Company: AWK
Filing Date: 2025-12-17
Form Type: S-4
Source: 0001193125-25-321389
Chunk: 31

Company: American Water Works Company, Inc.
Filing Date: 2025-12-17
Form: S-4
Chunk 31
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), the exact timing of the merger cannot be                                    
 determined at this time and American Water and Essential cannot guarantee that the merger will be completed at all. For a description of the conditions to the merger, see “The Merger Agreement—Conditions to the Completion of the                      
 Merger” beginning on page 140. Also see “Risk Factors” beginning on page 35.                                                                                                                                                                              |

| Q: | Following the merger, what percentage of American Water common stock will the continuing American Water 
 shareholders and former Essential shareholders own?                                                     |

| A: | Immediately following the completion of the merger, continuing American Water shareholders will own                                                                                                                                      
 approximately [ ]% of the then outstanding American Water common stock, and former Essential shareholders will own approximately [ ]% of the then outstanding American Water common stock, in each case based on the number of shares of 
 common stock and stock-based awards of American Water and Essential outstanding as of [ ], 202[ ], the last practicable trading day before the date of this joint proxy statement/prospectus.                                            |

| Q: | What happens if the merger is not completed? |

| A: | If the share issuance proposal is not approved by American Water shareholders, if the merger agreement proposal                                                                                                                                           
 is not approved by Essential shareholders, or if the merger is not completed for any other reason, Essential shareholders will not have their shares of Essential common stock converted into the right to receive shares of American Water common stock. 
 Instead, each of American Water and Essential would remain separate companies. Under certain circumstances, American Water may be required to pay Essential a termination fee or Essential may be required to pay American Water a termination fee, as    
 described under “The Merger Agreement—Effect of Termination.”                                                                                                                                                                                             |

16

| Q: | Are there any risks associated with the merger that I should consider in deciding how to vote? |

| A: | Yes. A number of risks related to the merger are discussed in this joint proxy statement/prospectus and 
 described in “Risk Factors” beginning on page 35.                                                       |

| Q: | What are the U.S. federal income tax consequences of the merger to U.S. holders of Essential common stock? |

| A: | American Water and Essential intend for the merger to qualify as a “reorganization” within the                                                                                                                                       
 meaning of Section 368(a) of the Code for U.S. federal income tax purposes, and American Water and Essential intend to report the merger consistent with such qualification. Nevertheless