Here are 1-2 brief analogies to describe Octave Specialty (OSG):

• It's like the UPS or FedEx of the seas, specifically for crude oil and petroleum products.
• Think of it as a marine version of an oil pipeline company like Kinder Morgan.

• Crude Oil Shipping: Provides maritime transportation services for crude oil using its fleet of oceangoing vessels.
• Petroleum Products Shipping: Offers maritime transportation for various refined petroleum products within the United States flag trade.

Samuel Norton, Chief Executive Officer

Samuel Norton has served as Chief Executive Officer of OSG since July 2016 and was previously its President until October 2024. He serves on the OSG Board of Directors since the acquisition by Saltchuk in July 2024, and served on the Board since 2014 when OSG was publicly traded on the NYSE. Prior to leading OSG, Mr. Norton co-founded SeaChange Maritime, LLC in 2006, an owner and operator of container ships, and served as its Chairman and Chief Executive Officer. He spent 17 years as a senior executive officer at Tanker Pacific Management (Singapore) Pte. Ltd. In 1995, Mr. Norton initiated and led the entry of the Sammy Ofer Group into the container segment, acquiring and operating the first container vessels in the group's fleet. While at Tanker Pacific, he conceived and started Tanker Pacific Offshore Terminals, which owns and operates a fleet of floating, offshore oil storage terminals. Before joining the Ofer Group, Mr. Norton played a lead role in the Asian distressed assets group of the First National Bank of Boston. He holds a Bachelor of Arts in Chinese Language and Literature from Dartmouth College.

Daniel Campbell, Vice President, Finance

Daniel Campbell is the Vice President, Finance of OSG, overseeing the Company's finance, purchasing, and IT functions. He joined OSG in January 2025. Previously, Mr. Campbell was Senior Director of IT at Autoliv, where he directed business processes for integration, automation, and efficiency. He also held roles as Senior Director of Finance and Chief Financial Officer for Autoliv-Nissin Brake Systems. Mr. Campbell brings over 25 years of experience in driving business transformation and growth.

Tim DiPietropolo, President and Chief Operating Officer

Tim DiPietropolo serves as President and Chief Operating Officer of OSG, with oversight of all operations, maintenance, SQE, and commercial operations for the Fleet. He joined OSG in October 2024. Prior to OSG, Mr. DiPietropolo was Vice President of Operations & Marine with Tropical Shipping, holding various leadership roles since July 2000. In 2013, he also held senior leadership positions with Maersk Line as Director of U.S. Government Cargo Execution, and with SeaLand as Head of Trade for the Caribbean & Central America markets.

Deanna Marshall, Vice President, Human Resources and Labor Relations

Deanna Marshall is the Vice President, Human Resources and Labor Relations of OSG, overseeing the company's human resources and labor relations functions. She began her affiliation with OSG in November 2006 as part of the acquisition of Maritrans, where she served as Human Resources Manager since 2000. Ms. Marshall has served as OSG's top human resources professional as Director, Human Resources since 2015 and Vice President of Human Resources from 2013-2015.

Jerry Kachler, Vice President, Fleet Operations

Jerry Kachler is the Vice President, Fleet Operations of OSG, with oversight of operations and maintenance for the OSG Fleet. Prior to September 2024, he was Fleet Manager for OSG since 2012. Mr. Kachler began his affiliation with OSG in November 2006 as part of the acquisition of Maritrans, where he was Technical Superintendent. He joined Maritrans in May 2003 as Manager, Major Projects. Prior to Maritrans, Mr. Kachler was a Senior Project Manager with Tyco Telecom for seven years, managing undersea fiber optic cable installations.

The key risks to Overseas Shipholding Group, Inc. (OSG) are:

1. High Indebtedness and Liquidity Risk: Overseas Shipholding Group, Inc. faces risks related to its significant indebtedness and its ability to generate sufficient cash flow. As of December 31, 2022, OSG had $423 million in outstanding indebtedness. A lower cash flow generation ability could hinder the company's capacity to expand or even maintain current operations, and weaker market conditions could pose serious challenges in meeting its obligations. Historically, the company filed for bankruptcy protection in 2012, partly due to billions of dollars in debt.
2. Cyclicality and Volatility of Shipping Rates and Market Demand: The shipping industry is inherently cyclical and subject to significant fluctuations in global shipping rates and demand for crude oil and petroleum products. Historically, a decline in global shipping rates, coupled with a slowdown in demand for oil, contributed to OSG filing for Chapter 11 bankruptcy protection in 2012 after experiencing 13 consecutive quarters of net losses. An oversupply of tankers in the market can also depress rates, impacting the company's profitability.
3. Regulatory Compliance and Environmental Risks: OSG has faced significant regulatory challenges in the past, highlighting ongoing compliance risks. In 2006, the company pleaded guilty to 33 felony counts related to deliberate vessel pollution, resulting in a record $37 million penalty. Furthermore, in 2017, the Securities and Exchange Commission (SEC) charged OSG and its former CFO for failing to recognize hundreds of millions in tax liabilities, which led to a material understatement of its income tax liabilities by approximately $512 million and contributed to its 2012 bankruptcy filing. The shipping business also carries inherent risks of environmental damage and potential regulatory changes.

The addressable market for Octave Specialty (OSG), also known as Overseas Shipholding Group, Inc., in the transportation of crude oil and petroleum products in the United States flag trade by oceangoing vessels, can be estimated by the size of the Jones Act tanker market.

The Jones Act tanker market, which governs domestic waterborne transportation in the U.S., consists of approximately 43 self-propelled tankers. These vessels include medium-range product tankers and larger Aframax or Suezmax vessels used for crude oil, such as those serving the Alaska trade.

The daily charter rates for medium-range product tankers in the Jones Act trade are estimated to be around $90,000 per day.

Based on these figures, the estimated annual market size for the Jones Act self-propelled tanker fleet in the U.S. region is approximately $1.41 billion (43 vessels * $90,000/day * 365 days/year). This market size is for the U.S. region.

• Sustained Strong Charter Rates and Fleet Utilization: Overseas Shipholding Group expects to benefit from continued strong demand in the tanker market, enabling the company to maintain and extend its preferred profile of medium-term charters at favorable and escalating rates. This strategy provides strong cash flow and high forward revenue visibility for its U.S. Flag fleet.
• Expansion of Specialized Services: Growth in specific, specialized services, such as increased Delaware Bay lightering volumes, is expected to contribute to revenue growth. This demonstrates the company's ability to capitalize on niche market opportunities.
• New Articulated Tug Barge (ATB) Construction Projects: The company anticipates future revenue streams from new ATB construction projects. Discussions with customers are underway for these projects, which are expected to have deliveries three to four years after contract signing and come with assumed minimum firm contract periods of seven years following delivery, providing long-term revenue visibility.

Share Repurchases

• Overseas Shipholding Group (OSG) repurchased $75.7 million of stock and retired warrants from June 2022.
• In December 2023, the Board authorized an additional $25 million for common stock repurchases under its existing program.
• As of August 2023, OSG had repurchased 16.76 million shares through open market and off-market transactions over the preceding fifteen months, at an average price of $3.33 per share.

Share Issuance

• No significant share issuances were reported for Overseas Shipholding Group over the last 3-5 years. The number of outstanding shares generally decreased during this period due to repurchases.

Inbound Investments

• In July 2024, Overseas Shipholding Group was acquired by Seattle-based transportation company Saltchuk, with the transaction valued at $950 million.
• Saltchuk commenced a tender offer in May 2024 to acquire all outstanding shares of OSG it did not already own for $8.50 per share in cash.
• The acquisition represented an aggregate equity value of approximately $653 million for OSG.

Outbound Investments

• No information on significant outbound investments made by Overseas Shipholding Group was available within the last 3-5 years.

Capital Expenditures

• In 2023, OSG made capital investments in Alaska class vessels.
• The company committed nearly $60 million for lifecycle engine upgrades to its Alaskan Class fleet.