Company: AWK
Filing Date: 2025-12-17
Form Type: S-4
Source: 0001193125-25-321389
Chunk: 411

Company: American Water Works Company, Inc.
Filing Date: 2025-12-17
Form: S-4
Chunk 411
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 with each other and with the trading histories of other companies we deemed relevant;  |

B-1

B-2

| (9) | compared certain financial and stock market information of Essential and American Water with similar 
 information of other companies we deemed relevant;                                                   |

| (10) | compared certain financial terms of the Transaction to financial terms, to the extent publicly available, of 
 other transactions we deemed relevant;                                                                       |

| (11) | reviewed the relative financial contributions of Essential and American Water to the future financial 
 performance of the combined company on a pro forma basis;                                             |

| (12) | reviewed a draft, dated October 21, 2025, of the Agreement (the “Draft Agreement”); and |

| (13) | performed such other analyses and studies and considered such other information and factors as we deemed 
 appropriate.                                                                                             |

In arriving at our opinion, we have assumed and relied upon, without independent verification, the accuracy and completeness of the financial and other information and data publicly available or provided to or otherwise reviewed by or discussed with us and have relied upon the assurances of the managements of American Water and Essential that they are not aware of any facts or circumstances that would make such information or data inaccurate or misleading in any material respect. With respect to the Essential Forecasts, we have been advised by Essential, and have assumed that they have been reasonably prepared on bases reflecting the best currently available estimates and good faith judgments of the management of Essential as to the future financial performance of Essential. With respect to the American Water Forecasts, the Efficiencies and the NOLs, we have assumed, at the direction of American Water, that they have been reasonably prepared on bases reflecting the best currently available estimates and good faith judgments of the management of American Water as to the future financial performance of Essential and American Water and the other matters covered thereby. We have relied, at the direction of American Water, on the assessments of the management of American Water as to American Water’s ability to achieve the Efficiencies and have been advised by American Water, and have assumed, that the Efficiencies will be realized in the amounts and at the times projected. We have relied, at the direction of American Water, on the assessments of the management of American Water as to the ability of Essential to utilize the NOLs and have been advised by American Water, and have assumed, at the direction of American Water, that such NOLs will be utilized in the amounts and at the times projected. We have not made or