Shell Acquires ARC Resources for $13.6 Billion
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 6 days ago
0mins
Should l Buy SHEL?
Source: Fool
- Acquisition Scale: Shell has agreed to acquire ARC Resources for $13.6 billion, with a total deal value of $16.4 billion, marking Shell's largest transaction in a decade and expected to significantly enhance its oil and gas production capacity, thereby strengthening its market competitiveness.
- Production Growth Outlook: With ARC producing approximately 374,000 barrels of oil equivalent per day, the acquisition will increase Shell's oil-equivalent reserves by 2 billion barrels, raising its expected compound annual growth rate from 1% to 4%, laying a solid foundation for future production growth.
- LNG Market Expansion: This acquisition will support Shell's growth in the Canadian LNG market, likely facilitating the Phase 2 expansion of the LNG Canada project, which aims to double its capacity to 28 million tonnes per year to meet the demand for diversified global supplies.
- Global Supply Chain Optimization: The closure of the Strait of Hormuz has significantly impacted global oil and gas supplies, and through this acquisition, Shell enhances its ability to supply LNG, helping customers diversify their sources and improving its market position.
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Analyst Views on SHEL
Wall Street analysts forecast SHEL stock price to fall
10 Analyst Rating
5 Buy
5 Hold
0 Sell
Moderate Buy
Current: 88.980
Low
41.75
Averages
74.27
High
91.00
Current: 88.980
Low
41.75
Averages
74.27
High
91.00
About SHEL
Shell plc is an international energy company engaged in the principal aspects of the energy and petrochemical industries. The Company's segments include Integrated Gas, Upstream, Marketing, Chemicals and Products, Renewables and Energy Solutions, and Corporate. The Integrated Gas segment includes liquefied natural gas (LNG), conversion of natural gas into gas-to-liquids (GTL) fuels and other products. It includes natural gas and liquids exploration and extraction, and the operation of the upstream and midstream infrastructure. The Upstream segment includes exploration and extraction of crude oil, natural gas and natural gas liquids. It also markets and transports oil and gas and operates the infrastructure necessary to deliver them to the market. The Marketing segment comprises the Mobility, Lubricants, and Sectors & Decarbonization businesses. The Chemicals and Products segment includes chemicals manufacturing plants with their own marketing network, and refineries.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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