Billionaire Bruce Berkowitz’s 6 Stock Picks with Highest Upside Potential

2. EOG Resources, Inc. (NYSE:EOG)

Fairholme Capital Management’s Stake: $245,160

Number of Hedge Fund Holders: 62

Average Upside Potential: 25.18%

EOG Resources, Inc is engaged in the exploration, development, production, and marketing of crude oil, natural gas liquids, and natural gas in producing basins in the United States and internationally. On May 2nd, Gabriele Sorbara from Siebert Williams Shank & Co reiterated a “Buy” rating on the stock with the associated price target lowered to $139.00.

EOG Resources delivered a strong first-quarter 2025 performance, with solid results in production, cash flow, and earnings.  The company posted adjusted net income of $1.6 billion, translating to $2.87 per share. It also generated $1.3 billion in free cash flow, showcasing its strong operational efficiency. The company’s oil production of 502,100 barrels per day surpassed guidance, and it also announced a new oil discovery in Trinidad.

EOG Resources also announced a more efficient 2025 plan, comprising a reduction in capital expenditures by 4.8% while maintaining almost the same level of oil production. This strategic move is anticipated to enhance free cash flow generation and shareholder returns.

Moreover, significant acquisitions and discoveries, such as the Eagle Ford bolt-on and the Beryl Oil Discovery in Trinidad, are quite likely to contribute positively to its future performance. The stock’s appeal is further strengthened by its commitment to returning nearly 100% of its free cash flow to shareholders through dividends and buybacks. The firm believes that EOG Resources is well-positioned for continued outperformance.