1334 ET - A muted market response to Shell's planned acquisition of Arc Resources misses good value for the target, strong strategic logic and simple economics, Jefferies' Mark Wilson argues. The strategic fit of Arc was identified several years ago, but the timing now looks more appropriate given a rise in Shell's share price and organic business improvement, the analyst says. Arc bring some $1.5 billion in annual free cash flow, while the Canadian company's circa $1.3 billion in capital expenditure can be fully absorbed into Shell's spending plans, Wilson says. Additionally, he says the Arc deal appears to an enabler for the second phase of the LNG Canada operation, where a final investment decision is expected later in 2026. (robb.stewart@wsj.com)

(END) Dow Jones Newswires

April 28, 2026 13:34 ET (17:34 GMT)

Copyright (c) 2026 Dow Jones & Company, Inc.