UPDATE: BMO Capital Markets Lowers PT on Unit Corporation on Uneasy E&P Outlook

In a report published Friday, BMO Capital Markets reiterated its Market Perform rating on Unit Corporation

, but lowered its price target from $60.00 to $50.00. BMO Capital Markets noted, “So why is growth slowing while the E&P cash flow gap increases, with after hedge realizations only ~$2.50Boe lower? We'll look for further color on the call, but the following could be reasons: ethane rejection, steeper corporate decline from the Granite Wash, declines from large Wilcox discovery wells drilled in 2012, and slower-than-expected ramp on the newly acquired Granite Wash acreage. While corporate capex was in line with consensus, E&P was higher than we estimated and, in our view, the $586mm budget looks high given planned rig activity (3-6 Granite Wash, 2 Marmaton, 1 HZ Miss, 1 Wilcox). Bottom line, we view our estimated low organic growth rate and E&P CF outspend as negative and are surprised by today's stock performance.” Unit Corporation closed on Thursday at $48.93.