ARC Resources (ARX) announced it’s being taken out by Shell for ~$22B, a near-30% premium - but roughly in-line with where the stock has traded historically…

… given recent pressure from pulled production guidance at Attachie. Shell management expects $250M of run-rate synergies from the addition of ARC’s liquids-heavy portfolio…

… making it the third largest Montney producer and driving a bid for peers with exposure to the basin. With growing confidence in LNG Canada Phase 2…

… enhanced cash flow profiles from supply disruptions, and modest valuations…

… this might not be the last energy deal we see this year.