Company: AWK
Filing Date: 2025-12-17
Form Type: S-4
Source: 0001193125-25-321389
Chunk: 134

Company: American Water Works Company, Inc.
Filing Date: 2025-12-17
Form: S-4
Chunk 134
---
 0.347x |
| Wall Street Research Analysts Price Targets (For Reference Only) |     |                        | 0.265x – 0.492x |

| (1) | Essential’s implied equity value reference ranges compared against the implied equity value reference                                                                                                             
 ranges for American Water derived using 2026E P/E multiples, as described above under the caption “—Summary of Material Company Financial Analyses of American Water—Selected Publicly Traded Companies Analysis” |

87

Has/Gets Analysis

BofA Securities performed a Has/Gets Analysis to calculate the theoretical change in value for holders of shares of American Water common stock resulting from
the merger based on a comparison of (i) the pro forma ownership by holders of shares of American Water common stock after giving effect to the merger and (ii) the 100% ownership by holders of shares of American Water common stock on a
stand-alone basis. For American Water on a stand-alone basis, BofA Securities used the implied reference range indicated in its discounted cash flow analysis described above under “—Summary of Material Company Financial Analyses of American Water—Discounted Cash Flow Analysis.” BofA Securities then performed the same analysis by calculating the range of implied per share equity values allocable to holders of shares of American Water common stock on a pro forma
basis, giving effect to the merger, by assuming approximately 69.5% pro forma ownership, based on an estimate of the number of shares of American Water common stock to be issued to holders of shares of Essential common stock in the merger, utilizing
the results of the standalone discounted cash flow analyses for Essential and American Water described above under “—Summary of Material Company Financial Analyses of Essential—Discounted Cash Flow Analysis” and
under “—Summary of Material Company Financial Analyses of American Water—Discounted Cash Flow Analysis,” and taking into account the efficiencies and estimated transaction expenses, as provided by the management
of American Water. BofA Securities calculated the present value of the efficiencies as of December 31, 2023 by using a midpoint discount rate range of 6.25% to 7.25%. BofA Securities then compared these implied per share equity value reference
ranges to the implied per share equity value reference ranges derived for American Water on a standalone basis utilizing the results of the standalone discounted cash flow analysis for American Water described above.

This analysis indicated approximate implied pro forma per share equity value reference ranges (rounded to the nearest $0.05) for