The logo of a Shell gas station is displayed in Austin, Texas on February 13, 2025.
Brandon Bell | Getty Images News | getty images
British oil major shell Said on Monday it has agreed to a deal to buy Canadian energy company ARC Resources in a deal valued at $16.4 billion.
The transaction will add the equivalent of approximately 370,000 barrels of oil per day to Shell’s portfolio and is designed to boost the London-listed firm’s long-term oil and gas production.
Shell CEO Val Savan has described ARC Resources, which focuses on the Montney Shale Basin in British Columbia and Alberta, Canada, as “a high quality, low cost and top quartile low carbon intensity producer” that will strengthen the firm’s resource base for decades.
“We are approaching the uniquely located assets and welcoming partners who bring deep expertise, which combined with Shell’s strong basin level performance, provides an attractive proposition for shareholders,” Savan said in a statement.
ARC Resources President and CEO Terry Anderson welcomed the announcement, saying the firm’s assets and employees “will play a vital role in helping Shell further strengthen Canada’s resource landscape while also providing the secure energy the world needs.”
Shell said the deal would generate double-digit returns and boost free cash flow per share from 2027. The company expects to pay ARC Resources shareholders 8.20 Canadian dollars ($6.03) in cash and 0.40247 ordinary shares for each ARC Resources share.
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