\n

\t\t\t\t\tARC Resources\u2019s production includes this natural gas processing facility near Dawson Creek, B.C. as shown in this photo posted by the company on social media.\t\t\t\t <\/p>\n

\t\t\t\t\tSource: Facebook\/arcresources\t\t\t\t<\/p>\n

ARC has said it produced a record 374,000 boed on \u2060average in 2025, of which 59 per cent natural gas \u200cand 41 per cent crude oil and liquids.<\/p>\n

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Shell\u2019s oil and gas production was 2.8 million boed at the end of 2025.<\/p>\n

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London-listed Shell said in a statement it will pay ARC shareholders C$8.20 in cash and 0.40247 shares of Shell for each ARC share, or around 25 per cent cash and 75 per cent shares at a 20 per cent premium to ARC\u2019s average share price \u200cover the last 30 days.<\/p>\n

\u201cShell will take on approximately US$2.8 billion in net debt and leases resulting in an enterprise value of approximately US$16.4 \u2060billion.<\/p>\n

The equity value of $13.6 billion will be funded via $3.4 billion in cash and $10.2 billion in Shell shares,\u201d Shell said, referring to U.S. dollars.<\/p>\n

The deal will give Shell 2 billion barrels of reserves and would generate double-digit returns and boost free cash flow per share from 2027 without \u200baffecting its investment budget of US$20 billion to $22 billion through to 2028, it said.<\/p>\n

Shell\u2019s \u2018reserve life\u2019, or how long its proven reserves can sustain current output levels, was equivalent to less than eight \u200cyears of production as of 2025 \u2014 the company\u2019s lowest level since 2021.<\/p>\n

The deal allows Shell to raise its compound annual production growth target for the decade from \u20601 per cent to 4 per cent compared to 2025.<\/p>\n

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It \u200cplans to keep its liquids production of 1.4 million barrels per day towards 2030 and beyond.<\/p>\n

ARC\u2019s senior leadership team will be hosting a conference call to discuss the Company\u2019s first quarter 2026 results on Wednesday.<\/p>\n

Shell shares \u200cwere down slightly in early trading on Monday.<\/p>\n

\t\t\t\t\t\t\"Click<\/p>\n

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\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\tARC Resources donates $5M to new Calgary cancer centre\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/p>\n","protected":false},"excerpt":{"rendered":"Shell has agreed to buy Calgary-based Canadian energy company ARC Resources in a deal valued at $16.4 billion,…\n","protected":false},"author":2,"featured_media":632436,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[236566,49,48,225052,46,134,44,91548],"class_list":["post-632435","post","type-post","status-publish","format-standard","has-post-thumbnail","category-canada","tag-arc-resources-ltd","tag-ca","tag-canada","tag-canada-oil-industry","tag-economy","tag-money","tag-news","tag-shell"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/632435","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=632435"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/632435\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/632436"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=632435"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=632435"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=632435"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}