Shell to buy Canadian shale producer ARC Resources for $16.4bn
Summary
Shell has agreed to buy Canadian shale producer ARC Resources for $16.4 billion. This deal will increase Shell’s oil and gas production and add to its reserves, marking its largest purchase in ten years.Key Facts
- Shell will pay $13.6 billion in cash and shares and take on ARC’s $2.8 billion debt.
- ARC Resources produces about 370,000 barrels of oil and gas per day.
- The acquisition will increase Shell’s production growth target from 1% to 4% annually.
- Shell’s CEO Wael Sawan said this deal makes Canada a key area for Shell’s future growth.
- Shell sold its US shale business in Texas in 2021 but is now expanding again in North America.
- ARC mainly produces natural gas and condensate, which are used for energy and making chemicals.
- Shell owns or is involved in more than 30% of the world’s liquefied natural gas (LNG) capacity.
- Shell’s shares dropped 1.8% after the announcement, and the company expects higher profits from trading due to market changes.
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