Shell plc (NYSE: SHEL) has temporarily paused its $3 billion share buyback program through July 14, 2026, citing regulatory and technical requirements related to its pending acquisition of Canadian natural gas producer ARC Resources Ltd. (TSX: ARX).
The move comes as Shell advances its previously announced $16.4 billion cash-and-stock acquisition of ARC Resources, a transaction that will add approximately 370,000 barrels of oil equivalent per day (boe/d) to Shell’s production portfolio and strengthen its long-term position in North American natural gas.
Under the terms of the deal, ARC shareholders will receive C$8.20 per share in cash plus 0.40247 Shell shares for each ARC share held. At the time the transaction was announced in April, the offer represented a value of approximately C$32.80 per ARC share.
Shell stated that the temporary suspension of share repurchases is required while the company works through specific transaction-related obligations. ARC Resources also confirmed that both parties entered into an agreement on June 6 to address technical aspects surrounding the issuance and delivery of consideration to shareholders.
Shell CEO Wael Sawan described ARC as a “high-quality, low-cost and top-quartile low carbon intensity producer,” highlighting the strategic importance of ARC’s Montney shale assets in Alberta and British Columbia. The acquisition is expected to significantly expand Shell’s resource base and support its long-term growth strategy in natural gas and LNG markets.
The transaction remains subject to customary approvals and is expected to further strengthen Shell’s position as a leading global energy supplier.
Author: phinds