Shell to buy ARC Resources in US$16.4 billion Montney push

Shell (UK) ( (GB:SHEL) ) has issued an announcement.

Shell has agreed to acquire Canadian producer ARC Resources, a major operator in the Montney shale basin of British Columbia and Alberta, in a US$16.4 billion enterprise value deal that combines more than 1.5 million net acres from ARC with Shell’s existing Montney position. The transaction, unanimously backed by both boards and expected to close in the second half of 2026, will add about 370,000 barrels of oil equivalent per day, boost Shell’s production growth outlook to 4% annually through 2030, and support its LNG growth and liquids output targets while keeping capital spending and shareholder distribution frameworks unchanged.

ARC’s largely liquids-weighted output and substantial gas reserves are set to augment Shell’s Integrated Gas division, complementing supply to LNG Canada and reinforcing Canada as a strategic heartland for the company. Shell expects the deal, funded with a mix of cash and new shares at a premium to ARC’s recent trading price, to deliver double‑digit returns, around US$250 million of annualised synergies within a year of closing, and to be accretive to free cash flow per share from 2027, while maintaining its investment-grade balance sheet and existing climate-related ambitions.

The most recent analyst rating on (GB:SHEL) stock is a Hold with a £39.00 price target. To see the full list of analyst forecasts on Shell (UK) stock, see the GB:SHEL Stock Forecast page.

Spark’s Take on SHEL Stock

According to Spark, TipRanks’ AI Analyst, SHEL is a Outperform.

The score is driven primarily by solid underlying financial performance and supportive earnings-call guidance on cost reduction, capital discipline, and shareholder returns. Technicals are strong but look overheated, and while valuation is reasonable with a ~3% yield, weaker recent free-cash-flow momentum and operational risks (Chemicals, safety, and reserve-life decline) cap the upside.

To see Spark’s full report on SHEL stock, click here.

More about Shell (UK)

Shell plc is a global energy company active across integrated gas, upstream oil and gas production, refining, chemicals, fuel retail, aviation fuels, lubricants and low‑carbon solutions. The group has a significant liquefied natural gas portfolio and downstream footprint, and is increasingly focusing on long-duration, low-cost and lower carbon intensity resources to support its transition strategy.

Average Trading Volume: 13,266,638

Technical Sentiment Signal: Buy

Current Market Cap: £184.9B

Learn more about SHEL stock on TipRanks’ Stock Analysis page.