UPDATE: Bank of America Downgrades Sandridge Mississippian Trust II on Production, Distribution Outlook

Bank of America downgraded Sandridge Mississippian Trust II

from Neutral to Underperform and lowered the price target from $19.00 to $14.00. Bank of America noted, "We are reducing our PO based on our lack of confidence in the company's ability to meet its targeted production and cash distribution stream. Our new PO is based on our NAV model anchored on our revised assumptions for the reserves and production estimates. However, our analysis of the well results over the last one year period, suggest that SDR wells are underperforming SD wells implying future production and distributions could be under further pressure. Accordingly, we are moving to Underperform and are cutting our PO to $14 from $19." Sandridge Mississippian Trust II closed at $15.04 on Wednesday.