EOG Resources (NYSE:EOG) Clarifies Guidance Cut

A number of investors were stymied and concerned over the guidance cut by EOG Resources (NYSE:EOG), which wasn't communicated clearly, and left many with concerns over the performance of the company.

Barclays says, "The November guidance cut had little to do with operating performance/execution. EOG provided little help at the time to investors trying to understand the negative guidance on its Q3 call but it has, in subsequent meetings, provided explanations. The 11%/18% cuts in 2011/2012 volumes were more a result of reduced drilling activity than of any other factor. Confused investors assumed drilling results, especially in the Eagleford, were the main reason for the disappointment. We expect investors to be more willing to focus on the positives going forward."

Barclays reiterates an "Overweight" rating on EOG Resources (EOG), which closed Wednesday at $102.28, gaining $2.41, or 2.41 percent. Barclays boosted their price target on EOG from $117 to $124.