ARC Resources Ltd. says it has entered into a definitive agreement to be acquired by Shell plc in a stock‑and‑cash transaction valued at approximately $22 billion, including assumed debt.

According to press statement from ARC, the agreement would see Shell acquire all of the company’s issued and outstanding shares, bringing together ARC’s natural gas assets in the Montney formation in northeastern British Columbia and northwestern Alberta with Shell’s existing Canadian operations.

Under the terms of the agreement, ARC shareholders would receive a mix of Shell shares and cash in exchange for each ARC share. The transaction is expected to close in the second half of 2026, subject to shareholder, court and regulatory approvals, including under the Investment Canada Act, the company said.

ARC said its board of directors has unanimously approved the transaction and will recommend that shareholders vote in favour at a special meeting expected in July 2026.

Shell said the acquisition would strengthen its integrated natural gas business in Canada. The company is the lead partner in LNG Canada, the liquefied natural gas export facility in Kitimat, B.C., which began operations last year and sources gas from Western Canada.

ARC said it expects to continue paying its regular quarterly dividend prior to closing, subject to board approval.