Shell has agreed to acquire ARC Resources in a $22 billion deal, offering a 27% premium and combining cash with shares to strengthen its global natural gas and LNG portfolio.

ARC said it is intentionally slowing development at Attachie after early Upper Montney pads underperformed expectations, emphasizing the issue is completion effectiveness—not geology or resource quality. Management remains confident in the asset’s long-term potential but is prioritizing capital discipline and learning before scaling, with flexibility to reallocate capital to higher-confidence assets like Kakwa.

ARC Resources made it clear that the Montney is the engine behind its 2026 growth plan, delivering scale, liquids-rich upside, and premium gas pricing options. With decades of Montney inventory and unmatched technical depth, ARC is positioning itself as one of North America’s most resilient and free cash flow–generating E&Ps.

The Board has approved a preliminary capital budget of $1.8 billion. The budget was designed with profitable growth and capital discipline in mind, and includes an updated framework that allows capital returns to increase as net debt approaches ARC’s long-term target.

ARC delivered first quarter 2022 production of 344,447 boe(1)(2) per day (62 per cent natural gas and 38 per cent crude oil and liquids).