Company: AWK
Filing Date: 2025-12-17
Form Type: S-4
Source: 0001193125-25-321389
Chunk: 415

Company: American Water Works Company, Inc.
Filing Date: 2025-12-17
Form: S-4
Chunk 415
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 the date hereof that the Exchange Ratio provided for in the Transaction is fair, from a financial point of view, to
American Water.

Very truly yours,

BOFA SECURITIES, INC.

The Board of Directors

American Water Works Company, Inc.

Page 4

Annex C

Board of Directors Essential Utilities, Inc. 762 W. Lancaster Avenue Bryn Mawr, Pennsylvania 19010 Members of the Board: You have requested our opinion as to the fairness, from a financial point of view, to the holders of common stock, par value $0.50 per share (“ Company Common Stock”), of Essential Utilities, Inc., a Pennsylvania corporation (the “ Company”), of the Exchange Ratio (as defined below) pursuant to the Agreement and Plan of Merger (the “ Agreement”) to be entered into by and among the Company, American Water Works Company, Inc., a Delaware corporation (“ Parent”), and Alpha Merger Sub, Inc., a Pennsylvania corporation and a wholly owned subsidiary of Parent (“ Merger Sub”). As more fully described in the Agreement, Merger Sub will be merged with and into the Company (the “ Transaction”) and each issued and outstanding share of Company Common Stock (other than any Canceled Shares (as defined in the Agreement)) will be converted into the right to receive 0.305 (the “ Exchange Ratio”) shares of common stock, par value $0.01 per share (“ Parent Common Stock”), of Parent. In arriving at our opinion, we have, among other things: (i) reviewed certain publicly available business and financial information, including publicly available research analysts’ financial forecasts, relating to the Company and Parent; (ii) reviewed certain internal information relating to the business, earnings, cash flow, assets, liabilities and prospects of the Company furnished to us by the Company, including financial forecasts provided to or discussed with us by the management of the Company; (iii) reviewed certain internal information relating to the business, earnings, cash flow, assets, liabilities and prospects of Parent furnished to us by Parent, including financial forecasts provided to or discussed with us by the management of Parent; (iv) reviewed information regarding the capitalization of the Company and Parent furnished to us by the Company and Parent, respectively; (v) conducted discussions with members of the senior management and representatives of the Company and Parent concerning the information described in clauses (i) through (iv) of this paragraph, as well as the businesses and prospects of the Company and Parent generally; (vi) reviewed the reported prices and