Company: AWK
Filing Date: 2025-12-17
Form Type: S-4
Source: 0001193125-25-321389
Chunk: 119

Company: American Water Works Company, Inc.
Filing Date: 2025-12-17
Form: S-4
Chunk 119
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 for the six months ended December 31, 2025, as American Water did not prepare unlevered free cash flow projections for the full year 2025E since only the six-month 2025 period was relevant for the discounted cash flow analysis, and includes $795 million of proceeds to be received from the amended secured seller note related to the sale of American Water’s 
 former Homeowner Services Group business.                                                                                                                                                                                                                                                                                                                                                                                                              |

Certain Unaudited Prospective Financial Information of Essential Essential prepared certain non-publicunaudited prospective financial information for the years ending December 31, 2025 through December 31, 2030 that reflects Essential management’s financial and business outlook for Essential on a standalone basis, which is referred to as the Essential projections. Essential management provided the Essential projections to the Essential board to assist it in its evaluation of the merger and to Moelis, and the Essential board directed Moelis to use and rely upon the Essential projections for purposes 77

of its financial analyses and fairness opinion. Essential also provided the Essential projections to American Water in connection with its due diligence. American Water provided the American Water board and BofA Securities with the Essential projections following receipt thereof from Essential, and the American Water board directed BofA Securities to use and rely upon the Essential projections for purposes of its financial analyses and opinion. The Essential projections depend, in large part, upon numerous estimates, variables, and assumptions regarding future events, including revenue and customer growth, weather, the ability to manage expenses, capital expenditures and recovery of costs through customer rates as permitted by applicable regulators. The Essential projections are presented below:

| Essential Projections (Consolidated)                                                         
 ($ in millions)                                                                              |     | Year Ending December 31, 
 2025E                    |       |     | 2026E |       |     | 2027E |       |     | 2028E |       |     | 2029E |       |     | 2030E |       |
|:---------------------------------------------------------------------------------------------|:----|:-------------------------|------:|:----|:------|------:|:----|:------|------:|:----|:------|------:|:----|:------|------:|:----|:------|------:|
| Net revenue (1)                                                                              |     | $                        | 2,042 |     | $     | 2,157 |     | $     | 2,356 |     | $     |