Slide 1: Shell to acquire ARC Resources
INDICATIVE DRAFT DATA – FOR DISCUSSION ONLY – SUBJECT TO BOARD APPROVAL Shell plc Shell to acquire ARC Resources April 27, 2026 Capital Markets Day | March 2025 CONFIDENTIAL 1 Capital Markets Day | March 2025
Slide 2: Cautionary note
Cautionary note The companies in which Shell plc directly and indirectly owns investments are separate legal entities. In this presentation “Shell”, “Shell Group” and “Group” are sometimes used for convenience to reference Shell plc and its subsidiaries in general. Likewise, the words “we”, “us” and
Slide 3: Unique value creation opportunity
Unique value creation opportunity STRATEGIC RATIONALE TRANSACTION $16.4 billion¹ Accelerates Shell’s strategy Enterprise Value Sustains material liquids production, extends reserve life, and strengthens Integrated Gas business Increases Integrated Gas & Upstream 2030 production CAGR to 4% versus
Slide 4: Combination strengthens core portfolio and delivers long-term value
Combination strengthens core portfolio and delivers long-term value 2025 2030 2035 2040+ Our starting point Extending our advantaged portfolio Free Cash Flow Growth Track Record Established Leading Integrated Gas & LNG Business No. #1 Listed LNG supplier ARC Combination Strengthening core portfoli
Slide 5: Benefiting from a portfolio of high-quality growth assets with inventory of 15+ years
Benefiting from a portfolio of high-quality growth assets with inventory of 15+ years Kakwa Greater Dawson Sunrise Attachie ~190 kboe/d (50% liquids, 2025) ~96 kboe/d (80% gas, 2025) ~42 kboe/d (99% gas, 2025) ~28 kboe/d (60% liquids, 2025) Inventory life ~15 years Inventory life ~25 yea
Slide 6: Combining best-in-basin across liquids (ARC) and gas (Shell) in Canada
Combining best-in-basin across liquids (ARC) and gas (Shell) in Canada Acquiring a best-in-basin liquids operator Complementing Shell’s best-in-basin natural gas capabilities Average Oil Well Type Curve, wells drilled during 2019 – 2024 Average Gas Well Type Curve, wells drilled during 2019 – 2024 K
Slide 7: Natural gas resources benefit from diversified price exposure
Natural gas resources benefit from diversified price exposure Consistent natural gas price premium Price and index diversification which is set to increase over time Natural Gas Realisations versus Benchmark Prices CAD $/mcf 8 6 4 2 0 2019 2020 2021 2022 2023 2024 2025 ARC AECO Source: ARC Investor
Slide 8: Combination establishes Canada as a low-cost heartland for Shell
Combination establishes Canada as a low-cost heartland for Shell Our in-country position Transformational portfolio addition creates a scale player Top Montney producers², kboe/d #1 LNG operator #3 Shales operator Advantaged cost position in the country in the Montney Basin versus Montney peers Atta
Slide 9: Generating synergies with significant additional upside
Generating synergies with significant additional upside Total annual average value of run rate synergies¹ Additional sources of upside >$250 million p.a. Drilling, completion and tie-in economies of scale Toll savings Groundbirch integration and toll savings Shell optimisation Gold Creek facilit
Slide 10: Transaction enhances production and FCF today and for decades to come
Transaction enhances production and FCF today and for decades to come Incremental Production¹ Incremental free cash flow³ ~390 kboe/d Total average production to 2030 kboe/d $ billion 500 ~130 kbbl/d Liquids average production to 2030 2 400 300 ~100 kboe/d Production growth² by 2035 1 200 100 ~$1.5
Slide 11: Increases 2030 production growth CAGR to 4% while extending resource base
Increases 2030 production growth CAGR to 4%¹ while extending resource base High quality low-risk resource Increasing new production from 1 to 1.4 Growing our commercial resource base million boe/d by 2030 or 4% CAGR1 by ~1/3rd ARC production 2030, kboe/d Peak production from new projects Commercial
Slide 12: Maximising value through Shell's integrated value chain
Maximising value through Shell’s integrated value chain Lower supply and shipping costs versus US Gulf Coast LNG Canada Phase 2¹ provides optionality to further generates a structural margin advantage accelerate shift towards non-US international pricing Average² price exposure of the potential pro
Slide 13: Delivering long term shareholder value through sequenced capital allocation
Delivering long term shareholder value through sequenced capital allocation A differentiated investment case Supporting share price Enabling accretive growth initially prioritising share buybacks outperformance focused M&A Shareholder distributions as % of CFFO1 Share price2 performance since Januar
Slide 14: Value creating capital allocation and discipline funds opportunity
Value creating capital allocation and discipline funds opportunity Non-core divestments help fund transaction cash component Multiple arbitrage supports shareholder value creation Acquisition & Divestment Capital Recycling Acquisition & Divestment EV/EBITDA Multiple³ $ billion 1.3 3.4 8.7x 1.0 4.6x
Slide 15: Unchanged value led approach to capital allocation
Unchanged value led approach to capital allocation Balanced Capital Allocation Total Distributions Cash Capex Enhanced shareholder distributions Disciplined investment 40–50% of CFFO through the cycle $20–22 billion p.a. 2027–2028 Buyback Consistency Dividend Consistency IGU Capex DSR Capex 17 conse
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Slide 17: Definitions and Abbreviations
Definitions and Abbreviations Metric Definition Metric Abbreviations Proved and probable (2P) reserves + best estimate of contingent resources (2C), under the Society of Petroleum Engineers Resource Classification System, reported on a Shell 2P+2C AECO Share basis. Canadian natural gas benchmark pri