Shell has closed its purchase of Canadian producer ARC Resources for about $16.5 billion including assumed debt, gaining a major stake in the Montney shale basin. The deal adds roughly 370,000 barrels of oil equivalent per day to Shell's output and lands alongside a separate U.S. retail buy that expands its convenience-store network in Tennessee.
Shell PLC has completed its acquisition of ARC Resources Ltd for around $16.5 billion including assumed debt, taking full control of a leading Montney shale producer in western Canada. The purchase immediately adds about 370,000 barrels of oil equivalent per day across liquids and gas, and Shell says it supports a production growth rate of around 4% a year through 2030 compared with 2025.
Deal structure and valuation
ARC shareholders will receive CAD 8.2 (around $5.9) in cash plus 0.40247 Shell shares for each ARC share they held. Based on Shell's closing share price on September 2, 2026, that structure works out to an equity value of about $13.9 billion. Shell is also absorbing roughly $2.5 billion of net debt and leases, putting the deal's total enterprise value at approximately $16.5 billion.
Chief executive Wael Sawan said, according to Rigzone: "The acquisition increases Shell's exposure to long-duration, low-cost liquids production." He added that Shell looks forward to building on ARC's operational track record in the Montney basin.
ARC's Montney footprint
ARC describes itself as the largest pure-play Montney producer, with acreage spanning more than one million net acres across Alberta and northeast British Columbia. In the second quarter the company produced 390,465 barrels of oil equivalent per day, split 61% natural gas and 39% crude oil and liquids. Net debt stood at CAD 2.63 billion as of June, equal to 0.8 times funds from operations, while quarterly capital spending totaled CAD 467 million, concentrated at its Kakwa development.
Shell first announced the agreement on April 27 and said the purchase would not push its budgeted organic capital spending of $20-22 billion for 2027-28 higher. The company added that its shareholder distribution policy is unchanged, with 40-50% of cash flow from operations returned through a 4% progressive annual dividend increase and buybacks, and that its climate-related targets through the decade are unaffected.
A separate U.S. retail deal
Shell also disclosed a second transaction this week: Shell Oil Products U.S. signed an agreement with Parman Corp and Kimbro Oil Co to buy the remaining stake in Tri Star Energy LLC, in which it already held 33%. The move gives Shell full ownership of 320 fuel and convenience sites in Tennessee and surrounding states, plus supply agreements covering 552 more dealer-owned locations.
Source: Rigzone
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