Company: AWK
Filing Date: 2025-12-29
Form Type: S-4/A
Source: 0001193125-25-332292
Chunk: 121

Company: American Water Works Company, Inc.
Filing Date: 2025-12-29
Form: S-4/A
Chunk 121
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ofA Securities’ opinion is qualified in its entirety by reference to the full text of the written opinion. BofA Securities delivered its opinion to the American Water board for the benefit and use of the American Water board (in its capacity as such) in connection with and for purposes of its evaluation of the merger. BofA Securities expressed no opinion or view as to any terms or other aspects or implications of the merger (other than the exchange ratio to the extent expressly specified in such opinion) and no opinion or view was expressed as to the relative merits of the merger in comparison to other strategies or transactions that might be available to American Water or in which American Water might engage or as to the underlying business decision of American Water to proceed with or effect the merger. BofA Securities’ opinion does not constitute a recommendation as to how any shareholder should vote or act in connection with the merger or any related matter. In connection with rendering its opinion, BofA Securities has, among other things:

| (1) | reviewed certain publicly available business and financial information relating to Essential and American 
 Water;                                                                                                    |

| (2) | reviewed certain internal financial and operating information with respect to the business, operations, and                                                                                                                                       
 prospects of Essential furnished to or discussed with BofA Securities by the management of Essential, including certain financial forecasts relating to Essential prepared by the management of Essential, which are referred to as the Essential 
 forecasts;                                                                                                                                                                                                                                        |

| (3) | reviewed certain internal financial and operating information with respect to the business, operations, and                                                                                                                                             
 prospects of American Water furnished to or discussed with BofA Securities by the management of American Water, including certain financial forecasts relating to American Water prepared by the management of American Water, which are referred to as 
 the American Water forecasts;                                                                                                                                                                                                                           |

| (4) | reviewed and discussed with members of senior management of American Water estimates of the amount and                                                             
 utilization of certain net operating losses and other tax attributes of Essential prepared by the management of American Water, which are referred to as the NOLs; |

| (5) | reviewed certain estimates as to the impact of incremental rate base investment and the amount and timing of                                                      
 temporary cost efficiencies, which are referred to, collectively, as the efficiencies, anticipated by the management of American Water to result from the merger; |

| (6) | discussed the past and current business, operations, financial condition, and prospects of Essential with 
 members of senior managements of Essential and American Water, and discussed