Company: AWK
Filing Date: 2025-12-17
Form Type: S-4
Source: 0001193125-25-321389
Chunk: 150

Company: American Water Works Company, Inc.
Filing Date: 2025-12-17
Form: S-4
Chunk 150
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 the 2026E Net Income and 2027E Net Income for the Gas Segment were adjusted to remove one-time gains from asset sales in 2026E and 2027E, respectively. Based on its professional judgment and experience, Moelis then made a further adjustment to account for Essential’s excess leverage relative to the Selected Publicly Traded Water Utility Companies and the Selected Publicly Traded Gas Utility Companies. In determining an additional selected discount reference range to apply to Essential estimated financial metrics, Moelis noted that the selected reference range was informed by the estimated impact of requisite share issuances by Essential to normalize its balance sheet to be in line with the credit profile of the Selected Publicly Traded Water Utility Companies and Selected Publicly Traded Gas Utility Companies. Based on the foregoing analysis and its professional judgment and experience, Moelis selected a discount reference range of (1.5x) to (2.0x) to Essential’s 2026E P/E multiple and 2027E P/E multiple. Moelis then 97

applied such multiple discount range to Essential’s 2026E Net Income and 2027E Net Income based on the Essential Financial Projections, provided that the 2026E Net Income and 2027E Net Income for the Gas Segment were adjusted to remove one-time gains from asset sales in 2026E and 2027E, respectively. The implied ranges of equity values for Essential and the implied ranges of share prices for the Essential common stock derived from the selected publicly traded companies analysis for Essential based on the selected reference ranges of P/E multiples described above are presented below, and the implied ranges of share prices were compared to the closing share price for Essential common stock of $41.30 as of October 23, 2025.

| Essential                                                      |     | Implied Equity  
 Value           
 ($ in millions) |                  |     | Implied Share Price 
 ($ per share)       |                |
|:---------------------------------------------------------------|:----|:----------------|:-----------------|:----|:--------------------|:---------------|
| Selected Publicly Traded Companies Analysis – 2026E Net Income |     | $               | 9,697 - $12,845  |     | $                   | 34.17 - $45.23 |
| Selected Publicly Traded Companies Analysis – 2027E Net Income |     | $               | 10,134 - $13,450 |     | $                   | 35