Company: AWK
Filing Date: 2025-12-17
Form Type: S-4
Source: 0001193125-25-321389
Chunk: 14

Company: American Water Works Company, Inc.
Filing Date: 2025-12-17
Form: S-4
Chunk 14
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 before the 
 closing of the merger and what is the value of the merger consideration?                                     |

| A: | Changes in the market price of American Water common stock or the market price of Essential common stock at or                                                                                                                                          
 prior to the effective time of the merger will not change the number of shares of American Water common stock that Essential shareholders will receive because the exchange ratio is fixed at 0.305 of a share of validly issued, fully paid, and       
 nonassessable American Water common stock. The value of the merger consideration to be received in exchange for each share of Essential common stock will fluctuate with the market value of American Water common stock until the merger is completed. |

Based on American Water’s closing stock price on October 24, 2025, the last trading day prior to the announcement of the execution of the merger agreement, the implied value of the merger consideration was $43.18 per share of Essential common stock, representing an approximately 10% premium based on the average of the daily volume weighted average closing price per share of each company’s common stock over the 60-tradingday period ending October 24, 2025. Based on American Water’s closing stock price on [ ], 202[ ], the last practicable trading day before the date of this joint proxy statement/prospectus, the implied value of the merger consideration was $[ ] per share of Essential common stock.

| Q: | Are there any conditions to completion of the merger? |

| A: | Yes. Completion of the merger is conditioned on American Water shareholders approving the share issuance                                                                                                                                               
 proposal, Essential shareholders approving the merger agreement proposal, the receipt of certain governmental approvals, including the HSR clearance and the required state regulatory approvals, in each case on such terms and conditions that would 
 not, individually or in the aggregate, result in a burdensome effect (as defined in “The Merger Agreement—Efforts Related to Consents and Approvals of Governmental Entities” beginning on page 137), and a number of other                            
 conditions that must be satisfied or waived before the merger can be completed. For a description of all of the conditions to the merger, see “The Merger Agreement—Conditions to the Completion of the Merger” beginning                              
 on page 140.                                                                                                                                                                                                                                           |

5

For American Water Shareholders

| Q: | When and where is the American Water special meeting? |

| A: | The special meeting of American Water shareholders, which is referred to as the American Water special