Tidewater Inc.

Tidewater is the largest supply vessel operator in the world and one that is going to become even larger after the completion of its merger with Hornbeck. With a total market capitalization of approximately $1.4 billion, Tidewater is one of the largest shipping companies in the world. In the past year, Tidewater’s stock (TDW-NYSE) appreciated by approximately 90% as a result of its satisfactory financial performance and its prospects for even greater growth both because of favorable market conditions and aggressive expansion plans.

In late 1994, Tidewater invested $240 million to acquire the assets of Brazos Gas Compression Company ($35m) and the assets of Halliburton Company ($205m), attempting to diversify towards the gas compression services. As a result, in the six months ended September 30, 1995 (fiscal 1996), revenues from the gas compression segment increased by 80% compared to the same period in 1994 (fiscal 1995), to $30.5 million. This segment now represents 19% of total revenues compared to 11.50% for the same period in 1994. The compression segment rents services and equipment to the energy industry.

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