Company: AWK
Filing Date: 2025-12-29
Form Type: S-4/A
Source: 0001193125-25-332292
Chunk: 155

Company: American Water Works Company, Inc.
Filing Date: 2025-12-29
Form: S-4/A
Chunk 155
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 to 12.5x for Water Segment’s TEV / 2027E EBITDA multiples, (ii) reference range of 10.0x to 13.5x for the Gas Segment’s Price / 2026E EBITDA multiples and reference range of 8.5x to 12.0x for Gas Segment’s Price / 2027E EBITDA multiples and (iii) reference range of 10.3x to 14.1x for the Parent Segment’s Price / 2026E EBITDA multiples and reference range of 9.1x to 12.3x for the Parent Segment’s Price / 2027E EBITDA multiples. Moelis then applied such multiple ranges to each segment’s 2026E EBITDA and 2027E EBITDA based on the Essential Financial Projections. 100

Solely for informational purposes, the implied ranges of share prices for Essential common stock derived
from the selected publicly traded companies analysis for Essential based on the selected reference ranges of TEV / EBITDA multiples described above were $23.99 to $43.05 per share for 2026E and $23.45 to $41.13 per share for 2027E, respectively. The
implied ranges of share prices were compared to the closing trading price for Essential common stock of $41.30 per share as of October 23, 2025.

In determining the selected reference
ranges to apply to American Water’s estimated financial metrics, Moelis noted (i) that the selected reference ranges were informed by the current and recent historical trading multiples for American Water, (ii) American Water’s
larger scale, balance sheet strength, stronger financial performance and ability to earn at or above authorized returns in key jurisdictions relative to the other Selected Publicly Traded Water Utility Companies and (iii) that the Selected
Publicly Traded Water Utility Companies were considered less directly comparable due to smaller size, regulatory exposure and geographic focus.

Based on
the foregoing analysis and its professional judgment and experience, Moelis selected a reference range of 13.0x to 14.5x for American Water’s TEV / 2026E EBITDA multiples and reference range of 12.0x to 13.5x for American Water’s TEV /
2027E EBITDA multiples. Moelis then applied such multiple ranges to American Water’s 2026E E