Company: AWK
Filing Date: 2025-12-17
Form Type: S-4
Source: 0001193125-25-321389
Chunk: 129

Company: American Water Works Company, Inc.
Filing Date: 2025-12-17
Form: S-4
Chunk 129
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 of June 30, 2025 for the gas local distribution segment, each as reflected in the Essential forecasts. BofA Securities then calculated an implied enterprise value reference range for Essential based on the combined range of such implied enterprise values. BofA Securities then calculated an implied equity value per share reference range for Essential by deducting from this range of implied enterprise values an estimate of the net debt of Essential as of June 30, 2025, as reflected in Essential’s Quarterly Report on Form 10-Qfor the fiscal quarter ended June 30, 2025, as filed with the SEC on August 4, 2025, and dividing the results by a number of fully-diluted shares of Essential common stock outstanding as of October 20, 2025, as provided by the management of Essential. This analysis indicated the following approximate implied equity value reference ranges per share of Essential common stock (rounded to the nearest $0.05), as compared to 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                            |     | Implied Exchange Ratio 
 Value                  |       |     | October 22, 2025 Closing Price Per 
 Share of Essential Common Stock    |       |
|:-------------------------------------|:----|:-----------------------|------:|:----|:-----------------------------------|------:|
| $38.00 – $62.60                      |     | $                      | 43.84 |     | $                                  | 41.69 |

No selected precedent transaction used in this analysis or the applicable target company is identical or directly comparable to Essential or the merger. 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, market conditions, and other factors that could affect the merger or other values of the companies or transactions to which Essential and the merger were compared. Discounted Cash Flow Analysis BofA Securities performed a discounted cash flow analysis of Essential to calculate a range of implied present values per share of Essential common stock utilizing estimates of the standalone, unlevered, after-taxfree cash flows Essential was expected to generate over the period from June 30, 2025 through December 31, 2030 based on the Essential forecasts. BofA Securities calculated a terminal value for Essential by applying (i) a net income exit multiple range of 21.75