To increase its portfolio with inexpensive shale gas and liquids in Canada’s Montney basin, Shell announced on Monday that it has reached an agreement to purchase Canadian energy company ARC Resources in a deal valued at $16.4 billion, including debt.
The energy giant will provide each ARC shareholder C$8.20 in cash and 0.40247 Shell shares as part of the agreement.
Shell stated that the agreement will increase free cash flow per share and produce double-digit returns starting in 2027. It adds approximately 370,000 barrels of oil equivalent per day of production and 2 billion barrels of reserves.
