Shell Acquires ARC Resources for $22 Billion, Expanding Canadian Gas Footprint
Shell plc has agreed to acquire ARC Resources for $22 billion, enhancing its position in Canada's Montney shale region. This acquisition aligns with Shell's strategy to bolster its natural gas production amid growing global demand, particularly for liquefied natural gas (LNG).
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Shell plc is acquiring ARC Resources for $22 billion, which includes a cash-and-stock deal valued at $32.80 per ARC share. This acquisition is set to position Shell as the largest condensate producer and third-largest gas producer in Canada, further integrating its operations with the LNG Canada project.
ARC produced an average of 408,000 barrels of oil equivalent per day in the last quarter of 2022, with 58% being natural gas. The deal will add approximately 1.5 million net acres in the Montney formation to Shell’s existing holdings. This transaction, which is expected to close by the end of 2026, may signal increased merger and acquisition activity in the Montney region as the global demand for natural gas rises, especially with disruptions affecting other suppliers like Qatar.
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