Company: AWK
Filing Date: 2025-12-17
Form Type: S-4
Source: 0001193125-25-321389
Chunk: 127

Company: American Water Works Company, Inc.
Filing Date: 2025-12-17
Form: S-4
Chunk 127
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 compared to the implied value of the exchange ratio of $43.84 per share of Essential common stock (calculated as the exchange ratio of 0.305 multiplied by the closing price of American Water common stock on October 22, 2025, which is referred to as the Implied Exchange Ratio Value), and the closing price per share of Essential common stock as of October 22, 2025:

| Implied Equity Value Reference Range Per 
 Share                                    
 2026E P/E                                |     | 2027E P/E |                |     | 2026E P/E SotP |                |     | Implied Exchange 
      Ratio Value |     |   October 22, 2025 
  Closing Price Per 
 Share of Essential 
       Common Stock |
|:-----------------------------------------|:----|:----------|:---------------|:----|:---------------|:---------------|:----|-----------------:|:----|-------------------:|
| $40.95 – $46.25                          |     | $         | 40.10 – $45.35 |     | $              | 40.20 – $48.60 |     |           $43.84 |     |             $41.69 |

No selected publicly traded company used in this analysis is identical or directly comparable to Essential. Accordingly, an evaluation of the results of this analysis is not entirely mathematical. Rather, this analysis involves complex considerations and judgments concerning differences in financial and operating characteristics and other factors that could affect the public trading or other values of the companies to which Essential was compared. Selected Precedent Transactions Analysis BofA Securities reviewed, to the extent publicly available, financial information relating to the following selected transactions involving publicly traded companies in the water utility industry or gas local distribution industry announced since 2010. Water Utility Industry

| Announcement Date 
 March 3, 2010     
 July 26, 2018     |     | Acquiror                 
 Investor Group           
 PGGM                     |     | Target                  
 SouthWest Water Company 
 Suez                    |
|:------------------|:----|:-------------------------|:----|:------------------------|
| March 15, 2018    |     | SJW Group                |     | Connecticut Water       |
| January 27, 2025  |     | Aquarion Water Authority |     | Aquarion                |

Gas Local Distribution

| Announcement Date 
 October 23, 2018  
 February 11, 2022