Company: AWK
Filing Date: 2025-12-29
Form Type: S-4/A
Source: 0001193125-25-332292
Chunk: 148

Company: American Water Works Company, Inc.
Filing Date: 2025-12-29
Form: S-4/A
Chunk 148
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 fully regulated water utility businesses (which are referred to herein as the “Selected Publicly Traded Water Utility Companies”) given American Water’s business profile as a pure-play water utility. Although none of the Selected Publicly Traded Water Utility Companies are directly comparable to American Water, the Selected Publicly Traded Water Utility Companies were selected by Moelis, based on its professional judgment and experience, on the basis of business models, scale, geographic presence and corporate structures, among other factors. In the case of Essential, Moelis utilized the Selected Publicly Traded Water Utility Companies for the Water Segment, and Moelis selected publicly traded utility companies that operate in the United States that primarily operate fully regulated gas utility businesses (which are referred to herein as the “Selected Publicly Traded Gas Utility Companies”) for the Gas Segment. Although none of the selected companies are directly comparable to Essential or its applicable segment, the Selected Publicly Traded Water Utility Companies and the Selected Publicly Traded Gas Utility Companies, as applicable, were selected by Moelis, based on its professional judgment and experience, on the basis of business models, scale, geographic presence and corporate structures, among other factors. Below are the Selected Publicly Traded Water Utility Companies Moelis considered in its analysis: Selected Publicly Traded Water Utility Companies

| • |     | American Water |

| • |     | American States Water Company (“American States”) |

| • |     | California Water Service Group (“California Water”) |

| • |     | H2O America (“H2O”) |

Moelis considered, but ultimately excluded from its analysis, Artesian Resources, Middlesex Water Company and the York Water Company due to significant differences in the attributes mentioned above that made them less relevant to Essential and American Water. The following table summarizes the P/E multiples for the Selected Publicly Traded Water Utility Companies:

| Selected Publicly Traded Water Utility Companies |     | Equity Value    
 ($ in millions) |        |     | P/E Multiple 
 2026E        |       |     | P/E Multiple 
 2027E        |       |
|:-------------------------------------------------|:----|:----------------|-------:|:----|:-------------|:------|:----|:-------------|:------|
| American Water                                   |     | $               | 27,895 |     |              | 23.3x |     |              | 21.9x |
| American States                                  |     | $               |