To shoot the breeze is an idiomatic expression, usually American, that has one meaning : To chat idly and without purpose. Using this context, two people having a relaxed conversation are certainly shooting the breeze.
Let’s see some examples :
– We spend hours shooting the breeze and drinking beer.
– It was a good time shooting the breeze with you, Make.
– I just met her tonight, but we shot the breeze for half an hour.