Barclays analyst William Thompson downgraded SM Energy to Underweight from Equal Weight and lowered his price target for the shares to $13 from $18. While the company's high leverage provides "oil beta with arguably premier Midland acreage," continuous drilling obligations could restrict it from pivoting away from the Eagle Ford condensate, Thompson tells investors in a research note. If SM isn't able to extend its Eagle Ford joint venture, which is possible, or obtain lease concessions, it will be on the hook to drill and complete 30-plus Eagle Ford wells per year, adds the analyst. This translates into an estimated 40%-plus gain in annual Eagle Ford capex relative to the 2019 budget, says Thompson.