Chesapeake Energy Corporation (NYSE:CHK) announced yesterday that it has signed an agreement to sell a portion of its acreage and producing properties in its Haynesville Shale operating area in northern Louisiana for approximately $450 million to a private company. The $450 million asset sale will close in 1Q17 and includes 30 MMcf/d of production from 250 wells, 78,000 net acres, and CHK-estimated $15 million of 2017 EBITDA.

However, FBR analyst Joseph Allman doesn’t seem to be impressed. Following the announcement, the analyst reiterated an Underperform rating on the stock with a $5.00 price target, representing a potential downside of 35%.

Allman noted, “Since Chesapeake previously disclosed its Haynesville asset sales process and gave some visibility into the potential value, this morning’s press release should be no surprise in content or value. Still, finalizing the agreement is incrementally positive for CHK. We remain negative on the name and estimate very little equity value for the company.”

As usual, we recommend taking analyst notes with a grain of salt. According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Joseph Allman has a yearly average return of -6.1% and a 37% success rate. Allman has a 15.1% average return when recommending CHK, and is ranked #3969 out of 4256 analysts.

Out of the 14 analysts polled by TipRanks, 2 are bullish on Chesapeake Energy stock, 9 are neutral, and 3 are bearish. With a downside potential of 11%, the stock’s consensus target price stands at $6.83.