Company: AWK
Filing Date: 2025-12-17
Form Type: S-4
Source: 0001193125-25-321389
Chunk: 142

Company: American Water Works Company, Inc.
Filing Date: 2025-12-17
Form: S-4
Chunk 142
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 approved by a Moelis fairness opinion committee. Summary of Financial Analyses The following is a summary of the material financial analyses presented by Moelis to the Essential board at its meeting held on October 26, 2025, in connection with delivery of its opinion. This summary describes the material analyses underlying Moelis’ opinion but does not purport to be a complete description of the analyses performed by Moelis in connection with its opinion. Some of the summaries of financial analyses below include information presented in tabular format. In order to fully understand Moelis’ analyses, the tables must be read together with the text of each summary. The tables alone do not constitute a complete description of the analyses. Considering the data described below without considering the full narrative description of the financial analyses, including the methodologies and assumptions underlying the analyses, could create a misleading or incomplete view of Moelis’ analyses. For the purposes of Moelis’ analyses:

| • |     | “Net Income” was generally calculated as the relevant company’s net earnings after                    
 subtracting operating expenses, depreciation and amortization, interest, and taxes from net revenues. |

| • |     | “EBITDA” was generally calculated as the relevant company’s earnings before interest,                                                                          
 net, income tax benefit or expense, depreciation and amortization, as adjusted to exclude any one-time and non-recurring items for a specified period of time. |

| • |     | “Rate Base” was generally calculated as the relevant company’s net regulated investment                                                                                                                                                                   
 used in providing service and on which the utility is authorized to earn a return. While components vary by jurisdiction and utility, Rate Base typically includes net utility plant in service (original cost less accumulated depreciation) and certain 
 working capital or regulatory items, less accumulated deferred income taxes and other approved deductions, all as determined by the relevant regulatory authority.                                                                                        |

92

| • |     | “P/E” multiple means a multiple of stock price to earnings. |

| • |     | “TEV/Rate Base” multiple means a multiple of TEV to Rate Base. |

| • |     | “TEV/EBITDA” multiples means a multiple of TEV to EBITDA. |

| • |     | Implied share price calculations for each of Essential and American Water, as shown in the financial analyses                                   
 below, were calculated by Moelis using capitalization information provided by Essential management and American Water management, respectively. |

Discounted Cash Flow Analysis Utilizing