Spencer Platt/Getty Images News Exxon Mobil (NYSE:XOM) and Shell (NYSE:SHEL) are looking to sell their Aera oil and gas joint venture in California, and are in advanced talks with a buyer, Reuters reported on Wednesday. Aera is one of California's largest oil producers at 125K bbl/day of oil with 32M cf/day of natural gas, generating ~$1B in cash annually, which Reuters said would put the value of any deal at several billion dollars. Reuters reported a year ago that Shell (SHEL) wanted to exit the venture, which operates mostly in central California's San Joaquin Valley, and now Exxon (XOM) has joined the effort, assisted by financial advisor JPMorgan Chase. Exxon (XOM) has said it wants to focus on Guyana, Brazil and liquefied natural gas projects, and it disclosed divestments valued at more than $3B in this year's Q2, including in Texas, Canada and Romania. Investing in Exxon (XOM) "is a fantastic way to prepare a portfolio for prolonged inflation," Leo Nelissen writes in a bullish analysis published recently on Seeking Alpha.
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