According to Reuters, Shell (NYSE: SHEL) and ExxonMobil (NYSE: XOM) are selling their largest natural gas production joint venture (50:50) in the Netherlands. The report stated that a sale of this asset could result in the two energy giants netting over $1 billion.
This could be a part of the companies’ efforts to dispose of aging assets. The NAM JV started operations in 1963 from the Groningen field in the Netherlands. Reuters stated that this venture has been a major natural gas producer for Europe and the Netherlands for decades.
However, there has been a drop in production output since 2014 even as the Dutch Government has decided to shut down the Groningen field to reduce seismic risk in that region.
The NAM assets are expected to be valued in the range of $1 billion to $1.5 billion.
Is XOM a Good Stock to Buy?
Wall Street analysts remain bullish about XOM with a Strong Buy consensus rating based on 10 Buys and two Holds.
XOM’s average price prediction of $112.21 implies 18.2% upside potential.
