SHEL · Shell plc

Shell plc has entered into a definitive agreement to acquire ARC Resources Ltd., a Canadian energy company focused on the Montney shale basin. The acquisition accelerates Shell's strategy by adding 370 kboe/d of production immediately, increasing Shell's production CAGR from 1% to 4% through 2030 compared to 2025. The transaction is expected to generate double-digit returns and be accretive to free cash flow per share from 2027 onwards. The consideration of CAD 32.80 per ARC share represents a 20% premium to ARC's 30-day VWAP and is funded with approximately US$3.4 billion in cash and US$10.2 billion in Shell shares, resulting in the issuance of approximately 228 million ordinary shares. Shell expects to achieve annualized synergies of around $250 million within a year of closing. The acquisition complements Shell's existing footprint in Canada and strengthens its resource base, particularly in the Montney basin, and supports Shell's aim to sustain material liquids production of ~1.4 million barrels per day towards 2030. The transaction is expected to close in the second half of 2026, subject to ARC shareholder, court, and regulatory approvals.