Shell Buys Canada Shale Operator ARC Resources for $16.4B

SECAUCUS, NJ (DTN) – Shell announced Monday (4/27) a deal to acquire Canada’s ARC Resources, targeting what it called low-cost, low-carbon intensity assets of a shale producer basin in the British Columbia and Alberta region for approximately $16.4 billion.

The acquisition will add approximately 370,000 bpd of oil equivalent production and 2 billion barrels of reserves to Shell’s portfolio, the company said in a news release.

Shell expects the 25% cash-75%-debt deal to generate double-digit returns and become accretive to free cash flow per share starting in 2027.

The energy major added that the current shareholder distribution policy and annual investment budget of $20 billion to $22 billion will not be impacted.