Day: April 30, 2026

Shell (SHELL NA) announced this week that they are acquiring ARC Resources (ARX CN). Arc Resources is a gas business in the Montney Region of Canada and is a name that the investors of Smead Capital Management are fairly familiar with. For our investors who aren’t familiar with this region, it’s often referred to as liquids-rich, meaning that there is great ability to extract natural gas liquids (NGLs) from wells there. When they get gas from those wells that don’t have a pipeline to get out of the basin, the gas sells at the local AECO price. When they get NGLs out of those wells, they sell at a price similar to WTI. If you’re reading this, you should be thinking, “Wait, so gas companies in the Montney aren’t in the gas business?” No. They make most of their money from the oil prices, like WTI. […]