UPDATE: Canaccord Genuity Lowers PT on SandRidge Energy on Higher Gas Composition

In a report published Monday, Canaccord Genuity reiterated its Sell rating on SandRidge Energy

, but slightly lowered its price target from $3.00 to $2.00. Canaccord Genuity noted, “We lowered our target price $1 to $2 per share due to a higher gas composition (production/capital allocation) in the Mississippian play. Specifically, we increased the gas percentage of Miss wells ~5% to ~70%. Assuming a $40K/Boepd production rate multiple for the Gulf of Mexico business (~$1 billion) and ~5K/Mmcfepd production rate multiple for the company's gas assets outside the Mississippian (~$0.65 billion) implies a Mississippian leasehold value of ~$1,500 per acre using year-end '13 enterprise value calculated with a $2 per share equity value.” SandRidge Energy closed on Friday at $5.41.