Shell has entered into an agreement to acquire ARC Resources for $16.4bn, with $10.2bn payable through the issue of new Shell shares and the balance in cash and assumed liabilities.
The deal is expected to close in the second half of this year subject to the customary approvals.
On completion, the transaction is expected to immediately boost production by the equivalent of 370,000 barrels of oil per day. As a result, Shell’s targeted production out to 2030 has increased from 1% to 4% per annum, over 2025 levels.
The shares were down 2.2% following the announcement.
Our view
HL view to follow.
Shell key facts
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This article is original Hargreaves Lansdown content, published by Hargreaves Lansdown. It was correct as at the date of publication, and our views may have changed since then. Unless otherwise stated estimates, including prospective yields, are a consensus of analyst forecasts provided by LSEG. These estimates are not a reliable indicator of future performance. Yields are variable and not guaranteed. Investments rise and fall in value so investors could make a loss.
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