MUFG analyst Michael McAllister kept his Neutral rating and $23 price target on SM Energy after its wider than expected loss in Q4, also lowering his FY19 EPS view to 33c from 95c and FY20 view to 97c from $1.88. The analyst notes that his forecast for the company's production of 127K boe/d in 2019 will create about $850M in cash flow - a shortfall relative to the $1.1B capital program expected - suggesting that the company will have to raise funds. McAllister further states that SM Energy's Permian development has made free cash flow generation elusive, adding that its margin of error to achieve its milestone is slim at the required "$61 WTI / $3.10 HH".