Shell is set to buy ARC Resources in a move that would expand the British oil major’s production in western Canada.
The two companies announced on April 27 that the transaction, which includes assumed net debt and leases, is valued at C$22 billion, or about US$16.4 billion.
The acquisition integrates ARC’s assets in British Columbia and Alberta Provinces with Shell’s existing assets there. ARC’s assets are concentrated in the Montney region, near Shell’s existing operations and close to infrastructure tied to LNG Canada, the liquefied natural gas export project in which Shell is a key partner.
Shell expects the deal to add approximately 370,000 barrels of oil equivalent per day to its production and 2 billion barrels in reserves. It projects the transaction will deliver double-digit returns and increase free cash flow per share starting in 2027….