Company: AWK
Filing Date: 2025-12-17
Form Type: S-4
Source: 0001193125-25-321389
Chunk: 69

Company: American Water Works Company, Inc.
Filing Date: 2025-12-17
Form: S-4
Chunk 69
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 significantly larger than the current size of either American
Water’s or Essential’s respective businesses. The combined company’s ability to successfully manage this expanded business will depend, in part, upon management’s ability to design and implement operational, managerial,
financial, and strategic initiatives that address not only the integration of two independent standalone companies, but also the increased scale and scope of the combined business with its associated increased costs and complexity.

In addition, the success of the merger will depend, in part, on the ability of each of American Water and Essential to successfully execute its business
strategy. If the combined company is not able to achieve its business strategy on a timely basis, or otherwise fails to perform in accordance with the expectations of the parties, the anticipated benefits of the merger may not be realized fully or
at all, and the merger may materially adversely affect the results of operations, financial condition, and prospects of the combined company, and, consequently, the market value of the combined company’s common stock.

The merger will combine companies that are affected by developments in the water and wastewater utility industries and, additionally, with respect to Essential, the natural gas industry, including changes in regulation. Any failure to adapt to changing regulatory environments after the merger could adversely affect the stability of the combined company’s earnings.

Because American Water, Essential, and their respective subsidiaries are significantly regulated in the United States, the two companies have been and will
continue to be affected by legislative, political, and regulatory

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developments. After the merger, the combined company and/or its subsidiaries will be subject to extensive regulation in the states in which the combined company will operate. The costs and
burdens associated with complying with these regulations may have an adverse effect on the combined company. Moreover, potential legislative, political, or regulatory changes, or other similar changes, may create greater risks to the stability of
the combined company’s revenue, income, and earnings generally.

American Water’s and Essential’s projections and financial forecasts are based on various assumptions that may not prove to be correct.

The projections and financial forecasts set forth in
“Certain Unaudited Prospective Financial Information” beginning on page 75 are based on assumptions of, and information available to, American Water and Essential at the time they were prepared and provided to the American
Water board and the Essential board, respectively, along with their respective financial advisors. American Water and Essential do not know whether such projections, forecasts, and assumptions will prove correct. Any or all of such projections,
forecasts, and assumptions may turn out