Oil giant Shell to buy Canada’s ARC Resources for $16.4 billion in push to boost output

shell agreed to buy canadian energy company arc resources for $16.4 billion on monday. the deal adds roughly 370,000 barrels of oil equivalent per day to shell's portfolio. shell ceo wael sawan called arc a "high-quality, low-cost" producer focused on the montney shale basin in british columbia and alberta. shell will pay arc shareholders 8.20 canadian dollars in cash plus 0.40247 ordinary shares for each arc share. the equity value is about $13.6 billion, with $2.8 billion in net debt and leases bringing the total to $16.4 billion. shell said the deal will generate double-digit returns and boost free cash flow per share from 2027. shell shares traded 0.3% lower on the news. the stock is up about 20% year-to-date, lagging some rivals. earlier this year, sawan said shell spent about $2 billion on assets in 2025 that added roughly 40,000 barrels per day of new production for 2030.