Company: AWK
Filing Date: 2025-12-29
Form Type: S-4/A
Source: 0001193125-25-332292
Chunk: 147

Company: American Water Works Company, Inc.
Filing Date: 2025-12-29
Form: S-4/A
Chunk 147
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 effect to the merger (the “implied pro forma Essential ownership percentage”), which are presented below:

|              |     | Implied Exchange 
 Ratio (1)        |                 |     | Implied Pro Forma   
 Essential Ownership 
 Percentage (1)      |               |
| DCF Analysis |     |                  | 0.218x - 0.414x |     |                     | 24.0% - 37.5% |

| (1) | The high end of the range of the implied exchange ratios and the implied pro forma Essential ownership                                                                                                                                                    
 percentages represents the high end of the implied share price range or implied equity value range of Essential versus the low end of the implied share price range or implied equity value range of American Water, respectively. The low end of the     
 range of the implied exchange ratios and the implied pro forma Essential ownership percentages represents the low end of the implied share price range or implied equity value range of Essential versus the high end of the implied share price range or 
 implied equity value range of American Water, respectively.                                                                                                                                                                                               |

Moelis compared (i) the range of the implied exchange ratios above to the exchange ratio of 0.305x in the merger and (ii) the range of the implied pro forma Essential ownership percentages above to the pro forma Essential ownership percentage of 30.7% (assuming an exchange ratio of 0.305x in the merger). Selected Publicly Traded Companies Analysis – P/E Trading Multiples Moelis performed a selected publicly traded companies analysis of each of Essential and American Water based on P/E trading multiples. Financial data for the selected publicly traded companies were based on public filings and other publicly available information available as of October 23, 2025. In performing a selected publicly traded companies analysis of each of Essential and American Water, Moelis reviewed and analyzed, among other things, P/E multiples of each of the selected publicly traded companies based on Wall Street research analyst consensus earnings estimates for the calendar year ending December 31, 2026 (2026E) and the calendar year ending December 31, 2027 (2027E), and certain other financial information and market trading data related to the 95

following selected publicly traded companies that Moelis believed, based on its professional judgment and experience, were generally relevant in certain respects to Essential and American Water for purposes of its analysis. In the case of American Water, Moelis selected publicly traded utility companies that operate in the United States that primarily operate