$SHEL

Interest Grows in North American Hydrocarbons as Middle East Conflict Endures, Says WoodMac

The depth and duration of the disruption to global energy supplies by the closure of a single waterway in the Middle East's cluster of oil producing countries has prompted increased interest in resources available elsewhere, Wood Mackenzie said in an opinion article on Monday.While there were already plans to increase production from various geographies before the Iran war, the conflict has provided additional momentum to bring these forth, according to the article's author, Ed Crooks, Wood Mackenzie Vice Chair for the Americas and Energy Gang podcast host.Venezuela has been moving faster to raise output, something facilitated by the capture of President Nicolas Madura in January. Legislative reforms have passed in the National Assembly giving clarity of maximum royalties and taxes.At the same time, state oil company PDVSA lost exclusive control of oil production and sales, the article said, making way for private players to have control of their own projects and access to arbitration.Foreign oil companies have set out plans to boost the country's output. Chevron (CVX) said it can boost its production in Venezuela by 50% over an 18-24 month timespan and Repsol is aiming for the same increase within 12 months.Shell (SHEL) is said to be in negotiations with Venezuela's government to develop more gas assets and could take final investment decisions before the end of the year if conditions are right.Elsewhere, there was record revenue generated by a lease sale of areas in Alaska's National Petroleum reserve, Crooks noted, while in the Gulf of Mexico, which the US government recognizes as Gulf of America, Occidental Petroleum (OXY) said it had made an oil discovery that would extend the working life of its production facilities.BP (BP) last month said it received approval from the US Bureau of Ocean Energy Management to develop its $5 billion Kaskida project.Claudia Sheinbaum, Mexico's president, said she was in favor of increasing natural gas production through development of unconventional resources to reduce dependence on the US which provides about 75% of Mexico's gas. It now targets output of 3.2 billion cubic feet per day from unconventional sources by 2035.Given the lead times involved in establishing more projects, companies need relative certainty of future commodities prices and change in output to decide on whether investing is viable.There is no sign of any general uptick in US energy industry activity at present with no increase in the number of drilling rigs operating in the US around mid-April, the article said.Venezuela has been able to achieve an increase as a result of easing of US sanctions, with output rising to 1.1 million barrels a day in March from 900,000 in January. But resources like those in Alaska or the Gulf of America will need years to reach the market.Venezuela may have some capacity to boost LNG supply if its gas can be piped to Trinidad to supply the Atlantic LNG liquefaction plant there.Meanwhile Eni (E) and Repsol have reached a deal with Venezuela's government through which they will export gas from the Perla field using a floating LNG vessel. There is also an opportunity for gas to be piped to Colombia, which would free up the LNG it otherwise uses.

Petrobras Agrees to Acquire Stake in Offshore Campos Basin Oil Field

Petrobras (PBR) said Monday it has agreed to acquire 100% of a portion of the Argonauta Field in the Campos Basin, which is currently owned by Shell (SHEL), ONGC, and Brava, for 700 million Brazilian reals ($140.1 million) and $150 million in cash.Under the deal, the payment will be made in three installments, with 100 million reals upon closing; 600 million reals on Jan. 15 or at closing, whichever occurs later; and a final installment of $150 million two years after closing, the company said.The portion acquired includes an area of the offshore Argonauta oil field that holds 0.86% of the shared pre-salt Jubarte, the company said.Upon completion of the transaction, Petrobras will hold a 98.1% interest in Jubarte while the Brazilian government will maintain a 1.9% stake, the company said.

Research Alert: Shell Agrees To Buy Arc Resources For Usd16.4b

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:Shell announced the acquisition of ARC Resources for USD16.4B enterprise value, offering CAD32.80 per share (20% premium to 30-day VWAP) through 25% cash and 75% equity consideration, expected to close in 2H 2026. The transaction will immediately add 370 kboe/d production, representing a substantial 20% increase to Shell's current 1.8M boe/d output. We believe the deal establishes Canada as a core operating region and accelerates Shell's production CAGR from 1% to 4% through 2030. Management expects USD250M in annual synergies while maintaining USD20B-USD22B capex guidance and 40%-50% cash flow distribution policy. However, Shell is paying USD44k per boe/d at the higher range of recent Canadian E&P multiples, with 75% equity consideration diluting existing shareholders by 3% and delaying free cash flow accretion until 2027. In our view, value creation will depend on Shell achieving operational improvements materially beyond stated synergies while maintaining capital efficiency metrics.

US Equity Indexes Mixed Ahead of Trump's Response to Iran's New Peace Proposal

US equity indexes were mixed on Monday, while crude oil futures rose with government bond yields, as investors awaited President Donald Trump's response to Iran's new peace proposal offering safe passage through the Strait of Hormuz.The Nasdaq Composite rose 0.2% to 24,887.10, and the S&P 500 edged up 0.1% to 7,173.91, each hitting an intraday record high ahead of big-tech quarterly results due mid-week. The Dow Jones Industrial Average fell 0.1% to 49,167.79.Iran has made a new offer to stop its attacks on ships in Hormuz in exchange for a full end to the war, including the US's lifting of its naval blockade of Iranian ports and the postponement of nuclear negotiations, The Wall Street Journal reported, citing officials familiar with the matter.Iranian Foreign Minister Abbas Araghchi presented the offer during his tour of the region and Pakistan over the weekend. Trump discussed the proposal with his national security team on Monday, White House press secretary Karoline Leavitt said. The president earlier said negotiations with Iran could happen over the phone instead of in person."We doubt that the US will go for this, since the US's economic blockade of Iran remains its key 'pressure tactic' in making Iran concede to the US's fundamental demands pertaining to Iran's power," Thierry Wizman, global foreign-exchange and rates strategist at Macquarie, said in a note.West Texas Intermediate crude oil futures rose 2.2% to $96.48, and Brent crude futures advanced 2.6% to $108.09.In precious metals, gold futures fell 1% to $4,695.1, and silver futures declined 1.4% to $75.36.Most US Treasury yields rose, with the 10-year up three basis points to 4.34%, and the two-year climbed 2.3 basis points to 3.8%.In company news, Shell (SHEL) agreed to acquire Canadian energy company ARC Resources in a cash-and-stock deal with an enterprise value of US$16.4 billion, as the oil and gas giant looks to increase its exposure to low-cost shale gas and liquids production in Canada's Montney basin.Domino's Pizza (DPZ) reported weaker-than-expected Q1 results, with the company's chief executive officer saying consumer uncertainty and inflation weighed on demand late in the quarter. Shares slumped 8.8%, the worst performer on the S&P 500.Sandisk (SNDK) is expected to post another "strong" quarter and full-year outlook, benefiting from pricing momentum for NAND memory systems, Morgan Stanley said in a note Monday. Shares of Sandisk were up 8.1%, the top gainer on the Nasdaq.In economic news, the Dallas Fed's monthly manufacturing index fell to minus 2.3 in April from minus 0.2 in March, compared with expectations for a 0.8 print. The index indicates faster contraction, in contrast with other regional manufacturing readings already released.

Sector Update: Energy Stocks Mixed Late Afternoon

Energy stocks were mixed late Monday afternoon, with the NYSE Energy Sector Index fractionally higher and the State Street Energy Select Sector SPDR ETF (XLE) little changed.The Philadelphia Oil Service Sector Index was adding 0.9%, and the Dow Jones US Utilities Index increased 0.1%.Front-month West Texas Intermediate crude oil rose 2% to $96.31 a barrel, and the global benchmark Brent crude contract advanced 2.5% to $107.98 a barrel. Henry Hub natural gas futures added 1.2% to $2.55 per 1 million BTU.In corporate news, US Energy (USEG) shares jumped 20% after it said Monday it has signed a five-year helium sales agreement with an unnamed investment-grade global industrial gas company, securing long-term contracted cash flow for its Big Sky Carbon Hub project in Montana ahead of targeted Q1 2027 operations.Shell (SHEL) agreed to buy Canadian energy company ARC Resources in a cash-and-stock deal with an enterprise value of $16.4 billion, as the oil and gas giant looks to increase its exposure to low-cost shale gas and liquids production in Canada's Montney basin. Shell shares were down 2.4%.The UK's Seagreen wind farm, which is 25.5%-owned by TotalEnergies (TTE), has delayed a fixed-price government contract, preferring to sell electricity at higher market rates, Bloomberg reported Monday, citing data that it compiled. TotalEnergies shares were decreasing 0.7%.Greenland Energy (GLND) said Monday it has signed an agreement with Halliburton (HAL) for integrated consulting services and logistical management related to the planning and transportation of equipment and services. Greenland shares were down 12%, and Halliburton shed 0.5%.

Sector Update: Energy Stocks Decreasing Monday Afternoon

Energy stocks were lower Monday afternoon, with the NYSE Energy Sector Index down 0.3% and the State Street Energy Select Sector SPDR ETF (XLE) decreasing 0.2%.The Philadelphia Oil Service Sector Index was adding 0.4%, and the Dow Jones US Utilities Index rose 0.4%.Crude oil prices rose Monday as US-Iran talks appeared to have stalled, even as Tehran reportedly offered a new proposal for reopening the Strait of Hormuz. Iran's Foreign Minister Seyed Abbas Araghchi visited Pakistan twice over the weekend, while President Donald Trump called off US officials' previously announced trip to Islamabad. Iran has submitted a proposal to reopen the Strait of Hormuz and delay talks on uranium enrichment, Axios reported, citing a US official and two other sources.Front-month West Texas Intermediate crude oil was rising 2.4% to $96.66 a barrel, and the global benchmark Brent crude contract was advancing 3.2% to $108.71 a barrel. Henry Hub natural gas futures rose 2.5% to $2.59 per 1 million BTU.In corporate news, Shell (SHEL) agreed to buy Canadian energy company ARC Resources in a cash-and-stock deal with an enterprise value of $16.4 billion, as the oil and gas giant looks to increase its exposure to low-cost shale gas and liquids production in Canada's Montney basin. Shell shares were down 2.9%.The UK's Seagreen wind farm, which is 25.5%-owned by TotalEnergies (TTE), has delayed a fixed-price government contract, preferring to sell electricity at higher market rates, Bloomberg reported Monday, citing data that it compiled. TotalEnergies shares were decreasing 0.7%.Greenland Energy (GLND) said Monday it has signed an agreement with Halliburton (HAL) for integrated consulting services and logistical management related to the planning and transportation of equipment and services. Greenland shares were down 12%, and Halliburton rose 0.3%.

US Equity Indexes Decline, Crude Oil Jump Amid Stalled Iran Peace Talks

US equity indexes declined in Monday's midday trading as deadlocked negotiations to find a lasting solution for the Iran war pushed crude oil futures higher.The Nasdaq Composite fell 0.2% to 24,785.2, with the Dow Jones Industrial Average lower by 0.1% to 49,172.3. The S&P 500 was little changed at 7,167.6. All sectors except communication services, financials, and utilities fell. Consumer staples and materials led the decliners.In the absence of any face-to-face discussions in Pakistan this weekend, Iran offered a proposal to reopen the Strait of Hormuz and end the war, Axios cited a US official and two people with knowledge of the matter in a news report. That proposal, however, includes postponing nuclear negotiations between the two countries, according to the Axios report.President Donald Trump plans to meet with top national security officials today, according to two sources, to discuss the new Iranian proposal that would reopen Hormuz, CNN reported.Iranian Foreign Minister Abbas Araghchi is in Russia ahead of a meeting with President Vladimir Putin, following meetings in Pakistan and Oman. Araghchi gave Pakistani officials a list of "red lines" to be conveyed to the US, including "nuclear issues and the Strait of Hormuz," according to CNN.West Texas Intermediate crude oil futures jumped 3.4% to $97.62, and Brent crude futures advanced 4.2% to $109.75."Oil continues to grind higher as the Strait of Hormuz remains effectively closed, extending disruptions across the Middle East that continue to tighten the availability of critical commodities - from crude, fuel and gas to metals, fertilizers and petrochemicals," Saxo Bank analysts said in a note."Brent crude trades at a three-week high as efforts to revive peace talks have stalled, with an Iranian proposal reportedly calling for nuclear negotiations to be postponed to a later stage," the analysts said.In precious metals, gold futures dropped 1.2% to $4,683.80, and silver futures declined 1.9% to $75.49, as higher crude oil prices raise inflation concerns.Most US Treasury yields rose, with the 10-year up three basis points to 4.34% and the two-year climbed 3.2 basis points to 3.81%.In company news, Shell (SHEL) agreed to acquire Canadian energy company ARC Resources in a cash-and-stock deal with an enterprise value of $16.4 billion, as the oil and gas giant looks to increase its exposure to low-cost shale gas and liquids production in Canada's Montney basin.Domino's Pizza (DPZ) reported weaker-than-expected Q1 results, with the company's chief executive officer saying consumer uncertainty and inflation weighed on demand late in the quarter. Shares slumped 10%, the worst performer on the S&P 500.Sandisk (SNDK) is expected to post another "strong" quarter and full-year outlook, benefiting from pricing momentum for NAND memory systems, Morgan Stanley said in a note Monday. Shares of Sandisk were up 7.5%, the top gainer on the Nasdaq.In economic news, the Dallas Fed's monthly manufacturing index fell to minus 2.3 in April from minus 0.2 in March, compared with expectations for a 0.8 print. The index indicates faster contraction, in contrast with other regional manufacturing readings already released.

Sector Update: Energy

Energy stocks were lower Monday afternoon, with the NYSE Energy Sector Index and the State Street Energy Select Sector SPDR ETF (XLE) each decreasing 0.3%.The Philadelphia Oil Service Sector Index was adding 0.4%, and the Dow Jones US Utilities Index rose 0.4%.Front-month West Texas Intermediate crude oil was rising 2.4% to $96.66 a barrel, and the global benchmark Brent crude contract was advancing 3.2% to $108.71 a barrel. Henry Hub natural gas futures rose 2.5% to $2.59 per 1 million BTU.In corporate news, Shell (SHEL) agreed to buy Canadian energy company ARC Resources in a cash-and-stock deal with an enterprise value of $16.4 billion, as the oil and gas giant looks to increase its exposure to low-cost shale gas and liquids production in Canada's Montney basin. Shell shares were down 2.6%.

Update: ARC Resources Agrees to be Acquired by Shell for C$22 Billion; Shares up 21%

(Adds analyst comment in the 7th paragraph; updates shares.)ARC Resources (ARX.TO) agreed Monday to be acquired by Shell plc (SHEL) for C$22 billion, including debt, as the global oil and gas producer looks to add exposure to the prolific Montney shale-gas in northeastern British Columbia.Shell is offering C$32.80 per ARC share, a 27% premium to its Friday closing price on the Toronto Stock Exchange. The amount will be paid 75% with Shell shares and 25% in cash.The agreement will see Shell add ARC's 374,336 barrels of oil equivalent per day (boe/d)of natural gas and natural-gas liquids production from the Montney field at the end of last year, which is expected to grow to between 405,000 and 420,000 boe/d this year. It also adds supply for the LNG Canada facility on northern British Columbia's Pacific coast, which is 40% owned by Shell."ARC is a high-quality, low-cost and top quartile low carbon intensity producer operating in the Montney shale basin that complements our existing footprint in Canada and strengthens our resource base for decades to come. We are accessing uniquely positioned assets and welcoming colleagues that bring deep expertise which, combined with Shell's strong basin level performance, provides a compelling proposition for shareholders," Shell chief executive Wael Sawan said in a release.ARC holds 1.5-million acres of lands in the Montney region, which will add to Shell's holdings of 440,000 acres in the field. It also brings adds around two-billion boe/d of reserves.The acquisition re-establishes Canada as a major center for the global producer, which has been retreating from the country after selling off most of its oil-sands operations to Canadian Natural Resources (CNQ.TO) in 2017 and completed its exit from the oil sands in 2025 by selling its remaining oil-sands interest to the Canadian producer. It still operates an oil-sands upgrader, refinery and carbon-capture facility near Edmonton, Alberta, as well as a refinery in Sarnia, Ontario, and owns 1,400 retail gasoline stations in Canada."We note that while ARC is a strong operator with a vast undeveloped inventory (which is likely to be accelerated given acquirer's access to global markets) and a top-tier resource base, this deal clearly signals a compounding benefit to the Canadian gas market with global integrated names showing an appetite for Canadian resources, which we haven't seen in a while," National Bank Financial analyst Travis Wood wrote.ARC said Shell approached the company in March and its board formed a special committee to assess the offer, which it determined to be fair and in the best interest of shareholders."The ARC Board unanimously recommends this strategic transaction to our shareholders," board chair Hal Kvisle said in a statement. "This agreement delivers compelling value for our shareholders and brings together two companies with shared commitments to safety, operational excellence and care for communities and people - strengthening our ability to deliver resilient, long-term value creation for many years to come."The sale is expected to close in the second half of this year.ARC shares were last seen up $5.52 to $31.29 on the Toronto Stock Exchange.Price: $31.25, Change: $+5.48, Percent Change: +21.27%

Top Midday Stories: Microsoft, OpenAI Amend Agreement; Qualcomm Reportedly Collaborating With OpenAI on Smartphone AI Chip

All three major US stock indexes were down in late-morning trading Monday, as investors parse ongoing developments in peace talks between the US and Iran.Iran has offered to reopen the Strait of Hormuz in exchange for an end to the US' blockade of the country and an end to the war, media outlets reported Monday, citing officials.In company news, Microsoft (MSFT) and OpenAI said Monday they have amended their agreement so that Microsoft will no longer pay a revenue share to OpenAI, and its license will now be non-exclusive. Microsoft will remain OpenAI's primary cloud partner, and its Azure will receive the first shipments of OpenAI products, unless Microsoft cannot and chooses not to support the necessary capabilities, the companies said. Separately, industry checks indicate that OpenAI is working with Qualcomm (QCOM) and MediaTek to develop smartphone processors, a TF International Securities analyst said. Microsoft shares were down 0.7% around midday, while Qualcomm shares were down 0.2%.ARC Resources said Monday it has entered into a definitive agreement to be acquired by Shell (SHEL) in a cash-and-share deal valued at about 22 billion Canadian dollars ($16.17 billion). Under the terms of the deal, ARC shareholders will receive 0.40247 of a Shell share and CA$8.20 in cash consideration in exchange for each ARC share they own, representing a total consideration of CA$32.80 per ARC share. The deal is expected to close in H2, ARC said. Shell shares were down 1.3%.Meta Platforms' (META) $2 billion acquisition of AI startup Manus was blocked by China's National Development and Reform Commission, media outlets reported Monday, citing the Chinese regulator. Meta shares were down 0.1%.Eli Lilly (LLY) said Monday it has agreed to acquire Ajax Therapeutics for up to $2.3 billion in cash. The deal includes an upfront payment and subsequent payouts based on the achievement of certain clinical and regulatory milestones, the company said. Eli Lilly shares were down 0.5%.Verizon Communications (VZ) reported Q1 adjusted earnings Monday of $1.28 per diluted share, up from $1.19 a year earlier and above the FactSet consensus analyst estimate of $1.21. First-quarter operating revenue was $34.44 billion, up from $33.49 billion a year ago but below the FactSet consensus of $34.82 billion. For 2026, the company said it expects adjusted EPS of $4.95 to $4.99, above the FactSet consensus of $4.90. Verizon shares were up 3.6%.Price: $422.11, Change: $-2.49, Percent Change: -0.59%

European Equities Traded in the US as American Depositary Receipts Track Lower in Monday Trading

European equities traded in the US as American depositary receipts were trending lower late Monday morning, down 0.39% to 1,794.56 on the S&P Europe Select ADR Index.From continental Europe, the gainers were led by telecommunications company Nokia (NOK) and semiconductor company Sequans Communications (SQNS), which climbed 6.8% and 5.6% respectively. They were followed by 3D printer company Materialise (MTLS) and biopharmaceutical company DBV Technologies (DBVT), which advanced 3.5% and 3.4% respectively.The decliners from continental Europe were led by biotech firm BioNTech (BNTX) and internet browser company Opera (OPRA), which dropped 2.9% and 1.5% respectively. They were followed by oil and gas company Eni (E) and accommodations booking site trivago (TRVG), which lost 1% and 0.7% respectively.The gainers from the UK were led by medical device maker Smith & Nephew (SNN), which rose 1.4%. They were followed by biopharmaceutical company NuCana (NCNA) and biotech firm Autolus Therapeutics (AUTL), which were up 1.3% and 1% respectively.The decliners from the UK and Ireland were led by biopharmaceutical company Akari Therapeutics (AKTX) and cruise line operator Carnival (CUK), which fell 6% and 1.6% respectively. They were followed by oil and gas company Shell (SHEL) and hospitality company InterContinental Hotels Group (IHG), which were down 1.4% and 1.2% respectively.

Shell to Acquire Canada's ARC Resources in $16.4 Billion Deal

Shell (SHEL) has agreed to acquire Canadian energy firm ARC Resources in a transaction valued at about $16.4 billion, including debt, in a deal that is set to deepen its exposure to Canada's Montney shale basin, the companies said Monday.The acquisition will give Shell immediate production of about 370,000 barrels of oil equivalent per day and lift its expected output growth to about 4% per year through 2030, up from a previously outlined 1%.The deal also adds about 2 billion boe/d in proved and probable reserves.Shell will pay ARC shareholders a mix of cash and stock under the terms of the agreement, offering CA$8.20 ($6.02) in cash and 0.40247 Shell shares per ARC share.The consideration implies a value of about CA$32.80 per share, representing a 20% premium to the company's 30-day volume-weighted average price.The equity portion of the deal is valued at about $13.6 billion, with Shell assuming an additional $2.8 billion in net debt.Wael Sawan, the CEO of Shell, said the acquisition strengthens Shell's position in Canada's Montney shale basin, describing ARC as a "high-quality, low-cost" producer with low-carbon-intensity assets that complement the company's existing footprint.The combined company will control a significant acreage position in the Montney formation, with ARC contributing more than 1.5 million net acres alongside Shell's existing holdings of about 440,000 acres.The assets are expected to support Shell's expanding LNG operations in Canada, including supply to the LNG Canada facility, in which Shell holds a 40% stake.Shell said the deal is projected to generate double-digit returns and become accretive to free cash flow per share from 2027, while delivering about $250 million in annual savings within a year of completion.The energy firm said it expects to fund the cash portion of the deal, about $3.4 billion, within its existing capital expenditure framework, maintaining its planned annual spending range of $20 billion to $22 billion for 2027 and 2028.Price: $87.89, Change: $-1.24, Percent Change: -1.39%

Shell to Acquire ARC Resources in US$16.4 Billion Cash-Stock Deal

Shell (SHEL) agreed to acquire Canadian energy company ARC Resources in a cash-and-stock deal with an enterprise value of US$16.4 billion, as the oil and gas giant looks to increase its exposure to low-cost shale gas and liquids production in Canada's Montney basin.Shareholders of ARC will receive 8.20 Canadian dollars (US$6.03) in cash and 0.40247 shares of Shell for each share owned, representing a total consideration of CA$32.80 apiece, the companies said in separate statements.The deal has an equity value of US$13.6 billion, said Shell, which will take on US$2.8 billion in net debt and leases, bringing enterprise valuation to US$16.4 billion.Shell's US-listed stock edged down 1.1% in Monday trade."ARC is a high-quality, low-cost and top quartile low carbon intensity producer operating in the Montney shale basin that complements our existing footprint in Canada and strengthens our resource base," Shell Chief Executive Wael Sawan said in a statement. "This establishes Canada as a heartland for Shell while furthering our strategy to deliver more value with less emissions."The transaction, which requires approval from regulators and courts, as well as clearance from ARC's shareholders, is expected to complete in the second half.Shell projects the deal to enhance its existing liquid natural gas footprint and downstream businesses in Canada. The acquisition is expected to generate annualized synergies of around US$250 million within a year of completion, according to Shell.It expects the transaction to increase its production compound annual growth rate to 4% through 2030. The deal adds roughly 2 billion barrels of oil equivalent proved plus probable reserves at the end of 2025. ARC produced 374,000 barrels of oil equivalent per day in 2025.Through this deal, ARC will become "part of a dynamic global energy leader capable of realizing the full potential of our business and delivering on Canada's exciting energy future," CEO Terry Anderson said in a separate statement.ARC said it will be liable to pay a fee of about CA$600 million if it terminates the deal.Price: $88.12, Change: $-0.99, Percent Change: -1.11%

Sector Update: Energy Stocks Advance Premarket Monday

Energy stocks were advancing premarket Monday, with the State Street Energy Select Sector SPDR ETF (XLE) 0.6% higher.The United States Oil Fund (USO) was up 1.4% and The United States Natural Gas Fund (UNG) was 4.1% higher.Front-month US West Texas Intermediate crude oil was 1.9% higher at $96.16 per barrel at the New York Mercantile Exchange. Global benchmark North Sea Brent crude oil rose 2% to $107.41 per barrel, and natural gas futures were up 1% at $2.67 per 1 million British Thermal Units.The UK's Seagreen wind farm, which is 25.5%-owned by TotalEnergies (TTE), has delayed a fixed-price government contract, preferring to sell electricity at higher market rates, Bloomberg News reported, citing data it compiled. TotalEnergies shares were 0.8% higher pre-bell.ARC Resources said it has entered into a definitive agreement to be acquired by Shell (SHEL) in a cash-and-share deal valued at about 22 billion Canadian dollars ($16.17 billion). Shell stock was up 0.4% premarket.

ARC Resources Agrees to be Acquired by Shell for C$22 Billion

ARC Resources (ARX.TO) agreed Monday to be acquired by Shell plc (SHEL) for C$22 billion, including debt, as the global oil and gas producer looks to add exposure to the prolific Montney shale-gas in northeastern British Columbia.Shell is offering C$32.80 per ARC share, a 27% premium to its Friday closing price on the Toronto Stock Exchange. The amount will be paid 75% with Shell shares and 25% in cash.The agreement will see Shell add ARC's 374,336 barrels of oil equivalent per day (boe/d)of natural gas and natural-gas liquids production from the Montney field at the end of last year, which is expected to grow to between 405,000 and 420,000 boe/d this year. It also adds supply for the LNG Canada facility on northern British Columbia's Pacific coast, which is 40% owned by Shell."ARC is a high-quality, low-cost and top quartile low carbon intensity producer operating in the Montney shale basin that complements our existing footprint in Canada and strengthens our resource base for decades to come. We are accessing uniquely positioned assets and welcoming colleagues that bring deep expertise which, combined with Shell's strong basin level performance, provides a compelling proposition for shareholders," Shell chief executive Wael Sawan said in a release.ARC holds 1.5-million acres of lands in the Montney region, which will add to Shell's holdings of 440,000 acres in the field. It also brings adds around two-billion boe/d of reserves.The acquisition re-establishes Canada as a major center for the global producer, which has been retreating from the country after selling off most of its oil-sands operations to Canadian Natural Resources (CNQ.TO) in 2017 and completed exit from the oil sands in 2025 by selling its remaining oil-sands interest to the Canadian producer. It still operates an oil-sands upgrader, refinery and carbon-capture facility near Edmonton, Alberta, as well as a refinery in Sarnia, Ontario, and owns 1,400 retail gasoline stations in Canada.ARC said Shell approached the company in March and its board formed a special committee to assess the offer, which it determined to be fair and in the best interest of shareholders."The ARC Board unanimously recommends this strategic transaction to our shareholders," board chair Hal Kvisle said in a statement. "This agreement delivers compelling value for our shareholders and brings together two companies with shared commitments to safety, operational excellence and care for communities and people - strengthening our ability to deliver resilient, long-term value creation for many years to come."The sale is expected to close in the second half of this year.ARC shares closed down C$0.35 to C$25.77 Friday on the Toronto Stock Exchange.

Shell to Acquire ARC Resources for $16.17 Billion

ARC Resources said Monday it has entered into a definitive agreement to be acquired by Shell (SHEL) in a cash-and-share deal valued at about 22 billion Canadian dollars ($16.17 billion).Under the terms of the deal, ARC shareholders will receive 0.40247 of a Shell share and CA$8.20 in cash consideration in exchange for each ARC share they own, representing a total consideration of CA$32.80 per ARC share.The acquisition is expected to close in H2, ARC said."ARC is a high-quality, low-cost and top-quartile low carbon intensity producer that complements our existing footprint in Canada and strengthens our resource base for decades to come," Shell Chief Executive Wael Sawan said in a statement.

Shell to Acquire ARC Resources for $16.17 Billion

Market Chatter: British Columbia Expected to Raise Royalties on Gas Extraction From 2027 in Rule Revision

Canadian provincial government of British Columbia is working on revised royalties for natural gas extraction with proposals that have caused disquiet in the sector, potentially jeopardizing new investments, Bloomberg reported on Friday.Businesses were unnerved about a month ago when a government presentation suggest producers would pay a higher royalty that would be activated if prices rose to a certain level, people familiar with the matter who did not wish to be identified due to the confidentiality of the matter told Bloomberg.The revision took companies by surprise, given that the oil and gas royalty system has already been under review for a few years and because of the fact that companies have already confirmed drilling plans for the next 12 months.British Columbia's Ministry of Energy said in an emailed statement to Bloomberg that the revisions were almost complete and would enter into force on Jan. 1.has contacted the Ministry seeking comment.Canadian Prime Minister Mark Carney has encouraged new liquefied natural gas projects as part of reforms to the economy, the article said.While all of Canada's gas exports went to the US in 2023, the country began shipping LNG to Asia in 2025, diversifying away from the US after President Donald Trump's threats of tariff impositions.The CEO of the Calgary Chamber of Commerce, CEO Deborah Yedlin, wrote in a newspaper opinion piece recently that the province had embarked on a "royalty grab" that could jeopardize planned LNG projects near to final investment decision, the Bloomberg article said.It noted that discussions between British Columbia government representatives and energy companies have eased some of the latter's concerns, but not all of them.One LNG project planned, but not yet in existence, and which could be affected by royalty changes, is LNG Canada's second phase which would double its capacity to about 28 million metric tons per year. LNG Canada is backed by Shell (SHEL) and others.British Columbia's Energy Ministry said any new system would be more transparent and in keeping with today's market dynamics and strike a balance between the success of business and the province.(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

Market Chatter: Europe Aviation Fuel Strain Deepens; Shell Says Refineries in Max Output Mode

Europe's refineries are running at full tilt to boost jet fuel output as stocks fall to 597,000 metric tons and Middle East supply disruptions tighten markets, S&P Global reported Thursday.Frans Everts, president-director of Shell (SHEL) Nederland, said that European refineries have shifted to "max jet mode" amid Middle East supply disruptions that are tightening aviation fuel availability, the report added.Everts said refiners can only tweak output by a few percentage points as plants already prioritize jet fuel production over other products amid strong demand, according to the report.Shell operates the 404,000 barrels-per-day Rotterdam complex, Europe's largest refinery, which can only marginally increase jet fuel production despite surging airline demand, the report noted.Airlines have started responding to tighter supply, with Lufthansa canceling 20,000 flights through October while fares rise, and European Union officials plan to track jet fuel inventories across the bloc, the report said.Jet fuel and kerosene inventories at the Amsterdam-Rotterdam-Antwerp hub dropped to 597,000 tons, down 7% over the week and 10% over the year, reaching the lowest level since April 2020, the report said, citing data from Insights Global.The last comparable low came on April 2, 2020, when stocks stood at 572,000 tons, the report noted.Europe has increasingly turned to imports from the US Gulf Coast to offset reduced shipments from the Middle East, the report added.Everts said jet fuel tops demand in Europe, followed by diesel, while Shell shifts crude sourcing away from the Middle East and uses its trading network to secure supply and optimize flows, according to the report.The company expects significantly higher earnings from trading and optimization in its chemicals and products division over the quarter, after lower commodity prices weighed on profits earlier in 2025, the report added.Shell's Rotterdam site also produces intermediate components rather than only finished fuels, allowing the company to capture higher value by selling feedstocks that other processors can upgrade further, according to the report.has reached out to Shell for any comments.(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)Price: $89.54, Change: $+0.05, Percent Change: +0.06%

Sector Update: Energy Stocks Advance Late Afternoon

Energy stocks were higher late Tuesday afternoon, with the NYSE Energy Sector Index rising 1.1% and the State Street Energy Select Sector SPDR ETF (XLE) adding 1.3%.The Philadelphia Oil Service Sector Index was climbing 1.6%, while the Dow Jones US Utilities Index fell 1.8%.Front-month West Texas Intermediate crude oil rose 2.8% to $92.13 a barrel, and the global benchmark Brent crude contract was advancing 1.8% to $97.23 a barrel. Henry Hub natural gas futures increased 0.3% to $2.70 per 1 million BTU.In corporate news, Vaalco Energy (EGY) shares jumped 10% after the company said its Etame 14H development well is in an attic position after the company drilled, completed and placed it on production in Gabon.Halliburton (HAL) shares gained 4.1% after it reported lower Q1 adjusted net income and revenue that still topped analysts' expectations.Spain's National Markets and Competition Commission, or CNMC, has shelved its investigation into BP (BP), Repsol, and Cepsa's alleged collusive practices and abuse of their dominant market position, according to a translation of a Tuesday statement from the regulator. BP shares added 1.9%.Shell (SHEL) faces a fresh lawsuit by a Dutch climate activist organization demanding it immediately end its investments in new oil and gas projects, Reuters reported, citing court documents. Shell shares were up 0.9%.